IB-Finanzas Review – Spotting the Red Flags

IB-Finanzas Review

The profitability of the financial markets has remained a hot topic for decades. Anyone who has even a little bit of knowledge about these markets knows that their volatility means that they can give you high returns in a very short amount of time. Yes, your luck, strategy and experience plays an important role in your overall success, but there is another vital ingredient that can make a big difference; the broker you use. Thousands of online brokers may exist, but no two companies will be able to offer you the same services and experience, as you can learn from this IB-Finanzas review.

As a matter of fact, some platforms are quite dedicated to providing exceptional trading services, but there are also those that are up to no good and they are quite shady. It is a given that you would want to choose a brokerage that belongs to the former category because it offers you safety and ensures a smooth trading experience, while the latter can only lead to losses. The problem is that finding the right broker is easier said than done. With advanced tools and software available nowadays, even fraudulent platforms can be designed to look exactly like genuine ones.

A couple of glances would never make it evident that you are dealing with anything but an authentic company. This ruse has been used by lots of cybercriminals and there are millions of people who have suffered at their hands. So, how do you keep yourself safe? The goal is to not make a decision without carefully assessing a company and ensuring there are no red flags. Bear in mind that shady and impostor platforms will have plenty of red flags and you only have to look for them to know the truth. IB-Finanzas is one of the companies you will find when you are looking for a brokerage.

At first glance, you will not find anything alarming about IB-Finanzas, but you will find the red flags when you begin searching. Ready to spot them? Let’s get started:

Lack of licensing and regulation

The quickest solution to avoid falling into any kind of trap is to sign up with a regulated and licensed brokerage. These platforms have to comply with numerous rules and regulations, maintain high quality of standards, remain transparent and also offer safety and protections to their clients. You can also hold them accountable in case of a problem. Thus, you should check if IB-Finanzas is regulated and licensed.

In order to do so, you will need to know where IB-Finanzas is based and when you check, you will come to know that they are registered in Saint Vincent and the Grenadines. This is known as an offshore jurisdiction and does not add any credibility to the broker at all. Why? It is because the Financial Services Authority (FSA) in SVG have already disclosed that they do not monitor the forex industry.

This means that the companies that establish themselves in SVG do not have to follow any rules and neither are their activities monitored. Anyone can set up a company there on paper, which is what IB-Finanzas seems to have done and there is no way to hold them accountable in any way.

Problematic trading bonuses

You should always check the Terms and Conditions of an online broker before signing up in order to know what you are getting into. This can help you avoid any surprises down the road. It is a good thing that you decide to do the same with IB-Finanzas because you will discover that they are offering trading bonuses to their clients. Gone are the days when these bonuses were widely accepted in the financial markets.

These days, most regulatory bodies have imposed a ban on these trading bonuses, such as those in the UK, Australia and Europe, because they come with strings attached that are not considered fair at all. This will become evident when you check out the Terms and Conditions of IB-Finanzas because their policy related to bonuses is also exploitative.

The bonus policy at IB-Finanzas dictates that traders will not be allowed to make a withdrawal from their account until they achieve a minimum trading volume requirement. When you check out this turnover requirement, you will come to see just how impossible it is to achieve. Moreover, you will also find that IB-Finanzas has taken steps to ensure no withdrawal can be made.

This is because when you continue going through the Terms and Conditions of IB-Finanzas, you will find that the broker states they can change their bonus policy at any time. This means that even if you manage to come close to achieving their minimum turnover requirement, they will simply change it without any prior notice.

No MT4 or MT5 trading platform available

If you were expecting a decent trading platform at IB-Finanzas, you should be ready for disappointment because they do not offer you anything special. Most professional companies in the market offer their clients the MT4, MT5 or cTrader, as these are recognized as advanced and powerful trading solutions in the market. Instead, you will find a basic and oversimplified web trading platform available here that does not have much to offer. You will find this trading platform to be quite lacking in terms of features and functionalities.

Unfavorable trading conditions

A look at the trading conditions that are offered at IB-Finanzas will show you another red flag because they are not competitive at all. You will come to know that they offer leverage ratios as high as 1:200. Some might consider this an advantage, but it really is not because such ratios can be very dangerous. Most regulatory authorities have imposed a cap of 1:30 on the amount of leverage to be offered.

Apart from that, a look at the spreads offered by IB-Finanzas shows that they are offering 2.6 pips for the EUR/USD currency pair, which is significantly higher than most professional platforms. They do not go beyond 1 pip.

Closing Thoughts

These red flags, including a high inactivity fee, show that IB-Finanzas is not a good broker and you should look for a different option altogether.