Which legitimate broker will tell a trader that it already has top-traders and all the novice has to do is to copy the trades those top traders make? NONE.No serious broker will ever entertain copy trading. The broker NordFX facilitates copy trading. We will unravel more about the con artist further in this review.
NordFX Account Types:
The broker supposedly offers three trading accounts: the fix, Pro and Zero.
One of these accounts asks for $500 as a minimum deposit balance, and the broker does not hesitate anywhere in wrongly claiming the trader’s money.
The leverage offered in all of the accounts is 1:1000. The European Union has drawn the line at 1:3.
The broker also nowhere tells the trader that the money that is being provided is the money that has to be returned. In short, the broker does not mention anywhere, the problems that arise with leveraged trading.
Keeping the deposits low and then letting the trader bet on a larger market is very clearly the characteristics of a suspicious broker.
It has to be clearly mentioned on the broker’s website that leveraged trading and CFD trading are very risky trading strategies and should be opted by novice traders wisely. NordFX simply does not care. It has to be kept in mind that hidden information is what’s important. This is the information that makes all the difference.
The broker promotes copy trading out in the open. If you do not now what cop trading is, we will tell you. Copy-trading has two participants. The master and the follower. The master is the one who strategizes each trade, and the follower simply follows.
Most of the novice traders fill up for a follower’s role, and the masters are traders that the broker is affiliated with. The follower never gets to test a strategy. He is just doing whatever the master is doing. If the master sells, the follower sells, and if the master adjusts his stop loss, so does the follower.
Often, the followers think that should they do what the master is doing, or should they intervene? The latter is least probable. In such cases, the trader also pays extra in terms of spreads. The average spread is not more than .50 in most cases, but in copy-trading, the trader ends up paying more than 3 pips for each trade. This is just where the broker earns logically.
The broker also earns through the wrong trades a trader puts behind curtains, just because the master did. Such trades move liquidity in the market, and the illegal brokers make the most out of it.
Commissions and spreads:
The commission on crypto and forex pairs is less as compared to the commission on CFD tradable assets. This is understood since the broker casts shadows of doubts; it will not even leave one single opportunity to make money out of the trader’s pocket. CFD’s are very complicated tradable assets in themselves, and over that, the broker asks for more commissions.
In some cases, the commission is as high as six. As in six pips per trade. This is a heavy amount that again comes out of the trader’s account. The irony is that most of the traders don’t even know that they are being charged with such an amount by a dubious broker.
Each account that the broker supposedly serves, either has an associated commission or has an associated heavy spread. The broker seems to be infatuated by the money a trader can pitch in and nowhere does it steps down when it comes to unnecessary money intakes.
NordFX Trading Platforms:
The broker allows trading only through MetaTrder4, which is an outdated program and a newer version of the program is rolled out on the streets for use. The older trading programs target brokers because these programs miss out on important indicators that help the traders make correct trades.
Brokers like NordFX, in particular, are on the lookout for such platforms because then they can sell their own trading platforms too under the same name. What does it take for the trader? Just a few extra bucks and he is in the “best trading experience”. The traders forget that such platforms deliberately force them into making false trades and no one else other than the suspicious broker is in profit here.
Markets and tradable assets:
The broker claims to cover a higher market but fails to impress its day traders. The maximum trade limit for stocks is kept at 100. Day traders and swing traders, particularly, make their profits by making trades that are higher in volume but the profits are not as much. Limiting the trades of each stock to a hundred is a stupid move.
No legitimate broker would do that. Since the broker creates doubts, it finds no issue at all in doing inappropriate things.
The broker also claims that the leverage and margin calls it provides are subject to market volatility. This clearly means that when the market is not favouring the broker, it will make sure that the leverage is decreased and the margin calls are increased. This all is done just so that the money flow never stops for the broker and the responsible party for that is always the trader.
A proper list that displays what are the tradable assets, disregarding the account they are associated with and what are the trading conditions for the same asset, is nowhere to be seen on the website. The trader has to look for it failing hopelessly at the same time.
The broker is not itself regulated, and here comes the play of a parent company. The broker’s website supposedly claims that it has a parent company and that too, is regulated by one authority only. A legitimate broker is generally seen daunting at least three different regulatory authorities, to tell the traders that the trades it conducts are safe. The broker claims that it provides offshore services, but the offshore regulation is not present anywhere on the website.
NordFX safe or not:
The broker is suspiciously different as we see. It. Asking for leverage and then commenting on the same that it is variable by the last minute are all the practices of a wrong broker. The broker also fails to provide any offshore regulations and goes on to trade offshore.
This can be seen as an irregular practice, and the broker should not be entertained any further. We request our traders to move their business elsewhere as soon as they can. The traders have a variety of options like HFTrading, Global TRadeATF, to name a few. These brokers have been in the market for a very long time and have come on the top of the lot as legitimate brokers.
Frequently asked questions:
Will I lose my money if I trade with NordFX?
Yes, of course. Before you are a whole article that says why you shouldn’t be doing that.
Where else can I trade?
You have plenty of options to move your financials elsewhere. As mentioned before, you can move them to HFTradong, GlobalTrade ATF and many legitimate brokers around the scene.
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