Snow-trade Review – Reasons to Avoid this Broker

Snow-trade Review

Are you looking for an online brokerage to trade in the financial markets? There has been renewed interest in the online trading space, particularly after the havoc that the COVID-19 pandemic wreaked on the global economy. These markets offer substantial profits and many people are eager to take advantage of them in order to grow their portfolios. However, whether you are able to do so or not depends heavily on the brokerage you choose for your trading needs. There are some companies that should be avoided, as this Snow-trade review indicates, because they do not have your best interests at heart.

It is a fact that every brokerage will be looking to make its own profits, but you do not want them to do so at your expense. When you are seeking an online brokerage, you want quality and professional services that can help you move towards your goals and make your fortunes, just like plenty of other people have done before in the trading space. Yes, genuine and authentic companies do exist and can provide great services, but there is no denying that there are bad characters as well. Their goal is to take your money and leave you empty-handed.

This is certainly not an outcome you would ever want to deal with, so you have to be careful when you are broker shopping. The most vital thing to remember is that no scammer or fraudster would ever admit to what they intend to do. You have to find their true intentions and protect yourself and this means doing a little digging. The website of these brokers often don’t show any obvious signs, so you have to look beneath the illusion they create and figure out the reasons to avoid them. You should adopt the same approach with Snow-trade that may seem like a decent brokerage at first glance, but is hiding a lot of issues underneath.

Some of the reasons for you to avoid Snow-trade are outlined below:

Reason 1: False regulation claims

The first and most prominent reason for you to avoid signing up with Snow-trade is the fact that the brokerage is making false claims of regulations. Nowadays, most people prefer to sign up with regulated and licensed companies because they are aware that there is a low probability of these platforms turning out to be fraudulent. Therefore, they have begun to forego unlicensed and unregulated entities, no matter how tempting their offers may be.

Of course, this means that scam brokerages will not be able to find enough victims, so now they just make claims of being regulated to fool people. This is exactly what Snow-trade is doing, as it talks about being regulated, but this is not the case. According to their website, they are regulated by the Securities and Exchange Commission. The issue is that the forex industry is regulated at the national level, which means every country has a different regulatory authority.

It is possible that Snow-trade could be referring to the US SEC, but this does not seem to be the case because of several reasons. First off, the brokers in the US are regulated by the Commodity Futures Trading Commission (CFTC) and have to be a member of the National Futures Association (NFA). The SEC does not regulate brokers in the country. Secondly, Snow-trade is also breaking the rules of leverage in the US, so it is not regulated there.

Reason 2: Malicious Terms and Conditions

The fact that you are dealing with an unregulated brokerage is already a big problem, but it gets worse when you check the Terms and Conditions that Snow-trade has mentioned on its platform. You will discover that the company appears to be offering trading bonuses to its clients, which is a practice that has been banned in various jurisdictions. This happened because these bonuses come with strings attached that are not in favor of traders.

You will find the Terms and Conditions of Snow-trade to be quite malicious as well. They have stated that traders cannot make withdrawals from their accounts that are credited with a bonus. They are not permitted to withdraw profits generated via these bonuses, but essentially this blocks all withdrawals because you cannot physically separate the profits made from your own deposits and those made from bonuses. There is likely a trading volume requirement that traders have to fulfill as well, but it has not been outlined, so you are probably in for a surprise.

Reason 3: Lack of a decent trading platform

All your trading activities that you do via a brokerage depend on the trading platform that you are provided. Every company will offer you a different one and you obviously expect it to be one of the best ones in the market as it shapes your trading experience. But, what you are offered at Snow-trade is not even close to what you expect.

They offer their clients a simple and basic web trading platform that lacks the trading tools and features that some of the top trading platforms in the market can offer. The MT4 and the MT5 are two of the well-known and leading trading solutions, but Snow-trade does not offer you either option. Instead, you are given a basic platform that lacks most of the features you want to use.

Reason 4: Bad trading conditions

The trading conditions that you are offered at Snow-trade are yet another reason for you to avoid this brokerage. You will find that they are offering spreads of 3 pips for the EUR/USD forex currency pair, while most competitive and professional brokers offer spreads as low as 1 pip. This is three times higher, which is a huge disadvantage.

In addition, you will come to know that Snow-trade asks you to make a minimum deposit of about $5,000 to open a trading account with them, which is too high. Most brokers do not ask for more than $250 and this is excessive.

Final Word

Due to these reasons, it is evident that Snow-trade is a broker that you should avoid at all costs.