Beware! ProTrade100 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.
It’s always a joy for us when we are greeted first and foremost by a credit card billing extension of the website of a broker. The joy stems from the fact that we immediately know that the broker is a scam, for no legitimate broker would do such a thing. Actually, no FX watchdog would tolerate such a broker, and it would never allow this to be the case. So we now know that ProTrade100 is most certainly a fraud, yet to waht extent. For this you must read the following review.
To sign up one must go through a fairly simple process. After that we easily entered a client zone, where the user is given the opportunity to use a trading software. There the EUR/USD was given a cost of trade of 0.5 pips. This is favourable to all users, and we can only hope that the broker keeps this up, yet all the evidence will pile against it.
The cap of the leverage is 1:100, and the trading instruments are forex pairs, commodities, indices, and cryptocurrencies.
The website is translatable in English, Russian, and German.
PROTRADE100 REGULATION AND SAFETY OF FUNDS
ProTrade100 falls into the category of brokers that have not lifted a finger to include any licensing information. This is always a cause for us to think. It makes us wonder why certain firms, of which ProTrade100 is one, do not even try to add any regulatory info. It seems that the bar has fallen even lower, and many brokers seem to think that they can fool users this easily.
So there is nothing in the way stopping us from proclaiming ProTrade100 an UNREGULATED broker, and a risk to 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.
One thing of interest to note is that the Terms and Conditions the broker, or its parent company (we are not entirely sure), is referred to as FX-One. In fact there is zero mention of the name “protrade100” at all in the T/C. We are unaware of what the FX-One name suggests, yet we have a hunch that it refers to stolen legal documents. So how can we really know that the T/C are applicable to ProTrade100’s users? The answer to this question is better left out.
PROTRADE100 TRADING SOFTWARE
The trading terminal here is a decent one, which came as a surprise. Yet, do not confuse our surprise for anything but a reaction to something painfully average that we previously thought to be either a poor platform or non-existent at all.
More specifically, what caught our eye was the look of the trader office, a modest blend that ultimately delivers an experience that will keep you hooked for an hour our so. Otherwise, the only two notable elements are the pending orders and the chart customisation features.That’s it. This is the entire platform. It’s no surprise that this is so seeing that the firm is unregulated, and so has not put too much effort into the trading terminal.
There is a peculiar T/C proviso that states the broker’s right to instruct third parties to deal on behalf of the user. This is unacceptable, and in now way legal.
Furthermore, users must be aware that there are commissions on spreads. However, in classic shady broker style, there is no concrete deatils conferring the fee structure or the relevant instruments.
PROTRADE100 DEPOSIT/WITHDRAW METHODS AND FEES
The only way to deposit is through a credit card. We could not gather the minimum deposit through the process, and instead turned to the website. There the minimum deposit is supposedly $10 000, and that’s for the most basic account type. Clearly this is below par.
Withdrawals on the other hand, are handles within 7 days. This is all the withdrawal info we got.
The Terms and Conditions reveal a number of varied commission and fees, that seem to much. However, unregulated brokers are shameless and will stop at nothing in their long search for ways to steal more money from its clients. Here is just one such example.
Another interesting such fee is the following. All users must complete a 1% trading volume requirement before withdrawing. The 1 percent is converted into standards lots, and what you get is the required turnover in lots. The below snip gives and example. Should a user proceed with a withdrawal, he or she will be penalised with a 4.5% levy.
All unpaid fees will accumulate a 10% interest per year.
The broker has the right to waive any fees, minimum deposit amounts, etc, without the consent of the user.
The classic indemnification clause is here to reveal that the broker and its affiliates cannot be held responsible for anything.
Again, we have to remind readers that these Terms and Conditions are not under the broker name. So to what extent they apply to user is unknown. We see this as another inclusion in a list of variables, all pointing to the same verdict that ProTrade100 is a complete scam!
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.