YellowStoneFX Review: 5 Reasons to avoid this forex broker

YellowStoneFX Review: 5 Reasons to avoid this forex broker

Caution! YellowStoneFX is an offshore company! Your funds may be at risk.


YellowStoneFX is yet another example of an offshore broker who is not regulated and yet somehow tries to reassure us that it has taken every precaution possible to ensure the safety of our funds and the prosperity of our investments. It even boasts the rather pretentious motto “accelerate your growth” right under its logo. Such “story-telling” is sometimes the weapon of choice of some more resourceful scammers who utilize their language skills to paint us a beautiful picture in the hopes that we would be mesmerized by it. So much so that we wouldn't even think about questioning their legitimacy.

YellowStoneFX Registration and Regulations

Speaking of legitimacy, this broker has none. It follows the well-established approach of registering its business offshore in St.Vincent and the Grenadines, more precisely, where it has no supervision by a regulatory body over it and therefore no limits on the amount of fraud it could engage in. Moreover, in such places fraudsters are not only unregulated, but they more often than not don't face any consequences for their actions as they are not prosecuted or persecuted. That is because forex trading is not regulated in offshore countries and therefore brokers don't have to adhere to the numerous and tough requirements set out by the famous regulators in the markets of the EU, UK, Australia etc.

Some of the safeguards in the EU, for example, include a minimum capital of 730 000 EUR available at all times. Furthermore, legitimate brokers have to keep customers' money in segregated accounts and use it only for approved operations. They also have to provide negative balance protection, so that traders can't owe more than what they could afford to invest.

None of this applies to this company and so it is safe to say that if you decide to plunge into the deep and still deal with this broker, you would do so at your own risk with no one there to protect you or your funds.

YellowStoneFX Trading Platform

YellowstoneFX offers a Webtrader looking very similar to the actual MT5 platform which is considered the gold standard in today's Forex industry. Having said that, it is an unbranded version of the program, and so it is highly unlikely that this company has paid any licensing fees to use this software. Which otherwise comes at a cost of 100 000 USD initial fee and an ongoing monthly fee for the broker. You could open a similar MT5 Demo account from the official MetaQuotes website and get a feel for what this platform offers.

As you can see, important features such as algorithmic trading and signals trading are missing from this version of the program and so that shows that the company does not-provide the fully licensed and fully functional version of this platform.

Instead, you might want to check out the following list with trusted brokers who offer a fully functional MT5 platform both as a webtrader and as a desktop app.

YellowStoneFX Trading Conditions

The accounts offered by the company are divided into 5 types – Bronze, Silver, Gold, Platinum and Diamond. But even for its smallest account the minimum deposit required is 1000 USD! That is a lot of money for anyone to be giving to an unregulated offshore broker which has no legal obligation or responsibility for how to handle or treat your money. Bear in mind that a lot of reputable brokers offer beginner accounts with as little as 10 USD initial requirement and anything up to 250 USD is considered normal.

Furthermore, more often than not these sorts of inflated minimum deposit requirements are the hallmark of scammers who want to get a hefty sum of money from you right from the get-go. That way they know that even if you figure something is wrong early on, they would have still made a sizable profit at your expense.

When it comes to spread, it is said to be close to 0.0 pips. In fact, throughout its range of accounts it varies between 0.12 pips for the Bronze account to 0.012 pips for the Diamond account. Also, we calculated that on the platform itself the spread for EUR/USD was often 0.0 pips. And although that is generally a great spread for traders, as it keeps the cost of trading down, with an untrustworthy broker such as this you never know if what you are promised is what you actually get when trading.
Also, there might be commissions per lot traded that are automatically taken out of your account, which you have no idea about. Shady and unexpected fees are often the norm with scammers. Instead, you might want to look at this list with reputable brokers offering tight spreads:

As for leverage, the one offered is anywhere from 1:50 for the Bronze account to 1: 200 for the Diamond. These numbers are quite higher than what is expected by regulated brokers. See, regulated brokers in the markets of the EU, US and Australia are limited to offering 1:30 leverage. This is done as a safeguard, as higher leverage than that can lead to sudden and excessive losses and can drop your account balance to zero in the blink of an eye.

YellowStoneFX Payment Methods

This broker claims that it accepts debit and credit card payments as well as bank wire transfers and crypto payments. From within the members' area, we were directed to contact their customer support department who were supposed to help us deposit. Therefore, we were unable to independently verify all the above-mentioned deposit options. Having said that, we did see the Visa and MasterCard logos visible on the page, so it is safe to assume that card payments are supported.

As for withdrawals, the options accepted are debit and credit card payments as well as crypto payments.

Bear in mind that when it comes to crypto currency payments, especially when you are dealing with unregulated brokers, you have no way of knowing whose crypto wallet your money is going to and the likelihood of being scammed is much larger. This is also because of the fact that crypto payments are non-traceable, and you cannot get your money back in the same way you could if you requested a chargeback from your bank card issuer.

On a last note, this company has some stiff withdrawal fees which it has conveniently tucked away in its withdrawal policy. It charges a 1% fee of the amount withdrawn. And further this fee could not be lower than 30 USD and can go as high as 300 USD. That is quite excessive, and these are the sort of fees that help scammers take more and more of your money under the guise of normal handling fees. Keep in mind that legitimate brokers would never ask you for more than 20 to 30 USD per withdrawal regardless of the amount you withdraw.

YellowStoneFX Summary

YellowStoneFX is a dishonest enterprise which aims at getting more of your money through various means. The exuberantly high minimum deposit, the manipulative clauses in its terms and conditions, these are all examples of the essence of what this business stands for. For the sake of your financial well-being and for the sake of your peace of mind stay away from this broker.

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