Beware! RallyTrade 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.
RallyTrade has the look and feel we are searching for. With a good looking website, and seemingly stable trading conditions, is this the next go to broker? Well, as always, one must contain his first thoughts, and read in between the lines to get the bigger picture. And as one might expect, our preliminary thoughts were crushed, and replaced by an ever growing suspicion. Read the review to find out what we discovered.
Registering took 10 seconds, and we were sent an email to verify our account. However, once we clicked on the verification link, we were redirected to a portion of the website where is clearly wanted of us our Bank Verification Number. Immediately, we though SCAM. Even if we can skip this step, we still find it very suspicious.
The user dashboard that followed was quite different from anything we have seen, and not necessarily in a good way.
The basic spread for the EUR/USD pair is 2 pips, which is above the average amount and is not profitable for traders. The leverage is said to be 1:1000, which is dangerously high. The trading platform gives us forex pairs, indices, commodities, ETFs, and stocks.
The website is in English.
RALLYTRADE REGULATION AND SAFETY OF FUNDS
RallyTrade is opearted by FRNG Nigeria, a company located in Lagos, the capital of Nigeria. In the country the Nigerian Securities and Exchange Commission (SEC) has issued an official warning not that long ago that in does not regulate the retail forex market. However, it is easy to open a brokerage firm in the country and claim to be regulated. In the case of RallyTrade, the alleged commission that regulates it is the so called Financial Commission. With a name so generic, literally any country’s commission can be named like that, and certainly get away with it.
A google search produced thousands of results, yet we assume that RallyTrade is speaking about financialcommission.org. The logo of the certificate that RallyTrade holds matched the one we saw the financialcommission.org website. And anyway, this commission is essentially a Hong Kong based external dispute resolution organization.
And even if the document is not forged, the Financial Commission does not issue trading licenses. To add to that, there is no mention that the broker is in fact regulated, and thus we have to conclude that RallyTrade is essentially an UNREGULATED brokerage, meaning it is a risk to all those that invest in it.
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.
RALLYTRADE TRADING SOFTWARE
The broker claims to be offering the MT4 and the xStation, but once we tried to open the xStation the company gave us an MT4 download link instead. Thus the only real trading software was the MT4. Or so we thought, until we opened the actual RallyTrade provide desktop MT4 only to be left with a MetaQuotes demo Account that one can easily open from the official MT4/5 website. Later, we found the xStation, but not in the dashboard for registered users, but on the top right corner of the home page.
Essentially, RallyTrade is beyond confusing around its trading software, and as such proves once again how illicit and broken it really is. The oly platfrom we could opne was the xStation.
The xStation is not a platform that we encounter regularly. I fact we have seen it less that a handful of times. There are some features, more in number that other platforms used by illicit brokers. For example, this station has a trading calculator, a spread indicator, technical indicators; one click trade, and pending orders, etc.
Note that Equities and certain CFDs are commissioned. CFDs are charged a 0.003% for opening a position for 1 lot, and 0.003% for closing. Equities are charged with 0.08% or a minimum of $8 per turn. Please, if you wish to trade with RallyTrade we urge you to familiarize yourself with the commissions table found in the Account Information sub-section. However, equities were not present in the xStation…
RALLYTRADE DEPOSIT/WITHDRAW METHODS AND FEES
Depositing methods are Credit and Debit cards, Skrill, Neteller, Bank Transfer, PerfectMoney, and WebMoney. However, we could not confirm these methods because the deposit area in the user dashboard could not detect our account. As for a minimum deposit we have to trust the website’s $100
Users can open an account in USD or NGN.
There are is substantial number of commissions. We have laid them out for you.
Depositing commission are as follows: Mastercard & Visa cards (Naira): 0.75% for local Nigeria cards; Visa cards: 2.25%; Mastercard & Verve cards: 0.75-1.25% (depends on the payment provider involved); Skrill: 1.95% + $0.37; Neteller: 1.95% + $0.15 (min. $1).
Commissions on withdrawals are: Bank wire: $50 USD; Perfect Money: 0.25%; Skrill: 0.5%; Neteller: 1%; Webmoney: 0.004% (max. $25).
Withdrawals are said to appear in a user’s account no later than 30 days prior to the request. The withdrawal section on the user area is extremely unhelpful.
According to the Commissions document, all these charges are taxed by the payment providers, because RallyTrade does not charge payment fees:
However, throughout the legal documents there are multiple provision stating that RallyTrade does in fact charge commissions. So why have contradictory information? Because RallyTrade is unregulated!
There are further clauses revealing the presence of commission and fees.
In the event that a client wishes to withdraw a bonus, 2 very odd and outrageous things happen. Either the bonus will be taken out of the withdrawable sum, or, should the withdrawal amount exceed the bonus amount, the entire bonus will be taken out.
Here is an unacceptable provision that proves RallyTrade’s illegitimacy. The negative balance protection clause is here to state that once a user reaches a negative balance, she is obliged to deposit in order to cover the deficit. If she chooses not to, RallyTrade can issue the a penalty fee applied every day. Usually, this is where the Negative Protection policy should take effect, promising that a user cannot lose more money than she deposited. However, RallyTrade is unlicensed and thus can do as it pleases.
If an account is inactive for more than three months, RallyTrade has the right to shut it down!
There is another dormant account provision. This one is in direct opposition to the one above. After six months of inactivity, a user will be charged a monthly $10 fine
There are no refunds issued by RallyTrade:
And last but not least is the range of indemnification provisions. Here is a part of them:
All these provisions plus what we discover speak the truth: thsi broker is not to be trusted with deposit!
How does the scam work?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or The bitcoin miner 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 angle here is pretty blunt – traders have a limited time period for filing achargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
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.
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!