Read our Victory FX review to see if this broker is a scam or legit. Just to clear doubts, this is a victoryfx.uk review.
Heard about scam brokers? Even if you have no background in the financial market, you have probably heard of fraudulent online trading schemes that have stolen millions from unsuspecting people. This indicates that once you decide to get on the bandwagon, you should exercise caution, or else you will also become one of them.
The reason these schemes are so effective is because they are able to portray the right image on the surface. You just need to look beneath the surface to know the truth, as this Victory FX review, reveals.
This means that you should not choose an online broker in a hurry and should always check it out thoroughly before taking things forward. Not taking these steps will leave you with regret if you end up being scammed.
You have to remember that the scammers are smart enough to know just what tactics to use to convince people they are not lying. But, they cannot actually become legitimate brokers, so it takes only a bit of an effort for you to learn the truth. You should take this approach no matter how tempted you are to sign up with an online broker.
These brokers deliberately design offerings to draw you in, just as Victory FX does. At first glance, you will notice that it does its level best to convince people that it is focused on quality, trust, integrity, fairness, reliability and honesty.
The rest of its package includes the opportunity to trade forex currency pairs, commodities, indices and shares in one place. You will also find that Victory FX promises raw spreads starting from zero, a generous amount of leverage and a variety of account options.
To top it all, you will also discover that Victory FX claims to be a regulated CFD provider, which is what every trader is looking for. Even though all of this sounds good on paper, taking a closer look will disclose some worrisome facts about the broker that should immediately alert you. Some of these facts are:
False regulation claims
It is widely known that if you want to avoid scam operators in the market, you should always give preference to a licensed and regulated online broker for your trading needs.
These are companies that are compliant with the laws and rules of a jurisdiction, have their activities monitored by a third-party authority so they can be held accountable, and maintain quality standards in terms of services, along with security. This is all the reassurance you require, but this does not mean that you should take the word of a broker when it claims to be regulated.
This is the internet where anyone can claim anything and scam brokers are known to use this tactic as well, which is what Victory FX also does. On its website, it claims to be a regulated forex and CFD platform.
Since it has an office address that puts it in London, United Kingdom, it means that the broker should be regulated by the Financial Conduct Authority (FCA), which is the regulatory body of the country.
It is one of the top regulatory bodies in the world and its license is extremely valuable, but a check of its online register shows that Victory FX is not listed anywhere.
As a matter of fact, it turns out that the FCA has actually issued a warning against Victory FX because it is illegally operating in the UK. The brokerage has been blacklisted for offering its services without a license, which is a black mark against any company and shows it cannot be trusted. A legitimate company will never make this mistake.
Problems with the trading platform
As the trading platform is the key feature you require for executing your trades in the financial markets, keeping up with the movements and for using the tools needed for making decisions, you want it to be the best.
There are various platforms available in the market, but not all of them can deliver the same execution, or provide the same tools. The MT5 is currently recognized as the top one in the market, so the fact that Victory FX is offering this platform will undoubtedly impress you.
However, it turns out that Victory FX is offering an MT5 platform that is registered to a third party company named Five Star Capital Ltd. What is this company? You obviously do not know anything about it, which means it does not help with the credibility of the broker. Legitimate companies offer the MT5 trading platform that is branded with their own logo.
The excessive leverage ratio
The trading conditions given by a broker are also important because they will determine the flexibility you can enjoy during trading. This is another area that shows that Victory FX is not working in your best interest. The leverage ratios that you are given here are as high as 1:500 and even though they seem to be very lucrative, they are also dangerous.
Leverage is considered a two-edged sword because it can equally increase your profits and losses. Therefore, regulatory bodies have limited the leverage that can be given to retail traders. The FCA has done the same and their limit is 1:30 and even though Victory FX claims to be based in the UK, it is clearly flouting the regulatory framework, which proves it is unlicensed.
The payment methods that are offered by the broker indicate whether you can get your money back in case of a problem and Victory FX allows you to make deposits via bank wire transfers and other unspecific methods for which you need to get in touch with support.
Essentially, it means that you will not be eligible to file for a chargeback, so there can be no refunds in case of a scam. This is the whole point of offering such payment methods.
These worrisome facts that you learn about Victory FX show that the brokerage is nowhere close to what it has portrayed and you should not choose it for your trading journey.