With today’s loud world, it is always hard to get some attention to your new business. However, thanks to the tastes that differentiate us as human beings, we are able to diverge our attention to the things that are important to us. However, sometimes even that is not enough as we start missing some positive information about the world from time to time. And by the time we learn of it, somebody has already discredited it and disregarded it.
Today is no different. The world of Forex is a very hectic one, always on the move and never stopping for anybody. You can call this article sort of like a UproFX review, but in all honesty, it is just to highlight its platform and make an example as to how you should and shouldn’t choose a brokerage. The firm is rather new, is only formed about two years ago. But it has already attracted some unwanted attention, especially from the media, that has been biting away on some of its controversies. Let’s look into these controversies and see what they are truly about.
Is UproFX truly a scam?
If you search for UproFX right now, most of the reviews and articles you will get will be labeling them as a scam, not even devoting the time to explain to why this company appears as one. Yet it is quite understandable to call the broker a scam because, well, it doesn’t have a license.
If you don’t know already, unlicensed brokerages are free to do whatever they want and avoid legal implications. They can drag their clients into various scams and Ponzi schemes, steal their funds, and be sure that they’ll stay hidden or at least beyond any government’s reach. Besides, UproFX operates from Estonia which, even though is an EU member, is still quite open to the financial actors and their activities.
You see UproFX is a child company of Yield Enterprise Currency Software, which is one of the largest companies in Estonia. If one factor dispells our UproFX scam suspicions, it’s this: A large successful company is featuring a Forex brokerage. If it turned out that the broker is a scam, how would it affect the company’s prestige? You’re absolutely right! This would damage Yield Enterprise’s reputation to oblivion.
However, despite applying this logic, we simply can’t help but recognize the possibility of UproFX being a scam. Why? Because no matter how big of a backing you may have through a corporation, it’s absolutely essential to possess a legitimate license. This not only adds trustworthiness to the company but also safety to its users should something occur.
Therefore, after offering an opposing argument to the scam, we believe that it’s still not enough to brand the company as trustworthy in our eyes. We can’t necessarily say they’re a scam, but we sure can say that they’re not recommended.
However, to emphasize our struggle to make a definitive decision on this broker, we decided to look through their offerings as well.
Is UproFX good though?
In terms of features, we believe that this brokerage trumps – or at least is trying to – most of the competition that is out there right now. The ESMA regulations hit the Forex industry in the EU really hard, therefore most of the brokerages had to dumb down their features in order to retain their licenses. Due to that lack of a license UproFX was able to maintain its exaggerated leverage ratios and floating spreads.
That’s right: we think a 1:100 leverage that also goes as high as 1:500 is an overly exaggerated and bloated offering that, if a person doesn’t know what it does, can destroy their financial stability. If you also belong to that category, here’s a short example:
When you deposit funds to your account, you can choose to use the leverage that will multiply your funds by the given amount. In this case, your funds would be increased a hundredfold from a 1:100 leverage. Traders use this feature in order to yield much larger payouts which, in Forex, can be quite low due to the low volatility rates.
However, one needs to also keep in mind that the leverage does the same thing to the losses: it increases their size by the same multiplication rate. Therefore, leverage can be taken as a double-edged sword. And that’s why the brokerages on CFD market have the limitation to go not higher than 1:30. When AproFX offers 1:100 or even 1:500 leverage, we cannot help but think that it does so in order to attract as many clients as possible without thinking too much about the consequences.
What about the financial platforms?
The next important aspect we need to discuss is AproFX withdrawal and deposit policy. The majority of trustworthy FX brokerages offer diversified financial platforms that include not only the traditional banking platforms such as credit cards and bank wire, but also many e-wallets and cryptocurrencies. That way, payments are much more secure, as well as take less time to complete.
Unfortunately, UproFX doesn’t have a diversified financial platform by any stretch of the imagination. It only supports credit cards, bank wire, and Skrill for deposits. As for the minimum deposit requirement, traders need to deposit no less than 250 euros if they’re opening a Classic account. The upper accounts have even higher requirements.
As for the withdrawals, traders can only take their money via credit cards or bank wire, no Skrill or any other e-wallet platform. And you can be sure that it will take several days for your application to be greenlighted and your money sent to your bank account. So, does this prove the UproFX fraud? Not really, all it does is prove that the broker doesn’t necessarily think about the convenience of its clients.
A WebTrader trading software
So, let’s say you have decided to open up an account in the UproFX platform. How can you actually trade the currency CFDs? Well, here again, the broker chooses a different path by offering a proprietary WebTrader platform instead of MetaTrader or cTrader.
But what’s the problem with the proprietary platform? First, let’s talk about its perks and advantages. Unlike the downloadable software, any web browser – be it Google Chrome, Mozilla Firefox, or Safari – can easily run the platform as an internet tab. This way, no installation is required. Besides, traders can open/close positions more quickly than in MT software.
However, it’s not to say that the broker has an ideal trading platform. Sure, it’s pretty much ideal for the broker and its activities, but when it comes to the safety of the clients, it’s not that convenient. Since the broker is in charge of managing the software, it can put any kind of script or instrument that can easily steal trader’s money. What’s more, there is no external monitoring body that can make sure things like that never happen.
Therefore, once again are we compelled to say that our UproFX opinion isn’t very high indeed.
Should you trade with UproFX?
One can say that since the company is still rather new, this lack of a license could be an experiment of some sort: Seeing if they could get enough attention and customers without it. However, there’s no guarantee that UproFX isn’t locked on the current layout of the company; that being unlicensed and offering shady conditions isn’t its final goal.
At this moment, UproFX seems to be gearing up to become one of the highest contenders in the European Forex market, however, with the leverage that high, as well as underwhelming transaction platforms and suspicious trading software, drag the broker down in this quest.
So, what’s our final verdict? Well, we believe that the UproFX scam may actually be the real deal and it’s definitely a good idea to steer clear of its services. In the end, It’s better to be safe than sorry.