Beware! Petrades 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.
Petrades is a interesting case of a broker. It is not very often that we get a confusing yet intriguing broker. We admit that it took us some time to decipher this firm, and to reveal it for what it truly is, but we did it, and what we found out is worth reading.
The registration process was very underwhelming, and disappointing. Considering the sheer size of the website, and all the details in it, one would expect there to be a more advanced registration process. One look at the user dashboard area, and we knew what awaited. The main page of the dashboard contains two chart widget from third parties, both of which are there to confuse users, and lead them to think that they are legitimately offering trading services.
Trading conditions, as a result, are not there. What we mean by that is that Petrades does not have any FX broker trading offerings. There is no spread, no leverage, and no real financial instruments. We judge this by the user area, and it matters not that the website is full of trading claims and a huge information pool on account types, and trading platforms, and the like.
What matter, as always, is what is revealed in the registered user area! Petrades’ one does not indicate that the broker is interested in offering trading terms to its users.
The website is only in English.
PETRADES REGULATION AND SAFETY OF FUNDS
There are some things to cover, and we are aware that the website gives away a very contradictory vibe. The main reason for this confusion is attributed to the feel and interface of the website. It holds and incredible amount of information, and it really is a burden to go through it all.
First and foremost, the footer and the home page gives away the most obvious information: Petrades is regulated by the IFSC, or the International Financial Services Commission in Belize. The IFSC is know for their $500 000 minimum capital requirement for any broker wishing to be regulated by it. However, we hate to be the bringer of bad news, but the official database of the regulator holds no legitimising details on Petrades. In fact Petrades is not mentioned there.
Second, and again found in the footer, there is an address locating the company in Amsterdam. In what universe can you be located in Amsterdam, but be a holder of an offshore license? Only in Petrades’ one.
Next, the Home page of the site claims that Petrades is a member of the Financial Commission. This is not a regulator of any kind, because this commission is an independent self-regulatory organisation. Thus it matter not if Petrades is a part of it.
Unsurprisingly, there is no other information concerning a regulation. In the end, Petrades is UNREGULATED, and a risk to all investments.
There is only one thing left to do! All user who are interested in trading Forex or CFD, are urged to do so only with the real regulators of the industry. Some of the most renowned and secure are the FCA and CySEC. These regulators act upon a set of rules that have been put into a legal framework with the local governments, and that is why users should trade only with brokers regulated by them; once a broker is granted a license from one of these watchdogs, they immediately adapt these legal frameworks as their own rules of conduct. What’s more is that the FCA and CySEC make it is obligatory for all brokers under their gaze to participate in financial compensation schemes; 85 000 pounds per person for FCA, and up to 20 000 euros CySEC.
One of the biggest surprises that we came across, was the fact of the entire missing legal documents section. There are no legal documents at all, and it is surprising because the website is huge in scale, and there are so many different sections.
Without these essential provisions, the brokerage can do as it pleases which puts both the user’s capital at risk but also his or her personal details.
PETRADES TRADING SOFTWARE
We mentioned in the introduction that the Home page of the user personal area has 2 separate charts that seem complicated and relevant, but in reality are not. These are third party provide charts, and are very easy to be attached to your website. In fact, most unregulated brokers use them to lure in novice traders. Here they are:
We wont dig further in these. Just remember that these are in now way trading platforms, and they do not represent the trading conditions of Petrades, which are in fact non existent.
What Petrades offers next is the true nature of this illicit firm. Behind the facade presented on the huge website, hides a very fraudulent features called “packages”.
Users are prompted to deposit a given amount, and are promised unrealistic returns. This means users are led to believe that they will get paid after depositing, as if the return money will come out of nowhere. If this were true, then Petrades would become insolvent in a day. These packages are totally and utterly unrealistic, and are a scam. Be warned that if you fall for this, and deposit, you will never get you money back. In fact, we think that Petrades will find ways to ask you for more deposits.
PETRADES DEPOSIT/WITHDRAW METHODS AND FEES
According to the user area, the minimum deposit is $1, and the only way to fund an account is through a shady Bitcoin wallet. This is in direct opposition to the packages, where you can clearly see that the minimum requirement for the basic package is $1050. This is further proof that Petrades is a scam! Everything that the broker says is in direct contradistinction to everything else it does.
As per the withdrawal section in the user area, the methods used for withdrawing are credit card, wire transfer, and a number of crypto based options. The minimum amount is $10, and there is a 2% commission for all withdrawal methods safe for bitcoin transfers. Here is the snip of the withdrawal section:
As we mentioned, our biggest surprise at the broker was the fact that there were no legal documents. Without these, there are no scammer fees. However, we take Petrades to be a very scammer broker, so it will undoubtedly manipulate its clientele, charge fees, and prohibit them to do certain actions. With or without legal provisions, we are certain that one of these will occur. That is why we do not recommend to anyone to invest in this broker at all!
How does the scam work?
Scammers have been known to use the same type of scammer structure, with just different hues and approaches. With that said, the way the scam works is actually incredibly easy to grasp, and once yo know how it works, yo will always be able to detect it.
The first step to being scammed, if we can express ourselves so, is to be lured in by an ad online. These are found all over the internet, but especially on social media websites. Illicit FX firms advertise false promises and fake trading conditions. Internet users that are tempted by these will either be redirected to a so called robo-scam websites, or straight to the unlicensed entity. These websites will require you to register with an email or a phone number, and once you provide these details, you will start getting contacted by reps of these scammer firms. These reps require a minimum deposit from users, and will probably achieve to convince you because they are charismatic and confident in what they do.
However, they are no match for the expert scammer, whose goal is to talk you into making more deposits, and in the end will tell you that you cannot withdraw your funds for a number of reasons that will sound suspicious. In the end, what matters is that the client will not be able to withdraw his or her money back.
What to do if scammed?
The only thing to do in that case is to file for a chargeback with your credit card provider. VISA and MasterCard have extended their chargeback time span to 540 days, so good news for those tat have deposited by either of these methods.
If you have deposited via bank transfer, be sure to block the account or change the password. Or you could contact your bank and see what they can do.
Never deposit funds using crypto methods into an unregulated broker. These methods are untraceable, and there is no way to get you money back.
Last but not least, do not trust the so called recovery agencies, who are nothing more that fraudsters in disguise. If you get scammed, you might get contacted by someone claiming t be a recovery agent who is willing t fight for you money back, in exchange for a small hiring fee. Once you pay them the fee, they will disappear.