Updated on March 21, 2024
Quick Links
In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding Topstep due to the issues we've identified.
Is Topstep Scam or Legit Broker? ▲
After thorough analysis, it has been determined that Topstep does not meet the safety criteria for a trustworthy trading platform. Owned by Topstep, LLC, and purportedly based in Chicago, USA, Topstep lacks transparency regarding its registration and operational history. This absence of critical information leads to the conclusion that it has not secured a license from any regulatory authority.
In the United States, legitimate brokers are required to hold a license from the National Futures Association (NFA), a top-tier regulatory body. The absence of such a license with Topstep raises significant concerns regarding its legitimacy and safety for traders.
Topstep presents itself with an intriguing premise, offering promising reviews and competitive features. It positions itself as a platform that provides opportunities for skilled traders who, for various reasons, do not wish to invest their own funds. However, the lack of regulatory oversight casts doubt on the broker's ability to maintain a fair and secure trading environment.
The inherent risk of trading with an unregulated entity cannot be overstated. Without regulatory oversight, the safety of investments cannot be guaranteed, making it imperative for traders to deal exclusively with brokers who are duly regulated.
Topstep operates more like a competition platform, where only a select few traders may initially profit. The unregulated nature of Topstep means that its future and the security of trader funds remain uncertain. This setup is particularly disadvantageous for novice traders or those lacking experience, as they are more likely to incur losses without any potential for recourse.
Given the concerns related to regulation and trader safety identified during our exhaustive evaluation of Topstep, our overall assessment of the platform is decidedly negative. With an expertise spanning over a decade in Forex trading, our ranking of Topstep stands at a disappointing 1.0 out of 5. This score places Topstep significantly below the threshold when compared to a plethora of other brokers, based on our extensive comparison involving over 1000 brokers.
Topstep facilitates account funding through a variety of methods, with credit/debit card transactions being the most commonly accepted. Notably, Topstep does not impose a commission fee on withdrawals. However, withdrawal fees may be applied by the payment system itself. In a somewhat positive note, Topstep absorbs commission costs for withdrawals exceeding $500.
Withdrawal requests are processed within a timeframe of 7-10 business days, which is relatively slower compared to industry standards. This sluggish processing period can be a significant inconvenience for traders seeking timely access to their funds.
In light of the findings from our comprehensive review, we strongly advise against engaging with Topstep and instead recommend seeking out a reputable and licensed broker. The paramount importance of trading with a broker that is regulated cannot be overstated, as it ensures the safety and security of trader investments. For those looking for reliable trading partners, brokers regulated by reputable bodies such as the UK's FCA or Australia's ASIC are commendable options. Topstep's overall ranking and experience are markedly negative, underscoring the necessity for traders to exercise caution and prioritize dealing with well-regulated entities.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
Topstep Review 2024
