Beware! New Traders Holdings 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.
New Traders Holdings advertises trading in Forex, Stocks, Commodities, Indices, and Cryptocurrencies. There are three types of accounts presented on the website – Basic, Standard and VIP – differing only in the minimum deposit amount.
In the registration form, however, there is a fourth option, Mini, and one can choose between Real and Demo. The other option during registration is currency, EUR or USD, and you have to supply First and Last name, Email address and Phone number. We expected that Trading Platform will also be an option, because MT4 is advertised on their Home page, but that is not the case – there is only Sirix. What is more disturbing, however, is there is no “username” input field in the form, and no email was sent to provide us with one or with an Account number.
But when we try to login they are asking for a Username and password; putting the email address there did not work – we got an error “Please provide valid Account Number.” The Forgot Password feature also asked for a Username and returned the same error, which makes absolutely no sense – how are they going to send you a new password or a reset link to a Username or to an Account number?
Thus, we are not able to create an account with this broker, so our review is based only on information presented on their website. And we are left to wonder, if they do not let you create an account and do not send you emails, what is their play; most probably it is cold calling but since we did not feel comfortable using a real phone number we cannot confirm that.
New Traders Holdings Regulation and safety of funds
The broker provides an address in the Marshall Islands and a UK phone number. The Marshall Islands is an offshore zone in the Pacific that does not regulate forex trading. The Terms and Conditions do not mention anything about regulation or licensing, but because of the phone number we decided to check with the UK’s Financial Conduct Authority (FCA) – there is no such entity registered with this organization.
New Traders Holdings is very big on words, however. They claim to provide almost every protection in the book – from segregated accounts and partnership with established financial institutions to membership in Investor Compensation Fund (ICF).
These are all guidelines for forex brokers that financial watchdog agencies, such as the FCA and the Cyprus Securities and Exchange Commission (CySEC) impose on their licensees. We will describe them here in more detail, but be aware that there is no evidence that this broker is in any way restricted by them because they are not regulated.
Forex brokers practising in the UK or the EU are required to maintain a minimum capital of €730 000 in order to guarantee their good financial standing. Traders’ funds must be kept separate from the broker’s operating funds, and there is Negative Balance Protection – traders may not lose more money than their initial investment. Brokers also must participate in Compensation Schemes, which provide additional guarantee to their clients’ funds up to a certain amount (85,000 GBP in the UK and 20,000 EUR in the EU).
New Traders Holdings is not a regulated broker, however, so they are not bound by these rules and policies. What they say on their website are empty claims and we warn our readers that their money will not be safe with them – that is if they are able to register and deposit at all, which we were not.
New Traders Holdings Trading Software
The broker advertises the MetaTrader 4 (MT4) trading platform and a Sirix WebTrader, but as we noted above in the registration form only the latter was available. MT4 is the world’s number one platform, preferred by over 80% of users. It offers an intuitive and user-friendly interface, advanced charting and analysis tools, as well as copy and auto-trade options. It can be further customized to create different trading strategies using its proprietary MQL4 programming language.
Sirix, on the other hand, is known for being popular with scam brokers – it offers features such as pending orders, one point clicking, chart customization options, and copy trading, but overall the emphasis is on visuals over quality, as it does not come with even 5% of what traders expect a platform to be equipped with.
New Traders Holdings Trading Conditions
The spread we see on the website for the EURUSD currency pair is (as low as) 1.7 pips. Although not very large, established brokers usually offer spreads of 1 – 1.2 pips, rarely more than 1.5. Anything above that would not make money for the trader but would guarantee good profits for the brokerage.
The leverage is in line with top regulators’ limits – 1:30 in Europe and 1:50 in the US. Even the Australian Securities and Investments Commission (ASIC), which does not enforce such rules, has announced recently that from 29 March 2021 it will restrict leverage for major currency pairs to 1:30.
New Traders Holdings Deposit/Withdrawal Methods And Fees
In the broker’s website we see various payment providers’ logos – VISA and MasterCard, Wire Transfer, Skrill and Neteller. They claim very short processing times, as well as no hidden charges or fees for both deposits and withdrawals. The Terms and Conditions also state that there are no commissions on transactions.
None of the above can be confirmed, however, because we are not able to open an account with the broker. New Traders Holdings also has a Bonus Policy which states that the clients are eligible to withdraw a bonus amount only if they have transacted a turnover equivalent to 40 (forty) times the combined value of their initial deposit amount and bonus amount. This is a standard practice of scam brokers making it practically impossible to withdraw the bonus.
In conclusion, we would warn our readers that New Traders Holdings is an unregulated, offshore broker and investing money with them is not safe!
How does the scam work?
This section is dedicated to showing how the most common scams work. Usually they are pretty simple and straightforward. Through internet ads promising quick and easy profits from forex trading potential traders are induced to enter their personal information, such as email and phone number. Once the users input this information, they will start receiving unsolicited calls from illegitimate broker representatives whose job is to persuade them to make the first deposit of about 300 USD, from which they make a fat commission. When this is done, the traders are transferred to senior scammers who are very good talkers and will start working on them to deposit even more money. At this time, if not earlier, most people will start suspecting some fraudulent activity and will want to withdraw their funds.
This however often proves impossible to do as the scammers put all their resources into convincing them that now is not the right time or that such action will lose them a lot of money in “potential profits”. If the users persist, these con-artists will find a number of excuses, usually hidden in the clauses of the accepted agreements, to delay withdrawal requests for as long as possible. The end purpose is to miss the limited time period for filing a chargeback with their bank and thus lose any chance of getting their money back.
What to do when scammed?
If you have deposited with VISA or MasterCard there is still a chance to get you money back since recently both companies extended their chargeback period to 540 days, especially when an online scam is involved.
Scammers will not stop at stealing directly from your bank account if you have provided sufficient details, so if this is the case be sure to change your password or security code right away.
Also beware of being scammed again by so-called “recovery agents”. They will ask you to pay a fee to recover your losses, but after paying them you will never hear from them again.