Beware! XTRgate 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.
XTRgate looks like a very average broker, not trying in anyway to keep your attention for more than a couple of minutes tops. The pallet is boring, the interface is dull, and there is a general feel that something is not quite right. On top of that the website claims that XTRgate is a crypto only broker, something that we shall confirm in the review. Read on to find all there is to know about this one.
The registration process seemed new to us, with a focus on the colour blue, which may seem professional to some, but to us it just felt a bit too much. Anyway, registering was easy, and that produced one of the most simple and limiting user areas we have ever come across. It’s good that there was a drop down menu to be found on the top right corner, that nonetheless also was very limited in options. Overall a very minimal and shady looking dashboard:
We were admitted to a familiar trading platform, which revealed to us that XTRgate dabbles only in cryptocurrencies. Our leverage was capped at 1:100. Brokers whose only trading assets are crypto based, are most of the times frowned upon, because it still is not a centralised asset and as such holds risks.
Here are some of the major crypto/currency pairs, including BTC/USD
The website is available in English and German.
XTRGATE REGULATION AND SAFETY OF FUNDS
The only place that we found to be offering any sort of regulatory info, or similar, was the footer. Most notably, none of the legal document came equipped with licensing info.
The Commonwealth of Dominica is slowly becoming the new destination for illicit forex brokers. This slow dethroning of Saint Vincent and the Grenadines, a location that is currently on the path to reform it regulatory framework, is marked by a sharp rise of shady firms like XTRgate, who are attracted to the nation’s looser laws. Thus firms like XTRgate, can easily be operational form there, but that does not mean that they are regulated there.
There is no other indication that XTRgate is regulated anywhere, or is located in a different location that the Commonwealth of Dominica. Thus XTRgate NOT A HOLDER OF A LICENSE, and as such should not be trusted with your funds!
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.
Furthermore, the legal documents are short, and should include so much more than what they actually have. Again, a sign that XTRgate is a scam. As we shall see, there are other signs.
XTRGATE TRADING SOFTWARE
We went with the web based trading software, because the one that was offered to download as a desktop terminal came under the simple terminal.msi file, which seemed way too suspicious for us.
So we were left only with the web based terminal, a simple trader with nothing interesting going on for itself, expect for a cool aesthetic.
The only good feature are the pending order capabilities, aside from which there are no real options to expand the experience. This is a great example of a trading software that does nothing special yet looks like it does. Many scammer trading softwares are experts in creating the illusion of abundance by focusing on visuals.
XTRGATE DEPOSIT/WITHDRAW METHODS AND FEES
When we opened the user area, we could only deposit via Credit or Debit card, with a minimum deposit requirement of $250.
During the signing up process, we were able to open an account in one of three base currencies: GBP, USD, and EUR.
Withdrawals are processed in 24 hours according to the Terms and Conditions. The Return & Refund Policy states that the processing times are between 7 and 14 days. The withdrawal ways is through credit or debit card, e-wallets, or wire transfer. We find these in contradiction to the depositing method, limited to only one. It is very common for illicit brokers to have payment methods inconsistencies. We could not get a minimum withdrawal amount, for we had to deposit beforehand, and as we have many times before stated, we will never deposit in unregulated brokers, and neither should you!
There are no indications on withdrawal fees. However, do not let this soft you. Unlicensed brokers are able to send fees at any time they wish, because they do not work within the confines of the law!
The relatively short Terms and Conditions, have a big portion that indemnifies the broker of any liabilities. Here is attached a section of these provisions:
A user can cancel her account only in the span of the first three days of her opening it.
For an illicit broker, XTRgate has not included any of the by now default shady clauses. That is not to say that there is a reason to deposit here. This is an illegal offshore broker, and must be ignored if you wish to keep your funds safe.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.