WikiFX Review: is it worthwhile to invest in Stocks24?

Stocks24 is a licensed broker but eventually turned out to be a really fishy one. It offers MetaTrader4 accounts with the standard CFD instruments, increased leverage and not so favourable spreads. In the following text, WikiFX will reveal intriguing facts about the broker, so before depositing, make sure to read the full Stocks24 review first.

Regulatory Status

First let's search Stocks24 on WikiFX APP to take a look at the details page. WikiFX is an authoritative global inquiry platform providing basic information inquiry and regulatory license inquiry. WikiFX can evaluate the safety and reliability of more than 36,000 global forex brokers. WikiFX gives you a huge advantage while seeking the best forex brokers.

As you can see, based on information given on WikiFX, Stocks24 currently has no valid regulatory license and the score is rather negative.

Furthermore, the Financial Commission issued a warning against the broker before:

WikiFX also visited the broker‘s official website to find out more. Stocks24 is a trading name of Turbo Trading Limited, a company incorporated in Vanuatu that actually holds a license granted by the local regulator. The regulatory framework in Vanuatu is loose, and the only measure worth mentioning is the capital adequacy requirement of $50 000. In fact, VFSC licensed brokers are not any safer than the regular offshore FX creatures because they don’t have to follow any customer protection rules, too.

Stocks24 created its Terms and Conditions under the Croatian governing laws, which is unacceptable. And VFSC allows the broker to do so, showing how worthy the Vanuatu regulation actually is. That‘s fishy, and it indicates that your funds won’t be safe if you deposit with Stocks24, notwithstanding the license it has. Moreover, the broker may as well disappear at any moment, and the regulator will be powerless to help the people who lost money. Vanuatu simply doesnt have the means to do so.

On the other hand, as an EU member, Croatia implemented the MiFID 2 guidelines, so the brokers registered there must comply with various regulations. To name a few, the companies need to provide €730 000 in paid-up capital, limit leverage, guarantee negative balance protection, keep clients‘ funds segregated and follow strict internal procedures. Stocks24 apparently doesn’t fancy compliance, so to the detriment of their clients, they went offshore to reduce costs and evade following rules. Still, their website is not accessible from the EU.

The first screenshot shows an intriguing clause in the Terms:

The second one displays the Turbo Trading Limited license:

Trading Platform

Stocks24 offers MetaTrader4, which is a top Forex platform beloved by millions of traders worldwide. However, the EUR/USD spread is 3 pips, which isn‘t a competitive Buy/Sell difference at all. Most of the adequately regulated brokers offer spreads of 1 pip and below with their entry accounts, so it’s costly to trade with Stocks24—a good reason alone to avoid it.

The leverage is 1:200 fixed, a risky ratio that can cause severe losses if not carefully deployed. Suspiciously, however, Stocks24 doesn‘t allow traders to choose or later adjust the levels to their preferences in the Client Area. It’s probably viable for them to do so by contacting the Support, but the procedure is more complicated than necessary. On the other end, most regulated brokers allow traders to adjust leverage themselves, so we give a big thumb down to Stocks24.

In fact, leverage is utterly dangerous, and most of the respected authorities do regulate it to reduce traders‘ risks. For example, EU, British and Australian brokers’ clients are limited to 1:30, while Canadian brokers and US brokers cant provide more than 1:50. In addition, most of the high-leverage FX companies are unlicensed, and WikiFX urges traders to be careful when it comes to leverage.

Deposit & Withdrawal

Seemingly, traders are allowed to deposit as much as they want, as Stocks24 doesn‘t impose minimum requirements. The funding methods are Bitcoin, Wire Transfers, Credit/Debit cards and CorvusPay. The latter is a Croatian payment processor, and the deposits made will be automatically converted into the local currency. Well, it’s legit, but WikiFX urges traders to deposit money only via methods they are familiar with and can trust.

WikiFX found no information about minimum withdrawals and withdrawal fees either. In fact, the only expense mentioned is the hefty inactivity charge. According to the clause, after only 30 days of inactivity, the account becomes dormant and will be subject to a $60 monthly fee. Thats unfair, and the broker once again proves to be much costlier than the regulated ones who charge dormant accounts 5 to 10 dollars per month at most. Beware!

Conclusion

Overall, Stocks24 is a costly broker that‘s licensed but at the same time revealing evidence of a scam. You’d better avoid this suspicious business.

WikiFX reminds you that forex scam is everywhere, you'd better check the broker's information and user reviews on WikiFX before investing.

You can also expose forex scams on WikiFX. WikiFX will do everything in its power to help you and expose scams, warn others not to be scammed. In addition, scam victims are advised to seek help directly from the local police or a lawyer.

Don't trust individuals or organisations who claim to be able to get your money back - they may be selling hope and scamming you again. This is especially true if they ask you to pay in advance, which is a “recovery scam”.