Osprey FX Review
Osprey FX, The Online Broker That Almost Impressed You
When looking for an online broker, picking the right one can be a challenge because of so many options you have available today. The biggest problem is that many of the brokers are not even real brokers. These are people trying to lure you into signing up with them and depositing money in your online account. They then run away with your money to never return. You have to be extremely careful to pick a broker that operates transparently and cares about its traders in every way possible. One of the names that will really impress you is Osprey FX.
Osprey FX happens to be a broker that almost impresses anyone who lands on its website. There is no doubt that its website is very powerful and can convince anyone that Osprey FX is the best online broker out there. However, there are some huge problems with this broker which should prevent you from signing up with it. Let’s take a look at these issues so you can stay away from this broker or think many times before you decide to join its trading platform.
The Unsettling Asset Index
There is no doubt about the fact that Osprey FX is one of the brokers who make things look more exciting than they are. If you had to give this broker numbers for marketing out of 100, it would easily walk away with 100. The language on the website, the font selected for the content, and the way the website has been designed all combine to give a very impressive impression. However, you have to read between the lines and know the basic facts to separate sheep from goats. Things start to look a bit dubious the moment you look at the asset index of this broker.
What is unusual about the asset index of this broker? First, you are getting just too many assets to trade. It seems impossible that a broker can offer so many different assets for trading from the same platform. If you look at only the forex currency pairs, you have them categorized in three different sections. You can trade the major currency pairs, the crosses, and the exotics. You have as many currency pairs in the exotics as the majors and crosses combined. Yes, this can be just normal but having so many options makes a broker appear as though it is trying to get everyone to sign up on its trading platform somehow.
If you are not unsettled by the number of currency pairs, this is definitely going to make you feel uncomfortable. You literally have 31 cryptocurrencies available for trading on Osprey FX. This is something more unusual than the inception of cryptocurrencies. You will hardly find another broker on the internet offering you so many digital currencies to trade. Keep in mind that cryptocurrencies are extremely volatile. When a broker introduces them on the platform, it takes a huge risk. For this very reason, you will still see some of the biggest online brokers not offering cryptocurrencies on their trading platforms.
So, if the best brokers cannot offer one cryptocurrency, how can one broker offer 31 cryptocurrencies just like that? Even the biggest, the biggest, and the oldest online brokers stick to bitcoin for trading. When it comes to Osprey FX, this broker offers you just about any cryptocurrency that you can name off the top of your head. There are other hundreds of assets that you can trade when you have joined the Osprey FX trading platform.
The Discomforting Deposit and Withdrawals
You understand that a thief is not going to give you any indicators that he/she is about to rob you or your home. That’s the same case with online websites. When there is a fraudulent broker, you won’t find any clear signs. However, you will find some very subtle signs that start to make sense when you look deep into them. In many cases, the brokers who talk too much about how withdrawals and deposits work, and keep mentioning regulations and policies in there have some surprise waiting for you. They will either charge you a big amount as a commission on your withdrawals and deposits or they will make withdrawals difficult for you.
When you look at the deposit methods, there is nothing wrong with them. You can deposit money in your account using your credit or debit card. You can also use the bank wire transfer option for depositing funds in your account. Last but not least, you can fund your account with bitcoins if you want. Withdrawals is the part where things start get a bit unsettling for the traders. As soon as you start reading about withdrawals, you start to see explanations from the broker. So, if you deposit money in your account using a credit card, you will withdraw this same money on that card.
If you are looking to withdraw your profits, you cannot do that on your credit card. You will have to find a different way to withdraw your funds. Now, the only two ways you have available for withdrawing funds from your account other than the credit cards are bank wire transfer and bitcoin. When you are a new trader, the profits you make on your trades are not so big. If you have to pay commissions from the profits, you will end up earning nothing. That’s what’s going to happen when you make withdrawals from your account with Osprey FX.
The broker says that you will have to pay a commission of $25 when you make a withdrawal from your account. The broker calls it the banking fees but a fixed fee of $25 does not make sense. In addition to that, the broker says the withdrawal will easily take you around a week before you get the money back into your account. That’s a long time for a withdrawal. If it is the bank that’s going to take so long to process the request, the broker should not be mentioning it. It should only mention how long it will take the broker to process the request.
The Absent Regulation
Osprey FX talks with passion about the protection of your funds on its website. That’s the part that’s going to impress you a lot about this broker. It talks in such a tone that you start believing every word. Every web page about deposits, withdrawals, and banking starts with a sentence that your money will be maintained in separate accounts. The company also has strong anti-money laundering policies. On the website, you see Osprey FX mentioning that it takes scare of its financial activities by auditing them regularly. This is where things take a funny turn.
So, you have the broker telling you that it takes the responsibility of auditing its own accounts and financial activities in its hands. This kills the purpose of accountability in the first place. The first rule of accountability is neutrality. If there is no third party monitoring your financial activities, no amount of words you say can convince a wise trader that you are serious about security. So, despite the many claims made by the broker on the website, you have to know that it is an unregulated entity.
The Unexpected Trading Conditions
You have to see what trading conditions you are being offered before you sign up with a broker. Different brokers offer you different leverages, spreads, and minimum deposit requirements. Some seem difficult platforms for new traders to join while others are quite easy for anyone to join. However, a line has to be drawn where things start to seem unbelievable and untrue. So, the leverage available to you when you sign up with Osprey FX is 1:500. That’s an unbelievably big leverage from any online broker. Even the biggest brokers stick with a leverage of 1:200. The 1:500 leverage seems it is not possible at all.
Imagine how big of a trade you can control with such a leverage. What’s even more surprising is the fact that the minimum deposit you need to activate your account is only $10. Think about it: what is it exactly that you can do with $10? You are in the largest financial markets of the world and all you have in your account is $10. This figure seems very unbelievable and probably they are. So, your broker is telling you that you can trade one of the most volatile markets of the world i.e. cryptocurrencies by depositing just $10 in your account.
Osprey FX seems like a legit online broker specifically for the points it touches on its websites. It talks about every pain point that the traders are concerned about when they want to sign up with a new broker. It talks about segregated accounts, anti-money laundering policies, minimum deposits, deposits, withdrawal commissions, etc. To a new trader, all of this will seem believable. However, falls apart and on to the ground when you find out that Osprey FX is an unregulated broker. A broker regulating itself can be funny but not trust-winning.