Beware! RoyalStox 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.
RoyalStox pushes to meet the expectations that its name suggests. The only royal thing that we can rightfully call so is the home page’s main image, which sees the queen align an picture, all in Victorian era style. Why do we say this? Isn’t the style to meet with the trading conditions? In principle, yes, but with brokers such as RoyalStox, you tend to go to the other side of the spectrum, where style and conditions rarely cross paths. Read on to find out all there is to known about RoyalStox.
Registering gave us a simple process, that we were able to go through easily and in no time. However, we were not able to register; for some reason the broker did allow us to continue. Either the email was already taken, or the phone number was too short.
Thus, all crucial details will not be taken from a user dashboard, but from the website. Thus the leverage has been said to be 1:1000, while the EUR/USD cost of trade has not been revealed. No spreads have been actually indicated; the only info is that they are either fixed or liquid. The trading assets are forex pairs, commodities, indices, stocks, and ETFs. This info was also taken from the website.
We forgot to say that such a high leverage value is only recommendable to advanced users. The reason for this is that there is an equal chance that you might win big and lose hard!
The official language is English, and only English.
ROYALSTOX REGULATION AND SAFETY OF FUNDS
The footer of the website, indicates that the firm is located in Saint Vincent and the Grenadines. Just to clear things, this is the only instance where the website reveals anything concrete about the location of the company and any possible regulation.
So, Saint Vincent and the Grenadines is a location that is known for having hundreds of officially scammer brokers under its roof. What does that say to you about RoyalStox? It is perhaps the favourite location for illegal firms… However there have been talks of complete reform od the SVG regulatory environment.
For now, what you need to know is that RoyalStox is UNLICENSED, thus making it a risk to all invested capital.
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.
ROYALSTOX TRADING SOFTWARE
We cannot provide any info on a trading platform, because we had no way into the user dashboard. Apparently, there is a RoyalStox WebTrader available to registered users.
Unfortunately, we cannot proceed with giving pros and cons on a trading software…
The Risk Document reveals that certain CFDs might be issued a commission.
The broker can change the margin requirement without telling the user, which can create issues for the client.
ROYALSTOX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $5000 as per the website. This is incredibly high, and is almost 15 times the usual minimum requirement! According to the legal docs, users can deposit via credit cards, debit cards, and bank transfer.
Withdrawals are said to be processed within 3 to 5 days. Be aware that the broker may charge certain withdrawal fees. $50 for Bank Transfers, $35 for Credit Cards, $25 for e-payments (we assume Skrill). Furthermore, if an account has not been verified upon withdrawing, or if the trader has not done more than 200 in turnover prior to withdrawing, the customer will be levied a 10% fee. These exact fees are common with many previously reviewed by us illegal entities.
A 10% monthly fee is charged to every user that has been inactive for more than three months.
There is absolutely nothing royal about the next clause, which sees that all profits gained from trading are not to be withdrawable. This is an absolute offence, and a pure sign that RoyalStoX is nothing but a scam!
RoyalStox can transfer, grant, or sublicense all of its rights to any third party. This, the way we see it, is an easy way out for the broker, in case things get sticky for it.
The broker will not be held liable for any financial damage that the user experience because of its services. This is the classic indemnification clause, or RoyalStox’s take on it.
Furthermore, the Terms and Conditions state that info on the website, including legal docs, can be out of date, and that it is not the responsibility of the broker to update them. So to what body do these responsibilities fall into? What kind of a broker does not take care of the info it provides?
Last but not least, all claims against the firm will become obsolete in 12 months! This allows the broker to postpone user’s legal claims untill they are no longer valid!
These clauses tell us that RoyalStox is not a broker that can be granted our trust, nor our deposits. It will never return invested funds! Usually it will use the legal documents and find various excuses in them.
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.