Abovet-SPG presents itself as a swiftly expanding, regulated, and acclaimed broker. However, a cursory examination exposes these assertions as false. Abovet-SPG is merely another internet scam preying on individuals lacking adequate familiarity with financial trading. Let’s explore methods for spotting such deceitful schemes.
Abovet-SPG Broker Regulation
The most conspicuous warning sign concerning Abovet-SPG is its complete anonymity. The website lacks any mention of a company name, even in its Terms and Conditions.
Abovet-SPG offers a contact address in Austria:
But at the same time claims to be licensed by regulators in Dubai, Cyprus, the UK and South Africa:
However, upon scrutinizing the Terms and Conditions, it becomes evident that the jurisdiction listed is Vanuatu, an offshore zone.
Upon checking the records of the relevant financial regulators, it becomes apparent that no licensed broker in these jurisdictions operates under the Abovet-SPG trade name and domain.
Under no circumstances should you entrust your funds to such anonymous websites rife with false and contradictory information. Instead, consider opting for reputable companies operating under the oversight of respected regulatory bodies like the Cyprus Securities and Exchange Commission (CySEC) or the Financial Conduct Authority (FCA) in the UK.
As a customer of these regulated entities, you benefit from various assurances, including negative balance protection and fund guarantees in case of broker insolvency. In the EU, this guarantee extends up to EUR 20,000, while in the UK, it’s up to 85,000 GBP. Regulations in these regions also encompass essential measures aimed at enhancing investor protection and fostering market integrity and transparency, such as transaction reporting. Additionally, regulated brokers are mandated to segregate their operational funds from client funds, further safeguarding your investments.
Trading Platform
After registering an account, users gain access to a fairly basic web trading platform lacking extensive customization options or advanced functionality. Interestingly, this platform mirrors ones utilized by several fraudulent brokers we’ve encountered previously. Scammers leverage rigged trading software to deceive victims into believing their funds are genuinely being invested and even yielding profits.
By opting for a licensed broker, clients gain access to established software equipped with advanced features and compatibility across various devices and operating systems. Among the most widely utilized trading platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have become industry standards due to their extensive feature sets, which include:
- A plethora of customization options to tailor the platform to individual preferences.
- Support for multiple account usage, allowing traders to manage several accounts simultaneously.
- The ability to design and implement custom scripts for automated trading.
- Tools for backtesting trade strategies to assess their viability before implementation.
Choosing a licensed broker ensures access to reliable and robust trading software, enhancing the trading experience while minimizing the risk of falling victim to scams.
Minimum Deposit
It’s important to note that Abovet-SPG imposes a relatively high minimum deposit requirement of 1000 USD for a starter account. However, it’s worth mentioning that with as little as 100 USD or even less, you can open a fully functional trading account with some of the industry’s leading brands. This significant difference in minimum deposit requirements underscores the accessibility and affordability offered by reputable brokers compared to Abovet-SPG.
Payment Methods
It’s unsurprising that Abovet-SPG exclusively accepts cryptocurrencies as their payment method, considering it’s the preferred choice for many financial scammers. Cryptocurrencies offer a level of anonymity that facilitates fraudulent activities, and they also lack the safeguards provided by traditional payment methods, such as the ability to request refunds. This combination makes cryptocurrencies particularly attractive to scammers seeking to evade detection and avoid accountability.
While some legitimate brokers do accept digital currencies like Bitcoin, they typically offer a range of transparent payment methods alongside them. These may include traditional options such as credit/debit cards, bank transfers, and popular e-wallets like PayPal, Neteller, or Skrill. By providing multiple payment options, legitimate brokers ensure transparency and accommodate the preferences of their clients, fostering trust and legitimacy in their operations.
Trading Instruments
Abovet-SPG’s trading software may appear to offer a wide range of assets, including currency pairs, stocks, indices, commodities, and cryptocurrencies. However, it’s crucial to recognize that trading with a fraudulent broker like Abovet-SPG inevitably involves fictitious transactions. To safeguard your investments, it’s imperative to only engage with licensed and established brokers that operate with transparency and regulatory oversight. By choosing reputable brokers, you mitigate the risk of falling victim to scams and ensure the security of your investments.
Abovet-SPG Spread
In Abovet-SPG’s trading platform, a remarkably low spread of 0.2 pips may catch your attention. However, such a low spread often indicates that the broker charges additional commissions for trades. Unfortunately, Abovet-SPG fails to provide clear and transparent information about the total cost incurred by the trader. This lack of transparency raises concerns about hidden fees or undisclosed charges, reinforcing the importance of dealing with brokers that offer transparent pricing structures.
Abovet-SPG Leverage
Abovet-SPG offers leverage ratios ranging from 1:20 to 1:100 for various account types. However, these levels deviate from the typical leverage ratios and exceed the maximum limits allowed in the jurisdictions where Abovet-SPG claims to be licensed. Such discrepancies in leverage offerings raise concerns about the broker’s compliance with regulatory requirements and further underscore the need for caution when dealing with Abovet-SPG.
Trading with high leverage indeed offers the potential for higher profits, but it also amplifies the risk of significant losses proportionally. To safeguard retail traders, leading regulators enforce limits on leverage. For instance, in the EU, UK, and Australia, the maximum permitted leverage is typically 1:30, while in the US, it’s 1:50. Moreover, these maximum levels usually apply solely to trading major currency pairs, with even stricter limits imposed on more volatile assets.
Regulated brokers may offer higher leverage to professional clients who meet stringent criteria for capital and experience. However, in doing so, these clients forego certain protections afforded to retail traders.
If you’re not classified as a professional trader but are willing to assume the risks associated with high-leverage trading, a viable option is to consider using the services of an offshore affiliate of an established brand. While offshore brokers may offer higher leverage, it’s crucial to exercise caution and conduct thorough research to ensure their legitimacy and reliability.
Abovet-SPG Withdrawal Requirements
While Abovet-SPG may not explicitly mention extraordinary conditions for withdrawal, it’s common for such scams to employ hidden fees and other tactics to hinder users from withdrawing their funds. These schemes often present unexpected obstacles or impose stringent requirements that make it difficult for investors to access their money. Therefore, it’s essential to approach withdrawal processes with caution and carefully review the terms and conditions provided by the broker. Additionally, conducting thorough research and seeking advice from reputable sources can help identify potential red flags and protect against falling victim to such scams.
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