Beware! Nordax24 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.
Nordax24 is one of the many forex companies from am offshore zone that provides trade in cryptocurrencies, forex, commodities and stock indices. We are about to find out whether it is safe to trade with this broker or not.
Nordax24 Regulation and safety of funds
BestProducts LTD is the holder of the trade name Nordox24 and owner of the website. The address of the company is in the Dominican Republic which is an offshore zone. The implications it may have regarding your funds should you choose to trade via this broker are, that there is no guarantee for the safety of your money should this broker go belly up or simply decides to shut down its website.
To protect your funds and have a peace of mind, we suggest that for your trading activities, you select a broker from one of the well-established jurisdictions where exist good conditions for the safety of your funds. Licensed forex brokers are the best to trade with. First of all, they must jump through a lot of hoops in order to be licensed. If they are in the jurisdictions of the EU or the UK, they must have an initial capital of 730,000 EUR which among other things serves as a barrier against scammers as they wouldn’t invest so much money just to look legit. In Australia and the USA, the amount of the initial capital is even higher – 1 million AUD and $20 million respectively. However, there are no compensation funds in place. These compensation funds are available to traders from the EU or the UK. If the broker is licensed in the UK, regulated by FCA and contributes to a local compensation fund, then, in case of bankruptcy, its clients will be compensated by up to 85,000 GBP. If the broker is regulated by CySec and contributes to the local Investor Compensation Fund, then its clients will be compensated by up to 20,000 EUR per person.
These are the brokers you should look up and choose for your trading activities!
Nordax24 Trading software
The trading platform offered by Nordax is a web trading platform (screenshot below). On the left, you see the forex currency pairs with their bid/ask price. For one of the major forex currency pairs, EUR/USD, we can calculate that the spread is 0.3 pips which is quite low. However, the leverage for the same currency pair is 1:200 which is too high and presents a risk of losing funds if the transaction is not successful. For your information for licensed brokers in the EU, there is a leverage cap of 1:30 and for brokers in the US, it’s 1:50. These are measures to reduce the risks in forex trading and to protect traders from making big losses. Australia will soon follow in these steps and will introduce a leverage cap on forex currency of 1:30 as of March 2021.
Here, we would like to recommend to the potential traders two of the best trading platforms that are choice number one among 80% of the brokers and that are truly amazing. They are the MetaTrader 4 that has been around for about 15 years already and its younger brother, MetaTrader 5. Both platforms offer an excellent package of trading tools and instruments and among those, we want to mention the auto trading option, the app market, the financial calendar, VPS, trading signals, code base with scripts, etc. Also, we want to mention that they offer many charting options to choose from that contain different indicators to help analyse and predict exchange rates and make a profit.
We strongly advise you when selecting a licensed broker to choose one that offers one of these platforms as it will have a positive impact on your trading experience.
Nordax24 Deposit/Withdrawal methods and fees
The accounts offered by Nordax24 are the Basic account with a minimum initial deposit of $250, Standard starting at $1,000, Silver starting at $5,000, Gold 0 $10,000, Platinum – $50,000 and the Exclusive account that is invitation only.
As per the information on the company’s website, to fund their account, clients can use debit/credit card, wire transfer, SEPA transfer, e-wallet and cryptocurrency.
The minimum withdrawal amount is $50. However, the company claims that it is entitled to charge a fixed commission amount of $30 for every withdrawal request.
For dormant accounts, the company will charge $100 every 3 months although it does not explain what the initial period of inactivity is.
In the Terms and Conditions document, we see that this broker offers bonuses. However, what the conditions for accepting these bonuses are or what the conditions for the withdrawal of the bonus amount are, is not stipulated. There is a referral to Section 8.12 but such section does not exist in the document. We want to caution our readers and potential forex traders to be wary of such offers of bonuses or other incentives. Remember that there is no such thing as a free gift, especially in the world of forex trading. Bonuses or other incentives usually come with heavy to fulfil requirements attached to them. It looks even worse when these requirements are not explicitly stipulated as they may seriously affect your withdrawal options. Also, you should know that no licensed broker will offer bonuses or any other ‘free’ gifts.
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers’ schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow 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.
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.
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.