Status Code Review – The Problems with the Broker

Status Code Review

The number of online brokers offering their services to those interested in trading in the financial markets has increased exponentially in the last few years. This is because of an influx of people, particularly during the time of the coronavirus pandemic.

But, you have to bear in mind that the explosion of brokers is not just good news because not all of them are authentic and reliable. Sure, there are some top-notch companies in the market, but there are mediocre and low quality ones too. But, the worst of them all are the shady and scam companies, one of which you will discover in this Status Code review.

These have become quite widespread in the financial markets and it is not surprising, given the massive amounts of money involved. These criminals are only interested in your money and they do their level best to convince you into handing over your funds.

Even the smartest people fall into their traps because they are so well laid out. Therefore, when you decide to engage in online trading and are looking for a broker, you have to proceed very cautiously.

It is vital to remember that a decision as important as this one cannot and should not be made in a hurry. If you do not assess the brokerage you are considering opening an account with, it could lead you to sign up with a company that is unreliable or unsuitable for you, or it could also be a scam.

Why take the risk when you can avoid it with just a little bit of effort? If it is a shady platform, you will come across lots of problems that can alert you right away.

This is what happens when you take a look at Status Code and discover that the forex brokerage is not what it seems to be. There are a number of problems you will encounter and the following review can shed some light on them:

Offshore location

First and foremost, you need to check where a brokerage is based because this will help you determine its licensing and regulatory status. Yes, there are both regulated and unregulated platforms that can be found, but if you do not want to be scammed, it is best to go with the former. If you look at the scam brokerages, you will find that they mostly fall in the latter category.

With regulated companies, you can get protections like safety of funds and fair and transparent conditions that unregulated ones cannot offer. Therefore, you need to check Status Code’s regulatory and licensing status and when you do, you will find that it is based in the Commonwealth of Dominica. This is an offshore jurisdiction that does not regulate its forex markets, which means that the brokerage is not licensed.

Hence, it is not surprising that Dominica is recognized as a scam haven because anyone can set up a company there and operate without any accountability. This is what Status Code is doing and you need to be wary of the brokerage.

Misleading claim

When you open the Status Code website, you will also come across a banner at the top that boasts a warning. It claims that you have a short window of five minutes for opening an account before it closes registration, which is completely false. It is just to push people into signing up on the platform and nothing more because once the five minutes are over, the time restarts.

To put it simply, Status Code is just trying to take advantage of people who are signing up with a brokerage for the first time and it does not give them enough time to figure out that it is just a sham and not a genuine platform. The goal is to create a false sense of urgency so people will sign up right away and get trapped.

Primitive trading platform

Even if you are a complete newbie with zero trading experience, you should be aware that the trading platform offered by a brokerage is one of its most crucial features. After all, you cannot actually engage in any trading activities without this software.

Plus, it is also equipped with tools and features that play an important role in the trading process. To sum it up, the platform shapes your overall experience, so it is something that needs to be assessed carefully.

When you take a look at the trading platform that Status Code offers, you will find yet another problem because it is a primitive and oversimplified one that has nothing special to offer. It is completely basic and does not come even remotely close to the leading trading platforms in the market, such as the MetaTrader 4 and the MetaTrader 5 that have become the top choice of traders due to their advanced technology and tools.

Bad trading conditions

Your goal is to make profits via online trading, but this depends on the conditions you are offered and Status Code is really bad in this regard. There is nothing competitive about the brokerage because it offers spreads that go as high as 3 pips. This is almost thrice what legitimate brokerages offer, as their spreads usually start a 1 pip.

Secondly, the leverage that Status Code offers is around 1:200 and such a ratio is extremely high and considered dangerous for retail traders because it can also amplify your losses.

Payment methods

The payment methods are important because you want to be able to get a refund if you want. A look at the payment methods available at Status Code shows that they allow both crypto payments as well as credit cards. But, this is just a lie because when you try to use a credit card, it takes you to a website for purchasing bitcoin.

This means that Status Code only supports crypto payments, which are final and do not give you the option to file for a chargeback, so you can get no refunds.

Final Word

Considering the problems that you will find with Status Code, it is easy to see that this brokerage is not even close to authentic and trustworthy.