Beware! Nirotrade 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.
A quick glance at Nirotrade tells us that the interface of the company, although not standing out in any particular way, looks professional enough to give the vibe that this is just another forex broker that will lead you to your financial success. Is that so, however? Let’s what the facts tell us.
Nirotrade Regulation and safety of funds
In the Contact Us section, we can see the address of the company being in St. Vincent and the Grenadines (SVG) which happens to be an offshore zone for forex trade. What we know about this jurisdiction is that the Financial Services Authority does not regulate forex brokers and any broker that pretends to be regulated there should be considered suspicious and treated as a scammer.
If you are looking for a licensed and reliable broker to trade with, you should explore the jurisdictions where forex brokers are strictly regulated and it is easy to check their registrations and license. Such jurisdictions happen to be the US, the EU and the UK. Forex brokers in these jurisdictions are expected to be well-capitalised and the amount of the initial capital in the US is the staggering amount of $20 million. In the EU and the UK, licensed forex brokers are required to have 730,000 EUR or over in the form of initial capital which compared to their US counterparts is not so impressive. However, in the EU and the UK, there are compensation funds and schemes set in place to reimburse clients if the broker goes bankrupt whereas, in the US, there are none and only the fact that the US brokers are well-capitalised serves to protect their clients from unfavourable events. UK brokers regulated by FCA, on the other hand, participate and deduct funds towards the local Financial Services Compensation Scheme which provides the means to reimburse clients with up to 85,000 GBP per person if the broker is insolvent. EU brokers also participate in a local investor compensation fund from which clients whose broker has gone bankrupt can be reimbursed up to 20,000 EUR per client.
In addition to that, in all these jurisdictions, licensed brokers must adhere to certain regulations and keep their clients’ funds segregated from their own, keep low leverage, provide negative balance protection, report regularly their transactions for the sake of transparency, conduct regular internal and external audits, etc.
Nirotrade Trading software
Nirotrade is a forex broker trading in stocks, forex, commodities, indices and cryptocurrencies. To its clients, it offers a web trader which is a cheap platform with limited functionalities. The image below gives a good idea of what the platform looks like. On the left are shown the trading products with their bid/ask price and in the middle is displayed the chart of a selected trading product which in this instance shows the EUR/USD currency pair. Above the chart, on the right-hand side, are the buttons for executing trades. We found out that the spread for the EUR/USD currency pair is 3 pips which is very wide. The implications for traders when the spread is above the industry average of 1.5 pips is that the cost of transactions will be very high and they won’t be able to achieve a sustainable profit. On the other hand, the broker who derives revenue from the spread will have its pockets well fattened. We calculated that the leverage for the same currency pair is 1:400. We must say that such leverage is too high which will present risks for traders’ money. It is true that high leverage gives the idea that it increases the potential for making a big win. However, readers should keep in mind that 70% of traders lose in transactions which means that the scope of their financial loss will be amplified by the high leverage. It is not by chance that in the jurisdictions we mentioned above there is a cap on leverage for forex currencies and in the EU and the UK it cannot exceed 1:30 and in the US, 1:50. These are measures to protect clients’ funds and prevent traders from entering risky and reckless transactions.
Web traders are easy to navigate platforms, however, they do very little to enhance clients’ trading experience. The MetaTrader4 and MetaTrader 5 trading platforms, on the other hand, have a lot to offer. Both platforms are equipped with an excellent package of trading tools and instruments, such as an auto trading option, trading signals, VPS, code base with customs scripts, an app market, a financial calendar, etc. In addition to that, the variety of charting options and technical analysis indicators help traders predict the future direction of exchange rates and make a profit.
We strongly recommend finding a legit and reliable broker that offers either of these platforms.
Nirotrade Deposit/Withdrawal methods and fees
Nirotrade offers 6 accounts to its clients – Basic, Bronze, Silver, Gold, Platinum and VIP. The minimum initial deposit for the Basic account is $250. The other accounts start at $2,500, $5,000, $10,000 and $20,000 respectively with the exception of the VIP account where clients need to contact the account manager to negotiate.
In the footer of the company’s interface, we can see a huge variety of payment methods that include wire transfer, credit card, Paysafe card, Neteller, Skrill, WebMoney, QIWI, Yandex and AstroPay. In the Deposits and Withdrawal section, however, we can see only payment methods such as credit card, BPay and bank transfer. But, when you open a trading account and click on the deposit button, your only option is payment via credit card.
The minimum withdrawal amount is $75 and when a withdrawal request is submitted, it may take up to 15 business days to process it and then another 15 business days until the money gets into the client’s account. Not ideal, wouldn’t you say.
We advise you to read carefully the part in the Terms and Conditions document regarding the fees that the clients of this broker are asked to pay. For members of the Platinum, Black and VIP accounts the first withdrawal is free of charge. The members of the other accounts, however, will have to cough up a service fee of 3.5%. We would say that paying a percentage fee may take out a good chunk of your money. Reputable brokers normally charge a fixed fee, not a percentage fee.
Another fee the clients will be asked to pay if their trading account stays inactive for 30 days or over is the $200 handling fee. In addition to that, there is a verification fee of $150 if after making the first deposit the client hasn’t completed the verification of the identity process. And to finish with, there is the $30 monthly fee for maintaining the client’s account.
To sum up, there are enough fees to put you off trading with this broker!
Similarly to other fraudulent brokers, this one too offers bonuses. Without going into details about the different types of bonuses offered by Nirotrade, we want to caution you that bonuses are funds belonging to the broker, not the trader, and usually, they are subjected to hard to fulfil requirements. In this case, to be eligible to withdraw the bonus amount, the trader must execute a trading volume that is 30 times the sum of the deposit and bonus amount. It is not something easily achievable and even seasoned traders will be challenged. for your information, licensed brokers form the well-established jurisdictions we mentioned above, are banned from offering bonuses and other incentives which can help differentiate them from the dodgy ones. We were particularly appalled by the Nirotrade bonus offer for Refer a Friend program where clients can “see how your friends can be turned into the Forex bonus money too!”
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!