PrimeStocks – Are They Trustworthy?

Website URL: www.prime-stocks.com

Founded: 2019

Regulations: Unregulated

Languages: English, Russian

Deposit Methods: Bank Wire, Credit Card, Debit Card

Minimum Deposit: Unknown

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Currency Pairs, Metals, Energies, Shares, Indices, Futures

Trading Accounts and Conditions

PrimeStocks offers only one live account and has an Islamic account option. There is no information presented about the minimum deposit requirement. The broker only states that the spreads are low and the maximum leverage is 1:100. Since we were unable to access their trading platform, we could not verify this information.

PrimeStocks – Advantages

The one advantage to using this broker is that it offers its users the MetaTrader 4 software for trading. The MT4 software is the most popular in the world since it offers you features that make trading very efficient. You have a wide range of charting tools, an array of market analysis tools, and even algorithms that allow you to carry out automatic trading. And these are just a few of the features that make this platform so great.

PrimeStocks – Disadvantages

Here are the disadvantages of trading with PrimeStocks:

• Unregulated Broker

PrimeStocks is owned by Prime Tech Ltd which is an offshore broker registered in the Marshall Islands. This is the first red flag we see.

Marshall Islands is famous for hosting shady brokerages because its regulations are very loose. A company doesn’t even need to be physically based in the Marshall Islands to be registered in that country. Companies can get registered in this jurisdiction from anywhere in world, meaning they are – in essence – virtually anonymous.

The second red flag that we have found with regard to PrimeStocks’ regulation status is its claim that it is authorized to offer its financial services to all the countries in the European Economic Area. This means that this broker says it can offer its financial services to 27 of the European Union nations as well as Norway, Switzerland, the UK and Ireland.

However, there is no information on its website about its license number or which financial regulator has given this broker the authorization to offer its services in the EEA.

Thus, we can conclude that PrimeStocks has lied about its regulatory status and that it is, in fact, not regulated in any way.

Dealing with a broker that is unregulated is highly risky. Regulated brokers are constrained by government rules so that their clients are protected from any fraudulent activity. Brokers are required to segregate their funds from their customers’ so that they cannot use them for their operations. Regulated brokers are also required to participate in a compensation program – a kind of insurance. This way, in case they go bankrupt or are caught carrying out fraudulent activities, they will be required to reimburse their clients for any losses suffered due to this.

With an unregulated broker – especially an anonymous one like PrimeStocks – you get no such protection. Furthermore, no regulator can really help you in case you lose money to such a broker.

This is the reason why it is best to trade only with regulated brokers; you are protected from being scammed.

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• No Minimum Deposit Requirement Mentioned

There is no information on PrimeStocks’ website about the minimum deposit requirement. So, if you sign up with this broker, you will not know how much you need to deposit until you have already signed up for an account.

This is a typical scamming tactic, where you are forced to deposit money and then your withdrawal requests will be denied.

• Trading Conditions Not Clearly Mentioned

There also wasn’t any information on trading conditions on their website. When we tried accessing PrimeStocks’ MT4 platform, we were unable to, because of which we were unable to get the details of the trading conditions from there either. All we know is that the broker claims to have low spreads and a maximum leverage of 1:100.

The trading conditions are the key things that traders need to know about when signing up with a broker. It tells traders about the trading costs they would incur while using a broker’s platform. So, the fact that this broker does not present this critical piece of information is suspect.

• Broker Offers Trading Bonuses

PrimeStocks offers its clients trading bonuses. First of all, we need to let all traders know that trading bonuses have been banned across Europe because of their unfair terms. So, the fact that this broker offers such bonuses is already another red flag.

Sure enough, we find conditions that are unfair. You will be required to meet a certain trading volume before you will be allowed to withdraw your funds if you have accepted a bonus from PrimeStocks.

Furthermore, there is another worrying condition with regard to bonuses. The broker states that it can change its bonus policy at any time. This is another scam tactic, where if the broker feels you are about to reach its turnover target, it will change its policy.

• Broker’s Website Similar to Another Scam Broker

PrimeStocks’ website layout is startlingly similar to that of another broker we reviewed: Top Invest 100. While the graphics may be different, the information on the website is almost the same. If you compare the two websites, you will find them eerily similar.

This does raise a lot of concern, since Top Invest 100 is another broker that is unregulated and shows all the signs of being a scammer.

Conclusion 

PrimeStocks is not a trustworthy broker. It has lied about the most critical piece of information – its regulation status. The broker has not even mentioned its trading conditions clearly. It also offers trading bonuses, and most of all, PrimeStocks’ website is almost the same as that of another scam broker, which means that this could be a scam operation being run by the same group of people.

PrimeStocks

2.4

User Experience

3.0/10

Payment Options

2.3/10

Security

2.1/10

Support

2.5/10

Reputation

2.3/10

Pros

• Support for MT4 Offered

Cons

• Unregulated Broker
• No Minimum Deposit Requirement Mentioned
• Trading Conditions Not Clearly Mentioned
• Broker Offers Trading Bonuses
• Broker’s Website Similar to Another Scam Broker