Beware! 7Online 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.
7Online comes with an average look and feel, but with an interesting name. The 7 in the title is a play on the lucky seven that is so ubiquitous to gambling. Yet, forex trading does not rely solely on luck. There are skill to master, and one must have a feel for the market and currenct on-goings if he or she wishes to succeed. Does 7Online understand this generalised concept about trading forex and CFD, or is this one broker that you should not deal with? Read the review to find out all about it.
Registration was a simple process that required only the basic credentials. We were able to complete in a manner of seconds. This is never a good sign. It reveals that the broker you will be dealing with does not takes thing seriously, to just let you with a live account without prior identification documents.
The user dashboard that came after is nice and all, but does nothing to surpass expectations.
We opened a trading software that was based on the browser, and gave us a EUR/USD spread of 1.4 pips, or what is considered the average cost of trade. The leverage is 1:30 according to the legal documents, however the trading software revealed to us the 1:400 leverage..The instrument used for trading are forex pairs, commodities, crypto, stock, and indices.
The website comes in German and English.
7ONLINE REGULATION AND SAFETY OF FUNDS
According to the Client Agreement, the legal docs are governed by the laws of the Commonwealth of Dominica.
The country oversee the banking sector, but it odes not regulated the FX market. And what’s more is that Dominica is known for accepting some shady brokers. So even if 7Online is registered there, it most certainly is not licensed there.
Seeing that there is no other regulatory information, we must end this on the note that 7Online is NOT LICENSED, and therefore a risk to investors. And besides, 7Online does not say that is has a license from anyone.
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.
The broker reveals that it can share a user’s personal info with unnamed third parties:
7ONLINE TRADING SOFTWARE
The webs based trader here seems quite decent upon first look. However, it quickly turns out to be very limited in scope and execution as soon s you try and diversify the experience beyond just buying and/or selling assets. There are pending orders which is the only real feature that this terminal has it going for itself.
However, there is one thing breaking the experience as well as acting as a reminder that 7Online is illicit. One has to look at the TradingView logo to understand that these charts are not provided by the broker but by a 3rd party that specialises in charts. Thus the trading software has not got its own charts, thus we can say that this terminal is useless.
The Terms and Conditions clearly state that there are commissions attached to trading.
The broker has the right for no reason to not allow the user to trade, or to limit the trading positions.
7ONLINE DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $200. Payment methods are Credit and Debit card, and a bitcoin gateway. All this info was taken from the user area, so you know this to be the true nature of the process of funding an account.
As per the withdrawal policy, a request is processed in 10 days tops, and the withdrawal methods are wire transfer (min,.$250), credit card (min. $100), and crypto gateways. The withdrawal area on the other hand, mentions that requests are processed in 7 days tops, and that transfer charges may apply. What these are and how big they are is left undisclosed.
Be aware that the broker may change the Terms and Conditions without notice. This is another way of saying that 7Online can adapt to different situations and also add additional fees and taxes.
Here is a cheeky little clause reading that the broker is in fact looking after its own interests:
The account maintenance fee of $200 is charged after 60 days of account dormancy. After that follows a monthly charge of $20 or 5% if funds are over $250. Please, do not confuse this with a dormant account fee.
Users may have to pay some sort of tax according to their jurisdiction. We see this as another way to debit you.
Following is an indemnification clause that absolves the broker from any liability, including financial damage caused to users. With this in hand, 7Online will not be held responsible for any claim that a user might have. Furthermore, there are a range of similar provisions scattered throughout the legal documents, all saying the same basic thing: 7Online is not responsible for your losses!
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 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.
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.