Beware! Spring Information 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.
Sleek and professionally looking interface makes Spring Information stand out among the sea of other forex brokers’ websites. But the question we need to ask is: How safe for your funds it is to trade with this broker?
Spring Information Regulation and safety of funds
Our first favourable impression of Spring Information is shattered when we try to find the address of this broker but it does not bear any result. Instead, we are informed that the company has 4 offices on 13 continents. Yes, we kid you not, as you can see from the image below. Obviously, someone hasn’t paid attention in geography class. Despite all the claims of providing safety for clients’ funds and being reliable, we do not buy it! Furthermore, the referral link to EFISO which allegedly is a European organisation registering and tracking companies in Europe is a phony one as such an organisation does not exist. We give this broker full marks for creativity and a zero for credibility. In our opinion, this broker is non-licensed and not reliable to trade with.
Furthermore, if you peruse the link, you’ll find out that this broker is a clone of another one about which we already published a review and that is also non-legit.
We rarely come across brokers who put so much effort into duping people. But let this does not put you off from finding a licensed and reliable broker to trade with. It’s actually quite easy if you follow the links we provide below to find licensed brokers from the well-established jurisdictions of the EU, the UK, the US and Australia. Only in these jurisdictions, you can find the perfect conditions for forex trade. First of all, licensed brokers must be well-capitalised and invest an initial capital of substantial proportions. In the US, it is $20 million, in Australia, 1 million AUD and in the EU and UK, 730,000 EUR. Being well-capitalised in the US and Australia means that in case of unfavourable events, clients’ funds will still be protected. On the other hand, in the EU and the UK, licensed brokers participate in compensation funds and schemes from which clients can be reimbursed in case the broker goes bankrupt. If the broker is regulated by FCA and contributes to the local Financial Services Compensation Scheme, its clients will be reimbursed by up to 85,000 GBP per person. In the EU, if the broker is regulated by CySec and participates in the local Investor Compensation Fund, its clients will be able up to 20,000 EUR per person in compensation.
Other benefits worth noticing are measures to protect clients’ funds by keeping them in separate accounts with tier-1 bank establishments and reporting on a daily basis about their transactions to avoid shady deals, providing protection against negative balance, etc.
Spring Information Trading software
Spring Information offers the following trading product for trading: metals, energy, stock, forex, cryptocurrency and futures. the trading software consists of MetaTrader 5. Below is a snapshot of the trading platform to give you an idea of what it looks like. On the left, you can see the menu for the forex currency pairs with their bid/ask price and beneath is the navigator for opening the trading accounts, indicators, expert advisors, scripts and other services. In the top horizontal bar, you can see the buttons for algo-trading and charting options. In the centre of the screen is displayed the chart of one of the major forex currency pairs, EUR/USD, with the fluctuation in its price in a given time frame. The charting options of MT5 are many, and the number, charts and colours can be changed to suit trader’s needs. From the bid/ask price for EUR/USD, we calculate that the spread is 0.8 pips which is below the industry average and is beneficial to traders as the cost of transactions won’t be high and they will be able to make a long-term sustainable profit. However, from the information about the account types, we find out that the leverage can reach up to 1:400. Such leverage is too high and is not in accordance with the forex regulations in the EU and the UK, where leverage is capped at 1:30 to better protect traders’ funds and prevent them from engaging in reckless trading where the high leverage will amplify the exposure of suffering a substantial financial loss.
Here, we want to mention that MT5 is one of the best trading platforms in the forex trade and is one of the most popular among forex brokers, especially when in 2016 the hedging option was added to it. Other advantages include the code base with customs scripts, auto trading option, trading signals, VPS, a financial calendar, an app market, etc. However, as we always say, a platform is as good as its broker is reliable and this is not the case because, as you could see, this broker has set the parameters of the leverage to a very high value.
Spring Information Deposit/Withdrawal methods and fees
Spring Information offers two accounts – a Standard account where the minimum initial deposit is $100 and an Expert account starting at $5,000. Unfortunately, the website does not provide further information about what the payment methods are for deposit and withdrawal. Neither is mentioned what fees are to be expected or the withdrawal request processing time. Missing such information is not beneficial to clients as they may have to pay big amounts in the form of fees or not have a variety of payment options.
This once again proves that trading with this broker may expose your funds to risks.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.