Beware! Selfkings 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.
Selfkings states that its award-winning investment platform means business with straightforward trading and intuitive market analysis features available at the click of a button. In truth, though, it comes with nothing intuitive at all. You’d better avoid this brokerage, and we’ll explain why in the full Selfkings review.
Selfkings REGULATION AND SAFETY OF FUNDS
Selfkings is registered in the Marshall Islands, which is a problem. First of all, the country doesn’t even have a state-controlled financial authority, let alone a healthy regulated Forex market. That being so, the people running the brokerage will remain unaccountable at all times, meaning that they can do anything with your funds, getting away with it. In fact, nowadays, unlicensed brokers like Selfkings are not even considered legal.
What’s worse, though, is that the Marshall Islands is an offshore jurisdiction allowing people to incorporate International Business Companies with hidden ownership, not required to grant access to their finances. In other words, it’s unknown who operates Selfkings, and the broker isn’t obligated to file financial reports or statements, implying that it’s also impossible to find how clients’ money is handled and to what risks it’s exposed to. So, if you deposit with the Selfkings, your money will simply disappear offshore, and you’ll have almost no chargeback options left if things go wrong. The bottom line is that your funds will be in danger if you deposit with Selfkings because it’s an anonymous and unregulated offshore brokerage.
That’s why it’s always better to open accounts with companies authorised by financial regulators like CySEC (Cyprus) and FCA (Britain) if you are genuinely interested in trading. Both mentioned force brokers to keep deposits segregated, thus ensuring that clients won’t lose their capital in case of unforeseen events. The segregation improves transparency, speeds withdrawals up, makes chargebacks easier and generally helps prevent fraud. On top of all that, European companies are covered by deposit insurance funds laid down to reimburse clients in case of unforeseen events- CySEC brokers’ clients can get up to €20 000 in compensation, while the British guarantees are even up to £85 000.
Selfkings TRADING SOFTWARE
Selfkings’ platform is anything else, but award-winning and that’s a red flag because the broker intentionally overestimates its software, thus creating a false sense of hope. In fact, the Webtrader we encountered is just inferior to MetaTrader 4 or MetaTrader 5, for example. The latter two are the most popular platforms coming with sophisticated features such as Expert Advisors making automated trading possible and a marketplace with more than 10 000 apps available. The Selfkings’ Webtrader can’t offer anything valuable, so the broker is worth being avoided only because of its platform that’s also too ugly to look at.
The EUR/USD spread displayed by the platform is floating around 4 pips, meaning that Selfkings’ services are generally costly. In other words, traders pay $40 for a lot while the industry standard is about $10 (1 pip or less Buy/Sell difference). So, Selfkings is not only unregulated, highly suspicious, and unable to offer decent software, but it’s also too expensive. Avoid!
As to leverage, the platform reveals that the default ratio is 1:200, as you can see from the screenshot below, so Selfkings is also too risky. Some experienced and risk-tolerant traders prefer higher levels, but leverage is dangerous in general. That’s why too many regulators now impose restrictions to reduce risks and make the market safer for clients- 1:30 maximum in the EU, UK and Australia; 1:50 in the US. Needless to say, most of the brokers offering 1:200 or more are dangerous for two reasons- trading risks and absence of regulation.
Selfkings DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $250 allegedly via Credit/Debit cards and Wire Transfers (judging by the legal documents). However, to see the actual funding methods, we had to go through KYC, but we refused to do so because Selfkings is too shady to share sensitive information with the brokerage- the identity theft risks are real.
As to withdrawals and fees, Selfkings doesn’t reveal much except for the claims that each transaction costs €25 +1% of the sum for the starter account. In any way, that’s a red flag because the broker intentionally hides critical information about its services.
Selfkings also offers bonuses starting from 15%, but yet again, it fails to give more information about the campaign. Well, as you probably guess, it’s not the brightest idea to deposit with Selfkings, let alone to accept bonuses unconditionally. Fishy unregulated brokers tend to put clients at a disadvantage when trading incentives are given away. Beware!
HOW DOES THE SCAM WORK
Selfkings is a shady unregulated broker with a substandard trading platform and costly services. In fact, some of the red flags we noted indicate that the broker reviewed may as well be just another scam scheme, so we’ll now relate what scammers usually do to con people out of their savings.
So, when fraudsters get hold of your contact numbers, you’ll get a call, promised the moon and the stars if you deposit immediately. And to gain trust, those criminals will usually pretend to work for governments, financial authorities, banks, other reputable companies etc. Scammers will be confident in what they say, and if you don’t see the warning signs, you may end up depositing fascinated by their commitment. However, the fraudulent game actually begins after you send the money. Once they have the desired deposit, the cons will distort prices and forge fake reports to make you believe you are on the winning side, manipulating you to start thinking big and consider more deposits.
Then, the fraudsters will continuously ask you to increase the size of the investment and invent stories to make you deposits over and over again. Sooner or later, though, you’ll get determined to withdraw some money, and then the scammers will ask you to deposit again because, according to their words, there are taxes and fees that you should pay. At this point, you’ll probably realise something wrong is going on, and when the scam becomes too apparent, the cons will simply stop answering your calls and e-mails.
WHAT TO DO WHEN SCAMMED
It would be best if you first call your bank to inform it and deactivate your card to avoid getting exposed to additional risks, as the scammers may as well have obtained your details.
Then, call the police, inform the financial authorities, file complaints and don’t forget to spread the word online so that other people can find out about the fraudulent scheme. Still, it’s crucial not to rush trying to reclaim your funds as numerous scams are disguised as chargeback agencies set up to double-scam victims.
Finally, we know it’s an awful experience to get scammed, but please share your story to help protect others!