In this review we explain why you should stay away from the Arkcoin broker, it has been blacklisted by a financial regulator.
What is Arkcoin
Arkcoin is you typical online broker that offers trading on Forex with currencies, stocks, stock indices and commodities.
There are three accounts for you to choose from: Beginner, Intermediate and Expert. The minimum deposit being 250 EUR.
The leverage starts at 1:200 and goes up to 1:600, which is very high and can easily can catch you with big losses.
Arkcoin is operated by a company called Flack Consulting from Saint Vincent and the Grenadines.
Now let’s see if Arkcoin is legit and if you should trade with it.
Stay away from Arkcoin
The main reason why we are doing this review of Arkcoin, is that it has been blacklisted by a European financial regulator.
The warning from the AFM
The regulator who warned against Arkcoin, is the AFM in the Netherlands. It said: “The AFM warns consumers not to accept offers from Arkcoin. This company presumably is a boiler room.”
What is a boiler room? Investopedia defines it as a “place or operation, usually a call center, where high-pressure salespeople call lists of potential investors (suckers lists) to peddle speculative, sometimes fraudulent, securities. Sucker lists identify victims of previous scams”.
In other words, boiler rooms are scams that try to get money from you by making you invest money into questionable financial instruments or straight scams.
So there you have it, a financial regulator is saying that you should stay away form Arkcoin, because it is operating an illegal investment scheme. But that is not all…
Another reason for avoiding Arkcoin is the fact that it is not regulated in any country.
As a typical broker, Arkcoin has to have an authorization from regulators in every country it wants to have clients in. But it does not have any authorization, which basically makes it an illegal broker in almost every country in the world.
It means that deposits with this broker are not protected in any way. For example, in the case of a bankruptcy, there is no insurance and you won’t get your money back from the broker.
How Arkcoin works
Based on the warning from the AFM we can guess how the Arkcoin broker works. It will use all sort of persuasive techniques to make you deposit money and invest in anything.
The main purpose will be to get your money. Then you will be very likely to lose your investment, because as we explained above, boiler rooms make you buy the worst things.
And that will be it. It is very probable that in the background your money will go straight to the pockets of people who run Arkcoin, because these broker often do not trade on real markets at all, they act as bucket shops.
It means that they just take your money, don’t trade on the real markets and keep everything in their accounts.
Arkcoin review – Conclusion
Arkcoin is a broker worth avoiding, because that is what the Dutch regulator AFM is advising to people. The regulator believes that Arkcoin is a boiler room, which is a specific type of scam.
If you are interested in legit investing, try a free demo with a regulated broker and use virtual money to learn.
You first have to understand trading and the risks, only then you can start investing real money.