Financikatrade Review: Scam Broker?
Financika (Sharp Trading) Ltd is a brokerage that offers trading in Forex, stocks, CFDs and indices. There are claims that Financika is related to two other shady brokerages called Bforex and 70trades. Bforex and 70Trades are well known scam brokers and if it is indeed true that they are associated with Financika in one way or the other, then this offers us the much needed insight onto what kind of brokerage we are dealing with in this review.
Financika is currently offering only one account type, which they call a standard account. This account requires a minimum deposit of $200 and a maximum leverage of 1:200. The minimum spread is 3.0 pips which is the highest I’ve seen in this industry.
Therefore, it is crystal clear that Financika’s trading conditions are not friendly to any type of trader. However, the site continues to lure in clients by listing reasons why they think they are the best in class.
Some of them include beginner trader education, individual training session with video tutorials and PDFs, advanced trading platform, access to a personal manager, daily market analysis and free market updates and ”100% investment insurance”.
Financika is also offering a weekly bonus. Before we move forward with this Financika review, I want to make it clear that this Forex brokerage is very controversial and could be a scam.
Approach them with caution and before you make a deposit, think before you act. If you are in need of a professional and regulated broker, click here and pay attention to two brokers called Octafx or FXchoice.
In case you are looking for automated trading solutions like expert advisors or even semi-automated solutions like Forex indicators, the only recommended ones can be found on this page.
This broker is owned and operated by an entity known as FINANCIKA (SHARP TRADING) LTD. This company is based out of Vanuatu. The most encouraging thing is that this entity is at least registered with the local financial services commission which is known as VFSC.
The disadvantage, on the other hand, is that a regulatory body like VFSC has silly minimum requirements for brokers to commence operation within the jurisdictions they govern. For example, for a broker to be registered with the VFSC, they must pay $2000.
This simply allows every Tom, Dick and Harry to open a brokerage and register it with the VFSC.
So this gives much leeway for scammers to take advantage of this registration. It has been reported that the people who work for Financika brokerage are extremely smart on the phone but when they get you to deposit funds on their platform, that is the last time you will ever hear from them.
In fact, there are several complaints against Financika brokerage and I don’t think that all these people can be wrong about this broker’s conduct considering that the broker has never come out of their hiding place to defend their names publicly.
The reason I’d trade with a broker who is registered with, lets say CYSEC is because this financial watchdog has put a high minimum requirement that brokers must fulfill.
CYSEC has set that minimum to be € 730,000, which means that those who will approach CYSEC for regulations will most likely have serious intentions of running a business and benefiting the needs of their clients.
Apart from this, if a broker like Financika was registered with the CYSEC, it would ensure that they are keeping our funds into a segregated account and also not draining our money through a simulated trading experience where the broker trades against the client.
In addition to this, bodies like the ICF have made it mandatory for brokers to deposit a portion of their profit there so that when clients need compensation in case of bankruptcy, they can get it up to the tune of 20,000 Euros.
Financika review – features of this broker
The industry average minimum deposit falls within the $100-$200 range. So this broker is on the right side of things as far as minimum deposit is concerned.
The kind of spreads which they offer on a pair like EURUSD is also not reasonable. Many professional Forex brokers will charge anywhere between 0.8-1.5 spreads. It is therefore unacceptable for a broker to rob you of 3.0 spreads for the most liquid pair like EURUSD.
This prompted me to test their platform on demo to see what it was like trading with Financika. To my surprise, it was not possible even to access a demo, which could only mean that this Forex brokerage is a potential scam.
Trading platform offered by Financika
Instead of giving us popular options like the MT4 or even cTrader, the broker is running another web and mobile trading platform known as PROfit.
I was not successful in testing this platform. However, I have heard from traders that PROfit has some nice features and a fairly good charting solution but overall, traders say it feels counter-intuitive at times.
Therefore, if you compare a platform like MT4, MT5 and cTrader, PROfit automatically becomes an inferior choice – in my opinion.
Is Financika a scam?
Due to the many negative complaints which we have received against this broker and even saw on the internet, I believe that Financika is a scam just like Finq.com and many others.
I also don’t believe in what they call ”investment insurance”. There is no way a broker can legitimately cover your first 5 trades if they end up in losses because that would be too good to be true.
Unless they are market makers where they give back a small portion of what they have robbed from you, I don’t see how this will be possible.
I also have not sampled the quality of their trader education but this appears to be a ploy to generate interest on Financika’s products.
I have absolutely no interest in trading with a broker like Financika because first and foremost, they do not have my favorite trading platform and secondly, they have a history of scamming traders and third, they are not strongly regulated. The list is actually endless.
Thanks for reading this Financika review. If you have questions or remarks, add them in the comment section.
Also, do not forget that if you do not know how to trade, these affordable trading solutions could give you an edge right away even with zero trading experience.