Central Margins review

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Central Margins review



Central Margins is a broker which might appear to be perfectly legitimate. It has a sleek website where you might be deceived into thinking the firm has an established space in the Forex market. Yet, under this façade lies a dangerous offshore firm. It lies about its address to make you lower your guard. Indeed, even once you make an account, things will not be as they seem. The promised trading conditions, for instance, are not that good.To get more news about central margins review, you can visit wikifx.com official website.

We do have to admit, it is beneficial that Central Margins offers assets from four classes – Forex, Crypto, Commodities and Indices. However, its conditions for trading them are very subpar. Take its leverage for instance. It is, quite paradoxically, both too high and too low. The platform it has to offer is also pretty shady and lacks in transparency. Overall, if there is a word that can describe this firm the best, that would be opaque. Even its deposits policy is not up to par, with a monstrous entry cost requirement.

We will not be recommending Central Margins in our full review. Instead, we would like to make it clear that the broker should be avoided at all costs. To do so, we will go into more details about its issues:

It states that it is not required to be licensed under the laws of St. Vincent and the Grenadines. This is perfectly correct, yet fails to paint the whole picture. Regulating Forex markets is the norm around the world. The few offshore countries which have still not done so, of which St. Vincent is a part, have quickly become scam havens. In fact, a license is the only way to make sure a firm you are to trade with is legitimate. Of course, this all means the following address Central Margins presents us with is fake:

Without a license from the Swiss FINMA, there is no way for any company to offer its services there. This one is no exception and it is concerning it would lie about its whereabouts like that. Regardless of where they claim to be from, offshore brokers need to be avoided. Here are the main dangers they represent:

Why are offshore brokers so bad?

Without being overseen by someone, an offshore firm can simply steal any money you deposit with it. That is just the most obvious threat of dealing with such entities, but it is by no means the only one. For instance, it is also common for them to go under, due to poor management decisions and the competitive nature of the markets. Luckily, the two regulatory bodies that oversee the markets in the States, called the CFTC and NFA have created a set of rules for brokers to follow which ensure the safety of their clients. Here are some of the best firms that are overseen by them, as well as more information on the regulatory framework in the States:
The CFTC, NFA and how they make trading safer

First and foremost, brokers licensed by the NFA and CFTC have to meet a minimum capital requirement of at least $20 million. That means they are solvent and have the funds to meet their operational costs, which prevents them from going down as easily as the offshore firms mentioned above.

Secondly, the two regulatory bodies have taken a hardline stance against scams and market manipulation. To prevent it, they require anyone under their oversight to report on a daily basis on open and closed trades. If any foul play is detected a fine is imposed on the guilty broker. The fines have historically been incredibly hefty, so firms are hesitant to engage in client abuse.

Offshore brokers’ dirty tricks
These days, offshore firms run all sorts of schemes. They do so because they are trying to make it impossible to cash out once your funds are in their hands. Of course, they are not all that creative. Therefore, their tricks can be summed up quite easily. We have done so here – watch out for the following:

Bonuses and high trading volume requirement

It might seem like opening an account with an offshore broker and cashing in its huge welcome bonus is a good idea. Nothing could be further from the truth. Doing so will mean also taking on the additional conditions these companies bind their promotions with. More often than not, these will include a turnover requirement. Prior to clearing it, no withdrawal will be made possible. Of course, the catch is that the turnover required is simply too much. Sometimes, the broker will demand you achieve a trading volume of several hundred times your deposit, which is straight up not possible to really do. Watch out whose promotions you accept!