Beware! Spark Global Limited is an offshore broker! Your investment may be at risk.
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A lot of information on Spark Global Limited is missing or insufficient which makes us doubt the legitimacy of this forex broker. Here is what we found out.
Spark Global Limited Regulation and safety of funds
First of all, this broker claims to be registered with the National Futures Association (NFA) in the United Arab Emirates (UAE). However, forex brokers in the UAE are supervised and regulated by the Central Bank of the United Arab Emirates (CBUAE) and the Securities and Commodities Authority. We searched the register of the Securities and Commodities Authority but such company did not appear to be registered there (image below). This is proof that this broker is non-registered, non-regulated and as such trading with it will put your funds at risk.
UAE forex brokers have to meet serious capital requirements amounting to the equivalent of $275,000, 60% of which must belong to national shareholders and the forex broker must be a UAE citizen. In order to provide low-risk and transparent trading conditions as much as possible, transparency and safety of clients’ funds are among the top goals of the regulatory bodies and traders can expect a professional and low abiding attitude from the legit brokers.
Spark Global Limited Trading software
Spark Global Limited is a forex broker trading in forex, metals, indices and commodities. The trading software offered to the clients consists of the MetaTrader 5 trading platform. We did not open a trading account as we did not want to provide this broker of dubious origins with personal and financial information.
Normally, a MetaTrader platform would be an excellent choice as it is very popular among forex brokers and offers a lot of advantages to the traders. For example, MT5 is equipped with an auto trading option, VPS, trading signals, code base with customs scripts, an app market, a financial calendar, etc. Among the key features of the platform are the charting options which contain many charts, time frames, colours and even the option of creating customised templates. We can’t omit to mention the array of technical analysis indicators, such as moving averages, Fibonacci retracement, Bollinger Bands, etc., that help traders predict the future direction of exchange rates and make a profit.
However, a trading platform is as good as its broker is reliable and unfortunately, with Spark Global Limited it is not the case. What we understand from the available information is that it offers floating spread and leverage of up to 1:200. We cannot comment on the spread as we do not have the data, however, we can say that the leverage is too high. High leverage signifies two things – either a big win or a big loss. Some traders may think that with high leverage their potential for making a big win will increase. However, we must burst the bubble and tell you that around 70% of traders lose in transactions which means that the chances of experiencing a financial loss are way bigger than the chances of making a win. Also, do not forget that is you experience a financial loss it will be amplified by the high leverage and will seriously impact your funds.
Spark Global Limited Deposit/Withdrawal methods and fees
If you try to open the deposit/withdraw section on Spark Global Limited website, you will see that whatever information there is appears in Chinese with no option of changing the language. Unless you are a Mandarin speaker there is no chance of understanding what the deposit or withdrawal methods are.
The Terms and Conditions document does not contain information about what trading accounts are available or the deposit/withdrawal methods and related fees. Normally such information would be visible and readily accessible for potential traders.
How does scam work?
Scam works in different ways. It could be either that you receive an unsolicited telephone call or you see one of these flashy ads on the Internet or the social media promising you a quick and easy profit. Scammers will promise you the sky and the earth until you give way to temptation and deposit money. Once you give them money you get caught in the scammers’ mousetrap and the cheese in the shape of a big fat money fall is gone! It may take some time before you realise that you are being scammed. Scammers are smooth talkers and they are masters of deception. They will give you some excuses as to why the big profit hasn’t come yet and will try to lure you to make even a bigger investment because according to them, the more you invest, the more you profit. After you have been waiting for a while and you finally come to your senses, you realise that you are being scammed. All you want now is to get your money back and get out of there. However, the scammers won’t make it easy for you! They will try to delay you so that you miss the deadline for applying for a chargeback.
What to do if scammed?
There are a few things that you must do immediately – file for a chargeback if you have paid using a VISA or MasterCard. Those two payment providers allow you 540 days time frame within which you may file for a chargeback.
However, the chances are grim if you have used bank transfer or Bitcoin as a payment method. There is no chance you’ll be able to recover your money.
In such a desperate situation, some so-called ‘recovery agents’ may approach you with offers to recover your money for a fee. Be cautious as you may be dealing with another type of scammers. Always check the information about the recovery agency – make sure it is legitimate and transparent in the public eye. Also, some scammers publish personal comments after our review about how they have been scammed and how they found a recovery agent who helped them get their money back. Do not trust such comments and do not use the published contact info in them as it will lead you to another scammer!
And lastly, a reminder to cancel your credit card if you have given your CVV code to the scammers and erase any software from you PC that gives the scammer access to your personal data.