For all the pomp and hype, IFC Markets is a broker not regulated by a standard-bearing authority. Rather than opting for an EU regulating body, or well-known bodies like the FCA or CySEC, IFC Markets took the easy way out. The broker put its lackadaisical attitude to investor security on full display when it attached itself to BVI. The latter itself is in bad odour with the EU Commission these days.
Poor Relations with Governmental Authorities
The regulatory authority BVI (anchor of IFC Markets) is at loggerheads with the EU Commission over sustainability regulation. This does not augur well for either the BVI or the companies under its aegis. Constant friction against the official line indicates a tendency to disruptive behaviour.
A recent regulation lays down sustainability-related disclosure obligations for the financial sector. The EU Commission wants the regulations to enter into force on 10 March 2021 as planned. According to the fund association BVI, however, the regulatory technical standards with the detailed specifications should only apply from the beginning of 2022.
BVI has been increasingly argumentative in their questioning of official policies.
BVI and IFC Markets showing lack of sympathy with how EU Commission mandated policies play out, underscores the ‘vigilante’ aspect of the former two. It is best to avoid players who might run afoul of official perspectives on policy administration.
High Minimum Deposit
The minimum deposit for trading with IFC Markets is one thousand euros. We believe this is way too high and unjustifiable. It puts unnecessary pressure on investors. The costs and fees involved in trading are a key factor in choosing a broker because too high costs reduce the return. Other brokers, such as ROinvesting, offer better conditions. The minimum deposit is comparatively low ( 250 euros). This makes it easier for private investors to enter forex trading.
Risk Management Non Existent
Considering that IFC Markets does not employ Stop Loss Orders to manage risks, we are emboldened to state that risk management at this broker is non-existent. Such callousness reflects poorly upon all claims as to IFC Markets’ professed concern for investors.
Why Is It So Important To Set Up A Stop Loss?
A Stop Loss order can be used for long and short positions. It helps to keep emotions out of trading. This is especially important when you as a trader have no way to permanently monitor your position. In Forex & CFD trading, a stop loss is essential for many reasons, but one of them stands out: no one can accurately predict the development of financial markets. Even the strongest trading system or the most robust information about a trend doesn’t help – future prices remain unknown, which puts every trade at risk.
Traders may win in more than 50% of cases using traditional financial instruments, but their money management can be so bad that they still lose money. Incorrect risk management can lead to many unpleasant consequences. To prevent this, it is essential for the trader to be able to calculate the correct Stop Loss. And this is where IFC Markets fails abysmally.
Broker Has No Truck with FCA
IFC Markets is not regulated by the FCA.
Is regulation by the FCA valuable?
If a service provider is regulated by the FCA, this represents a very valuable security feature for all users and consumers. All areas mentioned are screened and subject to strict control. The same applies to financial institutions registered with the UK authority.
At the same time, however, there is another alternative. For example, only regulation by the CySEC is possible without a corresponding registration with the FCA. In this case, the service provider waives registration in the UK but is nevertheless regulated by an independent authority. In this respect, it is not always a mandatory security feature, since even financial institutions can work reliably and reliably without FCA registration. However, the additional registration in the home country promises consumers from the UK a significantly stronger feeling of security.
As we know, IFC Markets has no truck with CySEC either. Its association with BVI bears dubious fruit.
Brokers in particular, but also other financial service providers, have recognized in recent years that regulation and registration by the domestic authorities can be a strong argument for the consumer. In this respect, it can be clearly observed that more and more service providers from the financial sector are aiming at least a registration with the FCA. This apparently strengthens the trust in their own offer, in addition, tangible security requirements are also formed for the users.
If a broker is FCA-registered, this registration is always preceded by regulation by another European authority. Safety is therefore guaranteed twice. Here, too, IFC Markets fails. Its security standing has no fans in the EU, either.
Safe or Scam?
IFC Markets has none of the safeguards that could inspire confidence in investors. Its regulator BVI itself has a flimsy body of credentials and is apt to get into trouble with the government. The systems administrating trading are marred by incompetent programming. That risk is hardly managed here is not at all offset by a high minimum deposit criterion. In fact, the 1000 Euro minimum deposit flies in the face of decency! You won’t be getting your money’s worth at IFC Markets. There’s a very real danger of losing your entire investment, too.
Expert Advisors with IFC Markets Not Up To Speed
As per our knowledge, EAs at IFC Markets have their performance pegged to “tardy”. This disables intelligent trading.
“Every EA is only as good as its programming”. When using automated trading systems, it is important to ensure that errors creeping into the programming are rectified. Then they may be implemented correctly by the Expert Advisors. Here, too, we are let down by IFC Markets.
Conclusion
There are several very conspicuous deficiencies in the IFC Markets architecture. IFC Markets is merely a website for Forex and CFD trades. In Forex and CFD trading, customers rely on rising or falling trading prices. Online platforms like IFC Markets attract customers with attractive profits in a few hours or days. Nevertheless, the total loss of the investment is closer to reality than a lucrative profit.
Constitutionally vigorous brokers like T1markets, Global TradeATF, ROinvesting, 101investing, PrimeFin, Brokereo, HFTrading and ETFinance undoubtedly provide a better alternative.
FAQs
Does the BVI compare well with FCA and CySEC?
No. BVI has far fewer credentials backing up its stated ‘competence’. FCA and CySEC outshine it by far.
Is IFC Markets affiliated/associated in any way at all with FCA and/or CySEC?
No. The FCA and CySEC have gathered a lot of recognition and accolades in recent years. When a broker forgoes the option of associating with standard-bearers, we become doubtful of its ultimate goals.
Is IFC Markets regulated by any of the several prominent EU regulating authorities?
No. By shying away from Continental scrutiny, IFC Markets gives us an insight into the basic weakness of its constitution.
Can an investor expect good risk management at IFC Markets?
No. seeing that Stop Loss Orders have not been integrated into its administration, we cannot recommend IFC Markets to investors.
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