Beware! LeadDeerLTD 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.
Spotting an illegitimate broker has become such a common practice for us that all it takes nowadays is literally just browsing through the home page of a company for less than a minute. With LeadDeerLTD it took us even less than that. The website is filled with common scammer broker elements, and the aim of this review is to uncover the main ones. Please read one, and don’t be too quick to invest at LeadDeerLTD!
With brokers that we feel are suspicious, the best approach is to create an account, because it is through the user area that all the true qualities of the firm are uncovered. With LeadDeerLTD, the registration process required literally just 4 things to complete: a user name, an email, a password, and an invitation code that we did not have access to. We wrote our credentials, except for the invitation, and the broker successfully created our account. The invitation is a pretty worrying sign that the broker actually solicits random users.
The user area was quite impressive, and it seemed to have all the necessary additions. However, we could not open a trading account because the broker required us some verification documents. There was also no demo account creation tool, however, the MT5 that we opened was in demo account mode, so we just went along with it.
There we found out that the EUR/USD cost of trade is 0 pips which is very misleading because there is no such thing as a 0 pip spread without a commission. There is nothing indicated on commissions, but believe us when we say that this is not the final spread for the currency pair! What’s more, is that this was taken from the demo account, meaning that the live EUR/USD spread might be completely different. The MT5 gave us the following tradeable assets: forex currency pairs, metals, oils, indices, and some cryptocurrencies. There was no indication on a leverage cap.
The website is available in English, Korean, Japanese, and Chinese.
LEADDEERLTD REGULATION AND SAFETY OF FUNDS
Everything we read on the website leads to one conclusion, that LeadDeerLTD is UNREGULATED.
The first reason for this rapid conclusion is simple. It centers around the complete lack of specific regulatory information. There is no mention of a license being held.
The second reason is the lack of legal documentation, which means that there is no legal bond between the broker and its clientele. I.e LeadDeerLTD can do as it wishes and not be eligible for any problems it causes its users.
Third, the contact address puts the broker in the UK, which is one of the most heavily regulated environments in the industry. The FCA exercises a tight grip around all UK brokerage firms, and anything that the FCA does not regulate and is still located in the UK is bound to be a scam!
And the fourth reason is what the review itself reveals about LeadDeerLTD. Simply put, all signs point against LeadDeerLTD.
Investing in unregulated brokers is one of the biggest mistakes you will make. Before doing anything, even registering, please check for a license. Even if the broker claims to be regulated you should double-check with the watchdog itself to see if you can find the broker in its database. Usually, we advocate for all FCA or CySEC regulated entities, for these regulators oversee some of the best and most popular brokers out there. Not only that, but these two entities also offer to all users under their brokers a compensation scheme that reimburses them any money that the broker cannot pay due to some reason or another. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
LEADDEERLTD TRADING SOFTWARE
LeadDeerLTD has adapted the MT5 to its broker experience. This is by far the best quality of this otherwise untrustworthy brokerage.
The MT5 is a must addition to any experienced broker’s trading repertoire. It is the best terminal in the industry, as it allows for unlimited trading opportunities, by letting traders use a plethora of options to customize their own trading any way they want, be it by customizing their charts, or letting the EA’s do all the work for them. Furthermore, the MT5 comes with the industry-standard time frames, pending orders, economic calendar, VPS, One Click Trading, Level2 Plugin, stop/loss and take/profit, and other crucial trading instruments.
However, even with the MT5, we cannot recommend LeadDeerLT, for it is unregulated!
LEADDEERLTD DEPOSIT/WITHDRAW METHODS AND FEES
Because we had not verified our account, the company had blocked our access to a payment area. Thus all the following details concerning deposits and withdrawals will be taken from the website.
Bear in mind that there isn’t too much to be revealed. Actually, after we did some scouting, we can say for sure that there are no real payment conditions. The website is, for some reason, completed barren of any deposit and withdrawals info.
From here on out all we can do is speculate. And furthermore, the complete lack of legal documents is all but helpful from this point on. Not only can we not rely on them for payment details, but any scammer clauses that might have been included are hidden.
The usual case for unregulated brokers is as follows. They allow for wire and card withdrawals, and almost all of the time there is some sort of crypto deposit methods, on which they rely the most because through these it’s easiest to steal money.
Withdrawals are unusually done by means of the same payment methods, yet at times users might get additional means. There are almost always some fees, and in addition, hidden charges not all of which are connected to withdrawals. The processing times for withdrawals are usually between 2 and 5 days.
As a final conclusion to the review, we want to label LeadDeerLTD a risk to all investments, but also to all personal details that one might have given away, especially copies of ID documents!
How does the scam work?
The scheme that unregulated brokers apply is a very popular one that other fraudsters from different industries are also known for practicing. Its structure is the same across brokers, with small differences in the delivery.
The first step is falling for fake ads online usually those that offer an easy lifestyle that comes from investing big and winning even bigger. These ads come plastered with beautiful women, cars, and exotic houses, and because of the prospect of allure, most of these ads are located in popular social media sites and similar sources.
These ads will redirect users to either a scammer broker or an intermediary website. Wherever you end up, these ads are there to trick you into giving your email and phone number. If the user gives her contact info, she will surely start receiving calls from solicitors whose job is to push you to deposit, whatever it takes. They will be annoyingly stubborn because they get a chunky commission from initial deposits.
If a deposit is made, then it’s time for the expert scammers who are disguised as the “account managers”. These have years of experience behind their backs and are usually part of the core team of the shady broker. They are even more stubborn and will stop at nothing. The ultimate goal here is to make the investor deposit as many times as possible. This is achieved through long and tedious conversations filled with false promises and carefully concealed lies and manipulative tactics.
The time will come when the user will want her money back. This is always expected and a risk of the craft for the scammers. That is why they are prepared to counter every withdrawal request. Usually, they stall users as much as possible by calling them and telling them that a big spike in a given asset is about to happen. Sometimes the broker may block the account or simply deny requests. More extreme examples include fraudulent brokers who completed shut down their websites!
What to do if scammed?
Filing for a cashback is probably the first thing you should do once you realize you have been scammed. Chargebacks are available through your credit and/or debit card company. MasterCard and VISA have a chargeback period of 540 days.
Wire transfer investment frauds are slightly more difficult to handle. The first thing you should definitely do is change both the username and password on your bank account in order to prevent the broker from accessing or hacking your account. Next, victimized users should call the bank and explain to them the situation. Some banks may have a plan for such cases.
As for investments with any sort of cryptocurrency, they are most certainly lost. That is why it is advisable to never invest in crypto coins!
There are others that can profit from your loss. Once your funds are stolen you will start noticing these recovery agencies or agents who will promise all your money back. They just need a payment in order to offer their services. It’s obvious that once paid, these expert scammers will disappear leaving you at an even bigger loss!