If you’re reading this Trustpilot Review, most likely you are wondering about a Trustpilot scam. Make sure to report a scam if you have issues withdrawaing from Trustpilot
Most consumers will read a review before making purchases on eCommerce platforms. It is perhaps even more important to do a careful check on brokers before signing up for their services. When you sign a contract with a broker and deposit your money for trading, you are giving them your trust. Do not sign up with a broker until you are certain this type of trust is warranted.
We have done a thorough investigation of Trustpilot and want to share our findings with you. We have developed our research methods through years of working closely with regulators, banks, and government organizations connected with the financial industry. Our methods have kept thousands of people safe from broker scams. Therefore, our review of Trustpilot is a useful tool in making sound financial decisions.
What You Should Look for in Trustpilot?
We have created a procedure for investigating each broker carefully and to ensure they meet strict criteria. In the case of Trustpilot, we looked at each of the following. When you are choosing brokers, keep the following in mind.
There are some categories that are crucial, such as regulations and fees, and others some consumers may be willing to compromise on, such as education and tools. The choice is yours, but keep in mind that the first two categories are the most important when it comes to staying safe from broker scams.
Trustpilot Regulation and Licenses
Our experts can’t emphasize enough that the most important factor when deciding whether to use any broker is licensing. It is a cardinal rule never to sign up with a broker who is not regulated. Working with a broker that does not have a license offers no protection in the case of a broker scam. Although the lack of a license is not a guarantee that a broker is fraudulent, it is the one factor that comes up time and time again when we investigate broker scams.
One reason not to trust an unregulated broker is there is no reason not to have a license. Third and fourth-tier off-shore regulators have very lax standards and do not demand much capitalization from licensees. Simply put, even a mediocre broker can get a license from somewhere, so not having any license is a bad sign.
Since we mentioned that third and fourth-tier regulators have minimum requirements and are not strict about oversight and inspection, it is worth considering the type of license a regulated broker holds. The higher the tier regulator, the more accountability the broker has and the easier it will be to handle broker complaints. The regulator is like quality control for brokers and without oversight, a broker can get away with dodgy practices.
Trustpilot Fees, Commissions, Spreads
The second crucial category for inspecting a broker are fees, commissions, and spreads. This is how brokers stay profitable. Always ask yourself, “How is this broker making money?” and that can guide you towards figuring out whether a broker is legitimate or a scam.
It should be noted that the best brokers make money on spreads and a few on commissions. Fees usually function as a deterrent, such as inactivity fees that encourage traders to stay active or to compensate the broker for extra efforts through service fees, such as withdrawing with a payment method the broker doesn’t often use.
However, if fees are the main way the broker is making money, that is often, but not always, a negative sign. For instance, many scam brokers will charge hefty withdrawal fees that don’t just cover service charges. Inactivity fees are normal, but if they are close to $100 for just a month or six weeks without trading, that is often suspect.
Look at the spreads and commissions and check them against those of other regulated brokers. When it comes to legitimate brokers and their commissions, fees, and spreads, every potential client has to ask themselves what they are comfortable with.
This factor, however, requires close attention because it is often the area where people can be taken in by broker scams. Read the terms and conditions carefully and file a complaint if the broker suddenly slaps on fees that were not outlined ahead of time.
Trustpilot Trading Products
In our broker reviews, we discuss trading products, such as stocks, commodities, ETFs, forex, options, CFDs, bonds, indices, and cryptocurrencies. This refers to anything that is regularly traded. Some brokers may offer a wide selection of trading products, whereas others may focus on one area, such as forex. Keep in mind that some types of trading, such as CFDs may be restricted in certain countries.
Trustpilot Platform, Tools, and Trading Education Resources
Trustpilot Trading platforms, tools and educational resources are a vital part of the trading experience. Most brokers offer a selection of MetaTrader 4, MetaTrader 5, and a version of the WebTrader platform. Some brokers offer only their proprietary platform but look closely if this is the case.
Some scam brokers restrict clients to their own platform which may not be a platform at all, but fake. Keep in mind that proprietary platforms are only as good as the brokers that develop them. Many proprietary platforms from high-quality brokers can provide an excellent trading experience.
Trustpilot Customer Service
Attentive and helpful customer service is also a sign of a trustworthy broker. On the other hand, if the broker does not provide multiple ways of contact, such as email, phone, text, and chat and has customer support that doesn’t seem to understand trading or is evasive when asking certain questions, that can be a sign of a scam or at least a low-quality broker.
Test customer service when you are investigating a broker, but keep in mind that even scam brokers can seem friendly and helpful at first and can show their true colors later on.
Should I Choose Trustpilot?
This broker review will give you our expert opinion about Trustpilot. Not only do we inform visitors of whether a broker is a fraud or not but we outline the pros and cons of trading with them. Use this review to guide your trading decisions and do your own due diligence on Trustpilot as well.