Beware! OpctecManagement is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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OpctecManagement is an online trading platform that offers trading in currencies, metals, stocks and cryptocurrencies. We are looking at some key features to prove why it is not safe to trade with this broker.
OpctecManagement Regulation and safety of funds
On the site of OpctecManagement we noticed 2 things regarding the company’s registration. First of all, there is an address in Luxembourg and second, in the Terms and Conditions document, we found out that any dispute will be resolved in the courts of law of Sofia, Bulgaria. However, upon checking the registers of the Commission de Surveillance de Secteur Financier de Luxembourg and the Financial Supervision Commission in Bulgaria, in neither of them did the company name appear. We can only make the conclusion that this broker is not licensed and is possibly a scam.
If you considering trading via a forex broker, the first thing you should check is whether it is licensed or not. If it is not, then you should stay well away from it. Here, we provide you with links to forex brokers that are licensed and are in the well-established jurisdictions of EU and UK. We can say with certainty that only such brokers can provide a guarantee for the safety of your funds and compensation in case the company goes bankrupt. First of all, these brokers must have an initial capital of no less than 730,000 EUR and they must submit daily reports on their transactions as a preventive measure against scam. Second, brokers located in Cyprus, for example, must contribute to the local Investor Compensation Fund (ICF) from which each trader will be compensated by up to 20,000 EUR. In the UK, brokers must contribute to the local financial Services Compensation Scheme (FSCS) which will guarantee compensation up to 85,000 GBP if the broker declares bankruptcy. You won’t find better conditions than these that can provide you with a peace of mind for your hard-earned money.
OpctecManagement Trading software
OpctecManagement offers a web trader platform which is rather very basic, as you can see from the screenshot below. In the middle of the screen, you can see the chart of one of the major currency pairs, EUR/USD, with its bid/ask price. The chart represents the price fluctuation for this currency pair in a given time frame. On the right of the chart, you see the information for this currency pair – the current rate, minimum amount, commission, leverage, etc. Trade is executed when you click on the sell or buy button. From the bid/ask price, we calculated the spread to be 24 pips. This spread is absolutely huge and way above the average. Please compare with the normal limits of spread which are between 0 and 2 pips. You must know that such spread is not to traders’ advantage and for sure will prevent them to achieve sustainable profit. Even worse, we see that the leverage is also very high – 1:200. Such high leverage for sure will put traders’ funds at risk. Do not be tempted to use such high leverage as you can very easily lose your funds instead of making a profit. Do not forget that statistically, around 70% of traders suffer financial loss in transactions. Don’t become one of those! Also, you must know that licensed brokers do not offer such high leverage. In EU leverage cannot exceed 1:30 and in US, cannot be over 1:50. Please use this information as a rule of the thumb when looking for forex brokers to trade with.
We already mentioned that the web trader offered by this company is not the best trading platform out there as it is very basic and does not offer a choice of trading tools and instruments to the trader. Compared to it, MetaTrader 4 and MetaTrader 5 are far more superior and are considered the best in forex trade. Both platforms offer auto trading options, have a demo account which inexperienced traders can use to practice before opening a live account. Also, these platforms come with an app market, financial calendar, code base with customs scripts, VPS and trading signals that can be obtained for a subscription fee. The charting options offered by MT4 and MT5 are out of this world and are equipped with technical analysis indicators to help traders predict the future direction of exchange rates and make a profit. Among these, we want to mention Bollinger Bands, moving averages, Fibonacci retracement, etc.
So, let us reiterate one more time – step one, choose a licensed broker, step two – choose MT4 or MT5 trading platform.
OpctecManagement Deposit/Withdrawal methods and fees
OpctecManagement offers 4 different accounts to its clients – Green Premium, Platinum, Exclusive. The minimum initial deposit for the Green account is 5,000 EUR. We must say that this amount is too big for an initial minimum deposit. Normally, licensed brokers will ask for a lot less!
As we opened an account, we found out that the only payment method to make a deposit is via credit/debit card. Not much choice there, we must say.
The conditions for making a withdrawal are that the minimum withdrawal amount is $50 and it takes 2 to 5 business days to process the withdrawal request.
As you may have noticed in the screenshot with the account types, this broker offers bonuses which range between 20% and 100%. Although it is called ‘company credit’, do not believe that it is a free gift. If you read carefully the Terms and Conditions document, you will find out that bonuses are not available for withdrawal unless certain conditions are met. The condition is that the trader must execute a minimum trading volume of 30 times the deposit amount plus the bonus issued. Do you really think that would be easy? Furthermore, accepting bonuses will mess up your account and you for sure will have problems if you decide to withdraw your funds.
Please note, that legitimate brokers do not offer bonuses or free gifts. Stay well away from brokers that offer bonuses as they are out there to fleece you off your funds!
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.