Updated on April 22, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding Brokerz due to the issues we've identified.
Is Brokerz a Scam or a Legit Broker? ▲
The legitimacy of Brokerz as a Forex trading broker is highly questionable. Brokerz, under the ownership of Brokerz ltd, is situated in an offshore zone, specifically St. Vincent and the Grenadines. This region is noted for its lax regulatory environment, which does little to nothing in terms of enforcing robust operational standards for financial investment firms. Consequently, Brokerz operates without the oversight of any reputable financial regulatory authority, placing it in the same category as other dubious Forex brokers like CVC Markets and AAG Markets.
The absence of stringent regulatory compliance exposes traders to considerable risk, as there are no assurances of financial security or protection against possible malpractices. Trading with such an unlicensed broker means relying solely on the broker’s promises, which could lead to detrimental outcomes due to the lack of accountability. As such, we strongly discourage engaging with Brokerz or any other offshore, non-licensed brokers. It is essential to prioritize trading with brokers that are subject to and comply with the regulations set by esteemed financial authorities worldwide.
Brokerz, established in 2013 by a consortium of software engineers, professional traders, and investment managers, purports to offer a comprehensive trading platform for Forex, CFDs, stocks, commodities, and indices. Despite this, Brokerz's credibility is marred by a conspicuous absence of regulatory information, suggesting it does not fall under any regulatory oversight.
Adding to concerns, the Austrian Financial Market Authority (FMA) has blacklisted Brokerz, stating it is unauthorized to conduct banking transactions within Austria, including trading in financial futures contracts. Such alerts and blacklists issued by international regulatory bodies are critical in maintaining market stability, safeguarding clients from fraud, and ensuring the reliability of financial service providers.
Brokerz in India and the USA
Brokerz has not indicated compliance with any regulatory authorities in India, where Forex trading faces stringent restrictions. Similarly, in the United States, Brokerz does not meet the legal requirements to offer services to traders, as it is not regulated by the Commodity Futures Trading Commission (CFTC). The U.S. laws strictly limit trading to platforms overseen by CFTC, thereby excluding Brokerz from the list of permissible brokers for American traders.
Brokerz Deposits & Withdrawals ▲
Brokerz stipulates a minimum deposit requirement of $/€/£ 250 for account opening. It supports a range of payment methods, including Credit/Debit cards (Visa, MasterCard, or Diners Club) and Fast Wire Transfer. Notably, Brokerz claims not to impose charges on deposits. However, it advises clients to verify potential transfer costs and additional fees with their respective banks or credit card providers.
For deposits exceeding $2,500, Brokerz offers to cover any transfer fees. Withdrawals can be executed through wire transfer or returned to the credit card used for the deposit, adhering to the same method used for depositing. The broker processes withdrawal requests typically within three business days, contingent on the provision of all necessary documentation.
Brokerz provides fully integrated mobile trading platforms, enhancing the flexibility and convenience for traders to engage in trading activities via desktop, tablet, or mobile. The platforms are accessible around the clock, supported by dedicated customer service to ensure a seamless trading experience.
Demo Account ▲
A time-unlimited Demo account is available at Brokerz, granting access to the MT4 demo platform. This feature allows for the opening of multiple demo accounts, facilitating extensive exploration of the platform’s functionalities without time constraints. The Demo account is recommended for beginners as an introductory step to Forex trading, while experienced traders can use it to familiarize themselves with Brokerz's trading conditions, conduct back-testing, or evaluate manual and automated trading strategies.
After a comprehensive review, our findings point to a series of red flags associated with Brokerz, primarily its lack of regulatory oversight and the blacklist status by the Austrian Financial Market Authority (FMA). Thus, we strongly advocate for trading with brokers that are regulated by reputable authorities, such as the UK’s Financial Conduct Authority (FCA) or the Australian Securities and Investments Commission (ASIC), to ensure trading with confidence and security.
Given the significant concerns surrounding Brokerz, including its offshore registration and absence of transparency regarding regulatory compliance, we recommend against opening a trading account with them. Traders should prioritize engaging with brokers that demonstrate a commitment to adhering to the highest standards of regulatory compliance, thereby ensuring a safe and reliable trading environment.
Overall, the rating and experience for Brokerz are significantly negative, underlining the importance of exercising caution and conducting thorough research before selecting a Forex broker.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
Brokerz Review 2024
