Beware! Starekco is an offshore broker! Your investment may be at risk.
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Starekco claims to be one of the largest foreign exchange brands, but that’s not true. In reality, it’s highly unpopular, and it has no license to provide Forex trading, so the service is practically illegal! Starekco is a suspected scam, and we’ll explain why we claim so in the following review.
Starekco Regulation And Safety Of Funds
As you can see, Starekco claims to be a British brokerage, and that’s partly true. We tracked it down, and there is a company bearing the same name registered in the UK, but two major problems should be addressed. First of all, Starekco is not authorised by the local regulator FCA, meaning that the trading service provided is unregulated and actually illegal. And on the other hand, the company registered in the UK is similar to an offshore company as the owner is Chinese with a residence address in China. The UK cannot be classified as an offshore jurisdiction, but in this particular case, the implications are the same as the owner is out of the country of registration. So, if Starekco scams you out of your money, it’ll be unlikely to trace the people responsible and bring them to charges – go find someone in China and ask them why they stole your money! That being the case, we confirm that your funds will be in danger because Starekco is unregulated, and the company owners are practically untraceable. The good news is that the UK may respond quickly and close the business, but overall, you should avoid Starekco at every cost!
Instead, you should trade with regulated brokers only! For example, both CySEC (Cyprus) licensed brokers, and FCA (Britain) brokers are proven safe as both authorities force strict regulations to guarantee safety for clients’ funds. The compulsory rules include client account segregation, risk-reducing measures like leverage restrictions and negative balance protection, and increased capital requirements to license a broker (€730 000). Most importantly, though, both authorities maintain deposit insurance funds – clients of CySEC brokers can claim up to €20 00o in compensation, while the UK protections are even higher at £85 000 per person! It goes without saying that if you trade with unregulated brokers, you’ll remain unprotected and exposed to fraud risks!
Starekco Trading Software
Starekco can offer decent trading software – MetaTrader5, which is one of the best platforms available. It’s stable, reliable and packed with numerous advanced features like expert advisors, complex indicators, a marketplace with thousands of trading apps and so forth. However, the lack of regulation certainly doesn’t make Starekco a preferred choice – it’s still a suspected scam, notwithstanding the excellent trading software provided.
Starekco Trading Conditions
The trading conditions look good, but at the same time, some aspects are highly controversial and further prove that Starekco is illegal. The EUR/USD spread is 1 pip on average ($10 per lot traded), a quote difference that’s pretty much in line with the industry standards. The spread shows that the trading costs are typical, which is nonetheless a positive side.
However, the negative side is revealed by leverage – it can reach up to 1:500 (that was the maximum for the Demo Account we opened), meaning that the trading service is utterly risky! Moreover, the ratio is illegal in the UK as the local regulator doesn’t allow more than 1:30, and needless to say, the leverage itself proves there is something wrong with Starekco! Avoid it!
Starekco Deposit/Withdraw Methods And Fees
The minimum deposit requirements are not revealed, and we can tell nothing about it as we did not test the funding system because of registration issues. To open an account, one should submit copies of Identification documents and Bank cards, which is out of the question for us – no legit broker asks for personal documents during the initial registration, not to mention the identity theft risks.
Nevertheless, Starekco claims that numerous deposit methods are accepted, including Credit/Debit cards, Wire Transfers, e-wallets and local payment solutions (unspecified). We cannot validate this information.
As for withdrawals and fees, there is absolutely nothing to discuss. Nothing is mentioned, and the so-called brokerage doesn’t even provide documents with provisions, which is a red flag and another proof that Starekco is illegal – true Forex brokers are bound by law to provide legal documentation! Beware!
How Does The Scam Work
We exposed Starekco as a suspected scam, and for that reason, we’ll now quickly describe what scammers are doing to steal as much as possible from their unfortunate victims.
Forex scams are different from one another, but in most cases, the fraudulent scheme is practically carried out in the same way. Scam brokers are always unregulated and usually registered somewhere offshore, which helps scammers remain anonymous and untraceable. If you open an account with such an entity, you should expect endless phone calls. Scammers will constantly try to approach you and make you deposit money as quickly as possible. Remember that urgency is always a treacherous sign, so it’s probably a scam if someone calls you twenty times per day, asking for money.
In the worst-case scenario, you’ll deposit, and scammers will persuade you to trade instead of you. You’ll soon see magnificent profits generated – false, of course, and you’ll get excited, asking to take your money back. As you probably guess, they won’t let you do so and will try to get another deposit from you, promising that much more lucrative gains are waiting. Or, they can ask for a false tax, saying that withdrawals are only possible if you cover the charge in advance. If you pay, you’ll increase the amount stolen from you, but if you keep asking for your money, you’ll soon realise it’s a scam!
What To Do If Scammed
You should first inform the authorities – call the police and contact your local regulators and other government bodies dealing with crime and fraud. Also, deactivate your cards ASAP and call your bank to inform them about what happened – they can provide essential information and help you reduce further financial damage.
If you deposited cryptocurrencies, there is not much you can do, but if you used your credit/debit cards, you could file a chargeback, hoping that all or some of the money invested can be retrieved. However, you shouldn’t go blindly looking to recover the loss because many fraudulent chargeback agencies are waiting to double-scam victims of fraud – be cautious about it!
And lastly, consider sharing your experience to help protect others and provide further information about how scams work!