Solid ECN is running its operations out of Saint Vincent and the Grenadines (SVG), which is definitely an offshore location.
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Solid ECN is not properly regulated as they are a member of the Fnancial Services Authority (FSA) which clearly does not regulate Forex and CFDs products. Being a member of the FSA does not guarantee or mean anything.
A licensed Forex broker is one that is licensed by an established financial regulator that has the capacity to enforce regulations on Forex brokers. Unfortunately, the FSA does not have this capability, and offshore Forex brokers like Solid ECN are just relying on them so as to appear credible.
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Solid ECN Review
Now that SolidECN is located in an offshore region with no strong licensing oversight authority, you can be sure that the broker won’t guarantee transparency in any way.
You can also be sure that they are not a true ECN as brokers who are offering true ECN trading conditions are licensed by established and credible regulators who have been known to take action.
The St Vincent and the Grenadines jurisdiction is infamous for accommodating scam brokers because its an ideal location for scammers, thanks to its relaxed regulations.
This is why scams like Mtrading, TD markets and PipTradex choose this region as their favorite office headquarter.
Solid ECN Account types
They offer 3 account types with minimum deposit starting $1. There are 50+ major and minor pairs including exotic ones.
Leverage for these account types is up to 1:1000. This is quite high and not encouraged at all. You will notice that brokers who are properly regulated never offer more than 1:400.
Spreads and fees
SolidECN offers spreads of up to 0.3 pips but there is a swap-free account that charges a fee of 0.3 pips. We are not sure whether this broker is offering Islamic account type at this moment.
Also, in my opinion, these fees and charges are reasonable. But this does not means you should sign up and start using their service. This is because of the following:
Solid ECN is a scam
If you look at their account types and dig deeper for more information, you will notice that the broker is allowing scalping, hedging and news trading with the exception of Arbitrage trading.
Arbitrage trading is prohibited by all unregulated brokers (or brokers who trade against their clients). All licensed brokers who are true ECN and NDD allow arbitrage trading because when a trader uses this strategy, there is absolutely no conflict of interest between the customer and the broker.
But this cannot be said of SolidECN and other offshore brokers. The brokers make their money by trading against their clients. In the event that a client outsmarts them, they still make money by charging fees.
However, if you outsmart their strategy at all time, you can be sure that the broker will ban you.
Solid ECN is not a transparent broker. They only registered the name SolidECN.com so as to fool traders.
This is in fact a clever marketing strategy as it tends to convince clients that the broker is potentially real when they say they are real ECN.
In short, I encourage you to avoid this broker at all cost. Don’t even consider the reviews that you see about them on sites like Trustpilot because these reviews are doctored and are mostly coming from marketers who have been paid to promote the broker.
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