Read our Varionext review to see if this broker is a scam or legit. Just to clear doubts, this is a varionext.com review.
One of the most important decisions that people make in their trading journey is the broker they select. It marks the beginning of the journey and can have a lasting impact on their overall experience. After all, you have to trust the company with your money and also rely on them to protect your personal and sensitive information. This is not something you can do with just any random company and you need a professional and good brokerage to assist you. How can this Varionext review help?
While there are lots of online brokers you can find, you should remember that not every company can be relied upon. They are certainly not created equal and while there are high and low quality brokers, there are also fraudulent ones that are out to con you. Do you really want that to happen? No one wants to have their hard-earned money stolen by scammers and the only way to prevent it is by ensuring that you do not choose a faulty brokerage.
The real challenge is identifying authentic brokerages and steering clear of the scams. The latter are smart enough to create an appearance that can be tough to resist. They have well-designed websites and make great promises to draw people in. However, this is exactly what you need to resist in order to avoid falling into a trap. Varionext is an excellent example of such a brokerage because it comes off as one of the best options you can find.
You will find a friendly looking website and Varionext claims to offer access to a variety of instruments, which include forex trading pairs, along with CFDs on stocks, commodities, indices and even cryptocurrencies. Moreover, it is also promising a user-friendly platform that makes the platform sound downright fantastic. But, you should not fall for its appearance because it is definitely not what it appears to be.
A close look shows that Varionext has all the signs of a scam and is only carrying out a ruse. What are the signs? You can find them below.
No license and regulation
If you want to choose a legitimate and professional broker, you should look at their license and regulation. This is because the license and authorization of a company is the easiest way to distinguish between a genuine and fraud company. The former will go to great lengths to get a license in order to reassure their customers about their authenticity, while the latter will avoid doing so at all costs because it will disclose their real nature.
When it comes to Varionext, you will find that the broker has posted an address in London, United Kingdom. The UK is one of the top regulated jurisdictions in the world and brokerages have to obtain a license from the Financial Conduct Authority (FCA) to operate from there. But, when you check its registers for the broker, you will not find the company listed.
This shows that Varionext is lying about where it is based because it cannot operate in the UK without a license from the FCA. If it is operating illegally, then again this makes the company shady. Nonetheless, when you go through the Terms and Conditions on the Varionext website, you will find that the broker is actually based in the Marshall Islands.
This is an offshore jurisdiction that does not regulate its forex industry, which has made it famous for being a scam haven because setting up fake companies is easy as they do not have to answer to anyone.
Trading platform
How do you execute your trades in the financial markets online? You have to use a trading platform to do so, which is the software designed for this purpose. Therefore, it has to have the right technology and tools in order to allow traders to make the most of their trading. There are some great platforms available in the market and every broker offers one at their own discretion.
You will come to know that Varionext is offering a very basic trading platform that has absolutely nothing special to offer. It is an oversimplified platform that many scam operators offer in order to portray the image of a genuine company. However, it has nothing on professional platforms like the MT4 and the MT5 that have gained recognition for their cutting-edge technology and tools.
Trading conditions
The next aspect of Varionext that should further show you that the broker is not the one for you is their trading conditions. These are directly connected to your profitability because they indicate your costs and trading flexibility. A look at the spreads shows that Varionext is charging 2 pips for the EUR/USD pair, which is twice what most professional brokers offer.
Obviously, this means that Varionext is not a competitive brokerage at all. Apart from that, you will also find that the brokerage offers a leverage as high as 1:100, which is considered excessive. Most regulatory authorities have imposed a cap on the leverage that can be offered to retail traders, which does not exceed 1:50. This is because leverage can be extremely risky and such high ratios can often work against traders.
Payment methods
The payment methods of a broker are extremely relevant because you want to be able to make your deposits and withdrawals in a safe and hassle-free manner. In addition, you want to ensure that you can get your funds back in case of a problem. But, when you check out Varionext, you will find that they offer limited payment options and none of them can give you the kind of security you want.
The payment methods that you will find at Varionext are conducted via an obscure and third-party payment provider named NeoBanQ. You obviously cannot trust a company like that and this also shows that you will not be able to file for a chargeback and get a refund in case of a problem.
Conclusion
All of this shows that Varionext may have an appealing appearance, but is not a brokerage you can or should trust.
