Beware! BussTrade 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.
Warning! A Binary Options broker ahead; stay away!
BussTrade is one of those brokers that’s trying to legitimise itself as a legit business by providing a copy of their Certificate of Incorporation in the UK. However, that’s not enough to prove anything else than they’ve spent a few pounds to register a legal entity. The Forex brokers in the UK have to meet a variety of rules and regulations in order to obtain a license, and up to this point, they are not allowed to sell financial products and services to the public. But it’s getting even worse because BussTrade does not even present a contract to the clients such as T&Cs or User Agreement that they have to agree with and sign. You can find the rest of the warning signs in the full BussTrade review.
BussTrade REGULATION AND SAFETY OF FUNDS
BussTrade displays a copy of their incorporation on their website, trying to convince the people that they are a legit Forex broker. But it’s not enough, to say the least! Apart from this copy, there is no other piece of legal information to show, and they do not even list their headquarter address or a contact number to reach them. However, the Binary Options are banned in the UK, which makes the research in the register of FCA- the British financial authority worthless. You’ll find more about the Binary options later in the review.
Your funds are in danger if you make a deposit with BussTrade because it’s an unlicensed, unauthorised and unregulated illegal broker that’s breaching the laws in Britain by illegally selling prohibited financial products on a regulated market. BussTrade is conducting criminal activities, and you should report immediately if they reach you on the internet or over the phone.
Avoid BussTrade and the rest of the Binary Options brokers but chose an EU (mostly CySEC regulated) or UK (FCA regulated) Forex broker, because the jurisdictions mentioned are financially safe, stable and predictable. There are a variety of stringent rules and regulations that the brokers have to comply with. Still, most importantly, your funds are guaranteed up to a particular level by the deposit insurance funds that were inaugurated to protect the money of the clients. If your broker is CySEC (Cyprus) regulated you can claim up to 20 000 EUR, while the customers of FCA (Britain) brokers can claim even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
BussTrade TRADING SOFTWARE
Warning! BussTrade offers Binary Options trading, and it’s a red flag itself. The Binaries are no longer considered financial instruments but a gambling play! The trader simply has to guess the outcome- price will go either higher or lower than the entry price at the end of the contract. The trader also has to rely on luck because the Binary Options platforms rarely provide working tools for price analysis. But the worst thing about the binaries is the fact that the price is easy to manipulate and most of the Binary brokers do it! EU and UK prohibited this so-called trading instrument due to the tremendous number of Binary Options scam brokers that were exposed by the financial authorities in Europe! Stay away from Binary Options brokers!
BussTrade does not apply spreads in their platform, but a predefined win/lose ratio. There are only 2 cryptocurrency pairs that the clients can “trade”, and it’s the next alarming warning sign. The Cryptos are also proven to be easy to price manipulate and this fact made Britain to prohibit cryptocurrency pairs trading, which is coming into effect from the spring of 2021. But just a few words about the spreads in FX- it’s the price that the trader has to pay to open a position and the lower spreads make trading affordable by reducing the costs for the clients. You should trade with brokers offering lower spreads, but regulated ones- that’s a must!
No leverage applied in the BussTrade platform, as well. The leverage is a powerful financial tool that makes retail trading possible by allowing the traders to multiply the size of their positions. But it comes at a cost because the risk increases dramatically. Levels such as 1:500 are hazardous for the traders and might lead to a financial catastrophe if they fail to use the leverage properly. The risks involved made EU, UK and Australia (from spring 2021) to force a leverage cap on the market as a customer protection measure, disallowing the brokers to offer higher ratios to the traders. Canada and the US agreed on 1:50 as the maximum attainable level.
Avoid BussTrade and the rest of the Binary Options casinos and go for regulated MetaTrader4 or MetaTrader5 Forex broker. Metatrader is the most popular Forex trading software, which is highly renowned for its reliability. It features powerful trading tools such as Expert Advisors, Algo trading, Complex indicators, Strategy tester and even a marketplace where the traders can buy or use for free third-party-developed FX solutions.
BussTrade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is said to be $10, which might seem a favourable requirement but the profit potential with such a tiny amount is de facto non-existent. Most of the regulated brokers ask for $100 on average from the clients to let them start trading.
Warning! The only funding methods available are direct Crypto payments! We have to warn the traders that chargeback is impossible if they pay with Cryptos. In fact, it’s a powerful scam sign if a broker refuses to accept the standard funding methods such as Credit/Debit cards, Wire Transfers, Skrill or Neteller!
As already mentioned in the Intro, there are no legal documents presented to the traders such as T&Cs, User Agreement, Client Agreement etc. It’s a solid scam sign itself because essential conditions such as the minimum withdrawal requirements, the withdrawal processing time, the dormant account policy and the fees applicable remain unknown! The lack of such a document enables the broker to invent all kind of unfair conditions and fees on the run, potentially harmful for the traders! Not to mention that it’s illegal to offer financial products or services without a legal agreement signed by the trader!
There are loads of bonuses given to the traders, but we are not going into detail. The traders need to know that the bonuses are banned in stable financial jurisdictions because the trading incentives are proven to benefit the brokers, not the traders. BussTrade, for example, creates a multi-level scheme based on bonuses if the client utilises their trading robots! They even promise some guaranteed returns, which is yet another solid scam sign!
We urge the traders to stay away from BussTrade because it’s an illegal enterprise which might cause irretrievable losses.
HOW DOES THE SCAM WORK
A group of scammers operates many different scam brokers and scam websites. Sometimes they will simply rely on the number; they will publish tens or hundreds of websites and will wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it seems a profitable strategy, as they carry on doing it. The scammers will constantly re-brand and create new scam projects, but remember that all of these will inevitably share similar characteristics.
The Robot Trading scam becomes increasingly popular among the fraudsters. Many people are looking to find a profitable strategy or a Robot Trading software on the Internet that’ll supposedly trade and bring profits for them. The people are even willing to spend money on such a system, and the scammers are taking advantage of that. They will create Forex robots and automated trading systems and will sell them to the traders. As expected, the robots will be anything else than profitable, but the scam might even develop further. The scammers might even make the trader open an account with one of their scam brokers and thus way pocket the traders’ losses. The fake brokers are also known to provide robots for the traders, and the outcome is easy to predict- damages for the traders, gains for the scammers.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
It’s very important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!