As online trading is one of the biggest trends to date, it is not surprising that the number of brokerages in the market that facilitate this process has increased tenfold in the last few decades. The global pandemic also resulted in people dipping their toes in this space to supplement their incomes and this has increased the need for reliable and competitive brokerages. Unluckily, it has also led to greater criminal activity in the form of fraudulent and shady brokerages. You can go through this ParkerFisher review to understand how these operate.
Even if you have not engaged in online trading before, there is a good chance that you have heard of people getting scammed at the hands of brokerages. This has been happening since people started trading online and continues to happen. The difference is that these cybercriminals have gotten better over the years, due to which people continue to fall for their tricks. Sometimes, it is almost impossible for even skilled and experienced traders to tell fraudulent brokerages apart from genuine ones because they are so well-designed. But, there are some indications that can help you in ascertaining their true nature.
It is vital to remember that no scam broker will give you any warnings. In fact, they are likely to signal the opposite, which means you have to make the effort of discovering the truth. There is no need to be very concerned because it is not that complex. The key is to peel back the layers and take a look underneath the surface, which you should also do for ParkerFisher. It claims to be a leading trading platform for CFD trading and is catering to traders of all levels, which makes it a very attractive option. But, it is not what it has portrayed itself as and you can discover the truth when you take a closer look.
Let’s check it out:
Blacklisted by German authorities
It is considered a sign of a reliable and genuine brokerage if it has a license to provide its services and is regulated by an authority. The problem with ParkerFisher is that not only does it lack a license and is unregulated, it has actually been blacklisted by a regulatory body. Being unregulated is already an issue and to top it off, it has earned a warning, which is a major red flag.
As a matter of fact, you will discover that it has invited the ire of BaFin, which is the regulatory authority of Germany, and one of the well-respected financial authorities in the world. According to the warning you will come across on their website, Mainserver LTD has been offering its services to German clients without proper authorization. This is the company that owns and operates ParkerFisher, which is all the confirmation you need about the broker’s lack of regulation and license.
No authentic broker would ever operate in a jurisdiction without a proper license because it can hurt their reputation. The fact that ParkerFisher is doing so shows that it is not a legitimate company.
Based in the Marshall Islands
In order to check the licensing and regulatory status of a brokerage, you need to find out where it is based and the same applies to ParkerFisher as well. You can find the details on their website’s homepage in the Footer. It means that the brokerage is owned and operated by Mainserver LTD, which is registered in the Marshall Islands.
This reassures no one because the Marshall Islands is an offshore zone, which is considered a scam haven. Many scam operations are based there because the authorities in the jurisdiction have clarified that they do not regulate their forex markets. Thus, anyone can setup a company there and begin offering their services, without having to worry about any accountability, or anything else. The same appears to be true in the case of ParkerFisher.
Malicious bonus policies
You need to examine the Terms and Conditions of a broker before signing up with them in order to know what policies you will have to comply with and the kind of fee you will be charged. This is where you will come across the malicious bonus policy of ParkerFisher. Trading bonuses are offered by the brokerage as a way of attracting people to its platform.
It should be noted that this practice is banned in most regulated jurisdictions and this was done because of the malicious policies associated with them. Yet, it appears that ParkerFisher is not only offering these bonuses, but also has a malicious policy to go along with them. The policy dictates that every account that has been credited with a bonus will not be allowed to make a withdrawal until they achieve a certain turnover.
They have deliberately worded the turnover requirement in such a manner to confuse people. Essentially, traders who have received a bonus of $100 from ParkerFisher would have to have a trading volume of $1 million to be able to withdraw! This is not reasonable or practical to expect from any broker, which makes it a clever ploy to prevent people from making withdrawals.
High minimum deposit
Another issue that you will find at ParkerFisher is that it requires a minimum deposit of a whopping $10,000 for traders to open an account. These days, genuine and professional brokers allow their clients to open a micro account for as low as $10. Even if average deposit is needed, it is not more than $250. Their deposit is 40 times more, which is not practical.
Weak trading software
The trading software that a broker provides is also relevant because you engage with it the most. Unfortunately, you will discover that rather than offering you some of the market leading software like the MT4 or the MT5, a weak web-based software is available at ParkerFisher. This is a basic software that plenty of scam brokers offer to their clients, so it is nothing special.
At this point, the truth is evident i.e. ParkerFisher is not a reliable or decent brokerage and is clearly a scam.