When you have decided to venture into the world of online trading, choosing the right platform to do so is of the utmost importance. Most people are not aware that this decision can have long-term repercussions, as the brokerage you decide to use provides you with the trading platform, features, tools and conditions that affect your performance. It is understood that you would not want to settle for anything less than the best, but finding the best is not that simple. This is because there are a lot of fraudulent brokers that appear to be legitimate and this Greendax review highlights one of them.
You will have no trouble in discovering that there have been countless incidents where people have lost their money to these scam brokers. This was because they did not know that it was a scam and fell for the illusion they had created. Of course, getting scammed is a nightmare that no one wants to live, but you can only do so when you do some research. If you expect the brokerage to give you a warning, then you are not being practical and this can cost you significantly. The best approach is to approach the task with caution and take everything a broker claims with a grain of salt.
It is natural for them to make big promises to attract people to their platform, but this does not mean that they can actually fulfill them. Some legitimate companies also make tall claims and may not be able to deliver, but scammers have a whole other set of problems as well. As long as you are able to identify them and not get lured in by their promises, you will be able to keep yourself safe. This should also be done in the case of Greendax, which is a state-of-the-art and modern forex and CFD brokerage that promises tight pricing, impressive trading conditions and more than 1,200 trading instruments to choose from.
They also promise to give their clients a feature-rich, robust and dependable trading platform in a secure trading environment that delivers transparency. All of this makes Greendax a very comprehensive trading solution, but you can discover a host of problems with the brokerage when you do some research. What are these? Some of them are highlighted below:
False regulation claims
The easiest way to avoid a scam is to opt for a regulated and licensed brokerage because these companies can be held accountable and they comply with policy and rules that ensure that you are provided quality services. When you come across Greendax, you will discover that it claims to be operating an office in Hong Kong. In order to do so, the company would have to have a license from the Securities and Futures Commission (SFC) in the country.
But, if you check the regulatory authority’s register, you will not find Greendax listed, which means it is certainly not regulated. If it does have an office in Hong Kong, it is an illegal one. Another problem with Greendax is that it claims to be owned and operated by two different companies on its website. At one point, it states that Greendax Ltd. is behind it, while at another it says that Some Company Ltd powers the broker.
The latter is based in Saint Vincent and the Grenadines. This further confirms that Greendax is a scam brokerage because they have made an editing mistake and not changed the name of ‘Some Company’. No authentic company would ever make such a big blunder, as they would double-check their website’s content. Apart from that, a registration in Saint Vincent and the Grenadines is also of no value because it is an offshore jurisdiction and its Financial Services Authority (FSA) has stated that they do not monitor the forex markets. This has made it a hotbed for scam operators and Greendax is one of them.
Malicious withdrawal conditions
Checking the withdrawal conditions of a broker is of the utmost importance because you want to be able to get your hands on your money easily. This is where you will discover that Greendax has created a whole set of problems for you. Since they are not a legitimate broker, they will not permit you to withdraw your money and this is exactly what becomes apparent when you check out their withdrawal conditions.
First off, when you go through the Terms and Conditions on the Greendax website, you will find that the broker has said that delays can occur where withdrawals are concerned and they cannot be held liable for that. They have not shared any explanations as to why that may happen. Secondly, they have also asserted that they can impose a limit on the withdrawal amount as well as the number of withdrawal requests you can make. An authentic brokerage would never prevent its clients from accessing their own money. Only scammers take this approach, as their goal is to take your money.
Excessive minimum deposit and leverage
Other problems that you come across when you thoroughly check Greendax is the excessive minimum deposit they require and the high leverage they offer. They ask you to deposit a whopping $2,500 for opening an account. These days, most companies allow you to start trading with as little as $10. Even if standard amounts are followed, they are not more than $250. This is 10 times the amount, which is a warning sign. Secondly, you get leverage as high as 1:500, which is meant to be appealing, but considering how risky leverage is and that such high ratios are banned in most jurisdictions, it shows the broker’s tactics to fool people.
Along with these problems, you should also bear in mind that there is no way to confirm if Greendax does support card payments as it claims, so you cannot be sure if a chargeback would be possible. Likewise, there is no way to check their trading platform either, but they do not offer market-renowned choices like MT4 and MT5, so it is best to avoid Greendax altogether.