Online trading can be so frustrating in many cases, in particular when searching for the right trading assistant to lead the way and provide a good service. Brokerage companies abound the industry, that’s why finding the right ones and avoiding scammers is so tricky. Today we’re going to take a look at one of those companies and ask the age-old question “Can AM Broker be trusted?” or is it just another blatant attempt to scam people?
Leverage: 1:500 Licences: SVGFSA
Min. Deposit: 1,000 USD Bonus: 25%
Spreads: from 0.6 pips US Clients: No
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The AM Broker opinion – basic overview
To better determine its credibility, we need to take a look at what the company offers to its future customers. Taking a quick tour of their website gives us an overall idea of what the AM Broker has in store. The minimum deposit requirement for the standard account type is $1,000, which is quite a big number given that the company has only been on the market for about a year. But more about that below.
As for the other offers, the average spread varies between 0.6 to 0.9 pips; the maximum leverage goes up to 1:500, and the bonus at a deposit is 25%. These are some impressive numbers, but sometimes the numbers on paper can be deceiving. We’ll find that out soon.
The software that they’re using for trading is the up-to-date MetaTrader 5 and Web Trading, which provide a seamless trading experience.
As the licensing goes, the AM Broker is registered and regulated by the Financial Services Authority of Saint Vincent and the Grenadines. At a glance, the fact that they’re under government control should make you believe that the AM Broker scam is far from being true, but a closer inspection will prove you wrong.
What the numbers actually say
As mentioned above, the broker offers some impressive trading conditions, which would trick any newcomer in the filed. Let’s find out what these numbers actually mean.
As we know, the standard account requires a minimum deposit of $1,000. Considering the industry-average requirement, which is somewhere around $250, $1,000 is too high a price. But for the company that doesn’t have much credibility, is registered somewhere deep in the Carribean islands, and plus, doesn’t provide service to the citizens of the developed countries, it becomes clear: they have to offset their high risk-factor by high requirements in order to gain lucrative revenues.
Now let’s discuss the maximum leverage, which is 1:500. Again, when you’ve just established a brokerage company and don’t have much to your name, you need to find a way to attract customers. By boosting the leverage possibilities, the customers get more incentive to choose the given broker and for this case, the AM Broker fraud appears less likely. But the truth is, the broker simply flashes big numbers to attract your attention and doesn’t care much about their actual reputation.
The same goes for spreads; 0.6-0.9 pips is a really good rate, but you need to know that the unofficial companies, who offer some kind of exchange operations are trying to minimize the difference between buying currency/commodity and selling it. This way customers opt more for their service.
AM Broker review – website and user experience
Now let’s head over to their website and see how it compares to the industry standards. Right off the bat, we can notice how fluent and simple the website looks. The first page contains some basic information about broker’s offers, as well as trading tutorials and forex analytics. The website is divided into 5 departments, combining Trading, Resources, Promotions, Partners, and About pages, which is neat.
The broker also has some modern trading platforms, such as MetaTrader 5 and Web Trading. It also lets you trade on iOS/Android platforms, which is convenient. But is AM broker legit because of this? Well, not necessarily.
You have to keep in mind that creating a simplistic and at the same time a comprehensive website doesn’t take much knowledge. There are plenty of online platforms that help you design and construct your own website. A well-designed website cannot change the fact that there are serious suspicions about the broker’s credibility.
SVGFSA regulation – what does it mean?
At the very bottom of the first page, it says that the company has been registered by the Financial Services Authority of Saint Vincent and the Grenadines.
If you have the tiniest knowledge in Economics or trading, you should know that the companies opt for small distant countries in order to hide their earnings and suspicious activities. St. Vincent and the Grenadines is definitely that kind of country. Claiming that the company has been registered by the country’s Financial Services Authority might say something on paper, but in reality, it only proves our suspicions about the AM Broker’s fraudulence.
Another interesting fact about the legal implications is that the company doesn’t provide service to the citizens of Japan, the US, Canada, the EU, and New Zealand. Obviously the governments of developed countries don’t want their citizens to be involved with suspicious institutions, who can easily compromise their financial stability.
Should you trade with AM Broker?
What do we conclude in this AM Broker review? With the flashy numbers, a well-groomed website, and the suspicious regulatory claims we wouldn’t advise you to have any financial connection with this broker. At first, you may be overwhelmed by the lucrative leverages and bonus rates, or lower spreads, but you have to know: that’s what the scammers do. They trick people with their lure and entangle them into their Ponzi schemes.