Baker Steel claims to be a reputable broker that can assist us in becoming successful traders. However, this site actually serves as a cautionary tale against trusting promises of effortless profits. Baker Steel is not a genuine financial services provider but a scheme aimed at defrauding inexperienced individuals. Here’s why you should avoid Baker Steel and explore more reliable options for your initial steps into financial trading.
Baker Steel Regulation
| Guaranteed Funds | Segregated Accounts | Negative balance protection | |
| Baker Steel | ❌ | ❌ | ❌ |
| UK regulated brokers | £85 000 | Yes | Yes |
| EU regulated brokers | €20 000 | Yes | Yes |
| AU regulated brokers | No | Yes | Yes |
| US regulted brokers | Yes | Yes | No |
The first indication that something is amiss with Baker Steel is the anonymity of its website. The company’s name is not mentioned anywhere, neither on the site nor in its legal documents.
Legitimate financial service providers offer clear and detailed information on their websites about the company that owns and operates them, their location, and their licenses. Authentic brokers also provide a full set of legal documentation. While the presence of such information doesn’t guarantee its accuracy, its absence strongly suggests that you might be dealing with scammers.
Both the homepage and the Customer Agreement claim that Baker Steel is based in the United Kingdom.
At the same time, there is a map on the contact page which shows a Seychelles address. Such contradictions are typical of fraudulent websites.
To operate as a broker in the UK, a company must have a license from the Financial Conduct Authority (FCA). The FCA’s register does not list any licensed broker under the Baker Steel brand and domain. There is a legitimate company with a similar name, Baker Steel Capital Managers LLP, but it uses a different domain, bakersteelcap.com. There is no evidence to suggest any connection between the reviewed website and this legitimate company.
Moreover, the Baker Steel website is primarily available in Russian. A search of the Russian financial authorities’ register reveals a warning to investors that Baker Steel is not licensed.
Trading Platform
After registering an account, users gain access to a basic web trading platform that lacks extensive customization options or advanced functionality. This same platform has been used by numerous fake brokers we’ve encountered. Scammers employ this rigged trading software to deceive victims into believing their money is being invested and generating profits.
Minimum Deposit
Baker Steel requires a minimum deposit of 250 USD, which is the industry standard. However, this amount could also be used to open a trading account with an established and properly licensed forex broker. Many leading brands in the industry offer Micro and Cent accounts with a very low entry threshold, making them suitable for novice investors.
Payment Methods
| Deposit time | Withdrawal time | Price | |
| Bank wire | 2-5 business days | 5-10 business days | $25+ |
| Credit card | Instant | 24 hours | Free |
| PayPal | 1 hour | 24 hours | 2% |
| Skrill | 1 hour | 24 hours | 2% |
| Neteller | 1 hour | 24 hours | 2% |
| Crypto | 24 hours | 24 hours | Fee depends on crypto |
Baker Steel’s deposit methods include options such as cryptocurrencies, card payments, and obscure payment processors like PPay. However, in practice, the only functional options are cryptocurrencies and the dubious Russian platform merchant001.
Legitimate brokers typically provide clients with a wide range of transparent payment methods, including bank transfers, credit/debit cards, and established e-wallets like PayPal, Skrill, or Neteller.
Scammers, on the other hand, prefer cryptocurrencies because these transactions cannot be refunded. If you’re looking for legitimate brokers that accept digital currency payments in addition to conventional methods, refer to this list.
Trading Instruments
The Baker Steel trading platform claims to offer trading in indices, stocks, commodities, currencies, and cryptocurrencies. However, this fraudulent broker undoubtedly provides fictitious rather than actual trading. Additionally, brokers that are genuinely based and licensed in the UK are not permitted to offer cryptocurrency trading to retail clients.
Baker Steel Spread
The trading platform shows an extremely high spread of about 5 pips, which is more than three times the usual industry spread. Even if Baker Steel were offering real trading, this would be highly disadvantageous to customers.
Baker Steel Leverage
| Currency | Stocks | Crypto | Gold | Indices | |
| Baker Steel | 100:1 | 100:1 | Not specified | 100:1 | 100:1 |
| UK regulated brokers | 30:1 | 5:1 | ❌ | 20:1 | 20:1 |
| EU regulated brokers | 30:1 | 5:1 | 2:1 | 20:1 | 20:1 |
| AU regulated brokers | 30:1 | 5:1 | 2:1 | 20:1 | 20:1 |
| US regulated brokers | 50:1 | ❌ | ❌ | ❌ | ❌ |
Baker Steel offers a leverage of 1:100, which is evidence that it is not a regulated broker based in the UK. Regulatory bodies like the FCA, along with EU regulators, restrict leverage to 1:30 for trading major currency pairs, and even lower for more volatile assets. High leverage can amplify profits, but it also escalates the risk of sudden and excessive losses. Hence, leading regulators impose leverage restrictions for retail traders.
Another red flag is Baker Steel’s claim of offering bonuses. Regulated brokers are prohibited from providing bonuses and promotions. Scammers often entice potential victims with promises of generous bonuses, only to subject them to extortionate terms.
Baker Steel Withdrawal Requirements
| Trading volume requirement | Fee/Tax on withdrawal | Minimum withdrawal | |
| Baker Steel | Bonus x40 | Not specified | Not specified |
| UK regulated brokers | No | No | No |
| EU regulated brokers | No | No | No |
| AU regulated brokers | No | No | No |
| US regulated brokers | No | No | No |
If an account has received a bonus, withdrawal of funds is only possible after fulfilling minimum traded volume requirements. These requirements are vaguely described, typically as an amount equal to the bonus multiplied by the leverage. Moreover, when the bonus is utilized, the leverage is reduced to 35 or 40. Such conditions are characteristic of a common scam tactic intended to hinder withdrawal of funds.
Baker Steel Pros and Cons
| Pros | Cons |
| Notning to mention | Anonimous |
| False claim sof regulation | |
| Fake legal details | |
| Blacklisted | |
| High trading cost |