Beware! QuiloxTrade is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
QuiloxTrade is a forex brokerage which does not disclose corporate information. It provides a web-based terminal, not the MetaTrader 4 platform and the required minimum deposit is quite high at $300 which is a certain disadvantage for interested traders and to make matters worse – further trading conditions remain also undisclosed.
Quiloxtrade regulation & safety of funds
We read nowhere on the website one single piece of relevant corporate information. Quiloxtrade does not share an address, nor even a contact phone number which means the website is completely anonymous and the people behind the website answer to no authority. We only read it is supposedly regulated by the British Virgin Islands Financial Services Commission, however, upon checking the online registry we can easily conclude that such claims are false. Furthermore, while going through the website of the broker we discover that the broker acts as a market maker while simultaneously offering clients “managed accounts” which is a big problem since is constitutes a serious conflict of interest. Market makers only yield a profit when the client losses and if such a broker offers to manage the accounts of the clients, it feels like a definite scam. All in all, the excessive required minimum deposit and the lack of regulation incline us to suspect that potential clients of the brokerage may be open 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.
QuiloxTrade trading software
The brokerage does not provide the MetaTrader 4 which is something we do not highly appreciate since it is the foremost trading platform at the moment. We attempted to register for a demo account with the web-based trading platform, however, we were not able. We always view the lack of a demo account as a huge blow on the legitimacy of the broker since a test-drive is the most transparent way of getting a hold of the trading conditions. Furthermore, there is no info regarding the trading conditions which means that even with a demo account we cannot be sure what the actual spreads offered by the brokerage are. We only understand that the potential leverage extended to traders goes up to 1:200 which isn’t surprising for an unregulated broker.
QuiloxTrade deposit/withdrawal methods and fees
In the terms and conditions we come across an ill-minded provision which states that the minimum withdrawal amount is $1000 which is quite excessive. 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?
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 lack of crucial information about the company behind it.
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 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.
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 rival 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!