Beware! StocksCM is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
StocksCM utilizes a style that is very soft to the eye, and there is a feel to it that softly tell users to stay on the website and explore it. At least it nails the visuals, because when compared to other aspects, it seems these visuals are the only thing that keep it from being a complete disaster. We are not rushing to conclusions, it’s just that we can easily spot a broker’s true nature just by clicking thorough its site and going through the legal documents in a preliminary fashion. Read the review for a detailed analysis of the broker.
Opening an account required little info of us. Atleast the sign up page was of StocksCM’s own doing. That is not to say that we had any issues with creating an account; it took us 10 seconds and we were in, as in we were given access to a trading platform, which also served as a client dashboard.
The platform revealed a EUR/USD cost of trade of 7.2 pips. Yes, we are straight with you, just take a look at the snip in the software section to see for yourself. This is an absolute joke, and completely offensive to users. Our leverage was capped at 1:100. The user can buy/sell the following assets: forex pairs, commodities, cryptocurrencies, stocks, and indices.
The user can access the website and the dashboard/terminal in English or German.
STOCKSCM REGULATION AND SAFETY OF FUNDS
The T/C mention that the broker is governed by the laws of St. Vincent and the Grenadines, while the Bonus policy mentions that it’s Estonian laws that all bonus agreements follow.
We can confirm for a fact that, a) the broker is not regulated in Estonia, and b) neither is it regulated in SVG. The latter does not have a financial regulator, while Estonia’s own Finantsinspektsioonacts watchdog holds no mention of a StocksCM.
So what’s left toay is that StocksCM is that StocksCM is NOT LICENSED, and as such is a risk to all investors!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
The broker may use a user’s personal data for advertising purposes and to protect its own interest (against liabilities), and others. This type of usage is reserved only for brokers that are tying to scam you.
Furthermore, client data us shared with undisclosed business partners, mergers and acquisitions. Not mentioning any names is cause for concern.
STOCKSCM TRADING SOFTWARE
Here is the assumed proprietary trading platform for StocksCM., This one is quite limited in feature, even if not looking like it. This is a very common tactic; to use viausla in order to hide insufficiency.
Aside from a few chart customization tools there really is nothing to say about this one.
We do not recommend it, even if somehow it was a part of a legitimate broker.
STOCKSCM DEPOSIT/WITHDRAW METHODS AND FEES
According to the dashboard, the way to fund an account is through Credit/Debit cards, crypto wallets, and via phone (deposit by phone). The minimum deposit is $250.
The only withdrawal info revealed in the client area is that the minimum required is $100. The Withdrawal, Refund & Cancellation Policy mentions something that is worrying. All deposits are non-refundable… So does that meant that we cannot withdraw? The clause is an example of how contradictory an illegitimate broker can be.
According to the Withdrawal, Refund & Cancellation Policy a user can withdraw in the following ways: credit card, wire transfer, or bitcoin (minimum withdraw of $250). The processing of withdrawals can take up to 10 days, with a minimum withdrawal amount of $100 that is taxed by 1%, minimum $30. This means that almost any withdraw will be issued a $30 fee.
Dormant account are levied a $99 per 30 days of inactivity.
Even of Default fees are applicable. This means that any time the T/C are breached the clients will have to pay a fee.
There are other fees, that have been left undisclosed, including alarming third party charges. Many of these should be covered by the broker…
The bonus is subject to a trading volume requirement of 50 000 times the bonus, which is a huge requirement. Users will only be eligible to withdraw a bonus after completing this requirement.
Furthermore, the request to withdraw a bonus will lead to one of two things. If the request is over 20% or over that the bonus will be revoked and all profits from it. If the request is below 20%, the withdrawal will continue as usual. So we are to understand, that even if meeting the absurd turnover requirements, a user can only withdraw 19% max of the bonus?
The last of the bonus provision, states that the brokers is not to be held liable for any losses arising from the usage of the bonus, except for a maximum compensatory amount equaling $50 or less.
As per the Terms and Conditions the user is not allowed to make any chargebacks, and that a user will reimburse the broker for making a chargeback. Furthermore, in this event, the broker has the right to close down an account. We remind readers that chargeback are one of the few ways through which a user can get her money back in case she gets scammed by a broker.
Last but not least, the indemnification provision is a must for every illegal broker. This paragraph is the shield that StocksCM uses to protect itself from any legal action a user takes against it.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.