United Forex trading Review – Is this a Credible Option?

United Forex trading Review

The number of online brokerages in the market has gone up exponentially, which means you are likely to be swamped with choices when you begin looking. This often drives people to shorten the search process by opting for the first company that seems to provide a comprehensive package. But, this is where you are likely to make blunders because not all platforms in the market are authentic and credible. In fact, scams are also quite abundant in the financial markets and there is a good chance you may end up opening an account with one. This United Forex trading review highlights one of the scam operators in the market.

But, the fact is that if you check out United Forex trading for the first time, you will not be able to tell that it is a fraudulent brokerage. This is because it is presented as a rather innovative trading platform that has been established to help people achieve their financial goals. Furthermore, they promise their clients tight spreads, more than 40 currency pairs, ultra-fast execution and one of the most powerful trading apps in the world. You will also find that they are offering top-notch wealth management services.

Most importantly, United Forex trading claims to be a licensed and regulated broker and they have their headquarters located in Mountain View, California. It is understandable that such a package would be tough to resist for anyone because it seems to be a very credible broker. You obviously don’t want to waste any time and wish to open an account straight away because it offers you everything you could possibly require. However, this is exactly how scam brokers create an illusion and you will learn the truth when you look deeper into it. Why is United Forex trading not credible? Some of the reasons are:

Fake licensing claims

One of the most impressive claims that you come across on the United Forex trading website is that of their regulation and licensing. Even beginner traders understand that signing up with a licensed and regulated brokerage is recommended because it ensures that you can enjoy a safe and fair trading experience. Moreover, it also means that you can hold the broker accountable in case of a problem. So, when you realize that it is a licensed and regulated platform, you will be impressed.

Unfortunately, it appears that United Forex trading is making false claims and using it as a marketing gimmick and nothing more. This is because they do not have a license. Since it is issued by the regulatory authority in the jurisdiction they are based in, it means that the Commodity Futures Trading Commission (CFTC) in the United States should have issued a license to the broker.

However, you can check their online register and not find United Forex trading listed. In addition, they do not appear to have a membership of the National Futures Association (NFA) either. This means that they are not regulated and licensed, which makes it highly unlikely for them to be based in the United States. Essentially, it means that you are dealing with a virtually anonymous broker because you cannot verify any of their claims or credentials that they provide on their website.

Blacklisted by the FCA

It is bad enough for United Forex trading to not have a license at all, but it gets worse when you discover that they have actually been blacklisted by a regulatory authority. Being an unregulated brokerage is already a bad sign, but getting blacklisted is just confirmation that you are not dealing with a reputable brokerage.

The Financial Conduct Authority (FCA) is the regulatory body of the United Kingdom and is recognized as one of the toughest and well-respected financial authorities in the world. They have issued a warning against United Forex trading, as it appears that the brokerage is offering its services illegally to traders in the UK. This is again confirmation that you are not dealing with a credible brokerage because no authentic company would ever use such tactics. They would first obtain a license, which United Forex trading does not have.

Conflict of interest

When you are going through the offerings on the United Forex trading website, you will find that they offer both forex and CFD trading services as well as wealth management services. They have stated that their platform ensures you don’t have to compromise and can enjoy both services, which is an advantage. The problem is that this is just further evidence of their lack of credibility. Why?

This is because a brokerage cannot offer trading and wealth management services because of the conflict of interest in creates. As a brokerage, United Forex trading is a market maker, which means that it makes profits when its clients lose a trade. This makes sense and it is how every broker operates. But, the problem is that when a company offers wealth management services, it means that it will make trades on your behalf.

This means that United Forex trading will make profits on your behalf and in doing so, it would be incurring losses. After all, it is a market maker, so every time you profit, they lose. Hence, they would have all the incentive to deliberately mismanage your account, so you make all the losses and this means profits for them. Thus, genuine and credible brokers don’t offer both services.

Lack of trading platform

If you need even more evidence that you are not dealing with a good brokerage, or one worth using, then it is the lack of a trading platform at United Forex trading that should be enough. Even though they claim to offer the most powerful trading app in the world, they don’t have a trading platform at all. There is just a funny little dashboard that only gives you the option of making a deposit and there is no trading.

Ending Thoughts

Put all of these gaping flaws together and you can see that United Forex trading is not a credible broker.