GreenWaveX – Digging into the Issues With This Broker

GreenWaveX

Online trading has undoubtedly made it easy for global traders to access the financial markets, but it is not without its fair share of challenges. There are thousands of brokers that you will find in the market and they are all offering exceptional trading services, but you have to select one to use as your primary trading platform. This is a major challenge because the choice of a broker will reverberate throughout your entire career. The existence of scam operators has only made it tougher for people to pick one platform because they know how to disguise themselves. This GreenWaveX review will give you an idea of how they do so.

Initially, there were some obvious signs that could help people in identifying that a broker as an impostor right away. Their websites were poorly designed and they had errors and mistakes that made it easy to spot them from a mile away. But, this is no longer the case. Thanks to the availability of numerous tools and software, fraudsters are now able to create well-designed and professional websites for creating the perfect illusion that offers people everything they are looking for. Those who do not dig underneath will end up learning their lesson the hard way.

Are you really willing to do that? Skipping a little bit of effort initially can lead to hefty losses down the road, not to mention the frustration you will feel for missing out on opportunities. Rather than letting yourself fall into a trap, you should dig into the issues of a brokerage to determine if they are acceptable, or render the broker untrustworthy. For instance, lack of security is not acceptable, while limited customer support channels could be handled. What about GreenWaveX? This is a brokerage based in the UK, which claims to be offering an array of CFD trading instruments to its clients.

These include indices, commodities, forex currency pairs, stocks and precious metals that come with a high-speed and modern trading platform, lightning fast trade execution and leverage that goes as high as 1:500. As a matter of fact, GreenWaveX even claims to be licensed and authorized to provide its services in the global market and offers a transparent trading environment. All of this is very exciting, but when you dig into the broker, you can find the issues. Ready to know what they are? Let’s check them out:

Conflicting information

First things first, you should always check the corporate background and license of an online broker before you open an account with them because you want to get the maximum protection possible. No compromises should be made where security is concerned and you also want high quality of services that only regulated companies can offer. As mentioned above, GreenWaveX claims to be licensed, but the problem is that their website shares a lot of conflicting information.

At one point, the brokerage claims to be solely owned and operated by a company named Iron Tulip Limited with the domain address as greenwavex.com. It claims to be a licensed investment dealer in Mauritius, with the license issued the Financial Services Commission. While such a company does exist in the registers of the FSC in Mauritius, there is no way to prove that it is connected to GreenWaveX because no domain address can be found.

The conflict occurs when you find that GreenWaveX is also claiming to be the trading name of another offshore company by the name of GreenWaveX Limited, which is registered in the Republic of the Marshall Islands. The Terms and Conditions also refer to the laws of the Marshall Islands, which essentially proves that the brokerage is unregulated.

Offshore jurisdictions are home to numerous scam companies because they do not offer any regulation and this does not add any credibility to GreenWaveX. In addition, the brokerage also claims to have its headquarters in the United Kingdom and this is also a lie because in order to do so, it would require a license from the Financial Conduct Authority (FCA). A check of the FCA’s register does not provide any results.

Malicious bonus policy

The fact that you are dealing with an unregulated and unlicensed broker in GreenWaveX is already a concern and next you will discover that it offers a 100% deposit bonus. This is not a good sign because trading bonuses are banned in various jurisdictions because they are not in the interest of traders. They come with strings attached, which you will find when you check the bonus policy of GreenWaveX.

The broker has imposed a minimum trading volume requirement that traders have to achieve before they can make a withdrawal from their account. But, this is not all. When you continue reading, you will discover that GreenWaveX also has the right to change their bonus policy anytime, which means that if you come close to achieving their said requirement, they are simply going to change it to prevent you from withdrawing. Their goal is to hold onto your funds and this is how they will accomplish it.

Excessive leverage ratios

Leverage is an important part of trading and every online broker offers it to its clients because it offers flexibility. The problem with GreenWaveX is that their leverage offerings go as high as 1:500. While some may consider this tempting, you have to bear in mind that leverage is not without its risks. Yes, you can make high profits, but the losses can be just as high.

It is because of this reason that regulatory authorities in various jurisdictions have imposed a cap on leverage ratios that can be offered to traders. This includes the UK as well, where GreenWaveX claims to have its headquarters. This means that it should not be offering such high leverage ratios at all, yet it appears to be doing so.

Final Thoughts

When you take into account the conflicting information about its corporate background and its aim to prevent withdrawals, you can see that GreenWaveX cannot be considered a reliable broker for anyone.