StarTrader Review: Reasons You Should Not Trust This Broker
StarTrader Review, So the first question is who owns StarTrader? Of course, it’s a company with the same name and that doesn’t look suspicious at all, right? StarTrader LLC is an SVG-based firm supposedly fully regulated by the SVGFSA.
The only opposing fact is that the SVG financial authority does not license brokerage and binary options trading since 2018.
What we have here is an offshore entity with questionable legal status and no proof of licenses or regulations of any kind.
This should be a reason enough to permanently stay away, despite their claims to offer top Forex and CFDs trading conditions. Our StarTrader review will give plenty more reasons why never to engage with this shady broker, so keep on reading.
|Bonuses||20% cumulative bonus, cashback and giveaways|
License for StarTrader and Security of Funds
As we’ve already mentioned, the SVG financial authority doesn’t regulate or supervise Forex and Binary options trading. Companies offering online financial services open overnight and conduct their illegal business without authorities breathing down their necks. For this reason, SVG has become a popular place for scammers to nest.
However, StarTrader evidently offers its products and services to EU clients. This requires them to have an EEA license or passport for online trading services. So, we went on checking if perhaps BaFin, CONSOB, CySEC, CNMV, AMF or FINRA have licensed this broker. The databases we did a scan of showed us no information on StarTrader. It only means one thing: StarTrader is not permitted to sell its services to EEA clients.
It’s not at all easy to obtain an EU trading certificate. First off, a company has to invest at least 730 000 EUR to vouch for their business. After they’ve proven themselves to be a serious and stable firm can they be submitted for a thorough check by the jurisdictional regulator?
Clients’ safety and funds protection is guaranteed through segregated bank accounts. The probability of users losing their investment is lowered by leverage limitations and negative balance protection. The compensation fund additionally protects clients and reimburses clients with up to 20 000 EUR if the company fails or goes bankrupt. Eventually, absolute transparency is ensured through MiFID rules for AML.
StarTrader implements none of the conditions we mentioned. It’s not a wonder they have no license or regulation to define their line of work. StarTrader is an offshore scam that profits off their clients by stealing all their investments.
Trading Platform Available at StarTrader
StarTrader lays out a very believable trap for all new customers. You see, the swindler does offer MT4, the world’s most popular trading platform for the last 15 years. Downloading and even installing the platform surprisingly works.
It’s the same with MetaTrader 5 which StarTrader also has to offer. The catch is that the trading server belongs to IV Markets and not StarTrader. We’re unsure what is the link between these two, but StarTrader is definitely not a licensed services provider.
Although trading is done on the software of impeccable quality, the fact that you are trading on a shady server doesn’t guarantee your safety and fair conditions. Not until you choose a regulated broker that can provide you the security of funds and transparent trading conditions.
Options for Deposit/Withdrawal
The possibility of funding your account via several channels adds to this broker’s credibility. Transferring cash to your live trading account is possible via:
- Bank wire transfer
- Credit and debit cards
- Electronic wallets like Skrill, Neteller, Sticpay, etc.
Despite StarTrader’s claims about providing you with safe transferring conditions, you shouldn’t immediately believe them.
We advise extreme caution when sharing your sensitive information with a third party. When your credit card info falls into the wrong hands, you could literally be robbed in minutes. StarTrader is one of the companies that shouldn’t be trusted to deal with your investment.
The website also makes a claim about fast processing of all payments and up to 5 business days for completing the withdrawals.
Naturally, these are followed by certain fees and we do not believe StarTrader when they claim these to be only $20. Suspicious brokerage sites tend to suddenly change the fees and apply new taxes without any prior notice.
StarTrader Account Types
Two account types available at StarTrader are:
- Standard account
- ECN account
The key difference is in the starting spreads. For the Standard account spreads start at 1.3 pips, while the ECN account offers spreads from 0.1 pips. Some other conditions that apply to both account types are mobile trading, hedging, leverage of up to 1:500, and expert advisors.
StarTrader also offers an option to open a Demo account with at least 3 000 USD virtual cash. When we tried to register one, the loading screen kept freezing so that didn’t work out.
How the Scam Is Executed
StarTrader does deserve some credit for putting a significant effort into seeming credible. They even offer trading on MT4 and MT5, world’s most famous technological solutions for online trading. Besides that, StarTrader also has two precisely described account types. To complete their attractive offer, the site has several promotions and bonuses that pull different conditions with them.
This aspect is what you should approach with extra caution. Sudden fees and trading volume requirements that come with bonuses are a way of preventing your withdrawal requests. This excuse to completely decline your withdrawal application is a method for every scammer to rid you of your funds seamlessly.
Forex Brokers Suggestions
While StarTrader offers bonuses to spark your interest, heavily regulated brokers are mostly forbidden from even having bonuses in their offer. The US brokers can do that, but the regulatory standards around the bonuses are as strict as with everything else.
The following brokerage enterprises have risen above their competition for more than one reason. Unmatched trading conditions, security standards, reliable software, customer support around the clock, and educational material make our suggestions recognized as superb by traders worldwide. Feel free to open a Demo account with each and see for yourself.
|FXTM Broker||Cyprus, UK, Mauritius||4.5||$10||Forextime.Com|
|OctaFX Broker||Cyprus, SVG||4.4||$100||OctaFX.Com|
|FP Markets Broker||Australia, Cyprus||4.7||$100||FpMarkets.Com|
|XM Broker||Cyprus, Belize, Australia||4.7||$5||XM.Com|
|HFM HF Markets Broker||Cyprus, UK, South Africa, UAE, Kenya||4.3||$5||HFM.Com|
|FBS Broker||Cyprus, Belize, Marshall Islands||4.85||$100||FBS.Com|
As convincing as StarTrader may appear, be wary of the fact that they’re still missing a license to perform any kind of online transactions and other financial services. Our StarTrader review lists some crystal clear reasons why this broker is still not trustworthy despite their alluring offer.
The broker may seem reliable, serious, and trustworthy but it’s all for naught with a trading certificate issued by a major regulatory entity. StarTrader has it all except for the license. For that reason alone, they are not to be trusted.
Scammers can sometimes be hard to detect and StarTrader is one of them. Whenever in doubt, please double-check the broker’s regulations. We’re here to assist you with that.
FAQs About StarTrader Broker
Is My Money Safe with StarTrader?
Unfortunately no. StarTrader can definitely not provide the highest security standards that regulated brokerage houses do.
Is StarTrader a Regulated Broker?
Without a doubt no. They do not appear in any of the databases of regulatory entities.
What Is The StarTrader Minimum Deposit Amount?
The broker does not reveal the minimum amount for depositing to your live trading account.