Saxo Stock Review – Is it a Shady Broker?

Saxo Stock Review

If you have been doing your research into online brokers, you have probably heard about the different types that exist. There are professional and renowned companies that are operating in the markets and there are also mediocre ones that offer standard services. But, there is another category that you have to be wary of and that is of shady and scam brokerages. These are mostly impostors and fraudsters that are only looking to steal money and do not have good intentions. You can check this Saxo Stock review to learn more about how such platforms operate.

The internet has always been a den where these illegal activities are concerned because of its unregulated and anonymous nature. Hence, whenever you engage in any activity online, you have to be cautious and not fall into any traps. This is even more important where online trading is concerned because there is a lot of money involved, along with personal and sensitive data. You do not want to see it end up in the wrong hands because that will be a recipe for disaster for you. It is imperative that you choose a brokerage carefully to mitigate this disaster.

Of course every platform you find will make big promises; they claim to offer you top-notch services and the best conditions and everything possible to draw your attention and get you to sign up with them. This sounds quite reasonable because no company would ever talk about its flaws, but the fact that many of these platforms are downright fraudulent is what you need to remember. Even the fraud ones will make similar promises and have similar offerings as that of legitimate and regulated platforms and this can make this decision a bit challenging.

How do you determine that you are dealing with a shady broker? There are some indicators that can help you draw that conclusion. You can find more about them in this Saxo Stock review, which shows just how this brokerage also falls in the shady category. Let’s take a look:

It is not a regulated broker

The first and most important suggestion that you will get from every professional and expert in the financial markets about avoiding a scam is to only opt for a regulated broker. These companies are those that obtain a license from a regulatory body in the jurisdiction they operate, which is only issued when they comply with certain requirements in terms of policies, laws and standards. This can offer you safety that you cannot get from an unregulated brokerage. So, where does Saxo Stock fall?

Unfortunately, when you check out Saxo Stock, you will discover that they are based in Saint Vincent and the Grenadines, which does not really make a difference. Why? This is because this is an offshore jurisdiction that has become a hotbed for scams and shady companies because it does not regulate the forex industry. The Financial Services Authority (FSA) of SVG has clearly stated that they do not oversee brokerages, which means anyone can set up a company there on paper.

This means that Saxo Stock will not be able to offer you any of the protections you can expect from a regulated and licensed broker and this makes it a shady one.

It has a malicious bonus policy

The next problem that you will encounter when you check out Saxo Stock is that they are offering trading bonuses to their clients. This may seem like a perk and was considered that for a long time, but eventually these bonuses were banned in multiple jurisdictions. It was because these bonuses came with strings attached that were considered exploitative for traders, so regulatory authorities decided to ban them.

You will discover that not only is Saxo Stock offering trading bonuses to its clients, but it also highlights precisely why these bonuses were banned. All you have to do is go over their bonus policy. This dictates that traders will not be able to make withdrawals from their account until they meet some trading volume requirements after receiving a bonus. The problem is that when you check the trading volume requirement, you will come to know just how impossible it is to achieve. Thus, the goal of the brokerage is to prevent its clients from being able to withdraw their funds.

It does not have a decent trading software

One of the most crucial features that a brokerage offers to its clients is its trading software and it has a big impact on your performance. This is because it offers you trading tools and advanced technology that can help you make timely and smart decisions. You obviously want a quality platform to use, but Saxo Stock is offering a web based trading solution.

The problem is that such web trading platforms have become quite common amongst scam and shady brokers. These are basic and oversimplified and do not offer any such advanced features or tools that can make a difference. Saxo Stock does not offer you any one of the renowned trading platforms in the market i.e. the MT4, MT5 or cTrader, which have become the favorite of most because of their technology and tools.

It offers excessive leverage

If you check the leverage ratios that are available at Saxo Stock, you will be shocked to discover that they go as high as 1:1000. Yes, leverage can certainly be beneficial in the trading process, but you should note that it is also very risky. In fact, regulators in various jurisdictions have imposed a cap on leverage ratios that does not go beyond 1:30 and this is significantly higher.

It has high inactivity fee

Another issue you will come across at Saxo Stock is the high inactivity fee that the broker seems to be charging. The fee is excessive and while inactivity fee is often charged by platforms, it is never this high. This shows that they are only planning on exploiting their clients.

Conclusion

At the end of the day, you can conclude that Saxo Stock is indeed a shady brokerage that you want to avoid.