Spartan Liquidity review – 5 things you should know about spartanliquidity.com

Spartan Liquidity review – 5 things you should know about spartanliquidity.com

Rating: 1

Beware! Spartan Liquidity is an offshore broker! Your investment may be at risk.

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The biggest problem we encountered when looking into Spartan Liquidity was the complete lack of consistency when it comes to trading terms. That, on top of the complete lack of regulation and some shady details when it comes to their address, leads us to believe that Spartan Liquidity is a scam and you should not trust them with a single cent. Read our review to learn more.

Spartan Liquidity REGULATION AND SAFETY OF FUNDS

Spartan Liquidity provides an address in an office building in St. Vincent and the Grenadines. This is the first red flag because St. Vincent and the Grenadines Financial Services Authority does not regulate forex brokers. This means this company is outside the reach of any regulator and is not obligated to follow any sort of rules when doing businnes. This is the address and email Spartan Liquidity has provided with no phone number whatsoever.

When we looked into that address, we found that multiple complaints have been filed with the owners of the office building about the residents of Suite 305. When looking into the Google Reviews section of the Griffith Corporate Centre. we found out that quite a few people were interested in the company occupying this office. However, all of them were asking about trading companies going by different names. Some of them had straight up posted scam alerts for different companies.

This suggests that the residents of Suite 305 are actually Wilfred Services Ltd., a company whose Google Reviews consist entirely of scam warnings from dissatisfied clients. It is common among scammers to change company names, logos, and websites once clients start figuring out what is happening and carry on with the fraud with a new name, new website, and hopefully for them – a new batch of unsuspecting clients.

Regulations and licenses should be the first thing you look into when choosing a broker to trade with. Offshore brokers like Spartan Liquidity answer to nobody and it would be very hard for you to retrieve your money once you have invested with them. On the other end of the spectrum, we have brokers that have been licensed by respected financial authorities like the FCA or CySEC. Such brokers are obligated to meet certain requirements if they want to operate like maintaining a minimum capital of €730 000 to prove that they are reliable enough to survive on the financial markets where the situation shifts daily. Furthermore, they have to participate in compensation schemes that serve as a sort of insurance. In case a broker goes under, their client will receive a compensation of up to £85 000 in the UK and €20 000 in the EU. This makes working with licensed brokers a lot safer and pain-free. Simply counting on different scammers’ words and promises should not be enough when dealing with money, that`s why regulations are completely essential.

Spartan Liquidity TRADING SOFTWARE

Spartan Liquidity uses the gold standard of the industry, MetaTrader 4. This software is preferred by serious traders because of its intuitive interface and many functions – from Expert Advisors to backtesting strategies. There are, however, enough legitimate brokers out there using this platform and you should not waste your time on somebody like Spartan Liquidity. In the hands of scammers, MT4 can serve as a dangerous weapon because such brokers are probably only trying to benefit from the positive things people have heard about MT. Cashing on somebody`s good reputation like that is a pretty despicable act itself.

Another thing we noticed upon opening the MT4 terminal, is that the average spread for the EURUSD pairing stayed constantly at 0.0 pips. While this might at a first glance seem great, you should consider that the average spreads are usually around 1 pips. Furthermore, we were led to believe by the company`s terms, that the spread for our Standard account would be starting from 2.5 pips. Such values might as well just serve as bait to make you believe Spartan Liquidity is offering very competitive costs when in fact they are just after your money.

Spartan Liquidity TRADING CONDITIONS

Spartan Liquidity offers you to choose from five account types with deposits starting from $50. While this is a decent cost for opening an account, the platform would only allow us to open a Standard account. There was no mention of the other four types, one of which was ECN – something only the most renowned brokers could actually offer you.

As mentioned, spreads were supposed to start from 2.5 pips for a Standard account but were in fact much lower.

The leverage Spartan Liquidity offers to beginner traders is up to 1:100 which is already too high considering the legality allowed one for the UK and the EU is 1:30. But as you can see on the screenshot above we had zero problems getting leverage of 1:1000 for a beginner account which is completely insane. Regulators restrict leverage for a reason – as your capacity to trade grows immensely with high leverage, so does the possibility of losing your investment. Trading with high leverage might be tempting but you should first consider your own experience and willingness to subject yourself to losses because leverage of 1:1000 is a complete gamble.

Interestingly enough, we were not provided with any official Terms and Conditions upon registration which would be unacceptable if we were dealing with a serious broker. We are dealing with a scam though so such a shortcoming is not a big surprise.

Spartan Liquidity DEPOSIT/WITHDRAWAL METHODS AND FEES

We cannot speak of fees and withdrawal conditions without having been provided with Terms and Conditions. We can however point out one last inconsistency with Spartan Liquidity. On their website, they had stated you can deposit and withdraw money via Visa/MasterCard, Skrill and Neteller. In the platform itself, only Perfect Money and bank transfer were available. Deposits via credit or debit card are after all the easiest to retrieve but chargebacks are probably somethng Spartan Liquidity would not want or allow.

HOW DOES THE SCAM WORK?

Such scams work in a simple but effective way. You see a banner or an ad on the Internet and get redirected to the scammer’s website where you get all sorts of promises for earning money the fast and easy way. You get led on by fake license numbers, satisfied customer testimonials and grand words. So you provide your contact details – an email and a phone number.

The moment this happens, the first wave of scammers comes into play. You get bombarded with phone calls and emails asking you for a deposit. So you send that deposit and with time, you might start to see that you are turning a profit and wonder if you should invest bigger sums. This is in fact a deliberate trick because the scammers are trying to milk you as much as possible before you figure out something is not quite right.

The problem emerges when you try to get access to your money. The scammers might come up with different reasons why that cannot happen like making up more and more additional taxes. They might claim you cannot draw money because of some clause in their Terms and Conditions which is why you should always read those carefully and know what you are agreeing to. Finally, they might ask you to verify your account by sending them your picture next to a personal document or proof of address – something legitimate brokers also do as soon as you open an account with them. But in case you are dealing with fraud, this is done just so they can prove that you are indeed their client. In this way, they can claim that you have invested all your money voluntarily and make it impossible for you to demand a chargeback later on.

WHAT TO DO IF SCAMMED?

You should contact your bank or credit/debit card provider right away and ask for assistance. If you have used a credit/debit card to deposit, you could file for chargeback within 540 days. In case you were using a cryptocurrency, there is virtually no way to get your money back. If you have given scammers access to your computer or your banking details, you should make sure to change any passwords right away. You can also contact authorities and try to inform as many people as possible about the scheme you fell victim to.

Finally, you should never trust any companies that promise you a quick way to get your money back. Such “recovery agents” might ask you for a fee to retrieve your investment and run off as soon as they have received that fee. Often enough, they are the same people that scammed you in the first place.

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