RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Errante is a CySEC regulated broker, which was licensed last year. It’s a new kid on the playground, so they have to go a long way to prove themselves reliable. We spotted some inconsistencies that we’ll share with you in the full Errante review.
Errante REGULATION AND SAFETY OF FUNDS
As already mentioned Errante is a CySEC regulated broker, a trading name of Notely Trading Ltd. They were authorised at the beginning of 2020, so it’s still a toddler compared to other giants in the industry, which are persistently on the markets for decades.
As Cyprus regulated, Errante participates in the Investor Compensation Fund, so clients’ money is protected. Your funds are safe if you deposit with Errante because it’s a licensed and regulated broker, compliant with Europe’s financial regulations. We are going to discuss the rules broadly in the following paragraph.
First, see our list with CySEC regulated (EU) brokers and FCA regulated (UK) brokers. We recommend the Europeans for the safe and predictable trading environment. These brokers have to comply with many strict rules, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients’ accounts etc. All of the rules mentioned are laid out as customer protection measures, but most importantly, UK and EU countries operate deposit insurance funds protecting clients’ deposits. If you trade with CySEC brokers, you can claim up to 20 000 EUR in compensation, while the British guarantees are of even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar insurance funds seen as the last resort for traders if a Forex broker can’t meet its financial obligations.
Errante TRADING SOFTWARE
Errante provides its clients with MetaTrader5, which is a leading platform on the market alongside MT4. The EUR/USD spread is 1 pip, and that’s a competitive Buy/Sell difference meeting the industry standards. The spread forms part of the trading costs, so lower rates benefit traders and improve profit potential. Given the spread and the CySEC license obtained, we can confirm Errante provides its clients with favourable quotes.
Also, see the regulated MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular retail Forex trading platform globally, which traders prefer for its stability and powerful features. It includes sophisticated trading tools rare to find elsewhere for free such as Expert Advisors, Algo Trading, Complex Indicators, reliable Strategy testers and even a marketplace with more than 10 000 trading apps available.
The maximum leverage offered is 1:30, the highest allowed in the European regulated markets. The other options are 1:1 and 1:10, making Errante a bit restrictive. Other brokers provide with various ratios between 1:1 and 1:30, so Errante’s leverage policy isn’t fair enough.
We want to elaborate on the leverage because we consider this trading element fundamental, which traders sometimes unfortunately misuse. The leverage is a powerful financial tool increasing the size of the trades, but at the same time, it boosts the risk of loss. The hazards involved made EU, UK and Australia (from 2021) force a leverage cap on the market- 1:30 as a customer protection measure while Canada and the US agreed on 1:50. Brokers offering higher ratios are not recommended due to the absence of adequate regulation, the risks aside. The Swiss brokers, are not leverage restricted, but Switzerland keeps scam away with its capital adequacy requirements- more than 22 mln USD to get an FX license.
Errante DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit with Errante is $50 or 50 EUR, which aligns with the industry standards. They offer various funding methods, including Credit/Debit cards, Wire Transfers, Skrill, Neteller, Sofort, Trustly, Giropay, iDeal and Przelewy24.
The minimum withdrawal is $100 for Wire Transfers and $20 for the rest of the payment methods. The Wires requirements don’t seem reasonable enough, though, so that’s another disadvantage we need to mark. The Credit/Debit card withdrawals and the Wires are free, while the E-wallets incur 1% fee, which might be considered a bit expensive. Errante process the withdrawal requests within 1 working day, which is brilliant compared to the offshore brokers dealing with the matter within 5 days on average.
If you haven’t logged in for 6 months, Errante considers the account Inactive. The Inactive account becomes Dormant after 5 years of inactivity and can later be reactivated only after the client provide up-to-date client identification documentation. For the entire period, Errante doesn’t charge inactivity fees, and that’s even better than the rest of the regulated brokers, which collect 5 to 10 dollars per month to hold the money into the account.
There are no trading incentives offered, but Errante reserves the right to launch bonus campaigns for non-European clients.
Errante provides with detailed information about the Terms and Conditions provided. However, we couldn’t access their Conflict of Interest document, and that’s certainly a disturbing sign. It doesn’t look good on a legit broker.
Overall, Errante is less than year old regulated broker, which we generally consider safe to trade with because of the CySEC license. If you are fine to trade with an inexperienced broker, go ahead. Otherwise, we recommend using the services of an established FX company.
HOW DOES THE SCAM WORK
You can see hundreds and thousands of promising ads on the Internet and social media. Unfortunately, many of these are fraudulent schemes targeting to rip the people off their hard-earned money.
If you click and provide scammers with your e-mail and contact number they’d ring you immediately and would promise anything to make you deposit money with them as quickly as possible. Most of the scammers are experienced manipulators, and before you know it, they would ask for your bank card numbers to fund the account, saving you the hassle. The urgency is a warning sign; they are impatient while trying to convince you to start investing.
But the first deposit is only the beginning. Gradually they would ask for more money no matter the results. If you lost on the market, they’d persuade you to put more money and recover the losses. If you traded well, they’d convince you to put more money and increase the profits. The troubles start when you ask for a withdrawal. The scammers would do anything to discourage you and even ask you to pay them if you want to withdraw. The scammers’ mantra is “give me your money”, they’d insist every day you should deposit more and more, for no obvious reason. Legit companies do not bother you on the phone to deposit with them, so if someone urges you to start investing, it’s most probably a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to fraud. In case you got scammed, you need first 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, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!
