Regarding the legitimacy of Abshire-Smith forex brokers, it provides FCA and WikiBit, .
Business
License
The regulatory license is the strongest proof.
FCA Market Maker (MM)
Financial Conduct Authority
Financial Conduct Authority
Current Status:
License Type:
Market Maker (MM)Licensed Entity:
Effective Date:
2013-03-20Email Address of Licensed Institution:
ceo@abshire-smith-global.com53748:
No SharingWebsite of Licensed Institution:
--Expiration Time:
2021-02-09Address of Licensed Institution:
Phone Number of Licensed Institution:
+442037000085Licensed Institution Certified Documents:
Abshire Smith is a London-based brokerage that has positioned itself as a player in the forex market since its inception in 2011. The firm offers a range of financial instruments, including foreign exchange (forex), contracts for difference (CFDs), and equities. However, the forex trading landscape is fraught with risks, and it is crucial for traders to conduct thorough due diligence when selecting a broker. This article aims to evaluate whether Abshire Smith is a safe trading environment or a potential scam by analyzing its regulatory status, company background, trading conditions, customer fund safety, client experiences, platform performance, and associated risks.
The regulatory framework surrounding a forex broker is one of the most critical factors in assessing its safety. A well-regulated broker is typically more trustworthy, as they are held to specific standards designed to protect clients. Abshire Smith was previously authorized and regulated by the Financial Conduct Authority (FCA) in the UK. However, it is important to note that the FCA has revoked Abshire Smith's license, indicating that the broker is no longer authorized to provide regulated activities.
Regulatory Body | License Number | Regulatory Region | Verification Status |
---|---|---|---|
FCA | 590890 | UK | No longer active |
The revocation of Abshire Smith's FCA license raises significant concerns about its legitimacy. The FCA is known for its stringent regulatory standards, and being stripped of this license suggests that Abshire Smith may have failed to meet these requirements. This development is alarming for potential clients, as it raises questions about the broker's commitment to compliance and transparency.
Abshire Smith was established in 2011 and has operated under the name Abshire Smith Global Ltd. The company was founded by professionals with backgrounds in finance and trading, aiming to provide a comprehensive trading platform for both retail and institutional clients. However, the firm has faced scrutiny regarding its operational history and management practices.
The management team includes individuals with experience in the financial markets, but the lack of publicly available information makes it difficult to fully assess their qualifications. Transparency in operations is crucial for building trust, yet Abshire Smith has been criticized for its limited disclosure of important information regarding its ownership structure and financial health. This lack of transparency is concerning, especially for potential investors seeking a reliable trading partner.
When evaluating a broker, understanding the trading conditions they offer is essential. Abshire Smith provides a minimum deposit requirement of $250, which is relatively low compared to other brokers in the industry. However, the overall fee structure remains unclear, leading to uncertainty about the potential costs associated with trading.
Fee Type | Abshire Smith | Industry Average |
---|---|---|
Spread on Major Pairs | 0.8 pips | 1.0 pips |
Commission Structure | Variable | Fixed/Variable |
Overnight Interest Rate | Not specified | Varies widely |
The spread on major currency pairs at Abshire Smith is competitive at 0.8 pips. However, the absence of clear information regarding commission structures and overnight interest rates raises red flags. Traders should be cautious when engaging with brokers that do not provide transparent pricing information, as hidden fees can significantly impact profitability.
One of the most critical aspects of any trading platform is the safety of customer funds. Abshire Smith claims to hold client funds in segregated accounts, which is a standard practice among reputable brokers. This means that client funds are kept separate from the broker's operational funds, providing an additional layer of security.
Furthermore, Abshire Smith is a member of the Financial Services Compensation Scheme (FSCS), which protects clients in the event of the broker's insolvency. This protection covers up to £85,000 per client, which can provide peace of mind for traders. However, the revocation of the FCA license raises concerns about the effectiveness of these safety measures.
Customer feedback is an important indicator of a broker's reliability. Reviews of Abshire Smith are mixed, with some users praising its trading platforms and execution speeds, while others report issues with withdrawals and customer service responsiveness.
Complaint Type | Severity | Company Response |
---|---|---|
Withdrawal Issues | High | Slow responses |
Platform Stability | Medium | Addressed |
Customer Service Quality | High | Inconsistent |
Common complaints include difficulties in withdrawing funds and a lack of timely responses from customer support. These issues can be particularly concerning for traders who prioritize quick access to their funds. A few users have reported feeling misled about their profits and faced challenges in receiving their earnings, which raises questions about the broker's operational integrity.
The trading platforms offered by Abshire Smith include MetaTrader 4, VertexFX 10, and St Raticator. These platforms are known for their user-friendly interfaces and advanced trading tools. However, the execution quality has been a point of contention among users, with some reporting instances of slippage and rejected orders.
Traders should be wary of any signs of platform manipulation or execution issues, as these can severely impact trading performance. A thorough evaluation of user experiences is essential to gauge the reliability of the trading environment.
Using Abshire Smith presents a range of risks that traders should consider. The revocation of its FCA license and mixed customer feedback suggest that the broker may not be as safe as initially perceived.
Risk Category | Risk Level | Brief Description |
---|---|---|
Regulatory Compliance | High | No longer authorized by FCA |
Fund Safety | Medium | Segregated accounts in question |
Execution Quality | Medium | Reports of slippage and rejections |
To mitigate these risks, traders should remain vigilant and conduct regular assessments of the broker's operational status. It is advisable to only trade with funds that one can afford to lose and to consider alternative, more reputable brokers if concerns persist.
In conclusion, while Abshire Smith was once a regulated broker, its current status raises significant concerns about its legitimacy and safety. The revocation of its FCA license, mixed customer experiences, and lack of transparency are all indicators that potential clients should approach with caution.
For traders seeking a reliable brokerage, it may be prudent to consider alternatives that maintain strong regulatory oversight and a solid reputation in the industry. Options such as brokers regulated by the FCA or other reputable authorities may provide a safer trading environment. Ultimately, it is crucial for traders to prioritize safety and transparency when selecting a broker to ensure a secure trading experience.
In summary, is Abshire Smith safe? The evidence suggests that it may not be, and traders should exercise caution when considering this broker.
Whether it is a legitimate broker to see if the market is regulated; start investing in Forex App whether it is safe or a scam, check whether there is a license.
Abshire-Smith latest industry rating score is 1.54, the higher the score the safer it is out of 10, the more regulatory licenses the more legitimate it is. 1.54 If the score is too low, there is a risk of being scammed, please pay attention to the choice to avoid.