Online brokerage scams have become widespread nowadays and there are constant reports of such in the market. Of course, this can be extremely worrisome for people who are thinking of signing up because they are forced to wonder if the platform they are considering can be trusted or not. No one wants to leave themselves vulnerable to a scam. Not only does it put your money and your data at risk, you will not be able to enjoy the profits associated with trading either. Therefore, you have to find a broker you can trust and this Novoideal review can come in handy in this regard.
How? In order to determine if you can trust a broker or not, you have to not just take a look at their website. No company will tell you their flaws or shortcomings and it is your job to find them and figure out if you can live with them or not. Doing so can also help you determine if the broker is worth your trust or not. But, how do you do that? This is where reviews are helpful because they shed light on some of the most important aspects of a broker.
The same is true for Novoideal, a Swiss forex and CFD broker that claims to offer high-quality trading services to more than 190,000 traders all over the world. They offer a modern trading platform and as per their website, they are regulated pretty much everywhere, such as the United States, United Kingdom, Australia, Hong Kong, South Africa and the European Union. This makes it sound like a fantastic broker and one you should sign up with right away. However, the review below will tell you a different story:
False claims of licensing and regulation
How can you trust a broker without knowing their licensing and regulatory status? Every legitimate brokerage would make the effort of getting a proper license because they have no problems in being accountable and want to earn the trust of their clients. As mentioned above, Novoideal has claimed to be a licensed and regulated brokerage in various jurisdictions. Unfortunately, these are just claims because you will quickly discover that it is a scam and not regulated anywhere.
The Swiss Financial Markets Supervisory Regulatory Authority (FINMA) has exposed Novoideal and you will find a warning on their website about the brokerage. This is a major red flag and should be enough to warn you off. However, if you need further proof, then you just need to verify the company’s claims of being regulated in different jurisdictions. As per their website, Novoideal is regulated by the Securities and Futures Commission (SFC) in Hong Kong, the European Securities and Markets Authority (ESMA), the Financial Conduct Authority (FCA) in the United Kingdom and the Commodity Futures Trading Commission (CFTC) in the United States.
These are not all because they have also mentioned the IFSC, CySEC and the AUSTRAC on their website. There are several problems with these claims by Novoideal. Firstly, the financial regulator for Australia is the Australian Securities and Investments Commission (ASIC), which means the mention of the Australian Center for Accounting and Analysis of Financial Transactions (AUSTRAC) is just a gimmick. Secondly, the European Securities and Markets Authority (ESMA) is not a regulator either. It is just an umbrella organization that offers guidelines for regulatory authorities.
All of this indicates that Novoideal is an outright scam and is not even good at it because they haven’t got the names of the regulators right.
No Terms and Conditions
Before you sign up with a broker, you should always check out their Terms and Conditions because they highlight what kind of policies you will have to comply with and the fee they will charge you. It helps prepare traders in terms of expectations and you would want to do the same with Novoideal. The problem is that you can scour through their website and not find their Terms and Conditions anywhere.
This means that the broker requires you to agree with their Terms and Conditions without signing up and this is certainly not a good idea because they can charge you pretty much anything or add any policies and you will not be able to do anything about it. Again, this is further confirmation that Novoideal is not a broker you can trust.
When you go through the offerings on the Novoideal website, you will discover that they claim to offer leverage of about 1:500. This ratio might be impressive at first glance, but should immediately alert you to the broker being shady. Why? After all, they have alleged that they are regulated in multiple jurisdictions, including those where such high levels of leverage are forbidden. This means that they are lying about their regulation and offering these ratios to lure in people to their platform.
No appropriate trading platform
Another disappointment in store for you when you check Novoideal is their trading platform, which is a cheap-looking software that doesn’t even come close to the top trading solutions in the industry. No professional brokerage would ever offer you such a trading platform and it is further confirmation that this is a shady company. Opt for a broker that can offer you the MT4 or the MT5 trading platforms because those are advanced and quality platforms that can make trading smooth and easy.
Only bitcoins supported
Lastly, you will come to know that Novoideal only offers you bitcoins as a payment method on their platform. This is another indication of a scam because crypto transfers are anonymous and final, which means once you have made them, you cannot get a refund if the broker is a scam. Only credit cards come with the chargeback option that lets you get your money back within 540 days of the transaction, but those are not supported here.
The false regulation claims, cheap trading platform and availability of only bitcoin as payment method all indicate that Novoideal is an outright scam and not a broker you can trust.