Forex trading has quickly taken the lead and has become one of the most viable options for getting a good amount of money into the banks. The trading is different than what people usually think, here bids are done on currencies that are facing a critical condition to retain their value and also on those who are rising to the top. There are many different Forex trading tools out there right now and one of the most famous ones is Sigma4Trade. Even though it has been banned by many countries from continuing their brokerage business, still it seems that several people are logging into this tool and using it for making money. In this article, we will be discussing in detail why one should refrain from using this site at all.
Our Sigma4Trade review can’t start without stating the fact that it is one of the most hated sites in the world when it comes to Forex trading. The site has a legal warning issued by the financial regulator in the United Kingdom and UK based brokers usually do not use this too for trading. The site claims itself as being one of the best sites for independent traders in the Forex trading world. At the touch of a button, people will be able to lay their first foot in the world of Forex trading. They have introduced a mobile application so that it becomes convenient for people to trade on the go. The site provides users with the meta trader platform which is the largest one in the world of Forex trading. Putting aside all of that, it can be said this truly a scam and the below discussed disadvantages will support the point.
A Blacklisted Company –
firstly, before even starting to use this website for trading purposes, one should be knowing that this website is a blacklisted one and the UK government has banned it from being used in their nation. There is an authority that is supervising the forex traders here and all new brokers need to know that whenever they are starting trading, a registered company is the best place to start. The Financial Conduct Authority is one of the most prestigious authorities out there that rates and approves such third-party financial brokerage companies. Unfortunately, Sigma4Trade is not approved, rather it is banned by them. So if someone was willing to start using this website for trading, then it would be safe to say that they dodged a bullet.
Offshore Company –
this company is offshore and without proper information regarding the origin of the website, it is quite hard to trust this website for trading. For being an offshore company, it is also not approved by most financial organizations out there. Many people are living in the United States or Australia that this website targets and play a random game of financial fraud with them. There is no regulated financial market, where this website will be able to operate, so the offshore status assists them in staying hidden.
Banned in Europe –
There is a financial regulator in Italy that goes by the name of CONSOB which has strictly stated in the past that this website is a total scam and has advised freelance brokers/traders in their country to refrain from using it.
In Italy, you won’t be able to access this website as they were able to track the source IP access and ban it. The source of this company is SIGMA CFD, which was also a fraudulent organization at some point in time and the Italian government took steps in putting an end to that as well.
As soon as CONSOB was able to identify that Sigma4Trade was just another part of the old company that they banned, they took the same action against it. There is a written notice that individuals will be able to find over the internet as well regarding the usage restriction by the Italian financial regulator for this website.
Massive Risk –
There is a high risk associated if you’re trading with Sigma4Trade. The website is operating under anyone so it becomes highly open to a volatile market and the same goes for the traders using this site. There is so much fluctuation regarding the price of the bids that one cannot simply keep a track and become open to well-planned financial fraud.
Hypothetical Spreads –
The spreads that Sigma4Trade offers are 3 pips for EUR/USD. Even though this is quite below standard, a lot of people are unfortunately using this site for daily trading purposes. The spreads go lower as well, down to 0.6 pips.
It uses the old school Sirix platform which does not support the recent trend of Forex trading even. The broker promises a better spread to most people and that is one of the reasons why people are attracted to this website. Based on the bidding and asking price, the contemporary brokers agree to spread somewhere around 4 pips.
So, based on the spread that this broker is offering, there is no way one should be thinking about growing their Forex trading business using this site. The hypothetical figure that this website agrees to offer and what it offers are very different. We can easily say that Sigma4Trade is not trustworthy at all.
Money Withdrawal Problems –
Customers have made a lot of complaints in the past regarding the money transfer issue for this website. Furthermore, there have been several issues regarding the actual financial charges that would be implacable on the transactions that are not specified by the website.
Even though it promises to lay down a standard rate of charge on all transactions, sadly that is not the case and people have been facing such issues for quite some time now. The minimum amount of withdrawing that Sigma4Trade allows users to make is as high as 3000 GMP and someone cannot bring in that much business from the very first day. In turn, a lot of users will get demotivated and will not continue on this website.
Here are some advantages why some people still stick to work on this website:
Demo Account –
The site provides the facility of opening a demo account and some traders who are just starting will find this feature suitable for themselves.
Online Chart Display –
The site works based on an online chat system which makes trading easy and quite convenient for most people out there. Alongside real-time bid figures, the site can provide access to a variety of order types.
After going through the above discussion, we can say that this site is not for anyone. No one should be using it.
The site has shown fraudulent features of many likely Forex trading tools that have been banned in the past. And people should not be considering this as an option to carry on their Forex trade. Only one or two features will not influence people to use a partial tool for trading.
In the present times, investment scam is quite common and as smart people, we should refrain from using such websites. You should only be using those platforms that are properly licensed and which has a good investment history and good reviews from the trading circle.