Soltechx Review: Why You Should Avoid Offshore Brokers Like Soltechx

Soltechx is an offshore broker that should concern savvy traders. The fact that it operates offshore is a red flag because most offshore brokers are usually fraudulent, and Soltechx is no exception. Namely, it has quite a dubious reputation. Its Terms and Conditions make it nearly impossible to withdraw profits. Moreover, its trading platform is subpar, with wide spreads and excessively high leverage.

There is much more to Soltechx’s shortcomings, and if the previous paragraph did not convince you, keep reading this Soltechx review. We found that their customer service was poor, their prices were too high, and their quality was substandard. We do not recommend Soltechx to anyone looking for reliable products or services.

Soltechx Regulation and Funds Security

Soltechx is registered in St. Vincent and the Grenadines. We have noticed that many scam brokers share the same address: First floor, First St. Vincent Bank Ltd, James Street, Kingstown. Unfortunately, St. Vincent and the Grenadines is a popular destination for scammers. That’s because there are no forex regulations in that country. The local regulator clarified that they do not issue forex trading or brokerage licenses.

It is, therefore, advisable to avoid brokers based in this country. That is unless they are offshore branches of reputable brokers regulated elsewhere. It’s wise to choose brokers licensed in the UK (by the FCA), the EU (by reliable local regulators like BaFin, FINMA, or CySEC), or Australia (by ASIC). Brokers in these jurisdictions must follow strict protocols and laws to maintain their licenses. 

For example, minimum capital requirements guarantee brokers’ financial stability. That minimum is $1 million in Australia and €730,000 in Europe. Additionally, all European brokers must participate in compensation schemes to protect their clients from bankruptcy. That could result in compensation of up to €20,000 in the EU and £85,000 in the UK. 

Finally, negative balance protection is mandatory. It ensures that you can never lose more money than you invested.

Trading Platform Overview

Soltechx utilizes the Sirix platform, a white-label trading platform. That platform is provided by Leverate, a Cyprus-based company. It should be mentioned that Leverate holds a CySEC license. Yet, Leverate leases its platform and other services to other brands without vetting them. This has resulted in them working with fraudulent firms like Soltechx.

Despite Sirix’s superiority to WebTrader, Soltechx fails to disclose key information to its users. Currently, we do not know how much it costs, or how much leverage, fees, or spreads are involved. As a result, you cannot assess potential risks before investing your money. Exercise caution when investing in Soltechx.

Funding Methods Available

Soltechx provides its clients with two payment options, namely credit/debit cards and wire transfers. However, it is worth noting that Soltechx uses a manipulative approach by referring to withdrawals as “refunds,” which is a red flag for most experienced traders. 

Essentially, this means that if you attempt to withdraw an amount greater than your initial deposit, the company may reject your request. In such scenarios, Soltechx charges a withdrawal fee of 25-50 EUR for wire transfers while card refunds are tax-free. To avoid such inconveniences, it is crucial to thoroughly review a broker’s policies and fees before investing your hard-earned money.

Account Types Available

Soltechx provides customers with four account options: Bronze, Gold, Platinum, and Diamond. Each account type offers varying trading assets and levels of assistance. Unfortunately, there is no information available about the initial deposit required for each account. It appears to be at the discretion of Soltechx employees to determine based on the customer’s financial situation.

Soltechx requires a detailed financial statement before opening an account. This statement serves as the basis for the employee’s decision on the initial deposit. You can expect to receive a response within 48 hours of submitting your statement. 

The Methods Used in Executing the Deception

Fraudulent brokers often resort to various tactics to trick traders into falling for their schemes. These may include luring traders with false promises of high returns or offering fake trading advice. Manipulating results is another tactic used to deceive traders. 

One of the most common scams is the “bucket shop,” where a dishonest broker takes the opposite position of a trader and manipulates prices in their favor. Another type of scam is the Ponzi scheme. This is where a broker promises high returns but uses new investors’ funds to pay earlier investors until the scheme inevitably collapses.

In another type of deception, victims are tricked into depositing funds into a fraudulent broker’s account. These funds are then used to run fake trading software that does not execute trades. The broker then keeps the funds. To protect themselves from such fraudulent schemes, traders must conduct thorough research into a broker’s reputation before investing with them. It is advisable to only choose brokers regulated by reputable authorities. Please exercise caution and vigilance to avoid FX trading scams such as Soltechx and Trades Universal.

Soltechx Summary

Soltechx is a trading company that operates in St. Vincent and the Grenadines. This is a country with a reputation for being a scammer’s haven due to the lack of FX regulations. The company employs the Sirix platform from Leverate, a Cyprus-based firm licensed by CySEC. 

Soltechx offers two payment options: credit/debit cards and wire transfers. However, they refer to withdrawals as “refunds” and impose a fee ranging from 25 to 50 EUR for wire transfer refunds. 

The company provides four account options, but the initial deposit requirements for each account are not disclosed. Besides, prospective clients must submit a detailed financial statement to open an account. It’s essential to exercise caution when investing in Soltechx.

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