Beware! XtraderFX 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.
XtraderFX is basically a CFD broker, which is posing as a crypto exchange to take advantage of the huge interest in the crypto assets since the fall of 2017. XtraderFX, however, does not offer you to buy real crypto coins, but just to trade with crypto CFDs. Have in mind that there is a fundamental difference between buying an asset and betting on it with a Contract for Difference, as offered by XtraderFX.
XtraderFX regulation & safety of funds
GPAY Ltd., the company operating XtraderFX, says to be registered in the UK but does not mention anything about a license in their presentation. Have in mind that all companies providing financial services in the UK should hold a license by the local Financial Conduct Authority (FCA). After checking the FCA registers however, we were not been able to find any trace of XtraderFX and GPAY Ltd. there.
This means that XtraderFX is an unregulated broker – something which significantly decreases their credibility. Have in mind that regulation in the sector is the single most important factor for the security of any investment.
On the other hand traders investing with FCA brokers can feel safe about their money. FCA even runs a client compensation scheme according which, if a broker goes insolvent, traders can receive up to 50 000 GBP of their capital back.
XtraderFX deposit/withdrawal methods and fees
You can fund your account at XtraderFX both with Bitcoins as well as fiat currencies. Payment methods include major credit cards like VISA and MasterCard and wire transfer. They do not accept however popular e-wallets like Skrill, Neteller and PayPal.
We should also note that we came across some rather unusual withdrawal conditions in the “Terms and Conditions” section of the broker’s website. For example, you will have to accumulate a minimum trading volume of at least “the bonus you received, times the leverage, times 40”, which can be quite a large number.
How does the scam work?
Among the many ways you can get scammed, here is how one of the most popular schemes runs:
You will happen to watch a rather impressive, professionally edited video, which will tell the story of a couple of ordinary people, just like you, who have become fabulously rich by investing on the forex or the crypto market. If you want more details, however, you will have to leave your phone and e-mail address, filling a simple registration form.
And than you will receive a call. The person you will be speaking to will sound very professionally – a “financial adviser” with a cutting edge financial company, who will suggest you to make a modest investment with them – just 200 or 250 USD and start making money right away.
After you make the investment your first couple of trades will go perfectly and soon the money in your account will double. (That will happen not because you are necessarily a financial genius, but simply because your account will be manipulated)
And than you will receive another call, this time from a “senior account manager”, who may say he or she is impressed by your trading performance, but will suggest that if you want to win really big, you will have to invest more – 10 000 USD for instance.
Chances are that you will agree and than at first everything will seem fine – you will continue to “make money”, your senior account adviser will suggest not to miss an opportunity of a lifetime and to invest even more and everything will go smoothly until you decide to withdraw some money.
Than you will be explained why this can not happen – some obscure clause in the Terms and Conditions about a minimum trade volume requirement, or they will ask you that you first pay an account maintenance fee, which by the way may happen to be considerable.
And finally you will have to provide them with copies of your ID and a proof of address document (your electricity bill for example). This will be another condition for a withdraw, because of the anti-money laundering regulations, they will tell you. The truth, however, is that if you file for a charge back with your credit card provider, the scammers will have a much stronger case, if you have provided them with your personal information voluntarily.
Finally some scammer may even try to trick you to install a Team Viewer, so that they may help you with the installation of the trading software and with the funding of your account. If you agree to that you may be sure that they will copy your credit card number and will still money directly form your credit card.
What to do if scammed?
Unfortunately, if you are not aware of the existence of such criminal schemes you may easily fall victim to scammers. In such a case you should immediately file for a charge back with your credit card company or your bank. Beware that this could be done only within a 6 month period.
Also, if you have provided the scammers with any financial information or you have allowed them to access your computer via Team Viewer, block your credit card immediately and change the password for your online banking service.
Finally if you have lost money to scammers do not seek the service of the so called “Recovery Agencies” This is just a waste of more money, as they will simply make you pay them upfront and that will be all.