Beware! StockFunds 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.
The first thing that came to mind once we opened the website to StockFunds was “fun”. This brokerage conveys the same tone as, say, an online casino. Even if this is a pleasant visual experience, the word “fun” should not be used to define a broker. This is a serious business where money is as easily lost as it is gained, and trying to conceal the hard truth behind a colorful façade is deceptive. Furthermore, the simplicity of the name “StockFunds” can also play an important role, especially with more novice traders. As the review will see, all this joyful simplicity is there for the sole reason of hiding a secret that StockFunds does not want you to know. Read the review to find out more.
It is in the beginning of the review when we hit the first major obstacle, expressed inn the broker registration page of the broker. If a user hits either the registration button or the log in one, he or she will be redirected to a blank page of the StatusPro web trader. No, we are not making this up. It is our assumption that, in typical shady broker style, StockFunds handpicks its own clients via a process that requires a representative of the company to make unsolicited phone calls to users. The next steps of this scam are explained in the last sections of the review.
And so, StockFunds is yet another broker that does not allow us to access a user dashboard. And so, we have no other choice but to rely on the website with all the trading and payment details.
The leverage peaks at 1:100, while the spread is said to be starting from 0.0 pips, which we personally highly doubt. The trading instruments are supposed to be forex pairs, commodities, cryptocurrencies, and stocks.
The website is exclusively in English.
STOCKFUNDS REGULATION AND DAFETY OF FUNDS
The information in the footer and the Terms and Conditions is enough t0 conclude this review. The reason for this is the given base of operation address, in Saint Vincent and the Grenadines.
Saint Vincent and the Grenadines does not have a FX regulation in place. There have been rumors that it is currently reforming its entire licensing structure, but as of now, there is nothing confirmed. Thus all brokers in the country are UNREGULATED, and so is StockFunds.
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.
StockFunds has given itself the right to modify the amount of margin that can be used while trading, without notifying the user of the change.
STOCKFUNDS TRADING SOFTWARE
The website advertises the MT4 platform as its sole trading terminal. However, as we have explained in the introduction of the review, there might be a Status WebTrader present. What ever the case may be, without a registration, we cannot vouch for either software.
The Status WebTrader si not a miss at all. This trading software is very limited, and will get useless after a while, for the reason that it lacks the retaining element. This component is one of the building blocks of the MT4. Traders will have to pass a steep learning curve to reach the next level of what the MT4 has to offer. And from then a new word of opportunity opens up. And so on.
STOCKFUNDS DEPOSIT/WITHDRAW METHODS AND FEES
According to the Accounts page on the website, the minimum deposit is $250. User can deposit, according to the legal docs and the website, via crredit card, debit card, and wire transfer. Yet, as we have seen before, the website should not be entrusted with these details. We assume that the real payment gateways are more concerned with cryptocurrency and other untraceable funding methods.
The typical withdrawal time is 5 days. The legal documents speak at times of fees and commissions, that have nevertheless, not been disclosed.
If a user has been inactive for more than 3 months, the broker will start issuing a monthly fee of 10%.
Yet again we are dealing with a broker that does not allow its users to withdraw profit made from trading. This is the essence of the following clause, the Non-Deposited Funds article. However, right after this absurd clause, the broker casually reminds users that there is a turnover requirement that must be met before withdrawing a bonus. The trader must execute at least 30*(deposit+bonus) in order to withdraw the entire thing.
Users agree that StockFunds can change the Terms and Conditions at any time, without any king of prior notice.
The classic limited liability provision is here to absolve StockFunds of all liabilities. Furthermore the same clause claims that it’s not the broker’s responsibility to support, commit to, validate, verify, and update any of the information and services on the website. If not StockFunds, then on who’s shoulders does this responsibility fall? Yet more proof of the unregulated nature of StockFunds.
Furthermore, all allegations against StockFunds will be voided after 12 months.
As you can see, StockFunds is a well oiled scam, with clauses that assure the broker steal as much as possible from users, and not be legally responsible for 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.