Beware! iTradeFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
iTradeFX is a broker that advertises trading in Forex, Stocks, Commodities, Indices and Cryptocurrencies. They offer four types of accounts depending on the minimum deposit amount required – from $2,500 to $100,000 and the margin loan percentage. On their homepage, there are 2 buttons to open a Trading account and a Demo account; both of them, however, open the same “Open Live Account” page. In other words, the broker does not offer a Demo account, which is a red flag since almost every respectable broker offers one.
We registered for an account by providing our names, email address and phone number, and got a success message on the website, but there was no email confirmation sent to our mailbox – another red flag.
iTradeFX Regulation and Safety of funds
iTradeFX is a completely anonymous broker. They say the website is operated by MM Capital Group Ltd, but there is no information about this entity and the only thing we could find on the internet is a UK company by the same name dissolved in 2016. Their Contact us page gives us a UK phone number and an email address, but they have no physical address listed anywhere on the site.
At a couple places we notice different entity names. This is a common occurrence with scam brokerages, resulting either from sloppiness – text is copied from a different website and they forgot to change the company name, or it happens when one domain is banned and they move to another.
Actually, for one of these, Mason Ford, there has been a warning issued by Belgium’s Financial Services and Markets Authority (FSMA) that they are not allowed to provide banking and/or investment services, and their website is no longer working.
Throughout their website iTradeFX does not mention anything about regulations because they are NOT regulated. We advise our readers to choose brokers that are regulated by respectable watchdog agencies such as the Financial Conduct Authority (FCA) in the UK or the Cyprus Securities and Exchange Commission (CySEC). These organizations have a number of rules and policies to guarantee the broker’s financial stability, eg. Minimum Capital Requirements, and to safeguard their customers’ investments – Compensation Schemes in the event of broker insolvency, Client Account Segregation designed to keep clients’ money separate from the broker’s operating funds, and Negative Balance Protection – traders may not lose more than the initially invested funds.
iTradeFX Trading Software
The broker offers some kind of proprietary web-based trading software that has poor design and very few features and tools. We would advise our readers to select a broker that offers recognized trading platforms.
Respectable forex brokers provide access to established trading software for their traders, such as the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) platforms. MT4 is considered the world’s number one platform, preferred by over 80% of users. It offers an intuitive and user-friendly interface, advanced charting and analysis tools, as well as copy and auto-trade options. Its successor, MT5, has some advantages – it allows traders to execute trades on different financial markets through a single account and there is a hedging option. Both platforms are available as desktop, web and mobile (iOS and Android) applications as well.
iTradeFX Trading Conditions
iTradeFX advertises competitive spreads starting from 1 pt. In the platform screenshot above we see a spread of 1.1 pips for the EURUSD, which is in line with the standards. Regulated brokers generally provide spreads between 1 and 1.5 pips for this most traded currency pair – anything wider would make the cost of trading high for the traders, but will guarantee good profits for the brokerage. The problem is that considering the dubious nature of the broker and the software we cannot be sure these conditions are real and not rigged for show purposes.
Leverage is not advertised, however. Trading on leverage can be tricky as it entails significant risks, especially to inexperienced traders. Although it allows for making bigger profits, one may incur great losses too, often much greater than the invested funds. That is why, most regulatory authorities impose leverage caps for non-professional traders: in the USA it is 1:50, while for brokers licensed in the EU and the UK it is 1:30. The Australian Securities and Investments Commission (ASIC) will also start restricting leverage for major currency pairs to 1:30 starting from March 29, 2021.
iTradeFX Deposit/Withdrawal Methods And Fees
In their website the broker says they provide 3 methods for deposit and withdrawal – Bitcoin, Credit card and Wire transfer. In the client area the options are similar – Sofort is an online banking-based payment method popular in Germany. When we tried it, however, we received a message saying “This requested payment solution is not enabled. Please consult the support at the referring site.”
Popular payment methods, such as PayPal and preferred by traders e-wallets, eg. Skrill and Neteller are not supported, however. Bitcoin, on the other hand, is a method that scam brokers promote, as it is completely untraceable and anonymous.
The minimum deposit amount is $/€/£ 250, although the minimum for their starter account is 10 times higher – $2,500. This is still significantly higher than what regulated brokers generally ask from traders – $100 on average. They do not specify a minimum withdrawal amount which is a standard practice – most brokers do not put limits on withdrawals.
What is more disturbing is that there is no information to be found regarding fees, charges or commissions. In the absence of any information about that (they do not say they don’t charge fees), such charges can be excessive. The only straightforward information is about Dormant account fees – if there has been no transactions on the account for a period of twelve (12) consecutive months, it will be considered dormant and will be charged with a maintenance fee of $50 or the full amount of the free balance in the account if the free balance is less than $50.
In conclusion, we again warn our readers that iTradeFX is definitely a scam broker and they should not invest with them!
How does the scam work?
The most common scams are quite simple and straightforward and involve a multi-level scheme that usually goes by the following scenario. Internet users are lured by the numerous ads promising quick and easy fortunes by trading in the Forex world. When they click on such an ad they are redirected to a website tailored to the continuation of these false pledges, which asks them to register with their personal information. This data is then used by the scam brokers who immediately start to work on getting them to make an initial deposit of $200 – $300 by making even greater promises of big profits.
Once the users make their first deposit, the scam brokers get a fat commission on it. Now the senior scammers enter the scene. They are smooth talkers who will not stop at anything to convince traders that they are on their way to become very rich, if only they follow their advice and deposit more money to trade with.
Sooner or later the users will start suspecting something is not right and will want to withdraw their funds. This will not prove very easy, however. The scammer will do everything to delay their requests, by persuading them now is not the right time, asking for additional documents, or referring to specific withdrawal clauses. This is also part of the scam since the con-artists are trying to delay the users from filing for chargeback with their financial institution, and they miss the time frame for such chargeback, traders will lose their money without a chance of getting it back.
What to do when scammed?
If you’re scammed you should immediately file for a chargeback with your credit card provider. Good news is that VISA and MasterCard recently extended the chargeback period to a year and a half in an effort to combat online fraud. If you deposited with bitcoin or bank wire there is not much chance.
If you provided the scammers with any bank account or credit card details, such as security codes or passwords, make sure to cancel the card and talk to your bank. Also, if you are being approached by any “recovery agencies” promising to get your money back for a fee, do not fall for that. This is a piggyback scam, using the vulnerability of recently defrauded people and their hope the fraud may be reversed, and it will not recover your funds. These so-called agents will collect their fee and you will never hear from them again.
Rich Snippet Data
The Forex Review