Beware! Vetoro is an offshore broker! Your investment may be at risk.
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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Vetoro is an offshore broker that offers trading in forex, stocks, commodities and indices. There are six types of accounts with different minimum deposit requirements – from $249 to $99,999, and different “Account insurance” – from 10% to up to 75%.
The registration process required us to submit First and Last names, Email address and Phone number which we did. After the successful registration, however, we were taken straight to the trading area and there was no confirmation email. That is quite unprofessional – when you provide your personal details to someone who is supposed to provide financial services for you, the least to expect is that they will acknowledge receipt of this information.
The trading area also does not strike with any exceptional design or features. There are few functionalities and not all of them are working properly – the Deposit button, which opens a Cashier popup, returned an Error “server IP address could not be found”.
Vetoro Regulation and safety of funds
This broker looks completely anonymous – there is no physical address listed on the website, but only a couple UK phone numbers and an email address. The Terms and Conditions state simply: “This website is owned and operated by group of the companies.” Aside from the broken English, this sentence does not give us any information.
Researching the firm on the Internet we found several warnings issued by different European financial services regulators. First, on January 13, 2020 the Spanish Comisión Nacional del Mercado de Valores – CNMV (National Securities Market Commission) has warned that the company is not authorised to provide investment services.
A couple weeks later, the UK’s Financial Conduct Authority (FCA) also noted that “This firm is not authorised by us and is targeting people in the UK.” and included Vetoro in their Financial Services Register as an Unauthorised firm.
Less than a month later Italy’s CONSOB has ordered the black-out Vetoro’s website because they offer financial services illegally.
In order to convince potential clients in the safety of their funds, the broker claims to “maintain bank accounts with some of the most respected institutional banks in the world.” Besides this empty statement, there is no proof of that – no mention of any bank names.
Regulated brokers have to abide by strict rules that watchdog agencies, such as the FCA and the Cyprus Securities and Exchange Commission (CySEC) impose on their licensees. Among these are Client Account Segregation (clients’ money is kept separate from the broker’s operating funds), Negative Balance Protection, which ensures that one may not lose more than the initially invested funds and Compensation Schemes providing additional guarantee to clients’ funds up to a certain amount (85,000 GBP in the UK and 20,000 EUR in the EU).
Vetoro, however, is not licensed or regulated by anyone, so claims of security and safety of funds are completely unfounded. Actually, we would go further and warn our readers that their money will not be safe with this broker since it is an anonymous entity.
Vetoro Trading Software
The broker advertises the MetaTrader 4 (MT4) trading platform on their website, but there are no download links. In the trading area the software is available as desktop and mobile (iOS and Android) applications, as well as web-based. MT4 is the world’s leading platform, preferred by more than 80% of users. It features an intuitive, user-friendly interface, advanced charting and analysis tools, as well as copy- and auto-trading options. It is customizable using the proprietary MQL4 programming language, with which one can to create different trading strategies.
There is another platform too – Webtrader. This web-based software looks quite plain in comparison. Much like the trading area we saw above, it does not have many features and the design is of poor quality.
Vetoro Trading Conditions
There is no information about spreads on the website. In the Webtrader screenshot above we see a spread of 3 pips for the most traded currency pair, EURUSD. With regulated brokers this most traded currency pair rarely comes with spreads larger than 1 to 1.5 pips, as this would only guarantee hefty profits for the broker while making no returns for the traders. An MT4 demo account offered a narrower spread of about 2 pips, but we cannot be sure how trustworthy it is.
The leverage indicated in the trading area is 1:100. Although it is not very high, in Europe and the US leverage for retail brokers is capped at 1:30 and 1:50, respectively, by the regulation authorities. High leverage provides huge profit potential, but it also presents great risks to the traders because any losses incurred will be multiplied.
Vetoro Deposit/Withdrawal Methods And Fees
In the footer of the website we see credit card logos (VISA and MasterCard), as well as Wire Transfer and Piastrix, a Russian e-wallet provider, suggesting that these payment methods are available for deposits and withdrawals . Popular methods, such as PayPal and other preferred by traders e-wallets, eg. Skrill and Neteller, are not supported.
In the trading area, as well as in the Webtrader platform, we discovered that Deposit feature does not work – it returned an Error that “server IP address could not be found.” Thus, we could not confirm what payment methods the broker provides to its clients.
The minimum deposit amount is $249. Although not that high, respected brokers rarely have minimum deposit requirements of more than $50 to $100. The fees the broker charges are not explained, although they claim there is a Fee Schedule somewhere.
Here, we again see a statement in broken English that Vetoro takes 20% commission in advance. There are “additional fees”, as well as processing and handling fees.
There is a Dormant Account fee too – traders’ accounts will be subject to a deduction of 10% each month if they have not traded within three (3) months. Respected brokers usually charge a flat fee of no more than $20, if they have such fee at all.
Considering all the warnings issued by regulatory agencies, we consider Vetoro to be an unlicensed and anonymous broker and we would not advise the investing 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 if 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.
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