Digital Equity: SCAM or Trusted Broker?
Is Digital Equity a scam or the trustworthy broker?
This review continues our research of the forex market and answers the question, “Is Digital Equity a scam or the trustworthy broker?”
In the stormy ocean of the financial markets, there is a tricky quest to find a new broker and avoid all possible scams. The problem with a scam is that fake brokerage owners use all the possible methods to make them look like a trustworthy company. Besides, they aggressively advertise their services, distribute their advertising via all possible channels, and reach out to their potential victims until they get money, etcetera. The trustworthy brokers are not as annoying. For a new trader, it takes time to understand who is on the forex market.
For many years on the market, we analyzed a lot of scam companies and developed the checklist. Now we can just use it for the primary review for any company. To learn more, it is necessary to analyze the company deeper. This article reviews Digital Equity, a fresh broker that started its business approximately a year ago.
Robot scams use the special type of malware that helps criminals get the trader’s money. The simplest type of robot scams is a trading platform. As a rule, the scam pretends to be a new box solution for traders. The advertising usually claims the trader has nothing to do: just deposit your money, chose the currency pair or other trading active, check the settings, and wait until you get rich. The experienced traders immediately understand there is something wrong because it just does not work in this way. Any automated trading software requires the control of the trader. Otherwise, it spends money until the deposit it is empty.
Digital Equity does not use innovative platforms and other brand new solutions. The company stuck with Metatrader4. This trading platform exists in the forex market for more than ten years. It is easy to install and use, it has a user-friendly interface, and it is compatible with the older gadgets. There is also a community of MT4 users that can help and advise on any question. So, from this side, Digital Equity is clear.
However, we have to warn all traders, including Digital Equity clients, that they can face Robot Scams even with MT4. We mean EAs, or electronic advisers. It is the third-party software compatible with the Metatrader platform. The developers sell their EAs as a Grail, the universal solution that earns money on automatic trading. Please remember you should not install any third-party software; otherwise, you take all the responsibilities for this. From our side, we can just recommend avoiding any robot trading software: it will not earn a fortune for you; you just lose your money.
Signal Sellers Scam
The forex market signals are the combination of market indicators that predict the movement of the trend. For example, imagine a steady market, no important economic news, or corporate reports. All major indices and currency pairs demonstrate low volatility. However, the technical indicators can signalize about the upcoming periods of volatility. The experienced traders use the signals to open the deal and make profit. Some of them also make a profit selling these signals to other traders.>
What is wrong with the signals? First, there are no 100% true signals at all. Too many people play in the forex market. When the market goes by the trend, some traders play against the trend and weaken it. Thus, the combination of different vectors on the market is unpredictable, and even the most trustworthy signal can fail. Second, you cannot check the quality of the signal until you risk with your money. No signal seller offers a money back because every deal is the responsibility of the trader. So, the chance to make a good with a signal is equal to your own deal.
Digital Equity does not sell signals. The company offers a reliable trading platform. Metatrader4 offers a wide range of functions to analyze a market and understand the trends. The company believes the trader should not rely on third-party signals.>
“Too Good to be True” Scam
People want to believe in the miracle. Many people believe one day they win and earn a fortune with one movement of the hand. That is why the scam companies still exist, not only on the forex market but in any business. The fraudsters act on each level of our life, and even the smartest and wealthy people can become the victims. In 2018 the famous startup company Theranos appeared to be a scam company. However, before the scam is revealed, the company collected several billions of investments and involved many famous people in its business.
What is the secret of these scam companies? They offer something that sounds like a miracle. The new method of blood analysis or 300% return of investments in a month – it depends on the industry. Wonderful offer and personal charisma attract people, and they bring their money to the scammer. On the Forex market, the scam companies offer high % of monthly earning and do not tell their clients about the risks.
Digital Equity does not offer immediate investment returns. The company provides to its clients the risk warning documents and completely reveals the risks of leverage trading. The company does not claim every client will obviously return the deposit. In fact, the company reveals the truth about forex trading without trying to hide the risks. So, the company is free from this scam.
Trading Terms and Conditions
As you probably know, it is useful to read any agreement carefully before signing it. Sometimes the agreement includes the unpleasant points for one of the sides. Forex market is not an exclusion: the scam brokers often develop the agreement between the company and the client in a way that limits the rights of the client. For example, the company does not protect the client’s fund from unauthorized access nor guarantee the 100% find deposit on client’s request.
Digital Equity uses the standard trading agreement for the small-size broker. The size is important because small companies usually cannot afford the insurance or bonuses for the clients. However, the agreement does not include the hidden fees and the vogue points that limit the clients’ rights. The agreement includes some limitations, though. For example, the company does not work with people 18 years old and after 65. Some traders find this limit to be discriminative, but the company explains this rule with previous unauthorized costs.
At the same time, Digital Equity agrees to keep the accounting transparent and send regular reports to the clients. The company does not send the printed report because of some limitations related to COVID-19. The company also forbids the arbitrage trading and follows the anti-money laundering rules. No point in Terms and Conditions documents can prove Digital Equity is a scam broker.
Extra Fees and Spreads Manipulations
Some companies on the forex market work in the grey zone. They are not totally scam, but they use unfair methods to increase their profits. For example, the company can add extra fees for money deposits, money withdrawal, for the internal educational programs, and more.
Besides, the companies often manipulate the spreads on different account types. Let us imagine the company offers three types of accounts. The lowest account can start from the small deposit, but the spreads will be rather high. In this way, the company pushes its client to choose a more expensive account and deposit more.
Digital Equity offers four types of accounts named by the metal. However, the types differ with the amount of initial deposit. The company offers relatively low spreads, an unlimited number of daily deals, no extra commissions, and personal account management services for the account of any type. Only for Platinum deposits, the spreads are minimal, but this type of account starts from $50,000 – there are not so many traders who can allow this. We can conclude that Digital Equity is clear on this point and check the box on our checklist.
Money Withdrawal Scam
Many traders faced problems when they tried to withdraw money from the brokerage company. The company promises immediate money withdrawal. Then, when a delay happens, the company blames the credit card operator or banks. Later the company can block the account of the client. The client loses the money without a chance to get them back.
Digital Equity works with the client’s money accurately. The company processes the money withdrawal request on the day it is done. Then, within the specified number of banking days, the client gets money on the bank account or credit card. The transfer to credit card takes more time. However, this delay is not a scam.
Digital Equity also requires withdrawing money on the same account the money was deposited. It is the requirement of international anti-money laundering regulations. This rule blocks the option to transfer money between the different accounts, sometimes in different countries, and in this way, hide the illegal origin of this capital.
Every trader, fresh or experienced, has to understand that the scammers rely on the absence of knowledge in their victims. If the trader does not understand the forex market’s main principles, its main rules, if he or she enters the market with a hope to make a fortune in one night, like in a casino – it is a potential victim. So, each forex player has to get new knowledge, practice skills, and never believe forex is a casino.
Digital Equity broker cares about its customers in a good way. The company provides the section on its website. This section includes a forex glossary with the main forex terms. Each article explains not only the meaning of the word but also the role of the term on the market. For example, the article about fractals says it is a type of indicator and explains using this indicator in combination with others.
Besides, the Digital Equity broker provides the FAQ section for its clients. This section describes the main principles of cooperation, the processes of money deposit and withdrawal, the trading platform, and other issues. So, Digital Equity educates its clients to avoid scam schemes, which is a good sign for a forex broker.
Digital Equity Conclusion
We analyzed all typical schemes used by scam companies and compared them with Digital Equity activities. Digital Equity does not use the Robot trading scam, does not sell signals, provides the transparent terms and conditions, do not manipulate with spreads and leverage size. Probably, the reason of small reviews amount around the net is that Digital Equity is a fresh broker. In this case, we can officially declare Digital Equity is not a scam.
However, we always appreciate the additional investigation. Suppose you are a trader and looking for a trustworthy broker. In that case, you are more than welcome to Google for more information about any company, including Digital Equity, and share this information with us.