RBC Trade is an offshore broker, claiming to be regulated by some of the world’s top license issuers, yet it fails to live up to the expectations that such regulations suppose. The leverage on the Status Web Trader is capped at 1:100, while the EUR/USD spread is 3 pips, a value not at all favorable to traders.
RBC TRADE REGULATION AND SAFETY OF FUNDS
RBC Trade is one of those questionable brokers that overwhelms the users with claims of regulations. Currently, RBC Trade says that it is regulated by the NFA in the USA, the FCA (written as the FSA in the website) in the UK, CySEC in Cyprus, FSC in the British Virgin Islands and Mauritius, and the FSFR in Russia. Without checking each individual regulator’s only database of approved entities, we can confidently say that these claims are false: brokers cannot be regulated by the NFA and hold another license, such is the strict law in the United States. And furthermore, the state of the website is not at all on par with industry standards set by these very same regulators. We can confidently conclude that RBC Trade in an UNREGULATED brokerage firm, making it a direct risk to any investment made with it.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
RBC TRADE TRADING PLATFORM
The broker gives promises us two platforms, but delivers only one. Let’s get the MT4 out of the way. Once we registered, a process that should not have been this easy to go through, we were given the opportunity to download an MT4, yet the trader is not a part of RBC Trade; it does not hold its name, and thus is not actually a MT4 offered by RBC Trade. Thsi type of misdirection is common with illicit brokers.
The second and only platform, the Status terminal offered here is impressive if you are new to the world of forex. It offers pending orders, live news feed, limited chart customization, and other feature that are the basic foundations of any trader. The Status trader barely sets its foot beyond the broerder of these basic function. We got a EUR/USD spread of 3 pips, and a leverage of 1:100. Spreads are the one thing that attract and keep a trader active, and with such a high cost of trade users should be aware that RBC Trade puts only its own interests upfront.
RBC TRADE DEPOSIT/WITHDRAWAL METHODS AND FEES
According to the client are the only deposit method is via a selection of crypto currencies, which are untraceable. We were able to continue with just $1, to the crypto wallet, so we can assume that this is the minimum deposit. The legal documents claim that withdrawals are done through credit/debit cards and wire transfer, yet we believe this to be false, for seeing as deposits are via crypto, withdrawals should follow the example.
Withdrawal fees are undisclosed, and we were unable to find any on the website. However, the broker has a clause that is worrying about non-deposited funds, or profits; the company (Group) has the right to reclaim all such funds in case of a withdrawal, basically robbing the client of all profits!
Furthermore, the withdrawal of bonus funds is available only after executing a trading volume of 200 lots per $1000 of bonus, which is a huge amount, considering that one standard lot is 100 000 units.
We strongly advise traders to only deposit the minimum deposit, or better yet- not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
The most common type of scamming is in fact a very simple scheme that involves multiple level of commitment from both the victim and the fraudulent broker. In the following section we will dive into the individual elements that make up this scenario.
Users of the net will be lured or intrigued by the countless ads that float around the internet, mostly on popular websites such as social media hubs. These ads promise fast money, and are accompanied either by images of luxury or made up testimonials. Clicking on them redirects users to a so called robo-scam website such as Profit Revolution or Bitcoin Revival, where a simple registration process will require from you a telephone number and email address. We assure traders, that once these details have been shared, they will shortly get a call from the broker or brokers, on whose ad you just “stumbled”; this is when the game begins. The voice on the other end of the line will urge you to deposit in their broker some $250 (approximately), by reassuring you of the possibilities of profit, and the like.
Should you deposit, the initial scammer has just earned a hefty commission from this deposit. Now it’s time for the senior scammer to talk you into depositing more, by claiming that the only way to increase profits is to deposit more and larger sums. These second level frauds are great talkers, charismatic and influential, twisting their lies to sound like the absolute truth.
At some point or another, the trader will inevitably start suspecting something, and will want to withdrawal his/her funds. At this point, the con artists will delay the withdrawal process by persuading you to wait, or by referring to their legal documents that cover specific withdrawal clauses- excuses vary from broker to broker. This delaying process is crucial to them, for trader have a limited time to file for a chargeback with their respective bank. Once the chargeback time frame runs out, traders will have lost their money for ever.
What to do if scammed?
VISA and MasterCard users will be happy to know that have extended their charge back request period to 540 days for when online scams occur. In case a chargeback is unavailable for some reason, the next immediate route is to cancel your credit card ASAP.
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
If any bank details have been shared, like banking pass or security code, traders should be aware that scammer will most certainly attempt to drain your account. In such a case, immediately block the account or change the password.
We also urge users to be very careful with the so called “recovery agents” that promise to recover lost money from unlicensed broker. They charge a fee for their alleged services, and will unquestionably not recover any previous deposit, basically scamming you a second time.