With good reason, a person has the right to wonder if a financial services company like Admirals can be trusted. After all, you entrust your hard-earned cash and investments to Admirals (Admiral Markets). This is another often asked question.
When determining if Admirals (Admiral Markets) can be trusted, you should also look at other indicators like whether or not it is traded on an exchange, whether or not it requires a password, whether or not it provides two-factor authentication, whether or not it discloses its financial results in a transparent manner, etc.
Follow the link for a financial analyst’s take on the admiral markets review.
Consider the following criteria when making your final decision on a stock broker:
- Who or what entity is responsible for overseeing the broker industry? To rephrase, who can you rely on if things go wrong?
- Defends against a declining balance?
- What sort of security do you have in place?
- How long have you been running Admirals (Admiral Markets)?
- Is the company itself traded on stock markets?
- Can you describe the degree of openness?
- How safe is it to have your account with them?
- Which accounting firm conducts audits of the brokerage?
Many factors are involved, as you can see. However, not every one of them was built the same. In our opinion, the presence of at least one reliable governing body is the most crucial aspect. Negative balance protection is an essential feature for a CFD and forex broker.
First of all, you should look into a broker’s regulatory bodies to learn more about its legitimacy.
Listed below are the jurisdictions in which Admirals (Admiral Markets) is regulated and the investor safeguards it offers:
- Regulation country: UK, Cyprus, Australia, Estonia, Jordan
- Investor Protection Amount: €20,000 under CySEC, £85,000 for clients under FCA, no protection for others
Depending on your organization’s affiliation, the investor protection amount and the applicable regulator may differ.
Keep in mind that not all authorities who regulate businesses are the same. The extent to which an authority protects an investor may also vary. There are trustworthy regulators whose strengths lie in aspects like the availability of segregated accounts, a variety of security mechanisms, or a guaranteed minimum investment amount.
Optional extra security measures
The following items in the list are other optional extras. A broker’s reliability and validity can be improved by checking these boxes, but their absence is not necessarily a red flag.
Experience in Banking
Admirals lack a banking background, which isn’t essential but would boost their reliability. Even though it’s not obliged by law, a distressed broker’s parent bank will usually salvage it.
Stock Exchange-Traded Broker
Admirals aren’t listed on any stock exchange, so receiving direct financial information is challenging.
Publication of Annual Financial Statements
Admirals (Admiral Markets) consistently disclose financial statements, which shows reliability. Financial statements are reports on a brokerage’s income, profit and loss, retained earnings, and cash flows.
Two-factor authentication is available on Admirals, making the service more secure.
Disclosing the Ownership
Admirals’ complex ownership structure, which cannot be verified on their website, raises doubts about their claim to transparency.
Honesty from the Broker’s Management
Anyone may see who at Admirals (Admiral Markets) is in management because the brokerage is open about its management structure.
The Big Four Audit the Brokerage
Admirals are audited by one of the “Big Four” accounting firms. (KPMG, PWC, Deloitte, EY).
To answer your concerns about forex tax UK, click on the link.
The Bottom Line
Unfortunately, Admirals does have some downsides. Although accurate stock and ETF trading is offered for a select account type, CFDs make up most of the product offering. CFD trading fees at Admirals are competitively low, and FX trading fees are also reasonable. Fast and mainly cost-free deposits and withdrawals were also a significant plus. Opening an account is a straightforward and speedy process for your ease and convenience. If you are a client interested in forex or CFD trading and want a broker with the rapid account opening and excellent deposit and withdrawal options, we suggest Admirals. If you’d like to try out the service, you can do so with a demo account.
We hope that after reading about the most common and crucial trustworthiness features of Admirals (Admiral Markets), you now feel prepared to make a sound choice.