Read our Novelis Capital review to see if this broker is a scam or legit. Just to clear doubts, this is a novelis.capital review.
When you are looking for an online broker to open a trading account with, there are a number of factors that you need to consider. This includes the trading conditions it is offering, the software you will be able to use and so on. One of the most important things you need to look for is the regulatory status of the company as well.
In a perfect world, you would not have to look for any information as the brokerage would share it with you. But, in the real one, you have to be cautious because this Novelis Capital review shows that things can go horribly wrong as well.
This is because the sheer number of companies that are offering you their services can often appear to be overwhelming to people. It is obviously not possible for you to check each and every one of them; not only is it impractical, you will never finish because these companies are founded every day.
Out of sheer frustration, a lot of people will just pick a brokerage and get started, but this can be a bad idea. Why? This is because a lot of these companies are actually scams that are just looking to exploit people.
If you do not look into a company before signing up, it is possible that you may end up losing your money to a scam. No one wants to do that and this means checking the different factors you need to look into before making a decision.
Doing so can save you from making a mistake you will regret and it also allows you to achieve your trading goals. Therefore, when you come across Novelis Capital, you should check out its offerings to see if they meet your requirements.
This is when you will come across the red flags, which show that Novelis Capital is not really a broker. What are the red flags? You can find them below.
A warning from a regulator
As mentioned above, it is a must to check the regulation of an online broker before you sign up with them. This is because it can help you determine if the company is legitimate and if it can offer you the security you would want.
You cannot just hand over your funds to anyone and you also want your information protected. Plus, every trader is also looking for a high standard of service and transparency in everything.
All of this is what a regulated and licensed broker delivers, but Novelis Capital does not fall into that category at all. As a matter of fact, it has actually been blacklisted by a regulatory authority, which definitely makes things worse.
The National Securities Market Commission (CNMV) is the regulatory authority of Spain, which has outlined that Novelis Capital is operating illegally in the country. This is a major red flag because a genuine company would always get a license first.
Moreover, if one regulatory authority in Europe has blacklisted a brokerage, it means it has been blacklisted throughout the European Union and this only adds to the case against Novelis Capital. If you want more proof, all you have to do is check out its address and you will find that the brokerage is operating from Saint Vincent and the Grenadines.
This is an offshore jurisdiction that has a reputation of being a scam haven because the authorities there do not regulate the forex market.
The malicious bonus policy
The second red flag that you will come across at Novelis Capital is its malicious bonus policy. First off, you should note that the fact that the brokerage is offering a bonus is already a problem because this practice is not permitted in a number of regulated jurisdictions.
Trading bonuses were popular at a time, but they came with strings attached, which were meant to exploit traders. This led to regulatory bodies banning them altogether.
Therefore, Novelis Capital should not be offering a bonus, but not only is it doing so, it also has a malicious policy, the kind of which that got them banned in the first place. It boasts a non-deposited funds clause, which states that traders cannot withdraw the bonus or the profits made with said bonus.
The problem is that you cannot physically divide the profits made by your own funds and that from bonuses, essentially meaning that you cannot withdraw your money at all.
Hence, the bonus offered by Novelis Capital is a ruse to ensure that traders cannot withdraw their money and the scam company gets to keep your funds.
Lack of decent trading platform
Checking the trading platform of a broker is a must because you have to use it for doing all your trading activities. From conducting the actual transactions to doing your analysis and evaluations, you need a platform, which means it has to be capable and advanced.
But, when you check out what Novelis Capital has to offer to you in terms of trading platform, you are going to be disappointed.
This is because it has a basic webtrader, which has become quite common amongst shady and fraudulent brokers these days. It is primitive and oversimplified, with nothing special to offer and does not even come close to the MT4 or the MT5 that are renowned in the market. If you were expecting a professional platform from Novelis Capital, be prepared to be disappointed.
Uncompetitive trading conditions
It is understood that you want to make profits via trading when you decide to dip your toes in the financial markets, but the trading conditions that Novelis Capital offers are not exactly aimed at letting you do that. The spreads offered for the EUR/USD pair are as high as 3 pips. This is actually three times what most competitive and professional companies will charge.
While the leverage ratios offered at Novelis Capital are as high as 1:200, you have to remember that leverage works as a double-edged sword, which means it can also lead to high losses.
These red flags that you discover about Novelis Capital make it evident that this kind of broker should not be trusted at all.