Is Novatech FX legit?

Company Summary

With the old domain name novatechfx.com unavailable, Novatech has launched the new domain name novatechfx.uk.com to woo investors.

Pros and Cons of NovaTech

Pros:

• Low minimum deposit requirement of $99
• Availability of demo account
• Offers trading on multiple financial instruments including forex pairs, commodities, indices, and stocks
• MT5 trading platform available
• No deposit fees charged
• 24/5 Customer support via email, phone, and address

Cons:

• Not regulated by any reputable financial authority
• Limited information on spreads and commissions
• Only supports deposits and withdrawals through cryptocurrency
• No educational resources available on the platform
• High risk of fraud and scams associated with unregulated brokers
• Maximum leverage of 1:100 may be considered high and risky for some traders.

What Type of Broker is NovaTech?

NovaTech is a Market Making (MM) broker, which means that it acts as a counterparty to its clients in trading operations. That is, instead of connecting directly to the market, NovaTech acts as an intermediary and takes the opposite position to its clients. As such, it can offer faster order execution speed, tighter spreads and greater flexibility in terms of the leverage offered. However, this also means that NovaTech has a certain conflict of interest with their clients, as their profits come from the difference between the bid and ask price of assets, which could lead to them making decisions that are not necessarily in the best interests of their clients. It is important for traders to be aware of this dynamic when trading with NovaTech or any other MM broker.

General Information and Regulation of NovaTech

NovaTech is an unregulated forex broker registered in St. Vincent and the Grenadines. The company offers trading in forex pairs, commodities, indices, and stocks, using the MT5 trading platform. NovaTech requires a minimum deposit of $99 and offers a maximum leverage of 1:100. The broker also provides customer support via email, phone, and address. However, the broker has no educational resources and accepts only cryptocurrency deposits and withdrawals.

Is Novatech FX legit?

It has been verified that this broker currently has no valid regulation.

Market Instruments

NovaTech offers a diverse range of financial instruments for trading on its platform, including forex pairs, commodities, indices, and stocks. This variety allows traders to diversify their portfolio and take advantage of market opportunities across multiple asset classes. Additionally, with the use of leverage, traders have the potential to increase their profits. However, there is no information available on minimum spreads or margin requirements, which may be a disadvantage for some traders. Furthermore, while the selection of stocks is available, it is relatively limited compared to other brokers. Additionally, there is limited information available on specific commodities and indices.

Trading Accounts Available at NovaTech

NovaTech offers both demo and live accounts to its traders, with a minimum deposit requirement of $99, which is not too high. The account opening process is also easy and fast. However, the broker does not provide any specific information on the types of accounts available or their features, which may be a disadvantage for traders who want to know more about the account types and the services offered by them. Nonetheless, the availability of a demo account is a plus, as it provides traders with an opportunity to practice and test their trading strategies without risking real money.

Deposit and Withdrawal

NovaTech offers a deposit and withdrawal method only through cryptocurrencies such as BTC, LTC, and ETH. While the broker claims there are no deposit fees charged, it is essential to understand the risks involved in funding through a crypto wallet, which can be volatile. Additionally, this payment method may be inconvenient for traders not familiar with cryptocurrencies, and the limited payment options available may be a disadvantage for those who prefer traditional payment methods such as bank transfer or credit card. However, the use of cryptocurrencies offers fast and easy transactions, secure and anonymous deposits and withdrawals, and eliminates the need for third-party payment processors.

Risk Warning

1.NY Attorney General Letitia James sues NovaTechFx founders for defrauding investors, targeting minority communities, and operating an illegal pyramid scheme.

NovaTechFx is a bitcoin trade business that is being sued by New York Attorney General Letitia James for allegedly running an illegal pyramid scheme that scammed more than a billion dollars from hundreds of thousands of participants. Over 11,000 people in New York are impacted, mostly from immigrant groups, especially the Haitian community.

The case shows that Cynthia and Eddy Petion, the owners of NovaTechFx, took advantage of the trust of these groups by breaking into WhatsApp talks and prayer groups. Advertisements were written in Creole, and religious themes were used to get people to spend time without them knowing it. They promised high yields. This focused method played on the hopes and trust of minority groups, which made the scam even more sneaky.

Between 2019 and 2023, people put more than a billion dollars worth of coins into NovaTechFx. That being said, the claim says that less than $26 million of this amount was actually traded on NovaTech's website. The money was mostly used to repay people who had invested before, which is a typical trait of a pyramid scam. The company lied about being a qualified hedge fund dealer and said it had a license to trade cryptocurrency in the U.S., which led more buyers astray.

NovaTechFx offered trade gains every week and bonuses for new employees. The promise of quick, high returns drew more people in. These gains, on the other hand, were fake. The money given to owners came from new investments, not real trade profits. NovaTech eventually went out of business in May 2023 because its business plan couldn't keep going. Tens of thousands of investors lost their money and couldn't get it back.

2.On 11 October 2022, the British Columbia Securities Commission (BCSC) issued a warning that NovaTech was not registered to deal in securities or derivatives or provide advisory services in BC

3.NovaTech claims to be registered in Saint Vincent and the Grenadines under registration number 25614 BC 2019.We searched for the Saint Vincent and the Grenadines Financial Services Authority (SVG FSA) and found a company called Nova Tech Ltd. However, SVG FSA is not a forex regulator. It does not regulate forex brokers or issue forex licences. Therefore, being registered or not does not mean being authorised to provide financial services.

In addition, the British Columbia Securities Commission (BCSC) has issued a warning that NovaTech is not registered to deal in or advise on securities or derivatives in British Columbia.

The fact is that NovaTech is not regulated by any regulatory body. It is not safe to allow this broker to hold or control investor funds, and those funds are not protected by any law. Therefore, NovaTech is a scam.

Conclusion

NovaTech is a relatively new and unregulated forex broker that offers traders access to a variety of financial instruments through the MT5 platform. The broker requires a minimum deposit of $99 and offers high leverage of up to 1:100, which can be a risk for traders. While the lack of transparency on spreads and commissions is a significant drawback, the absence of deposit fees and availability of cryptocurrency deposits may appeal to some traders. However, the absence of educational resources, limited customer support, and the high exposure to fraud complaints could be concerning for potential clients. Therefore, it is essential to consider the pros and cons before deciding to trade with NovaTech.

FAQ

Q 1: Is NovaTech regulated?

A 1: No. It has been verified that NovaTech currently has no valid regulation.

Q 2: Does NovaTech offer demo accounts?

A 2: Yes.

Q 3: Does NovaTech offer the industry-standard MT4 & MT5?

A 3: Yes. NovaTech supports MT5.

Q 4: What is the minimum deposit for NovaTech?

A 4: The minimum initial deposit with NovaTech is $99.

Q 5: Is NovaTech a good broker for beginners?

A 5: No. NovaTech is not a good choice.