Finding a reliable online broker is no easy task. Just because there are thousands of companies that are ready to cater to you does not mean that you will be able to find the right one in a couple of minutes. In fact, the big number actually makes it more difficult because you cannot make up your mind. Every broker you come across makes some impressive promises and this can lead to a lot of confusion. It might be tempting to go with the first one that seems like a good deal, but this Mercapolo review shows why doing so could result in disaster.
The online world undoubtedly offers us a ton of conveniences, but it also comes with some downsides. Criminals are very active over the internet and many scams have happened and continue to happen on a daily basis. Many of these are also disguised as scam brokers that look perfectly legitimate, but are really not. Hundreds of thousands of people have been misled by such companies and lost their money to their fraudulent schemes. You definitely do not want to do that and the only way to do so is to make your decision after assessing a broker carefully.
When you are thinking about signing up on any platform, you should check its services thoroughly to confirm that there are no problems and everything is what they claim. Making big promises is no big deal, especially online, but actually fulfilling them is a completely different ball game that can help you make the best decision. You will come across Mercapolo when you begin looking for an online broker that presents itself as a reliable forex brokerage. It is obviously what you are looking for, but you have to assess its offerings first before you open an account.
At Mercapolo, you are promised an efficient and user-friendly trading platform that uses powerful technology. They also have various account options and claim to have excellent security. It seems to check all the right boxes, but when you start assessing their claims, then you will see the problems. Read on to know what they are:
Licensing and regulation
In order to decide whether to open an account with an online broker or not, you should always focus on their licensing and regulation. If there has to be just one reason for you to not choose a company, it should be their lack of licensing. Why? This is because any brokerage that is genuinely interested in catering to online traders will have zero issues in obtaining a license from a regulatory body. Since it has nothing to hide, it should not have any trouble in getting a license and being regulated.
But, if it does not have one, then you should immediately be warned because it means that the brokerage is up to no good. That seems to be the case with Mercapolo because there is absolutely no mention of any license on its website. This is also worse because the company has not even bothered to make the effort to have a license and that shows just how disinterested it really is in offering you any real services.
There is no mention of a license and neither does it give you any proof of its regulation. As a matter of fact, you will find that Mercapolo does not even mention where it operates from on its website. If you really want to find out where it is registered, you have to dig through its Terms and Conditions and that is when you will discover that it is based in Saint Vincent and the Grenadines. This does not help in establishing any credibility because SVG is an offshore zone, regarded as a scam haven.
After all, its regulatory authorities have clearly asserted that they do not regulate the forex industry, which means that Mercapolo and other brokers can set up their operations there without any oversight.
You will find that you are offered a trading bonus at Mercapolo and as attractive as this sounds, you need to be careful. Why? This is because trading bonuses are no longer as popular as they used to be because regulatory authorities in various countries have banned them completely. They came with bonus policies that were deemed malicious and not fair to traders, so they were forbidden.
Not only is Mercapolo offering you a trading bonus, it also has a bonus policy that turns out to be downright malicious when you check it carefully. You are required to achieve a certain turnover requirement before you are permitted to make withdrawals from your account. In addition, there is also a restriction on the amount of funds you can withdraw and none of these policies will ever be found on legitimate platforms.
One of the most crucial features of any online broker is the trading platform they provide you with. You want to have access to a powerful and advanced platform because it affects your performance and that is exactly what you are promised at Mercapolo. Unfortunately, you will find that these are just empty promises.
You are given a web trading platform that is extremely basic, to say the least. It pales in comparison to the top trading platforms in the industry, such as the MT5, that are equipped with numerous tools and capabilities that can help you make good profits. The platform at Mercapolo is close to what many scam and fraudulent brokers offer to keep up appearances.
The spreads and leverage that are offered at Mercapolo also give you a good reason to drop this brokerage because they are not competitive at all. The spreads go as high as 3 pips, while even average brokers offer 1 pip these days. As for leverage, the ratios can rise to 1:100 and such levels are deemed to be extremely dangerous for traders because they can magnify your losses.
Taking into account the major flaws that Mercapolo has, it is best for you to not open an account with this broker.