Beware! TQR Trade 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.
TQRTrade is a CFD brokerage based presumably in Cyprus. It provide the MetaTrader 4 trading platform and requires a minimum deposit of $250 which is just about the industry average. We also saw a spread of 1.6 pips on EUR/USD which is within what we would consider advantageous for traders.
TQRTrade regulation & safety of funds
The brokerage claims to be owned and operated by a Cyprus-based company A. Eternity Capital Management which itself is regulated and licensed by the Cyprus Securities and Exchange Commission (CySEC).
However, as it turns out – our brokerage is actually a fraud that has been exposed. While researching it we came upon an official warning issued by the Cypriot regulatory agency. It reads that TQRTrade is probably a scammer and is not authorized to provide such financial services to traders in Cyprus and further warns readers that it is suspected of being involved in scam operations. An official warning by an European regulator is perhaps the most clear-cut sign of trouble in Forex trading.
Putting that aside, the brokerage states that it provides the MetaTrader 4 trading platform, including a web version. The MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Beginner traders will find the trading platform easy to use as well, due to its user-friendly lay out. We also see a wide variety of trading options which is always a welcome sign, however, the platform itself is provided by a third party – West Media Group limited. The company has a dark reputation in Forex trading since many of its trading brand which include FirstFXClub, CapitalBTCfx,SmartBTCfx, GameBtcFx, CryptoClubFX have been blacklisted themselves by regulatory agencies all over Europe. Another disturbing thing is that while the brokerage states the spread on the website to be 1.6 spread, this does not match what we saw on the demo account. The demo account shows a spread of just 0.3 which is absurdly low and cannot be real unless there is some sort of trading commission which the brokerage has failed to mention.
All in all – TQRTrade does not come off as an attractive option for traders and we also suspect that clients of the brokerage will be exposed to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
TQRTrade deposit/withdrawal methods and fees
We find no information regarding the available payment methods, however, usually in Forex trading brokerages support the standard Visa and MasterCard, as well as bank wire.
Furthermore, the brokerage offers traders bonus promotions which are always tied with hefty requirements for withdrawal eligibility. With the case of TQRTrade a trader will have to achieve a trading volume of at least 3.3 lots (one lot equals 100 000) for every 10 USD of a bonus promotion which is purposefully excessive in order to have a legitimate pretext for wresting the client’s funds.
We did not find any stated withdrawal fees, however, dealing with unregulated brokerage we may never be sure whether they wont charge unexpected fees once the clients have deposited their funds. This is why 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?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Cashless PayGroup 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 angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Btcoinpro – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
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!
