Even before it shifted online, brokers were an essential part of the trading process and have remained so. Online brokerages offer you access to the markets and instruments, give you the software to trade from and the tools you require. To put it simply, they shape your entire trading experience, which makes it a must to choose a brokerage that is reliable and professional. But, this task is not without its obstacles because there is an excessive number of companies offering their services in the market and not all of them are created equal. This RealFactorFX review can show you just how different they can be.
Of course, almost every brokerage you come across will make you some tall promises about offering the best services in the market. If you accept their claims, it would mean opening an account with them all, which is obviously not practical. But, this does not mean that you choose the first one you find either. You have to check their claims first in order to ensure you are prepared for what they can offer to you and then take things forward. This can help you choose the kind of platform you want.
Most importantly, it will enable you to choose an authentic brokerage and help you avoid falling into the trap laid out by fraudsters and cybercriminals. Indeed, they are quite rampant in the financial markets as well and are looking for opportunities to scam people. Setting up fake brokerages is one of the most common tactics, so being vigilant can save you from it. This can help you in the case of RealFactorFX as well, which is presented as a legitimate British broker that offers a wide range of assets for trading. At first sight, the broker’s website can really impress, especially when you discover that it offers the MT4 and the MT5 trading platform.
However, some checking is needed and it is good that you do so with RealFactorFX because the reality is not what it portrays. Let’s check out the warning signs:
False licensing claims
Checking the license of an online brokerage should always be your top priority because it shows their authenticity and dedication. Licensed platforms have to maintain high standards and quality services and offer protection to their clients, which is incredibly reassuring. When you check out RealFactorFX’s website, you will find that it claims to be regulated by the Securities Commission of the Bahamas and the Financial Conduct Authority (FCA).
The FCA is recognized as the regulatory body in the United Kingdom and is renowned globally as one of the most reliable organizations in the world. It has very strict standards, which means it is definitely impressive for any brokerage to have a license from it. However, when you check the license number that is given on RealFactorFX’s website, you will find that it belongs to a different British broker called ActivTrades. This shows signs of firm cloning, which means a scam brokerage is using the details of a legitimate one to appear authentic when it really isn’t.
As a matter of fact, it is probably this action of RealFactorFX that has driven the FCA to actually issue a warning against the brokerage. That’s right; it appears that the FCA has blacklisted the company for offering its services illegally in the United Kingdom. This means that not only is the brokerage lying about its license, it is offering its services illegally in the UK, which clearly indicates that it is not a reliable platform at all.
No trading platform
As mentioned earlier, brokers are an important part of the online trading process and this is primarily because they are the ones that provide you with the software needed for actually executing your trades in the markets. How will you buy and sell trading instruments? Traders use the software that brokerages provide for this purpose. You obviously expect RealFactorFX to do the same.
Moreover, when you check out their presentation, you will be pleased to see that RealFactorFX is promising some of the top trading software in the market. The MetaTrader4 (MT4) and the MetaTrader5 (MT5) are recognized as award-winning platforms that use advanced technology to offer traders a multitude of trading tools, such as automated trading, charts and various indicators.
Unfortunately, when you are done registering yourself with RealFactorFX, you will discover that all their claims are a sham. There is no trading platform available at all; instead, all they have done is create an illusion to fool people. When you log into the client dashboard, you will find third-party charts available, but they do not have an option to trade. This makes it a downright scam because there can be no trading without a trading software. Legitimate platforms would obviously offer the MT4, MT5 or cTrader platform, which RealFactorFX does not. They have only added the claim to lure clients into signing up.
Only crypto payments possible
It is also recommended that you check the payment methods provided by a broker and this is best for several reasons. First, you want to ensure that there are convenient solutions available, so you will be able to deposit and withdraw easily. Secondly, you also want to be able to file for a chargeback in case something goes wrong. This way, you will not lose your money and will be able to get a refund in case there is a scam.
This is where you will discover that RealFactorFX is lying again because it lists a bunch of payment methods on its website. These include bank transfer, Skrill, Neteller, Sofort and debit and credit cards. In reality, however, the brokerage only allows its clients to make deposits via cryptocurrencies. This method has become a favorite of scammers because these payments are final and irreversible. Also, they also tend to be anonymous and this works in the favor of criminals.
Taking into account the warning signs at RealFactorFX, you can conclude that this is not a reliable or professional broker at all.