Online trading is undoubtedly one of the biggest trends nowadays, particularly because of the hype surrounding cryptocurrencies and the global COVID-19 pandemic. The latter has drawn the attention of everyone who wants to make high profits in a short span of time and the latter has pushed people to explore the markets in order to eliminate their financial woes. No matter what the reason, you need a broker to start trading online, but this doesn’t mean that you go with any company at all. Doing so can have disastrous consequences, if the broker has the same issues highlighted in this Speedyexchange review below.
You need a good forex broker to start trading because you want to achieve your financial goals quickly and safely. It is understood that all companies are not created equal, as some may have better services and features. But, there are also those that are not just unprofessional, but downright fraudulent. Their aim is to profit off of people by scamming them out of their hard-earned money. No, scam brokers are not a myth and many people have suffered at their hands for believing so. You have to determine how to identify if a broker is a scam, or a legitimate one.
This involves doing some due diligence by weighing the different offerings of the broker. You can do the same with Speedyexchange, one of the brokers that you will come across when you are looking for one. The following review can be helpful in this regard because it shows you exactly what to expect from Speedyexchange:
Licensing and Regulation
To determine whether a broker is authentic and professional, you need to look at their licensing and regulation. If you check out the scam incidents narrated by victims, you will notice that they have one element common in them; all of the brokers involved were unregulated and did not have a license. These companies don’t bother to apply for a license or get regulated because it leaves them unmonitored and gives them the freedom to make up their own rules and policies, whether they are fair or not.
The same is the case with Speedyexchange, which claims to have its offices located in London, United Kingdom. But, either the address given on their website is fake, or they are operating illegally because any broker that’s providing its services in the region has to have a license from the Financial Conduct Authority (FCA). It is recognized as one of the strictest regulators in the world, so a license from the FCA is considered very valuable.
Unfortunately, Speedyexchange doesn’t have a license and you can run their name in the online register of the FCA to verify. In addition, if you check their offerings, you will discover that they violate a number of the policies of the regulator, which means they cannot be operating in the UK at all. This includes the availability of crypto CFDs on their platform, which have been forbidden by the FCA because their volatile nature is a risk and the prevalence of crypto scam is also a big concern. Other violations are discussed further.
Terms and Conditions
Another policy of the FCA that has been violated by Speedyexchange is the offering of trading bonuses to its clients. These bonuses were banned by the regulator because they come with strings attached that are not fair to the traders. The same case is highlighted by the bonus-related terms and conditions that you will find on the Speedyexchange website.
According to their bonus policy, you can only withdraw money from your account if you manage to achieve a turnover that’s at least 25 times the bonus as well as the deposit amount. It should be noted that even inexperienced traders wouldn’t be able to achieve this kind of trading volume. This clause by the Speedyexchange indicates that they are only offering the trading bonus to exploit people, exactly why the FCA has imposed a ban.
Leverage is considered a part of the trading process and the fact that it is provided by Speedyexchange shouldn’t be a surprise. However, the surprising part is the amount of leverage offered, as it is around 1:200. Considering where the broker claims to be based, it shouldn’t be offering this much leverage to its clients. The FCA has restricted the leverage to a level of 1:30 and anyone offering traders higher leverage comes under suspicion immediately.
Another major gaping hole in the story of Speedyexchange is the minimum deposit they ask you to make. Yes, it is the norm for brokers to ask for an initial deposit from their clients, but they are asking a minimum deposit of a whopping $10,000. It is an incredible sum and there is absolutely no way to justify it because most regulated brokers don’t ask for more than $250 in deposit. In fact, some are now offering micro accounts that need as little as $10 to open.
You have to check the trading platform provided by a broker because it shapes your complete trading experience with the broker and Speedyexhcange has given a web-based platform for this purpose. You will find this to be highly disappointing because it is severely lacking, particularly when you compare it with the leading trading solutions in the market, such as the MT4 and the MT5. This is highly disappointing because you want to have access to the best in order to trade.
Checking the payment methods provided to you for deposits and withdrawals is of the utmost importance because you want safe and convenient options. You should be ready for disappointment once more because Speedyexchange only supports wire transfers and nothing else. This is shady because this method does not come with a chargeback and all payments are final. It means that you will not be able to get your money back if you believe something is wrong, an option provided with credit cards.
After you have evaluated the offerings of Speedyexchange, you will realize that it is not a good forex broker and you need to continue your search for a better one.