Beware! ADSTraders 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.
Using the face of Donald Trump and paraphrasing his election motto to “Let’s make trading great again” is perhaps ADSTraders idea of standing out and being memorable among the sea of forex brokers’ website. However, using someone else’s image denotes lack of originality and we cannot say it’s inspiring.
ADSTraders Regulation and safety of funds
In the footer of ADSTraders, we find that the website is owned and operated by ADStraders Limited in London and is authorised by Cyprus Securities and Exchange Commission (CySec). We checked the register of CySec to verify this information but our search came up blank (screenshot below). This means that this broker is not licensed therefore trading with it may put your funds at risk.
Whether the forex broker you intend to trade with is licensed or not is the first thing that you should check. And if it is not, then you should stay away from it. There are many licensed brokers in the EU and the UK to choose from. These brokers must meet rigid requirements to get their license. First of all, they must provide an initial capital of no less than 730,000 EUR and they must also contribute to a compensation fund or scheme from which their traders will be refunded in case 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. In the UK, the amount of refund traders can get is up to 85,000 GBP per person but only if the broker is regulated by FCA and contributes to the local Financial Services Compensation Scheme. These are significant measures to protect traders’ funds and reduce the risk of experiencing big financial loss and you should not be cavalier about that.
ADSTraders Trading software
ADSTraders is a forex broker trading in forex, CFD and cryptocurrencies and all trading activities are executed through a web trader (image below). What you see on the left-hand side is the trading product. In this case, forex currency pairs with their bid/ask price. In the middle, a chart shows the fluctuation in price in a given forex pair and a time frame. Here, you can see the chart of the EUR/USD. The spread for this currency pair is 0.1 pips. Such spread is very beneficial to traders as it is way below the industry average of 1.5 pips and as it keeps the cost of transactions low, traders will be able to make a sustained profit in the long run. The leverage, however, which happens to be 1:200 is quite high. Furthermore, we noticed in the account types information that for some trading accounts it can reach up to 1:1000. Some of you may be in awe of such high leverage and in anticipation of the big win around the corner. Hold your horses, please! High leverage amplifies the risk exposure of your funds and can lead to a significant financial loss. Why do you think licensed brokers in the EU have a cap on leverage and it cannot exceed 1:30? It is a measure aiming at protecting traders funds and reducing the risk of losing their hard-earned money. So, don’t be tempted to do something which you may regret later on.
Before moving on, we want to mention that a web trader is a basic platform that does not give much to traders in terms of trading tools and instruments. We advise you to look for a licensed broker that offers MetaTrader 4 or MetaTrader 5 which can truly enhance your trading experience. They come equipped with an excellent package of charting options, technical analysis indicators and trading tools and instruments. We want to mention the auto trading option, trading signals, code base with customs scripts, the app market, VPS, the financial calendar, etc.
ADSTraders Deposit/withdrawal methods and fees
ADSTraders offers not one or two but 8 different trading accounts! The minimum initial deposit for the Mini account is $250. To deposit funds traders can choose to pay via bank wire, credit card or OK Pay.
The minimum withdrawal amount for wire transfers is 250 EUR/USD/GBP and for other methods, it is 100 EUR/USD/GBP. The fee for wire transfer is 50 EUR/USD/GBP, for credit cards, 25 EUR/USD/GBP in addition to a processing fee of $10, 7 EUR, 5 GBP. Also, a levy of 10% will apply if the clients place a withdrawal request before executing a minimum of 200 in turnover. The withdrawal request processing time is between 2 and 5 business days.
If a trading account has not been used to trade for a period of 6 months, then a dormant monthly fee of 10% will be applied. A percentage fee may result in a really significant amount from trader’s funds. Licensed brokers would normally ask for a fixed fee, not a percentage.
We can hardly call these deposit/withdrawal methods beneficial to traders and our advice is to look for a licensed broker that will offer you better ones.
Non-legit brokers often offer bonuses in order to entice their traders to execute more transactions. Some of you may look at bonuses like something that adds more funds to trade with but what you should be aware of is that bonuses usually come with heavy to fulfil requirements attached to them. In this instance, the client may withdraw the bonus amount only after he/she executes a minimum trading volume equal to 25 times the deposit plus the bonus. As you can imagine, it is not something easily achievable. Also, please keep in mind that licensed brokers never offer bonuses and this is the difference between them and the non-legit brokers.
How does scam work?
Actually, it’s quite simple and people often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
Our advice is to immediately file for a chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.