Eagle Gates Review
Eagle Gates Review
Eagles Gates is a company claiming to be a forex broker. We have a lot of doubts about their credibility, especially since the company used to be connected to an MLM scheme. For those of you coming here for a review of the investment scheme, we would not focus so greatly on it, but we would place more emphasis on the broker, which supposedly offers trading to clients.
The Company. Security of Funds
Company Country Regulation
Eagle Gates Group United States N/A
Eagle Gates used to be a multi-level-marketing company claiming to gain its clients funds from “index trading”. We are not sure how it went, but looking at the marketing materials and MLM reviews, we believe it to be a classic Ponzi scheme.
There were three packages, varying on your investment size. Then ROIs were promised, for the different stages:
Days, since initial investment
Stage 1 0-90 3%
Stage 2 91-180 4%
Stage 3 181 + 5%
This is typical of a Ponzi scheme. First of all, except for banks (and only on their deposits), virtually nobody promises precise percentage returns. This is especially true for alternative investment vehicles, like hedge funds. They usually show potential investors their previous returns, but they always clearly state something in the realm of “Past performance does not guarantee future results”. Here is the thing, greater returns are always achieved with grater risk. Nobody gains 5% per month without taking a very significant level of risk. In this case, we just have a “get-rich-quick” scheme, targeting unsophisticated investors. Furthermore, the greater returns are achieved later on, just to keep people in.
Of course, the MLM pyramid-style element is also present. You can recruit new people to the company and immediately receive a portion of their investment. Then there are different levels, based on the number of people they recruit (and their progress) with catchy titles such as “Manager” and “Director”. We would not go on about the details, but it most definitely feels like a pyramid scheme.
Eagle Gates is supposedly operated from the US, but is not registered with the National Futures Association (NFA). As you may know, forex regulation in the United States is very stringent. There are only a handful of brokers, accepting US clients for that reason. Eagle Gates is not one of them. The company does also not claim any regulation with a foreign entity, not even an off-shore zone one.
For those of you, reading this, who may not be that familiar with the forex industry, financial regulation is a major aspect of a broker’s credibility. Each country has a regulatory agency, which oversees the financial services sector. Each of these “watchdogs” imposes different rules upon companies, which are registered with it. For instance the UK’s Financial Conduct Authority (FCA) demands client’s funds be kept in the so called “segregated accounts”, meaning the broker can not freely access investor’s money and spend it for its own expenses. Furthermore one’s trading account would be covered, up to GBP 50,000 by the Financial Services Compensation Scheme (FSCS), in case the company goes bankrupt.
Of course, these are benefits you would not be receiving, if you decide to trade with Eagle Gates. The company is unregulated and has a connection to what appears to be a Ponzi Scheme. We would definitely not recommend trading with this broker, as the whole trading operation may just be a cover-up attempt for the MLM scam.
Minimum Initial Deposit
Eagle Gates has not announced much about its trading conditions on its website, including the minimum initial deposit. Some forex brokers set the entry bar fairly low, just to attract people who are not familiar with trading. One such broker is IG, who don’t even have a such a requirement.
Although this may be an important factor if you are just starting out and don’t want to risk a lot of money, we must remind you, this is not a key factor, for determining a broker’s credibility. In order to succeed in the dynamic global financial markets, one must have the adequate education, discipline and trading capital.
Average spreads & Commissions
The spreads offered at Eagle Gates are floating, with the EUR/USD one ranging around 0.9 pips during the most liquid part of the day. This is in-line with the current industry averages, although we are not entirely certain the conditions, offered in the demo account would be the same as those in the real one. Given the company’s lack of regulation and MLM history, we suspect this may simply be a cover-up attempt.
At least similar spreads on EUR/USD are realistic (unlike the monthly returns advertised by the company in the past). You can find a real-time comparison of spreads offered by 15 of the world’s best forex brokers at Topforexbrokers.com website.
Eagle Gates offers leverage up to 1:500. This is possible, because the company is unregulated. Had it been under the oversight of US authorities, this level would have been 1:50 at maximum. As we mentioned previously the regulatory environment state-side is pretty tough. Such leverage levels are not uncommon for brokers regulated in other jurisdictions (then again Eagle Gate is not regulated at all).
High leverage can be a double-edged sword. It allows one to risk their funds quite aggressively, which often ends in a loss of the entire trading account. Margin trading can be risky and may not be suitable for you. Please be sure to fully understand the principles involved before you participate in it.
Eagle Gates claims to be offering the popular MetaTrader4 (MT4) platform. That being said you can download the newer MetaTrader5 from their website. Both platforms are pretty similar, but the amount of custom indicators and automated trading systems (expert Advisors) available for MT4 is still superior, given its popularity over the years. Both platforms are solid and offer great charting capabilities and mobile versions. Many brokers offer one of the platforms (or both). That being said we would recommend trading with a different one if you wish to test them.
The version offered by Eagle Gates has charting history from the October 2016, which is way too short for any reasonable analysis. Furthermore there are some hard to explain gaps.
Methods of Payment
Nothing is mentioned about payment methods at Eagle Gates’ website.
Eagle Gates Review Conclusion
For more information about currency trading brokers visit TopForexBrokers.com forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about Eagle Gates Review.