Beware! VTradeFX 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.
VTradeFX is a forex broker that trades in forex, commodities, stocks and indices. We are looking at some key features on the company’s website to find out whether it is safe to trade with this broker.
VTradeFX Regulation and safety of funds
From the legal documents on the company’s website we find out that VTradeFX is a brand name operated by VT Markets LTD with office in St. Vincent and the Grenadines and also an address in UK. You may know that St. Vincent and the Grenadines (SVG) is an offshore zone where the Financial Services Authority of that country does not regulate forex brokers. Any broker that claims to be regulated by FSA is probably a scammer and you are advised to stay away from such brokers. Furthermore, this company is not licensed in UK either, as our researched showed.
You may be wondering what is the right way to select a forex broker in order to avoid falling into the scammers’ clutches. Our advice is to research forex brokers that are licensed in one of the well-established jurisdictions around the world. In our opinion, forex brokers licensed in EU and UK offer the best conditions – a guarantee for the protections of funds and no shady deals. How do they do that? First of all, to be licensed, forex brokers in EU and UK must have an initial capital of no less than 730,000 EUR which is a way to ward off scammers as they wouldn’t invest so much money just to look legit. Second, legit forex brokers must contribute to compensation schemes from which in case of bankruptcy clients will be compensated by up to 20,000 EUR per person if the broker is regulated by CySEC, or by up to 85,000 GBP per person if the broker is regulated by FCA. You are well advised to seek one of these brokers if you are planning to engage in forex trading and the links we provided will show you a list of reliable brokers to choose from.
VTradeFX Trading software
To its clients VTradeFX offers the MetaTrader 5 trading platform. We must say that this is an excellent choice as MT5 has a lot of proven qualities and advantages to offer. For example, it comes with an auto trading options, has an app market, VPS and code base with scripts. In addition to that, it has many charting options with indicators that help the traders analyse and predict the future direction of exchange rates. the MT5 also has a financial calendar and trading signals that clients can get for a subscription fee. No wonder this platform is choice number one for around 80% of brokers around the world.
When we registered an account with VTradeFX, we were given access to the unbranded MetaTrader 4 demo account, instead of a live trading account. What you see in the screenshot below is the basic MT4 Webtrader platform that comes with a menu on the left showing the forex pairs with their bid/ask price and in the middle of the screen, the chart of one of the currency pairs, EUD/USD, with the bid/ask price and the fluctuation of price in a given time frame.
We want to stress here that what you should consider first when choosing a forex broker is whether it’s licensed or not. The trading platform comes secondary to that and no matter how excellent it is, if the broker is not reliable, you should forget about it.
If you look at the screenshot below about the different account types, you will see that for each account the spread is different. For example, the Standard account has a spread starting from 0.5 pips, the Islamic account has a spread that starts from 2 pips and the rest of the accounts starts from spread lower than 1 pip. The spread for all accounts is within normal limits. However, the leverage of 1:200 for each account is rather high. High leverage is associated with either big win or big loss which presents risks for the trader losing funds given the fact that around 70% of traders lose money in transactions. Licensed brokers in EU have a leverage cap and are not allowed to offer leverage that is higher than 1:30. In US, the leverage cap is 1:50. These are measures to prevent traders from engaging in risky transactions and losing money. It is also a way to spot a shady broker, so always choose a broker with a lower leverage.
VTradeFX Deposit/Withdrawal methods and fees
VTradeFX offers 6 trading accounts – Standard, Islamic, Silver, Gold, Platinum and VTFX VIP. The minimum initial deposit for the Standard account is $200. The other accounts start at $200, $2,500, $5,000, $10,000 and $20,000 respectively.
To feed their account, clients have a choice between making a bank transfer or paying via VISA/MasterCard or cryptocurrency – Bitcoin, Ethereum or Litecoin. There is no much choice here and we want to warn our readers that the choice of payment methods is very important and may have implications in the future, so please read carefully the last section of this review.
The withdrawal methods include Bitcoin, bank transfer and credit card and there are different withdrawal conditions depending on the withdrawal method. When using Bitcoin, the minimum withdrawal amount is $10 and there fixed charges of $3 and others of 3% with an instant processing request time. For bank transfers, the minimum amount when making a withdrawal is $100 with no additional charges and processing time of up to 2 business days. The same conditions apply for withdrawal via credit card.
If you look at the investment plans on the company’s website, you will notice that the broker provides minimum and maximum return for each investment plan. We do not think this is possible because in forex trade there is no guarantee that traders will make a profit and given the statistics that around 70% of traders lose money in transactions, we consider this to be empty promises aiming at fooling inexperienced traders. Please do not fall in the scammers’ traps and do not believe such promises of making big profit.
Also, we noticed in the account types information, that each account includes a gift bonus. Again, it may look like something tempting but as they say Timeo Danaos et dona ferentes which we can interpret in the forex trade world as “Beware when someone offers you a gift”. You may be aware that bonuses usually come with heavy to fulfill requirements for trading insane volumes before being able to withdraw the bonus amount or even to withdraw from your own funds. Besides, on the company’s website we couldn’t find where the conditions for the bonuses are and we are suspecting that this information was withheld on purpose. You should be also aware that one way to spot scammers is to check and see if they offer bonuses as legit and licensed brokers do not do that.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or the social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.