With the demand for online brokers at an all-time high due to increased interest in the financial markets, criminals have also increased their activities. Therefore, it is not surprising that there has been a rise in the number of people falling victim to scam brokers nowadays. This means that greater caution has to be exercised when you decide to venture into the online trading space. You cannot just accept what you are being told by a company because it could be lying to you. It is what most scammers do to lure in victims, as you will learn in this SpearGPT review.
Fraudulent brokers are known for telling a lot of lies, but the biggest problem is that they do it very well. This makes it difficult for people to figure out what kind of company they are dealing with. Most are unsure of whether to sign up with a particular brokerage or not because, while they do not want to miss an opportunity to trade online, they do not want to become a scam victim either. The good news is that you can avoid this scenario if you are able to identify the lies a brokerage is telling.
It might seem challenging, or even impossible, but it certainly isn’t. All it requires is some time and effort on your part. Rather than making an instant decision of opening an account with a brokerage, you just need to go through their claims and offerings carefully. If there are inconsistencies, you can move onto the next option. This approach can work wonders in the case of SpearGPT that has been presented as a pioneer in the world of online trading and claims to operate from the UK.
Offering a wide variety of instruments, SpearGPT also claims to be facilitating millions of people all over the world. It promises low spreads and leverage as high as 1:400. It looks like a good broker at first glance, but you will find that it is telling too many lies to ignore. What are they? Go over them below:
Not a UK brokerage
The first lie that you are being told at SpearGPT is that it is based in the United Kingdom. There is no doubt that even the mention of UK is going to impress people because it is known as one of the world’s leading regulated jurisdiction. Its financial body, the Financial Conduct Authority (FCA) has an impeccable reputation and is known to have strict rules and requirements for issuing licenses to brokerages. Therefore, a company operating in the UK is automatically considered trustworthy.
But, where online brokers are concerned, you should not take anything for granted because there are forex scams in the market. You should always verify their claims and when you try the same with SpearGPT, you will find that it is blatantly lying. If it really is based in the UK, then it needs to have a license from the FCA. Not only has it not mentioned anything about a license, or given a license number you can check, its name will not pop up when you check the FCA’s online register.
This indicates that SpearGPT is not legally allowed to be based in the UK and cannot offer its services from there. It means that it is either operating illegally, or is lying about being based there, none of which can help establish its credibility.
Not a brokerage at all
The second lie that you will come across at SpearGPT is that it is claiming to offer trading services, which it most certainly isn’t. As a matter of fact, it functions more like an asset management service than a forex and CFD broker and this is also a big problem. When you check out the account options offered at SpearGPT, you will find that these are actually investment plans. This means that they are asking you to deposit money and then promising you returns in a week’s time.
This sounds very impressive because you will be able to make money without lifting a finger. But, you should not forget that when something sounds too good to be true, it usually is. The same applies in the case of SpearGPT because no one in their right mind can guarantee profits in the financial markets. They are highly unpredictable and volatile, so anyone promising you returns is only scamming you.
Moreover, considering that SpearGPT has claimed to be a brokerage, it cannot trade on anyone’s behalf. Brokers are market makers, which means their profits depend on their clients’ losses. So, how will they make profits for you when it means losses for them?
The leverage ratios that are offered to you at SpearGPT go as high as 1:400 and while many traders will be tempted by such numbers, you should remember that these are quite dangerous. Leverage is a two-edged sword because it not only multiplies your profits if the trade goes in your favor, but also losses if the trade goes against you.
This is why regulatory bodies like the FCA has capped leverage ratios to 1:30 in their jurisdiction, yet SpearGPT is offering ratios that are significantly higher even though it claims to be operating in the UK. The lies just continue piling up in this scenario.
No trading platform
Another lie that you will uncover at SpearGPT is regarding its trading platform, which it claims is one of the leading ones in the market. However, as already mentioned above, SpearGPT does not appear to be offering trading services, so you will not find any trading platform on its website. In lieu of a trading platform, it has given a dashboard that you can use for making your deposits.
There is nothing else that can be done on the said dashboard at the SpearGPT website because it only shows you a bunch of charts. There is no functional trading platform for you to use here.
The lies that SpearGPT is telling make it clear that you should not put your trust in this broker.