StoxDC belongs to the category of financial services companies and describes itself as a trading partner on its website. According to this, you can easily trade online and make profits at StoxDC via the associated platform. However, personal data is quickly requested in the process!

In addition to an alleged evaluation method for investments, supposed overviews of the financial market are also a topic on the platform. However, many points on the website raise questions and doubts.

Especially for customers currently active in online trading at StoxDC or for those who are considering to invest capital in a timely manner, these considerations are without doubt elementary:

  • Can the StoxDC company be considered trustworthy?
  • Do recommendations exist for consumers who have used StoxDC’s offer and suffered losses?
  • Is the provider StoxDC licensed by a European state financial supervisory authority?

These questions are answered in this article on the topic of StoxDC by the lawyers of the Herfurtner law firm.

Table of contents

  1. StoxDC – Broker Review
  2. StoxDC Internet presence
  3. Contact information of StoxDC
  4. StoxDC license
  5. Regulatory alert from financial regulators on StoxDC
  6. Online trade advice
  7. Lawyers advise on problems

In addition to the question of how far StoxDC is a trustworthy offer, it is relevant to deal with the basics of promising trading.

Our legal advisors will also answer how StoxDC should be classified in relation to other financial products.

In addition, we will stand by investors and assist with detailed questions and disputes related to StoxDC.

StoxDC – Broker Review

StoxDC advertises directly with a platform for online trading. Here the customer can view and evaluate the financial market in a manageable way. It is spoken of a cloud for the own data and training topics for dealing with the financial world. For this one would have to register only.

A live account and a demo account are offered, but both require the same information to sign up. And on the website there are also quick instructions on how the customer properly copies and sends in personal documents, such as the ID card.

Information about the cost of an account cannot be found. Also missing is information about the location of the company, its employees and directors.

StoxDC website

Information about the alleged online broker StoxDC can be found on the German-language website of the service provider under the URL “www.stoxdc.com”.

Responsible persons

According to §6 of the German Media State Treaty (MDStV), the name of the person responsible for the content of the website must be stated in the imprint. In most cases, this is a member of the company’s management.

To name the responsible persons is not only necessary, but furthermore a sign of transparency.

On StoxDC’s website, no data on persons responsible for the content could be found in March 2022.

Operator and trademark

The name of the web presence or the trading platform or the offer is not necessarily congruent with the operating company. In the past, it was not uncommon for operators to operate in parallel with different trademarks.

Furthermore, it is a common practice of certain operators to deactivate the websites of “tarnished” trademarks and to return to the market some time later using a different trademark.

Therefore, when researching news and statements about a service provider, it is always a good idea to include the operating company in addition to the trademark. The respective data can be found either in the imprint or often also in the footer of an Internet presence.

On the StoxDC website, no distinction could be made between a trademark and an operating company at the time of observation.

Imprint information

In the Federal Republic of Germany, according to §5 of the German Telemedia Act (TMG), there are general information obligations and mandatory details for the imprint. Accordingly, this obligation for “provider identification” exists for all commercially operated websites.

This is because the data should inform the user of an online presence who he is dealing with. In addition, the address of the website owner plays a role here if legal claims are to be enforced against him.

In this context, it is also important to note that the obligation to maintain an imprint also applies to service providers based abroad who carry out their business activities in Germany.

On the WWW page of StoxDC there was no imprint to be found in March 2022.

Domain information

Some companies use their many years of experience to pretend authenticity. However, such declarations are very often contradicted by the date when the domain was registered.

Therefore, it is necessary to check who the domain owner is and when the domain was registered. There was no concrete information on the part of StoxDC regarding the year of registration.

Our attorneys retrieved data on StoxDC on 04/03/2022 with this result:

  • Domain name: stoxdc.com
  • Registry domain ID: 2647736488_DOMAIN_COM-VRSN
  • Registrar WHOIS Server: whois.namecheap.com
  • Registrar URL: http://www.namecheap.com
  • Registrar: NAMECHEAP INC
  • Registrar IANA ID: 1068
  • Registrar Abuse Contact Email: abuse@namecheap.com
  • Registrar Abuse Contact Phone: +1.9854014545
  • Reseller: NAMECHEAP INC

StoxDC Contact Information

The following information was available on StoxDC’s website at the time of writing:

  • StoxDC email contact: support@stoxdc.info
  • StoxDC phone number: +44 1274 790 051

StoxDC Licensing

The presence of a valid authorization from a European governmental financial regulator can be an important characteristic of whether a service provider is reputable. This is because a company has to invest a great deal of money in order to obtain a license.

Nevertheless, it does not necessarily have to be investment fraud if an online broker omits data on its authorization or regulatory status.

The following financial regulators, among others, are responsible for granting licenses and supervising financial service providers like StoxDC:

  • BaFin, Germany (Bundesanstalt für Finanzdienstleistungsaufsicht).
  • AMF, France (Autorité des marchés financiers)
  • MFSA, Malta (Malta Financial Services Authority)
  • FINMA, Switzerland (Swiss Financial Market Supervisory Authority)
  • SFC, Hong Kong (Securities and Futures Commission)

StoxDC’s website did not provide any information on regulatory licensing in [MONTH YEAR]. Interested investors can discuss what this situation entails with legal counsel from our law firm.

No current warnings from regulatory authorities regarding StoxDC

Currently, there are no official warnings from supervisory authorities regarding the platform. Nevertheless, great caution is advised with regard to the massive request for personal data and document.

Before you start trading at StoxDC and others – Online Trading Advisor

Online trading like at StoxDC is the extension of classical trading with financial instruments to the World Wide Web. Here, as there, investors act on the premise of making surpluses by buying and selling assets.

Trading has long since ceased to be limited to securities. Rather, customers can also choose from the following assets, for example:

  • Platinum
  • ETFs
  • Funds
  • Commodities
  • Government bonds
  • Time Deposit
  • Bank deposits
  • Real estate
  • Cryptocurrencies such as Bitcoins and Altcoins, for example Ethereum

Online trading is handled through interfaces such as online brokers (such as StoxDC) or banking institutions that provide their customers with a dedicated trading application.

It is to be expected that there will also be more and more private investors in the future who discover online trading for themselves. This is because all you need is an Internet connection and a computer or tablet or smartphone.

Plus points in online trading

Digitalization has also had a considerable impact on the world of finance, especially when it comes to trading like at StoxDC.

Because as a result of the technological possibilities, trading has greatly increased in speed. Whereas investors and traders once had to place their orders by phone, fax or mail, this can now be done at the click of a mouse and at a fraction of the cost.

Criteria such as length and type of trade, pricing and quantities or the key data for the account no longer have to be defined between the provider StoxDC and its client in a personal meeting.

In this respect, the possibility of online trading has brought some advantages:

  • Numerous tools can be applied automatically and instantaneously.
  • The cost of the transaction has gone down noticeably, as personal assistance on the phone is no longer necessary.
  • Online trading learning materials, knowledge pools, analysis or trading courses are often offered as standard.
  • Online traders have many tools and various indicators at their disposal.
  • The product range of tradable financial instruments is broader and deeper.
  • The risk of losses due to gaps decreases.
  • The platform executes the booked orders, you only need an internet connection.
  • Profits are achievable even with a small stake.

But online trading does not only provide investors with conveniences regarding the uncomplicated use of the trading platform. Especially through analysis options, indicators and the many different tools, the money investor enjoys noticeably more comfort.

After all, the days when you had to draw your own chart diagrams or make your own cumbersome calculations are over. Today, online traders will find a wide range of order types in their system, which you can execute yourself in day trading with the preferred broker of your choice.

Hype topic cryptocurrencies – new opportunities for investors?

But it is not only trading as such that has been strongly influenced by digitalization. For the unstoppable technologization has provided online exchange traders with a new field of activity: trading with digital assets.

Among the most widely traded cryptocurrencies are Bitcoin and Ethereum. Bitcoin was the very first cryptocurrency ever, which is why all other digital currencies are titled as so-called “alt-coins”, meaning alternative coins.

Today, there are a large number of tradable crypto assets and the landscape is extremely volatile. As a result, new coins regularly enter the market and numerous disappear just as quickly as they were released.

For financial investors, this entails opportunities as well as risks, which, however, are noticeably potentiated in view of the pronounced volatility compared to conventional financial investments.

For investors, freshly issued cryptocurrencies are basically like a game of chance at the roulette table. With a little luck, the stake can be multiplied noticeably. However, the eventuality of losing all the money is also extremely high.

For this reason, it might be a good choice for cautious traders to focus on the strongest crypto stocks by market value, which have been trading for some time and have a comparatively large market capitalization.

What can the new alt-coins do?

In addition to Bitcoin and Ethereum, the Binance Coin, Solana, Cardano or Ripple should be mentioned here, for example. Cardano and Solana in particular can be classified as more modern and future-oriented compared to Bitcoin and Ethereum.

While the former are the subject of discussion primarily due to their energy-intensive proof-of-work mechanism, the latter rely on the less energy-intensive proof-of-stake mechanism.

Furthermore, the blockchain-based projects Cardano and Solana allow the use of so-called smart contracts. In addition, other projects such as Solanart, a marketplace for so-called “non-fungible tokens”, or NFTs for short, are emerging in the respective ecosystems.

These can be used in decentralized finance (“DeFi”), for example. There, they help to implement security mechanisms that assure the originality of transactions and the correctness of each submitted order.

Money investors will ultimately find an exceptionally wide selection of cryptocurrencies to invest in. However, crypto trading is primarily recommended for those investors who are particularly risk-averse.

On top of that, the following also applies to crypto trading: be careful when choosing a service provider. Unfortunately, there are numerous documented cases of fraud and cybercrime in which crypto exchanges played a decisive role.

The risks of online trading

Where there is light, there is also shadow, this general rule also applies to online trading. Consequently, apart from the advantages, a number of disadvantages are also apparent, which interested private investors should integrate into their considerations:

  • If wrong decisions are made, high losses are imminent.
  • Investors should constantly keep an eye on the course of prices.
  • Compared to conventional trading it is rather hasty.
  • Investors should already be versed in trading and pursue resilient strategies.
  • The emergence of fraudulent trading providers has led to immense risks of loss.

Especially speculative day trading is not recommended for private investors who are dealing with trading for the first time. This is because the risk of not correctly predicting price developments is considerable, and it is difficult to make corrections due to the time pressure. As a result, this type of trading tends to be suitable for investors who are extremely knowledgeable or have a pronounced affinity for risk.

If you belong to this category, day trading is a way to generate timely results. In addition, one benefits, for example, from the elimination of fees for overnight positions. Finally, these financing costs must also be included in a holistic analysis of a financial investment.

Moreover, you literally save yourself a rude awakening in the morning if there have been rapid and drastic price changes. Such “gaps” arise quickly due to bad reports about a company. On the other hand, you can quickly see the success in case you can report a surplus at the end of a trading day.

Furthermore, it is relevant for day traders to compare the trading fees of the different online brokers. It can pay off to opt for a flat rate in the form of a flat rate. This is especially profitable when trading at a high frequency and individual order fees would significantly reduce the profit.

Understanding the risks

In order not to unnecessarily increase the dangers of online trading, you should question which financial provider you want to trade with.

From the experience of our law firm, a few questions have emerged that can be used to identify potential risks. Applied to the StoxDC example, these would be as follows:

  • Can regulatory warnings about StoxDC be found?
  • Are there warnings from lawyers or law firms who look after clients who have suffered damage in connection with StoxDC?
  • Can an imprint be found on StoxDC’s web presence and can credible information on the company’s registered office be found?
  • Does the exchange with StoxDC result from an unsolicited phone call?
  • Does StoxDC promise unusually high surpluses and hide or downplay the dangers?
  • What experiences have other investors had with StoxDC before, what kind of opinion is expressed in forums?
  • Is StoxDC controlled by a European financial supervisory authority and is the company subject to official supervision?

What to do in case of losses

If you suspect you have fallen for a scam in online trading, it is recommended to immediately stop additional payments. This applies especially to the fact that the trader suggests additional payments to compensate for deficits.

In addition, one should try to recover the lost capital. In doing so, affected investors can seek investor protection and contact the attorneys at our law firm. We consider both civil and criminal law options and possible claims for damages against the service provider and against implicated payment service providers such as financial institutions.

“A private investor who loses money in the course of online trading is by no means an isolated case. Quite a few investors are deceived by the professional behavior of the service providers and do not register in time that they are not responsible for their losses.”

Our advice is therefore not to resign, but to react swiftly and actively. Because the prospect of recovering the lost money is usually greater than the aggrieved private investors suspect.

Would you like to talk to one of our lawyers about StoxDC? Then click here to go directly to our contact area.