Beware! This 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.
RevenuTrade is a forex and CFD broker offering several account types, including a swap-free Islamic account on the MetaTrader4 platform with quite a generous leverage of up to 1:1000. The minimum deposit requirement ranges between 100 USA and 5000 USD, depending on the account type, while spreads start at 2 pips with the opening account, which is higher than what traders usually expect. Acceptable starting spreads range between 1 pip and 1,5 pips with any standard account.
We should note as well that RevenuTrade offers a MetaTrader4 platform provided by Match-Trade Technologies, a California-based forex technology company that services forex brokers.
RevenuTrade regulation & safety of funds
RevenuTrade is owned and operated by Revenu Trade Limited, which is said to be based in the UK. According to the British legislation, all companies providing services in the country should hold a license by the local Financial Conduct Authority (FCA). So we diligently checked the FCA registers but were unable to find Revenu Trade Limited there. That leaves us with no choice but to regard RevenuTrade as an unregulated broker, which is unfortunate as regulation is the single most important factor for the safety of any investment on the forex market.
Here we should also note that most unregulated brokers turn out to be scammers, as they are not obliged to follow any fiscal or ethical rules.
On the other hand brokers regulated by respected institutions such as the FCA, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC) have to abide by strict rules, including to keep all clients capital in a segregated, protected form creditors account and to maintain a certain minimum capital adequacy ratio. In some cases they are even obliged to insure traders money.
For example, if something with the broker goes wrong, traders with FCA brokers are entitled to a compensation of up to 50 000 GBP. A similar compensation scheme, backed by CySEC, guarantees traders up to 20 000 EUR of their capital.
But let us return for a second to RevenuTrade and their Terms and Conditions, which you have to agree with, before opening a trading account. The broker admits to be offering its clients managed accounts, although they are a Market Maker. This is a toxic practice, avoided by all legit brokers, because if the broker is a Market Maker and manages your account, they basically profit, when you loose money. Market Makers have the incentive to mismanage your funds in order to profit. Here is what RevenuTrade says in its Terms and Conditions:
“When we execute an order on you behalf, we will generally act in accordance with our order Execution Policy…. You should note that in some circumstances we shall not be obliged to comply with the rules of the FCA on best execution such as where we provide a quote for a particular transaction and then deal with you as your transaction counter-party.”
RevenuTrade deposit/withdrawal methods and fees
With RevenuTrade you can fund your account in various ways. They accept all major credit or debit cards like VISA and MasterCard, popular e-wallets like Skrill and Neteller and even Bitcoins.
How does the scam work?
Although there are many ways scammers may use to trick you out of your money, the usual scenario goes like this:
You will happen to watch a video, promising you fast returns in exchange of a modest investment with a cutting-edge financial company. If you get hooked and want to learn more you will have to fill a simple registration form, leaving your e-mail and a phone number. And next you will receive a call form an expertly sounding “financial adviser”, who will suggest you to invest just 200 USD and start making money right away. Chances are that you will deposit those money and believe me, your first trades will go perfectly. In fact the money in your account will more then double in just a day or two. (However, do not fool your self that you are such a great trader – the truth is your account will be manipulated by the scammers.)
And that is when you will receive a second call, this time by a “senior account manager”, who will be impressed by your trading performance and who will advise you, that if you want to start making real money you will simply have to invest more – 10 000 USD for a start. Probably you will deposit those money as well and in the beginning everything will seem fine – you will continue to trade and profit until the moment you decide to withdraw some of your funds.
Then it will turn out that because of some obscure clause in the Terms and Conditions, you are not eligible to withdraw until you reach a certain trading volume. This could be linked with the welcoming bonus, you have received in the first place, or it could be something else. The base line is that you will not be able to withdraw anything.
Have in mind that at some point the scammers will ask you to send them copies of your ID and a proof of address (your last electricity bill for example). They will say they need those documents because of the anti-money laundering regulations. However, the truth is that if you have provided scammers with your personal information voluntarily, they will have a much stronger case, when you file for a charge back with your credit card provider.
Also, some scammers might try to convince you to install Team Viewer on the pretext to help you with the installation of the trading platform or with the funding of your account. If you agree to that, you may be sure that they will get to your credit card number and banking details and will try to steal money form your banking account directly.
What to do if scammed?
In case you have been scammed, immediately file for a charge back with you credit card provider. Have in mind that if you are using VISA or MasterCard you will be able to do that only within a 6 month period.
In case you have given scammers your credit card number or the password for your online banking, immediately block your credit card and change the password for your online banking service. If you have agreed to install Team Viewer, delete the program and do the same – change the password for your online banking and cancel your credit card.
In the unfortunate event that you have lost money to scammers, do not seek the service of the so called recovery agencies as they will just ask you for an upfront payment and basically this is how the story ends.