MSP Review – Why Skip this Broker?

MSP Review

When you have decided to trade in the forex market, or any other financial market for that matter, you will obviously be on the hunt for an online broker. You have to partner with one in order to get access and execute your trades. This is well-known and understood, but you ought to be extremely careful when you are shopping for one. This is because the market has become rife with scammers and shady platforms that will be more than happy to take advantage of you, something this MSP review can help you understand.

While most people are aware that scam brokers exist, no one really believes they would ever encounter one and this can lead to their downfall. There was a time when it was not that difficult for you to figure out that you were dealing with a shady or mediocre platform because they were lacking in several areas. Therefore, people were able to steer clear of them and opt for more comprehensive and reliable options. But, things have gotten tougher over the years because today, even fraudulent platforms are so well-designed and sophisticated that you cannot tell them apart from genuine ones that easily.

As a matter of fact, many people have had to learn this lesson the hard way and it has been devastating to say the least. You definitely do not want to go through that experience, especially when you are looking to make high profits from the opportunities the financial markets have to offer. But, how do you make sure it does not happen? The most appropriate approach is to do your research and dig into the company thoroughly to know if they are really what they have presented themselves as. You should do this with MSP as well, which is one of the forex and CFD companies you will find.

At first glance, you will not come across any problem with MSP either. In fact, it comes off as many of the other brokers you will find when you search. They make all the right promises about offering optimal trading conditions and the best trading experience, but it becomes evident quickly that this is not what they are really about. You need to skip this brokerage altogether and this is because of the numerous problems with it. What are they? Go over them below:

Lack of licensing and regulation

Checking the license and regulation of an online broker should be your priority because only legitimate companies usually obtain this license and are willing to be regulated. There are prerequisites to getting a license and companies have to maintain a certain standard, comply with various rules and can also be accountable for their actions. The regulatory authority is different for every jurisdiction and their requirements can also vary. When you check the licensing and regulatory status of MSP, there will be a certain amount of confusion.

This is because there is some conflicting information about the company that owns and operates it. First off, MSP mentions that it is owned and operated by GAM Investment Management (Switzerland), which is based in Zurich, Switzerland. They have provided an address as well. Then, you will further discover that the services on the website are provided by MSP Trading Services LLC, which is also incorporated in Zurich and is a subsidiary of the MSP group of companies.

However, what makes things confusing is that the MSP website further adds that MSP Trading Services LLC does not need to have a financial services license or authorization to provide its services in Zurich, Switzerland. This does not make sense because every brokerage requires a license to operate in the country and there are no exceptions. The regulatory body for Switzerland is the Swiss Financial Market Supervisory Authority (FINMA) and a check of its online register does not list MSP or any of the companies mentioned on its website.

This means that either MSP is lying about where it is based, or it is illegally operating from Switzerland and these scenarios do not provide any credibility to the broker at all. It only gives you reasons to avoid the broker altogether.

Availability of bonuses

The fact that MSP is offering trading bonuses to its clients should be another reason for you to avoid this broker. Why? Shouldn’t trading bonuses be considered a perk. Indeed, there was a time when they were, but nowadays they come with malicious policies and conditions that have resulted in bonuses being banned across various jurisdictions. This also applies to brokers in Switzerland, which means that MSP should not be offering bonuses at all. Since it is breaking the rules, you should not trust this platform at all.

Vague and excessive fees

You should never decide anything about a brokerage without taking a look at how much they plan on charging you. When you use a broker’s services, it is understood that they will charge you some fee or the other, but you obviously want it to be reasonable. Unfortunately, this does not seem to be the case with MSP because they are clearly not a genuine company.

If you go through their Terms and Conditions, you will notice that MSP has mentioned withdrawal fees, but the problem is that it is very vague about it. The company has not clarified how much it will charge, which means it can impose high withdrawal charges and you will not be able to do anything about it. Moreover, you will also discover that MSP is charging excessive fee for inactive accounts as well, which shows its intention of exploiting its clients. It also has a whopping minimum deposit of $500 that is twice as much as professional brokers.

No proper trading platform

If you were hoping to find the MT4 or the MT5 trading platforms available at MSP, then you are in for yet another disappointment. The brokerage offers you a basic web trading platform that has nothing special to offer and is lacking in most areas.

Conclusion

It is best for you to skip MSP as a potential brokerage because it does not seem to have good intentions or services to offer to you.