There has been a lot of talk about scam and fraudulent brokers and many people have become victims of these platforms. Therefore, when you start looking for an online broker, you will be wary because you want a legitimate company to partner with. The trouble is that every single one you come across promises this. In fact, they claim to be the best of all and if that were true, you would end up opening hundreds of account with hundreds of brokers. This Noble-Trading review shows you just how misleading some companies can be and why it is important to be careful.
Even a slight mistake can cost you a lot of money, which you do not want. After all, it is your hard-earned money and having others steal it from you would be extremely frustrating and disheartening. You want to make money from the financial markets, not lose it, and this can only happen when you have just the right broker to help you out. Yes, good ones do exist and they have helped many people in profiting from the markets. Those who fall into the traps of these fraudulent brokers do so because they don’t do their homework.
They are so eager to jump into online trading that they don’t look at the red flags in front of them. Sometimes, these red flags are not very obvious, so people miss out on them. The key is to take some time, go through a broker’s website thoroughly, check their offerings and then make your decision. This is what the following Noble-Trading review does. They claim to be a leading online broker that has a presence in several jurisdictions, including Malaysia, Japan, Singapore, Australia, Myanmar, United Arab Emirates and Chile. In addition, they also claim to be licensed in the United States, which is no small feat.
All of this is undoubtedly impressive, until you take a closer look and that’s when things start to fall apart. How? Read on to find out:
False claims about regulation
The regulation and licensing of a broker are the biggest indicators of its trustworthiness and Noble-Trading falls apart here. As mentioned above, it claims to be regulated in the United States, which is one of the most strictly regulated jurisdictions in the world. As per their website, they claim that the company that owns and operates the broker i.e. Noble Trading Solutions LLC is registered in the USA and falls under the supervision of the US Secretary of Treasury.
To begin with, you should note that brokers operating in the US are not regulated by the US Secretary of Treasury. Instead, it is the Commodity Futures Trading Commission, which is responsible for regulating them. In addition, they also need to be a member of the National Futures Association (NFA). You can check their registers for the name of Noble Trading Solutions LLC and not find it there.
Secondly, it appears that Noble-Trading cannot decide who its parent company is. While they have mentioned it is Noble Trading Solutions LLC, at one point they have also said that a company based in the British Virgin Islands called United Capital Group Ltd. is behind their operations. This conflict of information further confirms that the broker is not what it claims to be.
No Terms and Conditions
Every time you sign up on any online platform, whether it is a brokerage or a social media platform, or another website, they ask you to accept their Terms and Conditions. These outline the policies that are applicable and rules to be followed. When it comes to a broker, it establishes the kind of relationship you will have with them, which means all fees, trading conditions and policies are mentioned.
So, when you want to know what to expect from any broker, it is the document you go through. Therefore, most people are flabbergasted when they discover that Noble-Trading doesn’t have the Terms and Conditions mentioned on their website. They expect you to just accept everything they toss at you, which is not fair and not something a legitimate entity would ever do.
Conflict in minimum deposit
The fact that Noble-Trading doesn’t seem to be able to make up its mind in regard to its services is a major red flag. As stated earlier, this is the case when you are looking at the parent company of the broker and it also applies in terms of the minimum deposit needed for opening an account on the platform. At one point, you will discover that a minimum deposit of $100 is needed, while at another place you have to deposit $25. If you go through the Frequently Asked Questions (FAQs) on their website, you will notice that they say no minimum deposit is needed. Such conflicting statements only lead to zero credibility.
The conflict doesn’t end with minimum deposit because you will find it in the case of leverage as well. When you go through the Noble-Trading website, you will first find that they offer their clients leverage of 1:400 and then at another point, they have mentioned leverage of 1:500. What do they provide? It remains unclear, as if the broker itself is unable to make up its mind. Most importantly, both of these leverage levels are excessive, considering where the broker claims to be registered. Brokers in the US are not permitted to offer such high levels of leverage to retail traders due to the risk.
It is easy for people to be drawn in by the claim of regulation in the United States and also by the fact that Noble-Trading offers the industry standard MT4 trading platform. Yes, they do offer a distribution of the MT4 and they also support payment methods like credit cards, including VISA and MasterCard, and wire transfers. However, there is no way to confirm the latter and even if it is true, it doesn’t make up for the fact that they are lying about their leverage and have provided conflicting information about their parent company and trading conditions.