The proliferation of sham Forex brokers has heightened the need for reliable assessment by trusted trading information banks like Traders Union.
The platform, founded in 2010, leverages a team of finance experts that evaluate and monitor the operation and reputation of brokers worldwide.
TU experts reviewed FVP Trade, a lesser-known online trading platform offering multiple assets. It has scored 2.73 out of 10.0 in the TU Overall Score, putting it in the ranks of companies deemed high-risk.
According to the finance portal’s matrix, brokerage companies with scores between 2.99 or lower are known for their high fees, negative client reviews, lack of regulatory oversight, or a combination of these factors.
FVP Trade scored poorly in user satisfaction, despite offering one of the lowest minimum deposit requirements in the market at $5.
Moreover, it secured a Regulation and Safety score of a mere 1.04, having no local or international license under its name to confirm trustworthiness.
Traders Union found that FVP Trade claims to operate under significant regulatory bodies in the finance sector but turns out that it does not possess required licenses to offer any financial services.
The broker also had a lukewarm reception in terms of commission and fees, offering no bonus for deposit nor affiliate programs.
With a rating that low, TU experts advise traders to look for better-rated platforms for their investment needs.
FXCM trading, a broker founded in Great Britain, generated a better TU Overall Score of 5.7 out of 10.0. Companies in this threshold are mid-level firms considered mostly reliable, but traders are recommended to do their due diligence before opening an account.
Operating since 1999, FXCM’s years of experience in the market speaks for its reliability. As a general rule in finance, the longer the years in operations, the more trustworthy a company is.
In fact, the broker is regulated by the tier-1 regulatory body, the UK Financial Conduct Authority (FCA), which gives its approval only to the most reliable service providers in the market.
Among the advantages of FXCM Trading pointed out by TU experts is the availability of a wide-range of assets for trading. It offers Forex, metals, crypto, indices, stocks, and options. Even the biggest names in Forex rarely offer options trading on their platforms.
Moreover, it has a low leverage of 1:30 which prevents traders, especially new ones, from falling into the risk of overbetting.
On the other hand, FXCM requires a high minimum deposit requirement of $25,000, making it not ideal for those that are just starting out their trading careers. It is worth noting that the Traders Union Best Forex Broker of 2023, RoboForex, only requires a minimum deposit of $10.
The cost of entry has a significant impact on TU Rankings, as Traders Union analysts give value to platforms that are attainable for the general public.
Still, experts remind investors to still do their personal research to find out the brokerage companies that will best cater to their needs and requirements.
Disclaimer: The content of this partner post is provided by Traders Union. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of NewsBTC. NewsBTC does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.