Beware! Strade24 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.
Strade24 is a forex broker that wants to look like any other licensed and genuine broker. However, this is a wolf in sheep’s clothing, so don’t be fooled.
Strade24 Regulation and safety of funds
This broker shows an address in London, UK but it’s neither registered nor regulated there. Furthermore, the Financial Conduct Authority (FCA) in the UK, the body that regulates forex brokers has issued a warning about this company (screenshot below) saying that this is a clone of an appointed representative firm.
It is very important to check if the broker you intend to trade with is really regulated by the financial services authority of the respective jurisdiction. If it is not, then forget about trading with it and stay away! There are many licensed and reliable brokers to choose from. You can check up the links we provide here of legit brokers from the well-established jurisdictions of the EU, the UK, the US and Australia. Each jurisdiction has its own advantages but what is important is that their requirements towards licensed brokers help keep scammers away. For example, in the US and Australia, forex brokers must be well capitalised and must have an initial capital of $20 million and 1 million AUD respectively. As you can see, no scammer will match this amount of money just to look legit. In the EU and the UK, the amount of the initial capital is not so high, only 730,000 EUR but in addition to that, the forex brokers must contribute to a local compensation fund or scheme from which traders can be refunded if the broker goes bankrupt. 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. And traders of a broker regulated by FCA will be repaid up to 85,000 GBP per person if the broker contributes to the Financial Services Compensation Scheme. These are excellent reasons for potential traders to select a broker from one of these recommended jurisdictions that will guarantee the safety for their funds and peace of mind.
Strade24 Trading software
Strade24 trades in forex, CFDs and indices. Trading with this broker is done via a web trader (screenshot below). On the left-hand side, you can see the menu with the currency pairs and their bid/ask price. In the middle of the screen is a display of a selected currency pair with the fluctuation in its price in a given time frame. We have selected the EUR/USD currency pair and from its bid/ask price, we can calculate the spread to be 1 pip which is in normal boundaries. From the available information on the web trader, we found out the leverage to be 1:100. This leverage is rather high. You should know that licensed brokers in the EU and the UK have a leverage cap of 1:30. This is imposed in order to prevent traders from taking risks with their funds. The fact that this broker offers leverage above the leverage cap for the UK is another proof that it is not legit and possibly a scam.
As we mentioned already, this web trader is rather basic and it is limiting the clients trading opportunities. On the other hand, there are other trading platforms that offer far better options to enhance the trader experience. We are talking about the two best trading platforms in the forex trade, MetaTrader 4 and MetaTrader 5. They come with a demo account which the newbies can use to practice and gain experience. Also, they are equipped with an excellent package of trading tools and instruments that include an auto trading option, code base with customs scripts, an app market, a financial calendar, VPS, trading signals that can be obtained for a subscription fee and an excellent array of charting options and indicators to predict future exchange rates and make a profit.
We strongly advise you, when searching for a legit and reliable forex broker, to select one that offers either platform.
Strade24 Deposit/Withdrawal methods and fees
It seems that Strade24 offers only one, live, trading account and there is no indication about the minimum initial deposit. Deposit payment methods are very limited and consist of paying via credit card or bank transfer.
There is no information about what the minimum withdrawal amount is. Withdrawal methods are the same as the deposit methods. The fee for a withdrawal via bank transfer is 3% and may take between 7 and 14 business days. If the client wants to make a withdrawal via credit card, then the commission could be up to 2% and it would take between 3 and 5 working days.
We find the payment methods to be very limited and not to provide the clients with many choices. In additions to that, there was no available information regarding dormant accounts.
How does scam work?
Scam works in different ways. It could be either that you receive an unsolicited telephone call or you see one of these flashy ads on the Internet or the social media promising you a quick and easy profit. Scammers will promise you the sky and the earth until you give way to temptation and deposit money. Once you give them money you get caught in the scammers’ mousetrap and the cheese in the shape of a big fat money fall is gone! It may take some time before you realise that you are being scammed. Scammers are smooth talkers and they are masters of deception. They will give you some excuses as to why the big profit hasn’t come yet and will try to lure you to make even a bigger investment because according to them, the more you invest, the more you profit. After you have been waiting for a while and you finally come to your senses, you realise that you are being scammed. All you want now is to get your money back and get out of there. However, the scammers won’t make it easy for you! They will try to delay you so that you miss the deadline for applying for a chargeback.
What to do if scammed?
There are a few things that you must do immediately – file for a chargeback if you have paid using a VISA or MasterCard. Those two payment providers allow you 540 days time frame within which you may file for a chargeback.
However, the chances are grim if you have used bank transfer or Bitcoin as a payment method. There is no chance you’ll be able to recover your money.
In such a desperate situation, some so-called ‘recovery agents’ may approach you with offers to recover your money for a fee. Be cautious as you may be dealing with another type of scammers. Always check the information about the recovery agency – make sure it is legitimate and transparent in the public eye. Also, some scammers publish personal comments after our review about how they have been scammed and how they found a recovery agent who helped them get their money back. Do not trust such comments and do not use the published contact info in them as it will lead you to another scammer!
And lastly, a reminder to cancel your credit card if you have given your CVV code to the scammers and erase any software from you PC that gives the scammer access to your personal data.