WikiFX Reviews RCG Markets | Is It Safe?

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RCG Markets official website is www.rcgmarket.com. It was established in 2018 (registration number 2018/079334/07) at Unit 25, Block C,

Eagle Canyon Office Park, Randburg, Gauteng, South Africa.

Randburg, Gauteng.

At first glance on the website, WikiFX spotted a questionable statement – if RCG Markets was established in 2018, how could it been offering trading services over the past 25 years？

On its website, it is stated that RCG Markets is an authorised financial services provider with the Financial Service Conduct Authority (FSCA), which is the financial market watchdog in South Africa. Its license number is FSP49769.

However, according to WikiFXs discovery, though this license was valid at one point, it has now exceeded its validity.

Another important thing to note is that the regulatory framework in South Africa is relatively laxer in comparison to that of the European Union, Australia or the United States. For instance, brokers in South Africa are not required to provide negative balance protection or to maintain client funds in segregated accounts, and they are not subject to any restrictions on leverage or trading bonuses. Brokers in South Africa are not required to provide negative balance protection or to maintain client funds in segregated accounts. They are not subject to any restrictions on leverage or trading bonuses, are not required to take part in compensation plans, and are not required to report on open and closed deals.

Market instruments:

RCG Markets several trading instruments, including forex pairs, indices, shares and commodities. Unlike many of its rivals, it does not dabble in cryptocurrency trading. It claims to be an STP (straight-to-processing) and ECN (electronic communications network) broker that claims to offer fairer and faster execution.

Trading platform:

RCG Markets currently only offers MT4 platform for its trading clients, which is quite insufficient, especially after Apple's App Store delisted MT4 for new iOS users.

Account types:

RCG Markets offers 3 different types of accounts for traders at each level.

One of the main attractive features offered by RCG Markets is the low minimum deposit of only R 50, high leverage up to 1:2000, and low spreads from as low as 0 pips.

Do note that a common tactic used by forex brokers to capitulate traders' accounts is by recommending high-leverage and low-deposit accounts. There is a much higher chance for these inexperienced traders to blow their account easily, which is equivalent to “easy profits” for the broker itself. However, it does not necessarily mean that the said broker is a scammer, as this is just a common marketing strategy within the industry to be more attractive to prospects.

In conclusion, WikiFX does not recommend RCG Markets as it is a risky broker with no license nor any other form of regulatory status. Given that there are a myriad of forex brokers in the market with higher credibility coupled with licenses and regulatory statuses, traders who wish to trade with RCG Markets should reconsider this decision carefully.