Beware! Brighter Trade is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Brighter Trade is an Estonia-based forex brokerage with a decent range of trading products. It provides its clients with a web-based trading platform and has a stated spread of 3 pips on EUR/USD. It also requires a minimum deposit of $250 which is about the industry average.
Brighter Trade regulation & safety of funds
Brighter Trade does not state on its website to fall under any regulatory oversight. The stated address of the company – Ingoten OU- behind the brokerage is at Harju maakond, Tallinn, Kesklinnalinnaosa, Roosikrantsitn. The brokerage is fairly new and might apply for a license sometime in the future, however, until then, we must underline the fact that credible regulation is missing.
One such rule is the segregation of accounts which forces the brokerage to handle the finances of the clients separately from their own and greatly lowers the risk of commingling. Another is a requirement for a starting capital of € 730 000 which weeds out scammers.
Brighter Trade deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Visa, Mastercard, Maestro and wire transfer. We should say that in the Terms and Conditions of the brokerage we did find a minimum withdrawal amount of $100 and a withdrawal fee of 10%. Such fees and conditions should not figure among the terms of a legitimate brokerage. Furthermore, traders should always take notice of the all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Unfortunately, taking part in forex trading also means exposing yourself to a substantial risk of fraud. You might as well be prepared, because scammers will make an attempt on you regardless of how informed you are. Here is how a typical scam would unfold:
By clicking on an ad with promises for fast money you will be redirected to a nice-looking website such as BitcoinMethod or Bitcoin Revolution with a high-budget trailer. The video will convince you to register and give away your address, phone number and email. Minutes later your personal data will be sent to a number of brokers who’ll begin calling you with trading offers. After a few minutes on the phone with them you decide to deposit $200-250. And as effortlessly as that – the broker gets a commission of $50 from your initial deposit.
The scam, however, continues and what follows is called the “retention”. Senior scammers will now begin addressing you on the phone and explaining all the advantages in further investing with them. After you decide to go for it, you may even win on a few trades and go up by, say, a couple thousand. Naturally, you will begin wanting to close the account and take away your profits.
Unfortunately, closing the account won’t turn out to be a walk in the park. The “recovery department” will take you and yet another representative will have some other trading opportunities to share with you. His game is pretty simple – he has to mislead you into waiting six months or more so that you may not file a chargeback with your bank and get your money back. That possibility forever closes when six months pass after the initial deposit with the broker.
What to do if scammed?
A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you.
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
If however you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should change it asap!
Scammed traders should take notice not to trust any so-called “recovery agencies”! Such agencies prey on vulnerable traders with talk of recovering their money in exchange for an “up-front payment”. After receiving the payment, the trader won’t hear from them again.