Beware! Orotrader 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.
As the name of Orotrader derives from ‘gold’ in Spanish we wonder if this is a golden opportunity to get richer. Unfortunately, things are not always as they seem to be so we must dig deeper to find out the truth.
Orotrader Regulation and safety of funds
The first and foremost we must do is check the registration of this broker and find out if it is legit or not. From the information available on its website, we find out that the company is located in St. Vincent and the Grenadines (SVG) which is an offshore zone for forex trade. We must inform our readers that there is no official regulator for forex brokers and as this broker is non-regulated we have our doubts about its reliability. Trading with Orotrader will not be beneficial for you and you might be at risk of losing your funds.
If you are searching for a legit and reliable broker to trade with, why not search our links of brokers from some well-established jurisdictions with strict regulations for forex brokers, such as the US, the EU and the UK. In these jurisdictions, one of the main requirements is for brokers to be well-capitalised. In the US, forex brokers must invest $20 million as initial capital and in the EU and UK, the amount is 730,000 EUR. The low initial capital in the EU and the UK is compensated by the fact that there are compensation funds and schemes set in place which help to refund the clients in case of bankruptcy. If the broker is regulated by the FCA in the UK and contributes towards the local Financial Services Compensation Schemes, its clients will be compensated with up to 85,000 GBP per client. On the other hand, brokers regulated by CySec that participate in the local Investor Compensation Fund will be able to reimburse their clients with up to 20,000 EUR per client in case the broker goes bankrupt.
Unfortunately in the US, there are no compensation funds or schemes and clients of the US brokers must rely on the fact that by being well-capitalised their brokers will have the means to protect them in case of unfavourable events.
Orotrader Trading software
Orotrader offers two trading platforms to its clients – MetaTrader 4 and Sirix.
We opened an account with Sirix (image below). On the left-hand side, you see the menu with trading products with their bid/ask price. It shows the major currency pairs. In the middle of the screen, you see the chart of one of these pairs, EUR/USD with the fluctuation in its price in a given time frame. On the right of the screen is the section for social trading and you can see some top-ranked traders that less experienced traders can copy from. However, you must be aware that copying another trader’s transactions does not necessarily end up in making a profit so you must exercise caution.
From the bid/ask price for the EUR/USD currency pair, we calculate that the spread is 3 pips. Such spread is wide and above the industry average of 1.5 pips which means that the cost of transactions will be high and traders won’t be able to make a sustainable profit. The one to profit from this wide spread is the broker as brokers derive their revenue from the spread. So, guess where the ‘oro’ will be going.
Also, it appears that the leverage is also quite high – 1:100. Trading with such high leverage amplifies the risk exposure for traders’ funds given the fact that around 70% of traders lose in transactions. In the information about the well-established jurisdictions that we provided you with in the previous section, one of the measures for protecting traders from experiencing serious financial loss is the capped leverage and it cannot exceed 1:30 for the EU and the UK and 1:50 in the US.
The other platform offered to the clients, MetaTrader 4 is far more superior to Sirix and offers more advantages to the traders, such as an auto trading option, custom base with scripts, trading signals, VPS, an app market, etc. Also, it is equipped with an excellent package of charting options the platform is famous for, that have many charts, time frames, colours ane even the option of creating customised templates. We should also mention the technical analysis indicators, such as Bollinger Bands, moving averages, Fibonacci retracement, etc., that help traders predict the future direction of exchange rates and make a profit.
Orotrader Deposit/Withdrawal methods and fees
Orotrader has 3 types of accounts – Professional trading, Investment for retirement and Fixed-Term accounts. However, there is no information on what the minimum initial deposit is. Normally, with legit brokers, this information will be visible and readily accessible.
From the footer on Orotrader interface, we saw many payment methods. However, after opening the trading account and clicking on the deposit option, we noticed that payment via credit card was the only option available to traders. The information that traders can pay via Yandex, Advcash, American Express, Sofort, Postepay, QIWI, UPayCard and wire transfer is misleading.
How does scam work?
No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.
What to do if scammed?
You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!
Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.
Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.
Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!