Beware! 24Tradex 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.
Warning! 24Tradex is an obscure Forex broker that intentionally doesn’t disclose critical information about its legitimacy. There is absolutely nothing to be found about this pretended broker, only a contact number and an e-mail is written down and nothing else which will undeniably verify that 24Tradex is a legit enterprise. The sign-up process is also an unusual one presenting even more evidence that this entity is somewhat problematic. Find out all the details and everything you need to know about this so-called Forex broker in the full 24Tradex review.
24Tradex REGULATION AND SAFETY OF FUNDS
24Tradex is a totally anonymous broker that isn’t trustworthy. We can safely make such a claim because there is absolutely no evidence to prove its lawfulness. There aren’t licenses or registration numbers, no company supposedly standing behind this entity is revealed, also no address is presented to the public. Our search in the registries of the financial regulators throughout Europe, the USA, and Australia produced no results whatsoever. The UK phone number suggests that it is a British Forex broker, but the leverage of 1:400 offered easily proves 24Tradex has nothing to do with FCA regulation, as the leverage cap in Britain is 1:30.
Your funds are not safe if you make a deposit with 24Tradex, it is an unlicensed, unauthorized, and unregulated anonymous Forex broker, which withholds important information about itself.
Our strong advice is to choose an EU(CySEC) or the UK(FCA) Forex broker, it’s guaranteed that these companies will treat your funds with the utmost care. The financial regulators operating there obligate the EU and the UK brokers to set the Stop Out level at 50% of the account balance, meaning that you can’t lose more than half of your deposit in a single bad trade. If you trade with an offshore broker you might lose all of your money after the first position you have opened in the market.
But most importantly, there were Deposit insurance funds established, such as ICF in Cyprus and FSCS in the UK, set up to protect the funds of the clients. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in the UK under FCA you are guaranteed even up to 85 000 GBP. Each EU member state is compelled to create and further operate such a fund, which is regarded as a last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
24Tradex TRADING SOFTWARE
24Tradex offers Metatrader4 accounts to its clients; Metatrader5 is not available. However, upon download we could open neither Demo nor Real trading accounts, the registration was not allowed through the platform. The service provider is called Algo Trade, a name that wasn’t mentioned anywhere on the 24Tradex website, and it comes as a red flag and another cause for concern.
Surprisingly, to some extent, we were unable to sign-up, because there was a mandatory field of “Promo code”, a code which we didn’t have at our disposal at the time. Definitely a major red flag, but that obstacle partly revealed their “business” model to us. The people standing behind 24Tradex are targeting victims in social media, through cold-calling, e-mail, or other direct sales strategies. The Promo code technique might be a tactic aimed to make 24Tradex look like a boutique Forex broker, VIP entity that carefully selects its own customers. The implication of exclusivity works very efficiently with some groups of the society and has proven to be a well functioning scam model, as there are plenty of other fishy Forex brokers, some confirmed as a scam, that is using it.
We also have to mention the strange web address of their registration/login page:
The EUR/USD spread is said to be as low as 0.6 pips, the leverage is up to 1:400.
24Tradex DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is as follows: $250/€250/£250 for Credit cards and Electronic payment(Skrill) and $500/€1000/£1000 for wire transfers. However, we cannot confirm that these are the actual payment methods as we are unable to register an account.
There is no minimum withdrawal amount for bank cards and Skrill, but 100$ for wire transfers. The fees are extortionate, however, as there is a 3.5% fee for bank cards withdrawal and a flat 30$ for wire transfers, which is definitely a red flag. Also, you need to pay attention to the lame visual presentation of their Conditions, which is yet another red flag. Stay away!
There are bonuses offered, but the information given is more than vague. It is unknown whether it’s a deposit bonus or some other form of trading incentive. The minimum trading volume isn’t as big, only 10% of the amount of the bonus should be reached, but it’s not specified whether it’s in terms of lots or there is some other calculation applied, which again, is a red flag to note.
No dormant account policy available and no fees for inactivity specified, and here comes the next red flag, no legit and trustworthy Forex broker is going to treat the matter so carelessly.
There is an Introducing Broker program offered, but again, nothing really specified, which is the next red flag in the never-ending list.
HOW DOES THE SCAM WORK
A group of scammers operates many different scam brokers and scam websites. Sometimes they will simply rely on the quantity, they will publish tens or hundreds of websites and will just wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it seems a profitable strategy, as they carry on doing it. The scammers will constantly re-brand and create fresh scam projects, but remember that all of these will inevitably share similar characteristics. In the following list you can find five keywords that suggest you are dealing with scammers:
- “no-risk” or “risk-free”– trading always involves risk, such an offer is a scam.
- “guaranteed profits”– there is no such thing in FX trading, the same or similar to this offer is a scam.
- “bonus”– trading incentives were banned in the EU and UK, if a broker offers you bonuses it’s either offshore or illegal.
- “bitcoin”– digital coin derivatives were banned by FCA, because of the extreme volatility and the inadequate Cryptoassets understanding by the retail consumers. EU still allows Crypto trading, but the leverage is capped at 1:2.
- “leverage”– the heightened leverage level is among the major marketing tools, used by the scammers, enabling them to sell dreams. A leverage cap was agreed in the EU, UK, and USA, but Australia still allows trading at 1:500. If you are risk-tolerant go for Aussie Forex broker, ASIC created a strict and safe financial environment, however, lagging a bit in terms of customer protection.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to defraud people. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!