Is SquaredFinancial safe?

Is Squaredfinancial A Scam？

Introduction

　　Squaredfinancial is a forex and CFD broker that has been operating since 2005, with its headquarters located in Cyprus and an additional presence in Seychelles. Over the years, it has positioned itself as a multi-asset trading platform, offering a variety of financial instruments including forex, commodities, indices, and cryptocurrencies. Given the complexities and risks associated with forex trading, it is crucial for traders to carefully evaluate the legitimacy and safety of brokers like Squaredfinancial. This article aims to provide a comprehensive analysis of Squaredfinancials regulatory status, company background, trading conditions, customer experience, and risk factors, ultimately addressing the question: Is Squaredfinancial safe？

Regulation and Legitimacy

　　Regulatory oversight is a vital aspect of any trading platform, as it provides a level of security and accountability for traders. Squaredfinancial operates under the supervision of two main regulatory bodies: the Cyprus Securities and Exchange Commission (CySEC) and the Seychelles Financial Services Authority (FSA). Below is a summary of the core regulatory information regarding Squaredfinancial:

　　The CySEC is known for its stringent regulatory framework, requiring brokers to adhere to high standards of client protection, including the segregation of client funds and participation in an investor compensation fund. However, the FSA has less stringent requirements, which raises concerns regarding the safety of client funds. Historically, Squaredfinancial has maintained a good compliance record with CySEC regulations, which bolsters its credibility in the eyes of traders. Nevertheless, the presence of an offshore license may lead to questions about the broker's overall trustworthiness. Thus, while Squaredfinancial is regulated, the varying quality of oversight from its regulatory bodies necessitates a cautious approach.

Company Background Investigation

　　Squaredfinancial has a rich history in the online trading industry, having evolved from its initial branding as Probus FX. The company was established with the aim of providing retail and institutional traders with access to a wide range of financial markets. The ownership structure of Squaredfinancial includes well-experienced professionals in the financial services sector, which has contributed to its growth and reputation.

　　The management team comprises individuals with extensive backgrounds in finance, trading, and technology, ensuring that the company is well-equipped to navigate the complexities of the forex market. Transparency is a key element of Squaredfinancial‘s operations; the broker is committed to providing clear information about its services, fees, and trading conditions. This transparency is essential for building trust with clients, as many traders are wary of brokers that do not disclose critical information. Overall, the company’s established history and experienced management contribute positively to its credibility.

Trading Conditions Analysis

　　When evaluating a broker, understanding the trading conditions is paramount. Squaredfinancial offers two main account types: the Squared Pro account and the Squared Elite account. The fee structure is competitive, with the Pro account featuring spreads starting from 1.2 pips and no commissions, while the Elite account offers spreads starting from 0.0 pips with a commission of $5 per lot. Below is a comparison of core trading costs:

　　The spreads offered by Squaredfinancial are generally competitive, particularly for the Elite account. However, the Pro account's spreads are slightly above the industry average, which may deter cost-sensitive traders. Additionally, the broker does not impose deposit or withdrawal fees, which is a positive aspect for traders looking to minimize their overall trading costs. Nonetheless, the lack of micro accounts may limit accessibility for novice traders who prefer to start with smaller investments.

Customer Funds Safety

　　The safety of client funds is a critical concern for any trader. Squaredfinancial takes several measures to ensure the security of its clients' funds. The broker employs segregation of client funds, meaning that clients' money is kept in separate accounts from the company's operating funds. This practice is essential for protecting client assets in the event of financial difficulties faced by the broker. Furthermore, Squaredfinancial provides negative balance protection, ensuring that clients cannot lose more than their initial deposit.

　　Additionally, the broker's participation in the Lloyds of London insurance scheme offers an extra layer of security, covering losses up to $1 million per client in case of insolvency. This level of protection is relatively rare among brokers operating under less stringent regulations. However, it is worth noting that Squaredfinancial has faced some historical issues regarding fund safety, particularly related to its offshore operations. Therefore, while Squaredfinancial implements strong safety measures, potential clients should remain vigilant and aware of the risks associated with trading through an offshore broker.

Customer Experience and Complaints

　　Analyzing customer feedback is crucial in assessing the reliability of a broker. Squaredfinancial has received mixed reviews from its clients, with many praising its trading conditions and platform performance. However, common complaints include issues with customer support responsiveness and withdrawal processing times. Below is a summary of the primary complaint types and their severity:

　　Several users have reported delays in withdrawals, with some stating that it took several days to process their requests. This has led to frustration among traders, especially those requiring quick access to their funds. On the other hand, many users have noted that the trading platform itself is stable and user-friendly, contributing to a generally positive trading experience. For instance, one user highlighted the ease of executing trades and the availability of comprehensive educational resources, while another expressed dissatisfaction with the slow customer service response times.

Platform and Execution Quality

　　The performance of a trading platform can significantly influence a trader's experience. Squaredfinancial primarily utilizes the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, both of which are well-regarded in the industry for their functionality and user-friendly interfaces. Users have generally reported satisfactory execution quality, with minimal slippage and fast order processing times. However, there have been isolated incidents of delayed order executions, particularly during periods of high market volatility.

　　Moreover, there are no indications of platform manipulation, as the broker adheres to a no-dealing desk model that provides direct market access. This model is designed to ensure that traders receive the best available prices without any interference from the broker. Overall, the platform's performance is a strong point for Squaredfinancial, but traders should remain cautious during volatile market conditions.

Risk Assessment

　　Trading with any broker involves inherent risks, and Squaredfinancial is no exception. While the broker is regulated and implements several client protection measures, the presence of an offshore license raises some concerns. Below is a risk scorecard summarizing key risk areas:

　　To mitigate risks when trading with Squaredfinancial, it is advisable for traders to conduct thorough research, utilize demo accounts for practice, and ensure they understand the trading conditions before committing significant capital.

Conclusion and Recommendations

　　In conclusion, Squaredfinancial is not a scam but a regulated broker that offers a range of trading services and competitive conditions. However, potential traders should exercise caution due to the offshore regulatory aspect and some mixed reviews regarding customer service. While Squaredfinancial is generally safe, the varying quality of regulatory oversight and historical issues related to fund safety necessitate careful consideration.

　　For beginner traders or those looking for a more robust regulatory environment, it may be beneficial to explore alternative brokers with stronger regulatory frameworks, such as those regulated by the FCA or ASIC. Overall, while Squaredfinancial can be a suitable choice for many traders, it is essential to assess individual trading needs and preferences before proceeding.