Last Updated on: 14th July 2023, 11:21 am
Introduction:
An ideal broker should be a link between the market and the customer. This is clearly not the case with Orbex. The broker has been negative throughout the time we had opened the website to study about it. The minimum balance requirements for one of the accounts is twenty-five thousand, and the spreads and commissions also tend to eat the money a trader could ever make by trading. The broker provides no solid proof for its regulation and is regulated by just one. Despite being regulated by a local authority, the broker does not have an offshore regulation. The business the broker claims to have is supposedly global.
Orbex : Account types
The broker asks for $25,000 as minimum account balance for one of its accounts, which is much more than anything we as a team of researchers, have ever seen. This much money is what a trader aims to make in half a year, sometimes more than that. The broker bluntly asks for the trader’s hard-earned money as a minimum balance condition, making sure that only a specific class of traders can access the variety of supposed services it claims to provide.
The leverage offered is also 1:500. While scam brokers like Orbex can claim this as a good approach, the European Union has limited the use of leverage at 1:3. Offering leverage that exposes the trader to many risks is a move to eat the money out of the traders pocket.
Tradable Assets:
Cash and indices can only be traded via futures contracts, and each currency pair that the broker claims to provide has a limit to the stop limit orders. Orbex makes sure that the trader cannot get out of a trade that easily in simpler terms. The stop loss and stop-limit orders are one of the best trading defence mechanisms ever created. The broker does not let the trader use any of them by restricting the use to just 5.
Forex is a market that is operated throughout the day and throughout the week. The broker restricts the trading hours of this market, creating an empty space of trading hours, the most volatile ones. These hours are the precise time frames where traders make money. Orbex does not provide forex trading on weekends. That is when most of the active trader’s trade.
Education and Research Material:
The whole idea of education and research material that an ideal broker provides is that the trader should be able to understand how the market works. With Orbex it looks like the whole section is made so that the broker can earn more money through ads and that the same time aimlessly tries to convert a visitor into a lead.
All this is for the sure scheme from the scam brokers to make sure that the traders are unaware of the reality of the market and the risks involved.
The broker’s webinar section asks for the user to get registered first and only then provides access to the information it claims to provide. Even on that page, the broker makes sure that the lead generation doesn’t stop.
Everywhere we could see irrelevant ads asking us to be a part of some exciting new program that the broker claims to provide, with an additional claim to make anyone a trader in 30 days. But, we have seen enough scam brokers, and Orbex is no different.
Regulation:
The broker does not allow the residents of USA, Sudan and a couple of more countries to be a part of trading that it deals with. Even here, the broker does not clearly mention that which other countries are barred. The broker says, “like the countries, the USA, Sudan.”
Apart from this, the broker claims to be regulated by FSA, and then there is no other regulator that the broker mentions. Being regulated by only one authority is a clear sign of being a scam broker, and Orbex has shown us plenty of hidden indicators that it is one. The broker also claims that it has won more than five awards. In this age, when even the prestigious awards like the grammy’s are a subject to corruption, Orbex wants the traders to believe that it is the truth and the broker is actually a safe broker.
Scam or safe? Scam, as judged:
The broker is a scam. It proves the same by not providing any other regulatory authorities to its traders. Orbex goes to the extent of asking twenty-five grand as a minimum balance for one of its accounts at the same time exceeding the leverage limit set by the EU exponentially. The broker is a scam also because none of the information provided it has proof, nor it has solid backing. The broker is playing with the feelings of a trader. The potential trading candidate visits the websites in hopes of finding a safe broker, and the Orbex crushes the dreams of the trader in an instant, as soon as the market starts moving.
The broker has restricted the use of stop-loss orders and restricted the trading time for a trader. If not his, then what is the sign of a scam broker?
Spreads and commissions:
The broker asks for un-naturally high spreads from its trades which are already commissioned. The broker asks for eight dollars per trade as a commission interestingly in of its accounts, whose minimum balance requirement is already $5000. What a trader makes on trading one standard lot of a forex pair is just ten dollars. The broker asks for a commission of eighty per cent on such trade from the traders. This is not at all acceptable, and Orbex should not be entertained any further.
The broker also aks for five-dollar in commissions in the accounts with the maximum requirement for a minimum balance, despite asking the trader for so much. The broker still wants to take more money out of his pocket.
Orbex final call:
The broker, as we saw, is a scam broker ad no trader should ever g involved with it. Unimaginable conditions and stupid constraints make it the worst first to be involved with. We recommend our traders to trade with more responsible brokers like HFTrading, PrimeFin, TradeATF, to name a few. These brokers have been in the game since online trading wasn’t even a word on the street.
We recommend our traders find a broker connected to its customers like family and treats all of them equally. Orbex, by deciding a very high price for the minimum balance condition, sets apart the traders that are, and the traders it wants. This is racism on the grounds of economic strength a trader possesses.
