Beware! Interactive 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.
Literally any broker can be named Interactive Trade, and we are sure that there are more than just this particular one scattered throughout the online forex landscape. This is one of those firms that, as soon as you open its website, you sense an air of ambiguity. Exploring the website does not help remove our first impressions. The only real information can be found on the extensive legal documents that seem familiar to us in structure and manner. We are more than sure that we previously reviewed an illegitimate broker with the same legal terms characteristics… Needless to say, you can probably see where this review is going.
In just a matter of seconds, and we had our live account created, leading us to a dashboard. However, the broker had to authorise our account, which did not happen… We received an email with our user name and a broker generated password, yet as many times as we tried, these credentials couldn’t work, leaving us out of the trading platform.
In typical suspicious forex brokerage firm style, without being able to open accounts with the MT4, we have to take the trading conditions from the website, which, judging by the looks of Interactive Trade, are not accurate. The leverage for the highest account is 1:400. Unfortunately, the limited nature of the website is felt early on in the review, for the website has literally no spread and assets information. Usually these are to be found on the trading platform where this info is most accurate, but without access to such a terminal, we simply cannot reveal anything.
The website can be translated to English, Russian, Polish, and German. However, the client area is available in English, Russian, Polish, German, Italian, Chinese, Arabic, and Vietnamese. Even if this is minutiae details, it proves that the dashboard is not proprietary of the brokerage firm. We assume that the broker has adapted a popular template for its user area.
INTERACTIVE TRADE REGULATION AND SAFETY OF FUNDS
Dristor Solutions Ltd, the company that owns and operates the broker, is registered in St.Vincent and the Grenadines. This here alone speaks volumes of the real nature of this broker.
For those of you that are not aware, St.Vincent and the Grenadines is a Caribbean island nation, that can be stamped as one of the most popular destinations for illicit forex brokerage firms. The reasons for this are simple. The country does not have a financial regulator from which brokers should be getting strict guidelines to follow in order to conserve its integrity. Next, the nation’s own laws allow for offshore companies to easily register and settle their operations locally. These two elements, when combined breed the perfect ground for illicit broker to thrive in.
Interactive Trade is one of those brokers that have taken full advantage of these loose conditions, and have unleashed a very UNREGULATED broker upon the world. Furthermore, just to put it out there Interactive Trade has never actually said that it’s regulated anywhere.
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.
INTERACTIVE TRADE TRADING SOFTWARE
Although we were futile in our attempt to complete our registration, we can confirm that Interactive Trade does have have the MT4 trading software ready and operable, although we cannot vouch for the trading conditions on it.
The Metatrader 4 is the software to use for all of your forex trading needs. There has been nothing on the market that can match this terminal in terms of delivering quality and quantity. There is so much to do and see, that at times it can leave a toll on the user, who will undoubtedly return the next day, eager to learn more. We believe that mastery over the MT4 will make you a better trader, and will increase your expertise in the wild world of forex trading.
There might be spread commissions as hinted by a clause on the Risk Warning document. The broker is as vague as one can be, i.e there is no disclosure on this fees, and so we advice users to take precautions.
Furthermore, the broker will close positions should the margin level fall beneath 50%.
INTERACTIVE TRADE DEPOSIT/WITHDRAWAL METHODS AND FEES
Just a disclaimer, without properly registering, we were unable reach the payment terminal. Thus any payment details will be taken from the website.
With that said, there is not that much to say. In other worlds, Interactive Trade does not reveal too much.
Deposits are said to be made via Visa, Master Card, and “other”, as per the Credit Card/Debit Card Transaction Confirmation Form. There is no indication if traders can deposit by means of wire transfer.
Withdraw info is a bit confusing. For one, the T/C claim that a request is processed within 30 days of the opening of an account, while the following paragraph states that the processing times are up to 3 days. Surprisingly, there are no fees for withdrawing. We have attached the entire withdrawal info below, for you to see.
Once a user registers, he or she agrees to pay taxes and fees that have their origin from the regulation, which as we have seen is nonexistent, and that the user will hold no legal claims against the broker. What these fees are, we can only guess.
Interestingly, bonus withdrawals are subject to a trading requirement equal to the bonus amount divided by four.
Should the broker fall into insolvency, all client positions will be closed. .
Furthermore, in case of an insolvency, the client might not be able to receive his or her entire money back:
This provision also reveals that Interactive Trade has the right to give your money to n undisclosed third party.
We strongly advice 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?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard wil 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.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.