Beware! SPTrade24 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.
SPTrade24 is a peculiar broker, and we are going to show you why in this review. The guys standing behind this FX creature are intentionally hiding critical information about themselves and mislead the customers by pretending to provide the customers with Metatrader4 accounts. They claim that the clients’ funds security is a key element of their philosophy, but this certainly isn’t true. Find out why in the full SPTrade24 review.
SPTrade24 REGULATION AND SAFETY OF FUNDS
SPTrade24 is an offshore Forex broker striving to hide this fact from the customers, that’s beyond doubt. They do not place any legal information about themselves on the bottom of their page, and that instantly raises suspicions. In their Terms and Conditions, however, which are quite tricky to unearth though, they claim to operate under the Estonian laws as seen on the picture above. We didn’t even have to research the register of the Estonian financial authority, because they offer a leverage level of 1:50, which is a ratio that the regulated brokers in Europe are not allowed to provide for the clients.
On their About page, which is also quite tricky to access though, we found that they are allegedly headquartered at the Trust Company Complex in the Marshall Islands, which raises the suspicions even more. The islands are known for the lack of financial regulator there, which facilitates scammers and other dodgy entities to conduct activities that are generally considered financial crimes in the rest of the world.
Your funds are not safe if you deposit with SPTrade24, because it’s an unlicensed, unauthorised and unregulated offshore broker that acts strangely and deceive the customers.
We advise that you should trade with the EU (mostly CySEC regulated) or UK (FCA regulated) Forex brokers because these domains provide the safest environment for the funds of the traders. Furthermore, most of the leading brokers in the world hold EU or UK license, which will positively help you with the choice. Customer protection is a top priority in Europe. For that purpose, a variety of stringent rules and regulations were imposed by the financial authorities that the Forex brokers have to comply with. These standards include a minimum capital requirement of 730 000 EUR, segregation of the clients’ accounts, negative balance protection (the trader cannot lose more than the sum deposited) and predefined stop-out levels, to name a few. Most importantly, however, the traders’ funds are guaranteed by the deposit insurance funds that were inaugurated to further contribute to the health of the system. Under CySEC (Cyprus) regulation, the clients can claim up to 20 000 EUR in compensation, while under FCA (Britain) the clients can claim up to 85 000 GBP per client. If you trade with an anonymous or offshore broker, you are entitled to nothing, but troubles and issues.
SPTrade24 TRADING SOFTWARE
SPTrade24 claims to offer MetaTrader4 accounts, but that’s a big fat lie because the modification we downloaded turned to be inactive! MetaTrader5 is not available for trading. SPTrade24 are obviously trying to take advantage of the reputation of Metatrader because it’s the most popular Forex trading platform in the world. It features sophisticated trading tools such as Expert Advisors, Automated Trading, Complex Indicators, and even its own marketplace.
First off, we have to note that we were unable to access the English version of their functioning platform because the only available one was the Russian at the time. It could have been some temporary issue, but that’s another red flag to note, whatever the reason is. You can have a look at the Russian version on the picture below!
SPTrade24 provides the traders with a platform named Sirix, which is a trading software that’s miles behind Metatrader, not to mention that way too many scam Forex brokers deploy it. Sirix is slow, difficult to use and lack most of the features that Metatrader can offer to the clients. It’s a nuisance even to put a simple Moving Average on your chart! The EUR/USD spread is 1.3 pips, however, which is slightly higher than the industry standards- 1 pip or below. The spread is the price to execute a trade, and it’s a crucial element in trading because it has a direct impact on the profit potential.
Warning! Unknown leverage! SPTrade24 claims to offer a leverage of up to 1:50, but the account that we opened came with a default ratio that we don’t know, and it’s impossible to change! The leverage is a financial tool that makes the markets open for everyone because it allows the traders to increase the size of their positions and potentially amplify the profits made. It comes at a cost, however, because the risk escalates and if misused, the leverage might cause lightning-quick losses instead of gains. In the EU and UK, the brokers were disallowed to offer leverage levels higher than 1:30 because of the risks involved.
Warning! No demo accounts available! We tried to create one but in vain. The demos are study accounts that allow the clients to trade risk-free with virtual money. It’s a must for the broker to enable demo trading and it’s a must for the traders to test the system before making a deposit!
SPTrade24 DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is $500, which is relatively high a demand if compared with the rest of the brokers- $100 on average.
There are no restrictions as to the minimum withdrawal amount, nor any fees specified, which is actually in line with the standards of the Forex industry. The withdrawal processing time is also unknown, which comes to show that SPTrade24 failed to designate many of the necessary conditions related that apply!
No dormant account policy specified or fees for inactivity to apply, which also comes as a warning sign. The legit brokers explicitly determine the way they treat the accounts that have become inactive and charge not more than 5 to 10 dollars per month.
No bonuses available at the moment, but SPTrade24 includes a Non-deposited funds clause, which shows that in the future they might launch bonus campaigns. The traders need to know that the trading incentives- bonuses, promotions and so on are not free money, but a leverage tool that further increases the risks. That reason alone made the European regulators disallow the regulated brokers to offer trading incentives.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they will simply rely on the quantity; they will publish tens or hundreds of websites and will wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
The scam itself is a criminal activity. Mostly, the scammers are hiding behind offshore companies and brokers while trying to remain anonymous and difficult to trace. There is no or very light FX regulation in jurisdictions such as the Commonwealth of Dominica, the Marshall Islands or St. Vincent and the Grenadines, making them some of the most popular destinations for shady and illegitimate enterprises. Regulation means customer protection and safety, financial authorities such as CySEC or FCA will make it impossible for a scam Forex broker to conduct illicit activities and harm the traders.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
It’s essential not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!
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