NEW KNIGHT GROUP LIMITED Review
When you begin your search for an online broker to start your trading journey, your priority is to find a reliable broker. Why? This is because there are thousands of these platforms that exist, but not all of them can be deemed reliable. There have been countless incidents where people did not prioritize reliability and ended up becoming victims of fraudulent and shady companies. It is an outcome that you want to avoid when you are beginning your trading journey because your goal is obviously to make profits. Checking out this NEW KNIGHT GROUP LIMITED review is one way to do so.
It is natural for every brokerage to claim to be reliable; even the scam ones are going to portray themselves as one. This makes it your job to do some digging and find out the truth. Yes, reliable and authentic platforms do exist, but so do fraudulent ones, which means you cannot let your guard down at any point. Even a slight miscalculation can set you back, so it is best to know what you are getting into. You need to do the same in the case of NEW KNIGHT GROUP LIMITED because at first glance, you will find absolutely no problems with it.
As a matter of fact, if you don’t know any better, you would think that NEW KNIGHT GROUP LIMITED is a reliable brokerage that can give you everything you need for a profitable and successful trading journey. But, if you put in the effort, you will realize just how wrong this conclusion is because there are a number of problems with this platform. What are they? Let’s go digging:
Lack of license
The best measure of the reliability of an online brokerage is its license. A legitimate broker will have a license from a regulatory authority, typically of the country it is based or operating in. The licensing shows that the company is willing to follow rules and laws and meet certain standards of service. In fact, it also indicates that its operations are monitored by a third party, which can take action in case of a problem. Therefore, you need to know if NEW KNIGHT GROUP LIMITED is licensed or not.
The gist is that the brokerage is completely unlicensed, but what makes matters worse is that it is actually lying about its licensing status. When any broker does so, it essentially confirms that it is up to no good, or else it would not attempt to mislead anyone. The only mention of licensing on the NEW KNIGHT GROUP LIMITED website is in their Questions & Answers section. It claims to be following the rules of the Australian Financial Instruments Markets Regulations.
Secondly, it claims to be a participant of the Investment Compensation Fund (ICF), which indicates that all investors of the company will be compensated if it fails to honor its commitments, or files for bankruptcy. This should be reassuring, but it is not. This is because NEW KNIGHT GROUP LIMITED has not even bothered to use the name of the actual regulatory authority in Australia i.e. the Australian Securities and Investment Commission (ASIC). You can check its registers and not find the broker listed.
Furthermore, even though the ASIC is quite strict, its members are not required to participate in the ICF like in European countries, which makes it another lie. To add onto it, you will find that the ASIC has imposed a limit on the amount of leverage that can be offered to traders and this is set at 1:30. Yet, when you dig into the conditions offered at NEW KNIGHT GROUP LIMITED, you will find that it offers significantly higher ratios, which it definitely shouldn’t.
No legal documentation
If you think these are the only problems with NEW KNIGHT GROUP LIMITED, you are in for a surprise. There are more issues waiting, such as the fact that it does not appear to have any legal documentation at all. Every brokerage has some Terms and Conditions, or Client Agreement that you have to agree with when you decide to sign up on their platform. The purpose of these legal documents is to establish the kind of relationship you will have with them.
Also, the legal documents highlight the policies, the fees and other details, such as commission, which means you need to go over them. Yet, you can dig through the NEW KNIGHT GROUP LIMITED website and not find any such legal document at all. This is rather a staggering lack of transparency and no legitimate brokerage would ever do so. This indicates that the platform does not want you to know its conditions or fees, probably because it has full intentions of fleecing you.
Terrible trading conditions
As mentioned above, NEW KNIGHT GROUP LIMITED is definitely not a transparent brokerage and is just a fraudulent brokerage. You can find further evidence in the form of the terrible trading conditions they have set on their platform. First off, in order to start using their trading services, you have to make a minimum deposit of $1,000. This is considered too high these days, as many platforms are now allowing their clients to open micro accounts with a deposit as low as $10.
Even if they do charge more, it is no more than $250 and this is four times as high. This demand is definitely not acceptable and shows that NEW KNIGHT GROUP LIMITED just wants to get as much money from you as possible. Moreover, you will find that it also offers leverage as high as 1:500. While some might find this attractive because it gives you more trading room, you should remember that leverage is a double-edged sword and can get you in trouble.
Lastly, the spreads that NEW KNIGHT GROUP LIMITED is charging are also very high, as it is set at 3 pips for the EUR/USD pair, while most legitimate platforms don’t go higher than 1 pip.
All of these glaring issues indicate that NEW KNIGHT GROUP LIMITED is not a reliable broker by any account.