Beware! Stocklinity 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.
Stocklinity promises to provide “ideal trading conditions, the best prices, super-fast order processing, protection against negative balance, and volatility protection settings” – in other words, everything you might need for a decent, lucrative trading experience. However, you will be disappointed to learn that this is most probably another scam broker – Stocklinity is based in a country the laws of which do not consider forex trading to be a separate industry worth regulating. The broker has also made sure to offer vague conditions and add dubious clauses in its legal documents – all in all, a perfect recipe for a scam.
Stocklinity REGULATION AND SAFETY OF FUNDS
Stocklinity is a St. Vincent and the Grenadines-based broker – they have made that quite clear. And while not all brokers who are registered in this country are scammers, quite a lot of them are. The reason behind this is that the local financial regulator only deals with the banking sector and does not license forex brokers or monitor their activities. This means that such brokers do not have to meet any sort of requirements or follow strict laws. Moreover, money transferred to such offshore locations becomes more or less untraceable because there are no transaction reporting requirements. This enables all sorts of illegal activities such as money laundering, tax evasion, and other types of fraud.
The only way to be sure that your broker is reliable and would be conducting business in a fair and transparent manner is to choose companies with licenses. A license means that a certain financial authority, preferably a strict one, has deemed the broker to be trustworthy. Such licenses are also not easy to come by since there are a ton of requirements each and every licensed broker has to face. We would advise you to check out brokers regulated in the UK, the EU, or Australia first – such companies are usually a good choice because they are operating under strict laws and are asked to maintain a high standard of service. It goes without saying that all of these brokers have to report to authorities regularly to ensure full transparency. But the regulatory framework authorities like the FCA (the UK), CySEC (Cyprus), and ASIC (Australia) impose includes much more than just regular reporting. All brokers have to maintain a certain minimum capital to prove that they are financially stable – €730 000 in the UK and the EU, and A$1 million in Australia. Client money must be kept in segregated bank accounts. This proves that the broker would not be able to use your money for its own financial purposes, speeds up withdrawals, and keeps your investment safe in case your broker goes bankrupt. Negative balance protection is also an important element of such brokers’ offer – you could never lose more money than you have in your account at a given point.
Stocklinity TRADING SOFTWARE
Stocklinity offered us the chance to download a custom-made desktop platform that also came in a mobile version. However, the publisher of the software was not verified and we would not generally advise you to install suspicious software downloaded from the website of an anonymous company. All sorts of threats might be luring inside that .exe file. For this reason, we could not try the software the broker offers.
We would recommend that you turn to brokers who offer the two most popular and reliable platforms in the trading world – MetaTrader 4 and MetaTrader 5. The reasons behind this software’s huge popularity are clear – both platforms offer an amazing and extensive charting and analysis package as well as features like Expert Advisors, VPSs, Strategy Testers, a market for additional apps, customizable signals as well as the possibility to subscribe to those set by others for a small fee, and much more.
Stocklinity TRADING CONDITIONS
Stocklinity has chosen to remain mostly silent when it comes to trading conditions – we did not get to learn what the minimum amount of money we would have to deposit is, or what spreads would be. Supposedly, the broker does not charge any commissions but we cannot fully be sure about that either.
The only thing we got to learn was the leverage we would be trading with – between 1:200 and 1:400 depending on the account type. These ratios are actually quite high – they could indeed lead to very decent profits as the broker promises but they could also lead to losses far bigger than you can handle. That is why we urge traders, especially beginner ones, to always be careful with their leverage settings.
If you are looking for affordable trading accounts, you do not have to turn to scammers – many reliable brokers would gladly have you as a client for $100 or less.
Stocklinity DEPOSIT/WITHDRAWAL METHODS AND FEES
Stocklinity claimed that clients would be able to deposit and withdraw money via wire transfer or with a credit or debit card. But in order to make a deposit, we had to have our account verified by the broker first – and we were not exactly comfortable with sending pictures of our personal documents to these scammers. After all, these things are no joke – you might end up as the victim of identity theft just because you have provided a shady enterprise such as Stocklinity with such sensitive information. That is why we could not establish if both of these payment methods are actually available. If they are, that is great news – if you have deposited with Visa or MasterCard, you could get a chargeback within 540 days of the transaction.
Stocklinity offers bonuses – but there are many strings attached. In order to withdraw the bonus or any profits, you would have to reach a huge turnover – the bonus amount divided by four.
So if you have received a bonus of just $200, you would have to reach a turnover of 50 lots – or 50 000 000 currency units – in order to get access to any profits which is simply ridiculous. Those legitimate brokers who offer bonuses would never prevent you from withdrawing your profits even though they might require that you reach a certain turnover in order to withdraw the bonus. Scammers, on the other hand, would often put such clauses in their Terms and Conditions – their main purpose is to prevent you from withdrawing your money too soon.
HOW DOES THE SCAM WORK?
Pay attention to the following paragraphs – in order to avoid such scams, it is best to know how they function. Thankfully, scammers usually follow the same pattern.
The scam starts innocently – a broker on the Internet promises amazing conditions, insane (almost unrealistic) returns, and state-of-the-art platforms – in other words, everything you might ever need. You have heard stories about people working as professional traders or earning a decent side income as retail ones – so you decide to open an account to see what all the fuss is about. Unlikely, you have not chosen the right people for the job. And to register, you have to provide your phone number and email.
After that, the broker will not leave you alone before you transfer the deposit required to open an account. And make no mistake – at some point, you will do so. These people smooth-talk for a living. Not many scammers will disappear right away – most scammers will do whatever it takes to make you deposit more and more money. They will call you, talk you into depositing, and manipulate results so it looks like you are turning a huge profit.
The problems will start once you try to withdraw those profits – your broker will find different reasons for denying withdrawals like additional taxes or clauses in the Terms and Conditions (most often related to bonuses, or general withdrawal conditions). Sooner or later, you will figure out something is wrong – but the scammers will be long gone by that time.
WHAT TO DO WHEN SCAMMED?
So is it possible to do something after you have been scammed?
Sadly, prevention is best – always make sure to trade with licensed companies, read the Terms and Conditions carefully, and check all relevant registers of the financial authorities responsible for regulating forex brokers in the specific region.
If you have already deposited, to chances of retrieving your money are low. There is, however, still hope – especially if you have deposited with a credit or debit card. Both Visa and MasterCard allow chargebacks within 540 days of the transaction. Moreover, there are some things you absolutely have to do in order to avoid further losses of money.
Change all passwords and banking details you have provided the scammers with and remove all sorts of remote access software if you have installed such. Some scammers would promise to help you trade, or resolve different problems if you only install such software – their actual agenda is to get access to your computer and all your passwords and information.
Some “recovery agents” might show up and offer to retrieve your money for a fee – this is just another type of scam targeting desperate scam victims.
Make sure to notify authorities and try to share your story online, and with your acquaintance circle – the more people know about such scams and their mechanics, the lower their success rate would be.