FtmoPipsTrade Review – Discovering the Warning Signs

FtmoPipsTrade Review

Online brokers are your gateway to the biggest financial markets in the world. They provide you with access to trading instruments, the platform and the tools that are all vital to the trading process. Therefore, signing up with a broker is not a small decision because it can have long-term consequences that you need to worry about. Many people did not take it seriously and had to pay the price for their negligence, as they ended up with fraudulent brokers, one of which is highlighted in this FtmoPipsTrade review.

The big challenge is that these brokers do not come with any clear indicators of being scams. As a matter of fact, nowadays, you will discover that these companies are quite well-disguised and even the most expert traders may not be able to identify them right off. Signing up with such platforms means that you could end up losing your entire investment and they can also misuse your data for their own gain. The consequences can give you a major headache, which no one wants to face. But, how can you do that? In order to accomplish this goal, you have to look at a brokerage closely and then sign up.

On the surface, most of the companies appear to be quite similar. In fact, their offerings can be very attractive and tempting, but you need to identify the warning signs, if any in order to know what kind of platform you are dealing with. This means you have to give some time and make some effort because you have to look at the brokerage closely, but as it can save you from a scam, it is definitely worth it. Your search for a reputable forex broker will bring you to FtmoPipsTrade, which has presented itself as one because it claims to be regulated and professional.

This can attract many traders, but you still need to verify what FtmoPipsTrade is claiming because it is easy for anyone to promise you anything over the internet. As it turns out, this is exactly what FtmoPipsTrade seems to be doing because once you start peeling the layers, the entire scam falls apart. Some of the warning signs you will come across are:

False regulation claims

As stated above, one of the most impressive claims of FtmoPipsTrade is that it is a regulated and licensed broker. Anyone with even a little bit of knowledge about the trading world should be aware that signing up with a regulated platform is recommended because they comply with a number of rules and regulations and offer transparent and quality services to their clients. They can also offer protections that you cannot expect from an unlicensed company.

Consequently, many people will be drawn in towards FtmoPipsTrade because it claims to be regulated and licensed. According to its website, it operates from the United Kingdom, as well as the United States. As a matter of fact, it has gone as far as posting a fake license on their website from the US. As it turns out, the scammers behind FtmoPipsTrade are not very good at forgery because the license gives the truth away.

The license mentions ‘United State of America’ and what is hilarious is that it does not even get the regulatory authority of the US right. It is not the Registrar of Business that issues licenses to brokers in the United States. Instead, it is the Commodity and Futures Trading Commission and the National Futures Association that oversee forex brokers. It is not possible for FtmoPipsTrade to be licensed by these authorities because it breaks their rules regarding leverage.

Apart from that, we have also stated that FtmoPipsTrade claims to operate from the UK as well, but a check of the online register of the Financial Conduct Authority (FCA) shows that it is not licensed there either. Most importantly, since the UK also has a cap on the leverage that FtmoPipsTrade breaks, it cannot be licensed there.

Offer of guaranteed returns

Taking a close look at FtmoPipsTrade will also show you that the brokerage seems to be offering investment plans to its clients that come with guaranteed returns. As attractive and tempting as they appear, you should bear in mind that no one can guarantee returns where the financial markets are concerned. These markets are known for their volatility and unpredictability and even expert traders cannot give you any guarantees.

In addition, if it was really possible for FtmoPipsTrade to give this kind of returns, wouldn’t the people behind them keep the profits for themselves? The fact that they are asking for investment clearly shows that they are only trying to manipulate people and should not be trusted at all.

Excessive leverage levels

Leverage is one of the most important trading conditions that are offered by a broker because it has an impact on your flexibility. You should definitely give it a look and when you do that with FtmoPipsTrade, you will find that they are offering leverage as high as 1:500. As mentioned above, regulatory authorities in jurisdictions like the US and the UK have imposed a cap on the amount of leverage that can be offered to retail traders. This means that FtmoPips should not be offering such ratios because they are against the rules and are extremely dangerous as well.

Only crypto payments accepted

You also need to check the payment methods that are offered by a broker because you want to make deposits and withdrawals quickly and easily. A look at the payment options at FtmoPipsTrade shows that they are only willing to accept crypto deposits and this is a big warning sign. Why? While there is absolutely nothing wrong with cryptocurrencies, you should be aware that these do not come with the option of a chargeback. Crypto payments are final and irreversible and you cannot get a refund in case of a scam.

Closing Thoughts

These warning signs all indicate that FtmoPipsTrade is not an authentic and genuine broker and you should avoid it.