Beware! StockGlobal 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.
By the look of StockGlobal, one will most certainly be impressed by the content and information present on the website. Yet, StockGlobal is not a looker, and in fact is one to encompass a very average interface and a lacklustre visual style. However, we are here to review the trading conditions, and answer the crucial question of whether users investors should trust StockGlobal with their money? Read on to get all the answers.
The registration process looked fairly professional, and took us less than a minute to complete. However, we had to verify our account to ue the dashboard’s features. Even the trading platform was blocked behind these requirements. We couldn’t even open a demo account becasue the sign up process kept giving us error messages.
So we are left with the website. It must provided us with trading information. The leverage is claimed to be one value and then a totaly other in a different page of he broker. The account page claims it to be 1:300, while the risk docs reveal it to be 1:500. We leave it to you to decide which one to trust.
The spread for the Standard account is 2.5 pips, which is completely unacceptable. Users have no other choice but to get the Platinum account, because all previous account types before it have a spread value that is not lucrative to users. This is a big sign that this broker might be a scam!
Assets are allegedly currency pairs, commodities, indices, futures, and shares.
The website is in English, Italian, Russian, German, and French.
STOCKGLOBAL REGULATION AND SAFETY OF FUNDS
The footer of the website reveals that StockGlobal is located in the Marshall Islands, a location in which one can set up a company online without ever having to set a foot in it.What does that tell you but this location?
All we know is that the Marshall Islands do not have a financial regulator, and thus it does not regulate the forex markets. So StockGlobal may or may not be incorporated there; what truly matters is that is it definitely not licensed there.
Seeing that there is no other info on a regulation, the conclusion we are drawing is as follows: StockGlobal is an UNLICENSED broker, and as such is a risk to invested funds!
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.
Be aware that personal information may be shared with the broker’s business affiliates and/or business partners.
Furthermore, the broker will give your money to a third party, like a bank or some undisclosed entity. If that entity should become insolvent, the money will be at risk!
STOCKGLOBAL TRADING SOFTWARE
When attempting to access the user dashboard, we opened a MT4, and as such we confirm its presence.
The MT4 is the go-to trading software. There is nothing that comes close to it, even its predecessor has a hard time reaching its potential. The MT4 comes with a huge roster of tools and features that allow users to optimise their trading experience. There is so much to do and see with the MT4, that to novice users thi swill definitely seems like a burden to learn, but once you get a hand on in you will be glued to it, and will rise as a competent trader.
The broker will start closing positions if the margin level drops below 50%.
Furthermore, StockGlobal has the right to increase the spread on assets without notice:
STOCKGLOBAL DEPOSIT/WITHDRAW METHODS AND FEES
The depositing information as from the user area is out of our reach, because we had to upload ID docs, which is something that you should never do with unregulated brokers. So, according to the website, the minimum deposit is $250 which is the average ammoun. As per the legal docs a user can fund an account via credit or debit cards, and /or via wire transfer.
The minimum withdrawal is $50 Withdrawals are processed within the first 30 days of an accont being opened. What happens after 30 days, we are not sure, and we do not want to find out.
Withdrawal requests are processed within 3 days.
There is a clause, in a catalogue of similar ones, that reveals there are fees:
There are however, no actual indications of withdrawal fee. Please be ware that there might be such commissions!
In order to withdraw a bonus, the user must first complete complete a required turnover of the bonus value divided by 4. The resulting value is the number of standard lots that one must trade in order to be eligible for a withdrawal.
The limited liability clause claims that the broker is not held responsible for any losses experienced by the client
There are not so many illicit broker provisions to keep you and us busy, however this should not be a positive sign.The fact of the matter is that this company is unregulated, and will certainly try to steal your money! Stay away!
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.