The brokerage firms NovaTechFX and TradersWay have come under negative scrutiny in the United States. In response, financial experts at Traders Union (TU) have taken the initiative to assess whether both companies are fraudulent or if they present risks that are worth considering.
TU analysts utilized their unique approach to evaluate both brokers by analyzing 100 different criteria that covered various aspects, including financial performance, safety history, historical dependability, trading terms, and the caliber of customer support.
This assessment involved an analysis of each company’s financial robustness, the reputation they had built over years of market presence, the technology used to protect funds, and the input received from their clientele.
Both NovaTechFx and TradersWay turned out to be high-risk brokers with a TU Overall Score of 2.20 and 2.99 out of 10, ranking 341st and 262nd among 350 companies, respectively.
Based on the TU Methodology, brokers that received ratings of 2.99 or lower do not measure up favorably against their higher-rated counterparts. Therefore, experts recommended not working with these brokers since most of their clients are not satisfied with their services, according to reviews.
In terms of the most influential parameters, such as user satisfaction, regulation and safety, commission and fees, trading instruments, brand popularity, customer support, and education, NovaTechFX received low scores of 1.83, 0.85, 2.71, 3.67, 3.77, 1.81, and 1.41, respectively.
This broker delivers trading opportunities in both the Forex and cryptocurrency markets, with a focus on providing extremely competitive commissions and spreads. Additionally, it is compatible with the MT5 trading platform.
The majority of its customer base hails from the United States, making up 74% of its users, while 4.10% comes from Canada and 3.00% from South Africa.
Traders have expressed their dissatisfaction with the broker’s requirement for a minimum deposit of $99. Furthermore, the platform lacks a liquidity provider and does not provide mobile trading options, contests, bonuses, or additional trading features.
NovaTechFX’s website is inundated with one-star ratings from disgruntled customers. Some of these have made allegations against the company’s founders, accusing them of alleged involvement in fraudulent activities. Others have cited poor service experiences and a loss of trust due to its lack of regulation by authorities.
Regarding the TradersWay review conducted by Traders Union’s analysts, it was observed that the broker does not offer cent (micro) accounts, analytical tools, PAMM, MAM, or RAMM services.
Additionally, experts found that the broker has an intricate verification procedure, which mandates new users to furnish certified translations of their documents into English.
In relation to customer support, clients have expressed disappointment due to the absence of Russian-speaking operators on the online chat platform. The only contact option available is a phone number in Dominica, and users do not have the option to request a callback.
When it comes to regulation and safety, the broker received a worrying TU score of 1.71 points out of 10.
TradersWay is affiliated with TW Corporation, a registered entity in Dominica. However, licenses and oversight by state regulators are notably absent. Consequently, there is no avenue for filing complaints with a regulatory authority.
Moreover, TU experts have uncovered that the company lacks negative balance protection and does not maintain segregated accounts. In addition, there are no safeguards in place for the protection of customer funds and interests.
