BisonStuttgart review – 5 things you should know about bisonstuttgart.com

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

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

BisonStuttgart is a good reminder of why we should always do careful fact checking when choosing a financial services provider. This website is not a legitimate forex broker, although it claims to be. In this review, we will show you how to identify such scams and direct you to more trustworthy brokers through which you could trade financial instruments with peace of mind.

BisonStuttgart Regulation and safety of funds

The first thing to look for in a forex broker’s website is which legal entity runs it, where it is based and what regulatory oversight it is subject to.

According to the information available on the BisonStuttgart website, this broker is run by a company called BisonStuttgart-Finanzportal GmbH, which is registered and licensed in Germany.

However, it immediately catches our eye that the text of the Terms and Conditions of the BisonStuttgart does not mention this company, nor does it specify the applicable jurisdiction.

To offer brokerage services in Germany, a company must be authorized by the local financial regulator, BaFin. However, a check of the register of this regulator reveals a warning that BisonStuttgart is illegally using the details of the company UWAX Aktiengesellschaft. BisonStuttgart is a type of scam known as a clone website.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the BaFin or Cyprus Securities and Exchange Commission (CySEC).

There are many advantages to working with such brokers because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА). All brokers licensed in EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency.

BisonStuttgart Trading software

After account registration we get access to a web-based trading platform. It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use rigged trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

BisonStuttgart Trading instruments

The BisonStuttgarttrading software provides the theoretical ability to trade a large number of instruments across all major asset classes, including forex, equities, commodities, indices and cryptocurrencies. But as stated, in practice, the trading offered by such fake brokers is fictitious.

BisonStuttgart Spreads and cost of trading

In the BisonStuttgart trading software we see an extremely high spread of 5 pips. This level is triple the typical industry level. In addition, it is not clear from the information on the BisonStuttgart website whether there are any additional commissions or trading fees.

BisonStuttgart Maximum leverage

A spread of 1:100 is set in the BisonStuttgart trading platform. This level is much higher than allowed by financial regulators in Germany. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders.

Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.

If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

BisonStuttgart Deposit and withdrawal methods

The BisonStuttgart deposit menu is not available if the account is not verified. However, the text of the Terms and Conditions only mentions deposits with cryptocurrencies.

Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.

BisonStuttgart Minimum deposit

BisonStuttgart specifies a minimum deposit of 250 EUR, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

BisonStuttgart Withdrawal requirements

BisonStuttgart does not specify extraordinary conditions for withdrawal. But these types of scams always surprise you with hidden fees and other tricks that prevent you from withdrawing your money back.