NewSolid Forex Broker

NewSolid Forex Broker - Comprehensive Information Guide

1. Broker Overview

　　NewSolid, officially known as New Solid Markets Co., Ltd., was established in 2012. The broker claims to be headquartered in New Zealand, although it has also indicated a registration in Samoa. This raises questions about its actual operational base and regulatory status. NewSolid is a privately held company that primarily targets retail forex traders, particularly in Asia, including a significant focus on Chinese investors.

　　The broker offers a range of trading services, including forex and CFDs, and claims to utilize the widely popular MetaTrader 4 (MT4) platform, which is favored for its advanced charting and analytical capabilities. However, the company's history is marked by a lack of transparency regarding its operations, leading to skepticism about its legitimacy.

　　NewSolid is reportedly part of a larger financial group, the Solid Financial Group, which includes various financial services. The business model appears to focus on retail forex trading, offering a single account type, which they refer to as a standard account. The broker promotes itself as providing access to multiple financial instruments, but specifics regarding their offerings and the execution of trades remain vague.

2. Regulatory and Compliance Information

　　NewSolid operates without any valid regulatory oversight. The New Zealand Financial Markets Authority (FMA) has blacklisted the broker, indicating it does not hold the necessary licenses to provide financial services in the country. This lack of regulation is a significant red flag for potential investors.

　　The broker claims to have a registration number with the British Virgin Islands Financial Services Commission (BVI FSC), yet there is no verifiable record to support this claim. The regulatory number provided does not conform to the standard format issued by the BVI FSC, suggesting that NewSolid may be misrepresenting its regulatory status.

• Regulatory Bodies:
• New Zealand Financial Markets Authority (FMA) - Blacklisted
• British Virgin Islands Financial Services Commission (BVI FSC) - No valid license found

　　NewSolid does not have a customer funds segregation policy, which is a common practice among regulated brokers to ensure clients' funds are protected. Furthermore, there is no participation in any investor compensation schemes, which adds to the risk for clients.

　　The broker states that it adheres to Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance measures; however, the effectiveness and implementation of such policies remain unverified.

3. Trading Products and Services

　　NewSolid offers a limited selection of trading products, primarily focusing on forex and CFDs. The broker claims to provide access to over ten forex currency pairs, including major pairs like EUR/USD and GBP/USD, as well as various commodities, indices, and cryptocurrencies like Bitcoin.

Product Offerings:

• Forex Pairs: Over 10 pairs, including major currencies.
• CFDs:
• Commodities (e.g., gold, silver, oil)
• Indices (e.g., S&P 500, NASDAQ)
• Cryptocurrencies (e.g., Bitcoin)

　　Despite the broad range of instruments advertised, specific details about the frequency of product updates or the introduction of new instruments are not disclosed. The absence of a demo account for potential users is a notable limitation, as it hinders traders from testing the platform before committing real funds.

　　NewSolid appears to focus primarily on retail trading services, without offering institutional services or white-label solutions, which are common among more established brokers.

4. Trading Platforms and Technology

　　NewSolid claims to support the MetaTrader 4 (MT4) trading platform, which is well-regarded in the industry for its user-friendly interface and robust analytical tools. However, there are significant concerns regarding the availability of the platform, as users have reported difficulties in downloading the MT4 application from NewSolid's website.

Platform Features:

• MetaTrader 4 (MT4):
• Widely used for forex trading
• Offers advanced charting tools and technical indicators
• Supports automated trading through Expert Advisors (EAs)

　　The broker does not appear to offer a proprietary trading platform or web-based trading solutions, which limits flexibility for traders. Additionally, there is no mention of mobile trading applications for iOS or Android, which is a standard offering among reputable brokers.

　　The execution model remains unclear, with no specific mention of whether NewSolid operates as an ECN, STP, or Market Maker. The lack of transparency regarding server locations and technical infrastructure further complicates the assessment of the broker's capabilities.

5. Account Types and Trading Conditions

　　NewSolid offers a standard account type, but specific details regarding the account conditions are not clearly defined on their website.

Trading Conditions:

• Minimum Deposit: $100
• Leverage: Up to 1:100
• Average Spread: 2.5 pips for major pairs like EUR/USD, which is considered high compared to industry standards that typically range from 1.0 to 1.5 pips.
• Minimum Trade Size: Not specified

　　The absence of advanced account types, such as VIP or professional accounts, limits options for traders seeking tailored solutions. Additionally, there is no mention of Islamic accounts, which could cater to a broader audience.

　　NewSolid does not provide a demo account option, which is a significant drawback for traders looking to practice their strategies without financial risk. Information regarding overnight fees (swap rates) and their policies is also not disclosed.

6. Fund Management

　　NewSolid supports several deposit and withdrawal methods, including credit cards, bank transfers, and cryptocurrency options like Tether (USDT).

Fund Management Details:

• Deposit Methods:
• Visa, Mastercard, Online Bank Transfer, Tether (USDT)
• Minimum Deposit Requirement: $100
• Deposit Processing Time: Not specified
• Deposit Fees: No fees mentioned for deposits
• Withdrawal Methods:
• Visa, Mastercard, Online Bank Transfer, Tether (USDT)
• Withdrawal Processing Time: Generally no longer than one working day, but delays have been reported.
• Withdrawal Fees: Fees may apply depending on the number of withdrawals made.

　　The lack of clarity regarding processing times and fees raises concerns about the broker's operational transparency. Additionally, there have been numerous complaints from users regarding withdrawal difficulties, which is a significant warning sign for potential clients.

7. Customer Support and Educational Resources

　　NewSolid provides customer support through various channels, including email and phone. However, the effectiveness of their support services is questionable based on user feedback.

Support Features:

• Support Channels:
• Email, Phone, QQ
• Service Hours: Not specified
• Languages Supported: Primarily English, but additional languages are not listed.
• Educational Resources:
• No significant educational materials or resources available, such as webinars, tutorials, or eBooks.
• Market Analysis Services: Limited information provided regarding daily analysis or research reports.
• Trading Tools: Basic tools like calculators and calendars might not be available.

　　The absence of educational resources is concerning, as reputable brokers typically offer such materials to help traders improve their skills and knowledge.

8. Regional Coverage and Restrictions

　　NewSolid primarily serves markets in Asia, particularly targeting Chinese investors. However, the exact distribution of regional offices or specific countries served is not disclosed.

Market Coverage:

• Primary Markets: Focus on Asian markets, especially China.
• Regional Offices: Not specified
• Countries Not Accepted: Specific countries that are restricted are not listed.
• Special Restrictions: Potential restrictions may apply based on regulatory warnings from various financial authorities.

　　Overall, NewSolid operates in a highly questionable regulatory environment, and potential clients are advised to exercise extreme caution when considering this broker.

　　In conclusion, NewSolid presents several red flags that suggest it may not be a reliable choice for traders. The lack of regulation, high spreads, and numerous complaints regarding withdrawal issues are significant concerns. Traders should thoroughly research and consider regulated alternatives before engaging with NewSolid broker.