Gene Trade Review – 5 things you should know about Genetrade.com

Gene Trade Review – 5 things you should know about Genetrade.com

Beware! Gene Trade is an offshore broker! Your investment may be at risk.

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Gene Trade is a Forex brokerage registered in Belize. According to the brokerage clients are extended an extremely generous leverage of up to 1:1000. Furthermore, there is wide range of trading products from which to choose and a required minimum deposit of $5 which is one of the lowest we have seen and quite favorable for traders. The brokerage provides the MT4 trading terminal and on it we could see a spread of 1.6 pips on EUR/USD which is a bit above the industry average of a pip and a half.

Gene Trade regulation & safety of funds

Gene Trade is part of the trading group Genius Trading LTD. which is registered in the Republic of Belize. We further find that the company is licensed and regulated by the local International Financial Services Commission (IFSC). Forex brokerages in Belize have to guarantee legitimacy by having at least $500 000 in starting capital.  However, even though a license by the IFSC is better than nothing, it still does not carry the same weight in Forex trading as a license by the NFA in the US or the FCA in the United Kingdom.

Nonetheless, the brokerage does provide clients with the MetaTrader 4 trading terminal which is the preferred trading terminal of over 80 percent of forex traders.  Furthermore, through registering for a live account, we could check out the trading platform and see leverage of 1:1000 which is quite high. Trading with such a leverage hides the risk of losing more than the initial deposit. There was also a spread on EUR/USD of 1.6 pips which is just about the industry average of a pip and a half and certainly not unfavorable for traders.

The lack of adequate regulation, as well as the high spread inclines us to believe that there are better trading options for clients in Forex trading. Most importantly – brokerages that are licensed and regulated by world-known regulatory agencies such as the FCA or NFA.

We urge traders to exclude all 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.

Gene Trade deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw via the standard Visa and MasterCard, bank wire, popular e-wallets such as Skrill and Neteller, as well as bitwallet and PayTrust.

We couldn’t find any explicitly stated withdrawal fees, however, we did come upon the following quite nerve-wracking provision which is often stated in the terms and conditions of shady brokerages. Here is a screenshot:

We reserve the right to impose withdrawal limits and withdrawal fees at any time.” This is quite unfavorable for traders. Having in mind this caveat, we advise traders 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?

Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. A good example is this very broker and the misleading information it gave regarding its regulatory status.

After informing themselves for the brokers trading conditions – traders should be well-versed in the way of the scam:

Through clicking an ad with promises for fast money, you will be redirected to a website such as  Bitcoin Evolution or Crypto Revolt where registration will require you to give your 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.

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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half with their peer Visa expected to follow suit in December.

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!

Rich Snippet Data
Review Date
Reviewed Broker
Gene Trade
Broker Rating
1.51star1stargraygraygray

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Australia 4.90/5 $100 Click for a special offerWebsite

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