NeoTrade Review – 5 things you should know about neotrade.pro

NeoTrade Review – 5 things you should know about neotrade.pro

Beware! NeoTrade is an offshore broker! Your investment may be at risk.

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NeoTrade is an online trading platform provider offering trade in forex, commodities, indices, stocks, metals and energies. We are going to look at some key features in order to determine if it is safe to trade with this company.

NeoTrade Regulation and safety of funds

On the company’s website, we find out that NeoTrade is a website owned and operated by Donnybrook Consulting Ltd with an address in the Dominican Republic. What you should know is that the Dominican Republic is an offshore zone and forex brokers registered there cannot provide safety for the traders’ funds. If you choose to trade with this broker and it goes bankrupt or just decides to shut down the website, your money will be gone!

We always advise our readers to select brokers that are licensed and reliable. Only this way your money will be safe. First of all, licensed brokers must have an initial capital which is big enough not to allow scammers to sneak in. For example, in the US the initial capital is $20 million, in Australia, it is 1 million AUD. In the EU and UK, brokers must have an initial capital that is no less than 730,000 EUR. No scammer will invest so much money just to look legit. Another way to prevent scammers is the required daily reporting on transactions as a measure to avoid shady deals. To provide a guarantee for the safety of clients’ funds, they are kept in segregated accounts and also brokers contribute to a compensation scheme from which in case of bankruptcy clients are compensated. In the EU, clients will be compensated up to 20,000 EUR per person if the broker is regulated by CySEC and up to 85,000 GBP per person if the broker is regulated by FCA. Brokers from offshore zones simply cannot offer such excellent conditions. The links we provided here, will show you long lists of licensed brokers to choose from.

NeoTrade Trading software

NeoTrade offers MetaTrader 4 and web trader platforms. In the screenshot below, you can see the MetaTrader 4 platform. In the top horizontal bar, we have the menu for the charting options and the auto trade. On the far left is the menu for the currency pairs with their bid/ask price and beneath is the navigator for the accounts, indicators, the expert advisors and scripts. In the middle of the screen, you see displayed the charts for the currency pairs. In this case, you see 4 charts for 4 currency pairs but actually, their number may vary as per the traders’ needs. In the top left corner of the display, we see the chart for the currency pair EUR/USD and its price fluctuation in a given time frame. We can calculate from the bid/ask price that the spread is 8.3 pips which is too wide. Such a wide spread makes the cost of trade very high and it is not to the trader’s advantage. This broker is clearly trying to fleece its traders!

You may not be aware, but MetaTrader 4 which is one of the best trading platforms offered by forex brokers offers an excellent package of trading tools and instruments, including a code base with customs scripts, and auto trading option, trading signals, VPS and an app market. In addition to that, its excellent charting options makes it very attractive as they have different analysing tools and indicators that help traders predict price fluctuation and make a profit. Although we always recommend to our readers to select a forex broker that offers either MetaTrader 4 or MetaTrader 5, what is essential is the fact that the broker must first and foremost be licensed.

 

 

 

While talking about the trading platform, we need to mention the fact that the leverage for the Trader and the VIP accounts is rather high – 1:100. The leverage for the Starting and Standard accounts is within acceptable values and can be compared with the leverage in Europe where it cannot exceed 1:30 and in the US, where it cannot exceed 1:50. Newbies in the forex trade must be aware that high leverage does look attractive with the promise of making big win if the transaction is successful. However, if it is not, and you must know that over 70% of traders lose in transactions, then, you will make a big loss. So rather than going for high leverage, better pick up a broker that is offering leverage below 1:50 to avoid losing your money.

NeoTrade Deposit/Withdrawal methods and fees

NeoTrade offers 4 accounts – Starting, Standard, Trader and VIP. The minimum initial deposit for the Starting account is $250. The other accounts start at much higher initial deposits – $2,500, $5,500 and $20,000.

To make a deposit or a withdrawal, you have a choice between VISA, MasterCard, Piastirx and wire transfer. Funds deposited via bank/wire transfer will take up to 5 business days to appear in the client’s account.

Withdrawal requests may take even longer to get processed – from 4 to 7 business days.

We must comment here that there is no much choice in the payment methods and the processing time for some deposits and withdrawals is too long.

 

 

Accounts that have not been used for 6 months are considered dormant and a fee of 10% is charged each month. Charging a percentage rather than a fixed fee for sure is not to the clients’ benefit.

If you look again at the accounts information, you will notice that for each account there is a bonus offered by the broker starting with 25% for the Starting account and going as high as 100% for the VIP account. You should know that although it sounds attractive, bonuses are not actually free gifts and you should exercise utmost caution in case you are offered a bonus. Bonuses usually have very heavy requirements attached to them and furthermore, they can mess up your account and jeopardise your withdrawal options. In this case, what the broker asks for is that the trader executes a minimum trading volume of 25 times the deposit amount plus the bonus. If you have a calculator nearby, you can start calculating how much volume you must trade and ask yourself whether this is feasible or not.

You should know that licensed brokers do not offer bonuses or free gifts and this is also a rule of the thumb to check if you are dealing with a genuine broker or a scammer.

How does scam work?

A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.

What to do if scammed?

If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.

Rich Snippet Data
Review Date
Reviewed Broker
NeoTrade
Broker Rating
11stargraygraygraygray

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