Beware! ItradeFXOption is an offshore broker! Your investment may be at risk.
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ItradeFXOption is an offshore brokerage which provides it’s own web-based trading platform. The brokerage requires a minimum deposit of $100, which is significantly below the industry average, and provides clients with a wide range of payment methods, including many e-wallets. Clients are also extended a generous leverage of 1:100. Further trading conditions, however, are unclear.
ItradeFXOption regulation & safety of funds
The brokerage chooses not to disclose any information about itself. The website does not inform us about neither the company behind the brokerage, nor its country of origin. We did not read anything of relevance in the terms and conditions of the brokerage as well. Anonymity is something quite preferred by scammers because there is no way scammed clients may contact them afterwards. There is also no mention of a license and we can safely conclude that ItradeFXOption does not fall under any regulatory oversight. We may only guess that the brokerage is perhaps registered offshore in some preferred by scammers location such as the Marshall Islands or Seychelles in order to avoid government oversight. Seychelles is among the most favorite locations for offshore brokerages due to lenient registration requirements.
Furthermore, the brokerage provides a web-based trading platform which we were able to access. However, the platform is quite unclear and gives the impression of being fake. We couldn’t discern any spread and the trading products there are being offered were quite limited. We do learn that the leverage the brokerage provides is 1:100 which is quite high and generous compared to the maximum of 1:30 which EU-regulated brokerages may provide. We suggest traders take a look at the brokers that provide the MetaTrader 4 trading platform which is the foremost trading terminal at the moment, equipped with many unique features such as it’s easy and accessible programming language.
We further advise traders to only trade with regulated and legitimate Forex brokerage in order to exclude any risk from their transactions.
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 scam traders.
Capital World Markets deposit/withdrawal methods and fees
It seems as though there isn’t a payment method that ItradeFXOption does not support since it has splattered its web page with all sorts of logos of payment service companies. We see the logos of popular e-wallets such as WebMoney, Neteller, QIWI, Yandex, Perfect Money, Dash, as well the standard Visa, MasterCard and Bank transfer. The brokerage also purports to support several crypto currencies including Bitcoin. However, the lack of corporate information and the overall phony vibe of the website inclines us to question whether the brokerage does in fact supports such a variety of payment gateways.
We could not find in the Terms and Conditions any nasty withdrawal conditions. However, readers should take notice that this is no guarantee that the brokerage may not charge some unexpected withdrawal fee once it has received the initial deposit. This is why we remind readers of 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?
Scammers mostly rely on vulnerable and easily tricked people, that is why a well-informed trader is, perhaps, their most difficult target. That is why we believe all traders should be well-versed in the different ways of the scam. Here is the most popular one:
In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Crown Signals or Top-Algo Trade where registration will require your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.
After stinging you for a few hundred bucks, senior scammers will take you up and begin pushing you to further invest. You may even budge and continue investing. At some point, however, you’ll probably begin to consider closing the account and getting back your money.
However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, it will be high time for the “recovery people” to take it from here. They will begin further stalling in any way possible in order to remove the last guard you may have – filing a chargeback with your bank. This options expires for good after six months or more have passed since the initial deposit.
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. That way you’ll be certain your reaction will be adequate and on spot.
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!
So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!