Blue Chip FX Review
Online brokers are in high demand these days, as a number of people are exploring the financial markets for opportunities to make money. Their services are essential for trading purposes, as they provide the platform and the tools you need.
While there may be an endless list of companies that are currently offering their services, you have to bear in mind that quality should always trump quantity. The numbers do not matter, if the brokerage you are dealing with cannot offer you good quality services. Indeed, there are lots of companies out there that may be misleading people, as this BLUECHIPFX review will reveal.
Since such firms exist, you have to do your due diligence because you do not want to have a poor trading experience. In addition, you will also quickly learn that these companies also include scammers that are just out to get your money.
They present themselves as genuine online brokers offering their services, but are only interested in taking your money and leaving you high and dry. It can be a disastrous experience for anyone, especially considering the fact that most people turn to online trading for making profits.
While losses can and do happen, it does not mean that anyone wants to be scammed. Doing your due diligence can save you from such a scenario because it helps you understand the issues in a brokerage, if any.
This strategy can certainly be helpful in the case of BLUECHIPFX, which is one of the companies that you will discover in your search. It gives you access to the forex, indices, metals and energy markets, but these options are rather limited because there are no stocks, ETFs, or crypto available.
Even though BLUECHIPFX looks like a regular brokerage at first glance, you will come across plenty of issues when you do your due diligence. These show that the company is not one worth choosing. Why? Check out some of the issues below:
Licensing and regulation
Your due diligence should always begin with the license and regulatory status of online broker because it helps you assess the credibility of a company. Most countries require these companies to obtain a license for providing their services in accordance with the law. This means that licensed firms comply with rule and regulations and they can also be held accountable. You can expect them to provide a certain standard of service and they can also offer you security.
It is best for you to check the licensing and regulatory status of BLUECHIPFX before you sign up with this broker. The first thing that is shady about this company is that it has been clearly designed to provide its services to Japanese traders.
The default language of the website is Japanese, along with the client area. Moreover, it also supports deposit in the Japanese yen. But, you will find that BLUECHIPFX does not have a license from the regulatory body in Japan.
Secondly, you will also discover that it has a disclaimer on its website stating that it does not offer its services in Japan. This does not make sense at all and this conflict shows that the company is certainly not what it claims to be. It gets worse when you come to know that BLUECHIPFX is registered in Saint Vincent and the Grenadines, which means that it is an offshore broker. SVG is known for being a scam haven, as its financial authorities have already asserted that they do not regulate the forex markets. This means that anyone can set up an operation there and it does not provide them with any credibility.
One of the offerings that you will come across on the BLUECHIPFX website is that of trading bonuses. There was once a time when these were quite popular amongst online brokers and traders also enjoyed them a lot.
But, these bonuses always came with strings attached and it soon became apparent that they were being used as a tool for manipulating and exploiting traders. Therefore, regulatory bodies in many jurisdictions opted to impose a ban on these trading bonuses.
Most of the brokerages offering bonuses nowadays are scams and this is apparent in the case of BLUECHIPFX as well, given the issues the company has. The big concern is that not only is it offering trading bonuses to lure people to its platform, but also that it has not mentioned the conditions associated with them.
There will always be a policy and if it has not been mentioned, then you should be worried because there is a lack of transparency. These conditions are usually aimed at preventing withdrawals, which means you will not be able to access your money.
The trading conditions of any brokerage are important, given that they determine your profitability in the long run. You will find further issues with BLUECHIPFX in this area as well because the trading conditions cannot be defined as favorable in any context. The spreads start at 1.9 pips, which are too high because most competitive brokers in the market are offering spreads under 1 pip.
As far as leverage is concerned, you will come to know that BLUECHIPFX offers ratios as high as 1:1000. This is considered excessive and can be extremely dangerous for retail traders. Most regulatory bodies have banned such levels of leverage in their jurisdictions.
One of the biggest issues that you will discover about BLUECHIPFX is its KYC (Know Your Customer) policy requirements. Sure, legitimate brokerages also have these policies, but they will not demand that you comply with them to access any essential features. Yet, you will find that BLUECHIPFX does not allow you to access the trading platform, which it claims is the MT4, until you complete the KYC requirements.
Does that sound like a genuine broker? Of course, it does not because no authentic one would ever set such conditions.
Taking these issues into account, you can see that BLUECHIPFX is not a broker that is worth trusting for your trading journey.