Thinking about engaging in the financial markets? There is no doubt that there is a lot of money to be made here, but you have to consider the risks as well. Of course, there are trading risks, but there are also security risks that you have to take into consideration. You would obviously have to sign up with an online brokerage to start trading and this is where things can tricky. Not every brokerage operating online is genuine or offering quality services and this can become a problem. Many of these are downright scams and this can lead to disaster, making it vital for you to check this StoxDC review out before you commit.
Why is this necessary? Doing your due diligence before choosing a brokerage can save you from becoming a victim of a fraudulent platform and losing your money. Many people are eager to get started and want to skip this step, but it is best to not do so in order to make the most of your experience. In order to be diligent, you have to look beneath the surface and not just form an impression of a broker at first glance. Looking beneath is how you get to know the real story. This also applies in the case of StoxDC, which is a forex and CFD brokerage that appears to be offering exceptional trading services.
They have created quite a package to offer to people, as StoxDC has powerful platforms, several account types and are also offering account management services. The first look shows that it is quite a lucrative opportunity for anyone interested in making money, but it is when you do your diligence that you find out the truth about the broker. What is it? Let’s take a look:
The account management services
As mentioned above, you will find that StoxDC offers account management services to their clients. This means that they offer you several investment strategies to choose from and once you pick one, it will be implemented by your account manager on your behalf. You will learn that they are offering these ‘Heimdall Invest’ services, along with their forex services that include forex trading pairs and a variety of other CFDs.
This sounds like StoxDC is multitasking, so you will certainly wonder what appears to be wrong here. The problem is that forex brokerages are known as market makers. This means that their business structure is such that they will only make money when their clients lose. When you make a trade and suffer losses, your brokerage will make a profit. Therefore, it does not make sense that they are offering account management services as well.
Offering account management services means that their manager will have to make trades that are profitable for the traders. But, every time you profit, it means StoxDC will suffer from losses. This means that they have every incentive for mismanaging your money and lose everything you deposit with them. It is what is referred to as a conflict of interest and no genuine brokerage would offer you any such services.
The lack of license
Checking the background and licensing of a brokerage is a must before you commit with them because you want to know who you are dealing with. Companies that don’t offer any background information, or are without a license cannot be trusted because they can up and disappear without a warning. It is not a risk anyone wants to take with their money. So, where does StoxDC fall in this regard?
A look at their website shows that StoxDC claims to be owned and operated by a firm named Heimdall Developments Ltd. The problem is that this is an offshore company, which is based in the Commonwealth of Dominica. The fact that it is from an offshore jurisdiction does not offer you any reassurance because it means that they do not have an authentic license for offering their trading services. They cannot be held accountable because they do not have to comply with any standards or policies and can come up with their own.
Another problem with an offshore brokerage is that there is no way for you to verify the information they provide. Sure, you will find a postbox address on the StoxDC website that is based in Dominica, but there is no way to confirm it. This makes it quite unreliable.
The claim about MT4
When you are going through the offerings of StoxDC, you will definitely notice that they claim to be offering you access to the MT4 trading platform. Anyone with even a little bit of knowledge about trading would know that it is one of the most renowned trading solutions in the market. Every legitimate brokerage offers their clients access to this platform and this will certainly reassure you about StoxDC.
Unfortunately, you will discover that this appears to be nothing but a false claim from StoxDC because they don’t offer you the MT4 after you have completed your registration on their platform. Instead, you are taken to a simplified web trading platform that is usually offered by most fraudulent platforms to create the illusion of a trading software. The absence and the false claim about the MT4 makes it apparent that StoxDC is not interested in offering genuine services.
The problem with payment methods
Since you have to make deposits and withdrawals during the course of trading, it makes sense that you would want to check the payment methods that are supported. It is reassuring to find that StoxDC does support credit cards like MasterCard and JCB. This would indicate that you can file for a chargeback in case something goes wrong. But, you will find a problem here as well. It becomes apparent that these payment methods are offered via an obscure third party payment provider that is completely unknown. This should send up a red flag because a brokerage should always offer you their services directly.
Considering the major problems that StoxDC appears to have, it is evident that this is not a legitimate brokerage at all.