Beware! TraderKing 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.
TraderKing is a CFD broker trading in forex, stocks, metals and bonds. Its website looks just any other run of the mill forex company.
TraderKing Regulation and safety of funds
From the footer of the company’s website, we find out that this broker’s address is in the St. Vincent and the Grenadines (SVG). You must be aware that St. Vincent and the Grenadines is an offshore zone where the Financial Services Authority does not regulate forex brokers, so we are on the lookout to find out if we are dealing with scammers. Our advice to you is to avoid depositing funds and trading with forex brokers from offshore zones. As such, they do not provide a guarantee for your funds and trading with them is a risky undertaking.
Instead, point your attention at forex brokers from well-established jurisdictions because only they can provide safety for your funds. This is how it works – first of all, genuine brokers must be registered and regulated. To do so, they must meet certain requirements, such as having an initial capital of 730,000 EUR and contributing to a compensation scheme. If your broker from an offshore zone goes bankrupt or simply vanishes, then the money you invested will be lost. However, if a regulated broker for some reasons goes bankrupt, you will be compensated by up to 20,000 EUR if the broker is regulated by CySEC or up to 85,000 GBP if your broker is regulated by FCA. Not a bad deal, eh?
TraderKing Trading software
TraderKing has demonstrated an excellent choice in trading software by offering to its clients the MetaTrader 4 platform. If you are a newbie trader, you may not know, but MT4 is considered one of the best trading platforms and is choice number one among 80% of the brokers. this is not by chance. MT4 has proven advantages over other trading platforms. It offers an auto trading option, VPS and code base with customs scripts. In addition to that it comes with an app market, a financial calendar and excellent charting and design options to facilitate forex trading.
Here we show you a screenshot of the web trader of the platform which is a simplified version of the one for desktop. On the left, you see the menu for the forex pairs together with the bid/ask price and in the center is displayed a chart of the price fluctuation of the EUR/USD currency pairs with a spread equal to 1.9 pips.
TraderKing Deposit/Withdrawal methods and fees
TraderKing offers 3 live accounts – Standard, Premium and VIP. the interesting part here is that for the Standard account the initial deposit and leverage are not specified. As per the information provided for this account on the company’s website, clients can choose the leverage and deposit convenient for them. For the Premium account, the minimum initial deposit is $1,000 and for the VIP account, it is $5,000.
We find a discrepancy of the information about the payment methods (the next two screenshots). In the footer of the company’s website, we see as payment methods wire transfer Piastrix, Verified by VISA, VISA and MasterCard. However, after you open an account and wish to make a deposit, you find out that some of the payment options are different – Paytrio, credit card, wire and cryptocurrencies. We find this confusing and in our opinion, a self-respecting and licensed forex broker would not have such discrepancy in the payment methods info.
In the Terms and Conditions document of TraderKing, we find out that if an account is left without any trading activity for six months (a dormant account), then the broker will deduct every month 10% from the client’s funds as fees. We find this condition to be too harsh as normally, licensed brokers will charge a fixed amount around 10-20 USD per month for a dormant account as fee. Having a percentage or a fixed amount fee can make the world of difference for the client’s money.
Another detail that you should know is that if you make a deposit via wire or bank transfer, it may take up to 5 business days for the money to show in your account.
Withdrawal request processing time may take between 4 and 7 days.
While perusing the company’s info, we found mentioned bonuses, however, the conditions related to the withdrawal of bonuses was not found on the website. We want to ask you to exercise caution when it comes to accepting bonuses as they are company’s funds, not client’s and are usually attached to difficult to fulfil requirements and may mess up your funds and your right to withdrawal. If you are not sure what conditions they entail, better stay away from them. And in contrast, regulated and licensed forex brokers do not offer bonuses!
How does scam work?
Scam works in different ways. It could be either that you receive an unsolicited telephone call or you see one of these flashy ads on the Internet or the social media promising you a quick and easy profit. Scammers will promise you the sky and the earth until you give way to temptation and deposit money. Once you give them money you get caught in the scammers’ mouse trap and the cheese in the shape of a big fat money fall is gone! It may take some time before you realise that you are being scammed. Scammers are smooth talkers and they are masters of deception. They will give you some excuses as to why the big profit hasn’t come yet and will try to lure you to make even a bigger investment because according to them, the more you invest, the more you profit. After you have been waiting for awhile and you finally come to your senses, you realise that you are being scammed. All you want now is to get your money back and get out of there. However, the scammers won’t make it easy for you! They will try to delay you so that you miss the deadline for applying for chargeback.
What to do if scammed?
There are a few things that you must do immediately – file for chargeback if you have paid using a VISA or MasterCard. Those two payment providers allow you 540 days time frame within which you may file for chargeback.
However, the chances are grim if you have used bank transfer or Bitcoin as a payment method. There is no chance you’ll be able to recover your money.
In such desperate situation, some so-called ‘recovery agents’ may approach you with offers to recover your money for a fee. Be cautious as you may be dealing with another type of scammers. Always check the information about the recovery agency – make sure it is legitimate and transparent in the public eye. Also, some scammers publish personal comments after our review about how they have been scammed and how they found a recovery agent who helped them get their money back. Do not trust such comments and do not use the published contact info in them as it will lead you to another scammer!
And lastly, a reminder to cancel your credit card if you have given your CVV code to the scammers and erase any software from you PC that gives scammer access to your personal data.