Beware! Protraderex 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.
Protraderex is a broker claiming to be an innovative company that provides with a highly advanced, new generation browser-based trading platform. At the same time, though, their website is pretty simple if compared to the ones that the leading Forex brokers present to the traders. Find out whether they are deceiving the people or not in the full Protraderex review.
Protraderex REGULATION AND SAFETY OF FUNDS
Protraderex is one of those shady Forex brokers that withhold critical information about itself to the public. We managed to unearth nothing else, but the fact that they conduct their business governed by the Estonian laws. Estonia is an EU member, and they fully comply with the financial regulations that ESMA (the central EU financial authority) has arranged. We see though that Protraderex breach many of the rules that it’s bound to keep- leverage levels and stop-out level provided, and that led us to think it’s an illegal Forex broker. Our suspicions were justified upon research in the register of the Estonian financial regulator (FI), where we found nothing about such a broker.
Your funds are not safe if you make a deposit with Protraderex because it’s an unlicensed and unregulated illegal Forex broker, which is highly obscure and might as well be a scam.
We advise that you should trade with the EU (mostly CySEC regulated) or UK (FCA regulated) Forex brokers because these domains provide the safest environment for the funds of the traders. Furthermore, most of the leading brokers in the world hold EU or UK license, which will positively help you with the choice. Customer protection is a top priority in Europe. For that purpose, a variety of stringent rules and regulations were imposed by the financial authorities that the Forex brokers have to comply with. These standards include a minimum capital requirement of 730 000 EUR, segregation of the clients’ accounts, negative balance protection (the trader cannot lose more than the sum deposited) and predefined stop-out levels, to name a few.
Most importantly, however, the traders’ funds are guaranteed by the deposit insurance funds that were inaugurated to further contribute to the health of the system. Under CySEC (Cyprus) regulation, the clients can claim up to 20 000 EUR in compensation, while under FCA (Britain) the clients can claim up to 85 000 GBP per client. If you trade with an anonymous or offshore broker, you are entitled to nothing, but troubles and issues.
Protraderex TRADING SOFTWARE
Protraderex offers a web-based platform that they promote as one of the best in the world, but in reality, it’s primitive and lacks most of the features that Metatrader can offer. What’s more, Protraderex claims that the traders might utilise Expert Advisors, but that’s a lie because their simple platform doesn’t support such an advanced feature. We also warn the traders that the web-based platforms the brokers develop themselves are not stable and trustworthy with very few exceptions though. Not to mention that these are considered prone to fraud and price manipulation, and it’s especially true when shady brokers provide them. You can see what their platform look like at the bottom of this section.
We recommend that the traders go for MetaTrader4 and MetaTrader5 Forex brokers because MT is the preferred Forex retail trading platform in the world, and it’s also free to use. It features sophisticated trading tools such as Expert Advisors, Algo trading, Complex indicators, Strategy tester and even a marketplace where the traders can find third-party-developed trading solutions to implement in their strategy.
The EUR/USD spread is 3 pips, which is much higher than the industry standards- 1 pip and below. The spread is a crucial trading element, which forms part or all of the costs for the traders. The lower spreads make trading more affordable and improve the profit potential so that we wouldn’t recommend Protraderex.
The maximum leverage level possible is 1:500, which is a ratio that’s not allowed in Europe. The leverage allows the traders to amplify their profits but at the same time, the risks increase, which made EU, UK and Australia (from 2021) to impose a leverage cap of 1:30 as a customer protection measure. Canada and the US agreed on 1:50, so we do not recommend trading with 1:500 brokers, because these entities might as well be a scam.
Protraderex DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is 250 EUR/GBP for Credit/Debit card and 500 EUR/GBP for Wire transfers, which are the only funding methods available. Payments via popular e-wallets such as Skrill and Neteller or Bitcoin are not accepted. It’s strange to see that Protraderex does not work with US dollars. The greenback is the world’s reserve currency, and it’s still dominating the markets, so this decision is very peculiar, making us ask ourselves what’s going on there.
The minimum withdrawal amount specified is 500 EUR/GBP via Wire Transfer, and that’s the single possible withdrawal method. It’s an unfair clause whatsoever because most of the regulated Forex brokers will not limit the traders as to the amount of money they can withdraw. No withdrawal fees apply though.
The dormant account policy is the worst one we’ve ever seen! An account becomes dormant after only 31 days of inactivity and might get charged with a fee of up to 100% of the balance! That’s unheard of, and it means that if you don’t execute a trade within a month, Protraderex is merely going to pocket your money! It’s a scam clause and a major red flag we need to raise! Have a look at the clause at the end of the section.
There are no bonuses available at the time, but the company indicates that they might launch such campaigns, which will be bound to separate trading conditions. We need to warn the traders that the trading incentives are prohibited in Europe, which once again proves that Protraderex has nothing to do with regulations by reserving the right to offer bonuses.
We urge the traders to stay away from Protraderex because it’s an illegal Forex broker.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they simply rely on the quantity; they will publish tens or hundreds of websites and wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
The promises of the scammers are big, but they never deliver what they pledged. The legal documents of the scam brokers are filled to the brim with unfair clauses and requirements that practically eat up the traders’ balance- unbearable fees, unjust trading volume requirements, monthly administrative fees and so on, the list is endless. They will delay the withdrawal requests as much as possible so that the account gets hit by the costs. Eventually, the balance in the account will shrink so much that the scammers will not have to send any money back to the traders and it looks perfectly fine according to the Terms and Conditions that apply.
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!