Read our Nolxweb review to see if this broker is a scam or legit. Just to clear doubts, this is a nolxweb.com review.
Want to trade in the financial markets? There is no doubt that they can be very lucrative, but success is not guaranteed. There are a great deal of risks involved and you have to proceed with the utmost caution to keep them mitigated. One of these risks is opting for the wrong broker and losing all your hard-earned money. Can that happen? It happens more frequently than you think, so you need to make this decision after doing your homework. This includes checking out the following Nolxweb review.
If you were to take the word of a broker, then you would end up signing up with the first broker that pops up in search results because they will make all the right promises. However, you have to remember that making promises is one thing and keeping them is completely different. Anyone can create a website nowadays and add whatever content they want.
But, actually being able to deliver what has been promised is not that simple and this happens with a lot of online brokers. Some are just low quality platforms, but there are outright frauds and scams that take your money and disappear. Do you really want to take such a risk? When your money is involved, you definitely don’t want to make any such mistakes.
Luckily, it is possible to prevent this from happening and that can be done when you do your homework. This means taking a close look at a broker and ensuring that they are really who they claim to be. This also applies in the case of Nolxweb and when you do so, you will quickly find that the brokerage is certainly not what it presents itself as. There are various reasons to avoid this platform altogether and a few of them have been elaborated below.
Reason 1: False licensing and regulation claims
The first and most impressive thing about the Nolxweb website is that it claims to be a regulated and licensed CFD broker. When you start your search, every expert will tell you that you should always opt for a licensed and regulated broker because they can be trusted and they offer you security.
Therefore, when you first come across the fact that Nolxweb claims to be licensed and regulated, not just in one, but in two jurisdictions, you will definitely be impressed. But, as mentioned earlier, saying something is easy, but actually delivering is another.
The Nolxweb website states that it is regulated in Australia by the Australian Securities and Investment Commission (ASIC) and also in Vanuatu by the Vanuatu Financial Services Commission (VFSC). Instead of believing it right away, you should always follow up and verify the information.
When you try doing that, you will find out that Nolxweb is lying to you about its licensing and regulation. This is because you will not find the brokerage listed in any of these regulatory authorities’ online register. This means it does not have a license and is not regulated. This makes it completely unsafe.
Plus, it cannot be licensed in Australia because it is breaking their leverage rule. It gets worse when you find that in a different place on their website, Nolxweb also claims to be licensed in the USA. The regulatory authority in the United States is the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).
You can check the online registers of both these authorities and not find Nolxweb listed, which again shows it is lying. Such a brokerage can never be trusted.
Reason 2: Trading platform not accessible
Another reason for you to not consider Nolxweb as your brokerage is the fact that their trading platform is not accessible. Does this make a difference? Indeed, it does because it is the most valuable feature of a broker. It is the software you use for executing your trades, which means it directly affects your performance.
If the platform does not function properly, you will not be able to trade. Of course, Nolxweb promises you a world-class trading platform, but offers no other details. MetaTrader 5 is the topmost trading platform in the market and it comes with demo accounts for you to be able to test it.
Unfortunately, you will not find any demo accounts offered on Nolxweb and what makes it worse that you cannot access their platform at all, which is quite fishy. It is common for scams to advertise platforms, but not really offer one and this is what seems to be the case with Nolxweb as well.
Reason 3: Excessive leverage
The trading conditions of a broker are important because they affect your profits, so they require a close look. You will find that Nolxweb is offering spreads from 0 pips, but since their platform is inaccessible, there is no way for you to be able to confirm this. Can you trust such a broker? Of course not.
Secondly, a look at their leverage ratios should also alert you right away because Nolxweb is offering leverage as high as 1:500. Leverage is undoubtedly lucrative, but it is also extremely risky. Therefore, regulatory authorities have imposed a cap on the leverage that can be offered.
This also applies to the ASIC, which Nolxweb has named one of its regulators. If it was truly regulated by the authority, it would never offer such high leverage to its clients. Scammers usually offer these to attract people to their platform.
Reason 4: High minimum deposit
You will find that in order to open an account with Nolxweb, you have to deposit a minimum of $500. The problem is that most reputable brokers these days allow you to open an account with as low as $10. Hence, the fact that it is asking for this much should discourage you from opening an account right away. Even the average deposit is $200 to $250 and this is twice that.
The verdict
These reasons indicate just why you should avoid Nolxweb and look for another broker to trade in the financial markets.
