Beware! xProTrade is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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XproTrade is an offshore Forex brokerage based in the Marshall Islands. It provides clients with the MetaTrader 5 platform and a generous leverage of up to 1:500. Furthermore, the spread of 0.6 pips on EUR/USD is very favorable and way below the industry average. The required minimum deposit of $250 is pretty standard.
XproTrade regulation & safety of funds
According to the website the brokerage is owned and operated by Xchange Group Ltd which gives the standard Marshall Islands address we have seen in countless other brokerages.The Marshall Islands is a favorite destination for would-be scammers due to its very liberal laws regarding the registering of companies. The government does not even require for someone to be physically there in order to register a company. Such a loophole has surely been noticed by many ill-minded brokers and utilized. However, what makes XproTrade stand out is their very bizarre claim that they are regulated by their own address. Here is a screenshot:
We have not yet come across such a statement and even though it is obvious – we assure clients that Marshall Islands Trust Company Complex is not granted the authority to authorize anyone and that XproTrade does not fall under any regulatory oversight. However, the brokerage does provide the MetaTrader5 platform and a demo account which is unusual for offshore brokerage, especially coupled with the favorable spread.
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
XproTrade deposit/withdrawal methods and fees
We could not gather from the website what the available payment methods are but we did find credit cards mentioned in the terms and conditions. We do not know whether the brokerage accepts popular gateways such as Skrill or Neteller. Reading through the terms in question we did not find any worrisome provisions and the brokerage clearly states that it does not charge any extra fee or require any other conditions in order to withdraw.However, we always remind readers of all the ways a they 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?
We strongly believe the best prevention of scamming would be well-informed traders that can easily deduce if a certain set-up is legitimate and if it is not. This would be done best when they know how scammers operate. Here is a description of the typical three steps:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or The bitcoin miner where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back. Due to the high instances of fraud – both Visa and MasterCard have taken upon themselves to circumvent scammers in forex trading. Backing up their intentions – MasterCard has already increased the previous time period of six months for filing a chargeback to a year and a half and Visa is expected to follow suit in December.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
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 switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!