Beware! EstaTrade 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.
What is there to say about EstaTrade that has not been said before about another broker of the same caliber? Nothing really. The broker never goes over the line, never explores new territories, which is something to do if you wish to succeed in today’s overcrowded FX industry. Instead, it revisits old tropes and cliches and doesn’t bother delivering a solid client experience. And this is just the surface. We go into detail on why EstaTrade is not worth a client’s trust. Please read on.
It was easy going in a user area, but there we learn that a registration isn’t enough. Users who wish to access the client portal in full have to provide real ID documents. However, the one area that concerns us now did not require us copies of our ID- the trading software.
While opening an account, we had the ability to chose a leverage capped all the way up to 1:500. The EUR/USD spread was 0.2 pips, which is incredibly favorable, but impossible in our view. Such spreads all have a certain commission attached to them. We do find a pricing model stating that there is a $1 spread commission for every standard lot, which would increase each spread by an additional 0.1 pip. However, the EUR/USD spread would still be very lucrative. This leaves us very suspicious of the spread value, and the broker as a whole. The available tradeable instruments are forex currency pairs, indexes, some commodities vs currency pairs, and crypto coins vs currency pairs.
The website of the company is available in English only.
ESTATRADE REGULATION AND SAFETY OF FUNDS
If it were up to us, we would label EstaTrade as an anonymous broker from the bat. And it really is one, although we have to explain why.
The first reason for this anonymity is the simple lack of any solid information. For a broker like EstaTrade, with its sizeable website, one can be confused as to why there isn’t any licensing information. Nothing on the site point to a possible regulation!
Second, the footer gives us a common scammer broker clause.
Through this clause, the broker says that its services are not available to users whose countries of residence do not allow or regulate EstaTrade, which is a contradictory message, conveying that the broker is not regulated.
Next, we have a Saint Vincent and the Grenadines Google maps link for some reason. KNow thins: this country does not regulate the FX market.
And that is why EstaTrade is not only anonymous but also UNREGULATED.
We always say that investing in unregulated brokers is a sure way to lose money. The first and foremost thing to do when picking a broker to invest in is to look for a license. Preferably look for FCA or CySEC regulated brokers, or other European watchdogs, or US ones. All legit regulators have long lists of rules and prerequisites that all brokers must abide by. Not doing so, will lead to penalties or foreclosure! Furthermore, many regulators have in-store financial compensation schemes for all users under licensed brokerages. For example, CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
ESTATRADE TRADING SOFTWARE
Somehow EstaTrade has been able to get its hands on the MT4. Whehtere through sheer luck or ability to negotiate, the broker has aquired the world’s top trading software.
The MT4 includes time frames, pending orders, 500 customizable trading indications, trades in centralized markets, Expert Advisors, and so much more! One can never find any fault in using the MT4. Nevertheless, do not interpret the presence of the MT4 as a sign that you should trade with EstaTrade. This broker is first and foremost unregulated!
ESTATRADE DEPOSIT/WITHDRAW METHODS AND FEES
The user area reveals to us that clients can deposit through only two means: cryptocurrency method and a wire transfer. And there is no minimum deposit; users can invest with as much as they want! Be aware that investing in cryptocurrencies is the surest way to lose your money with unregulated brokers. Crypto payments are untraceable, and scammer brokerages know this all too well.
The withdrawal area also reveals that user can get their money through crypto and bank. The user dashboard also indicates that there are commissions and fees for both deposits and withdrawals. However, we never get to learn what these fees are nor how they apply.
The website does not expand on the payment information at all, and the lack of legal documents is greatly unhelpful because it is usually through these that users get the bulk of the commission and fees.
We do not advise users to invest here. This broker is unregulated and most probably a scam. Stay away from EstaTrade!
How does the scam work?
Online ads are the gateway to most investment scams. Ads that seem extravagant with quite impossible promises are most certainly the entry point into a scam. Gibing into one of these ads is the first step to being scammed.
The second step is to deposit. Once users click on the ad, they will be redirected to a scammer broker site or an intermediary website. What follows is a registration, where users will be asked to provide a phone number or a phone number.
Next, the scammer will directly contact those that have fallen for it. The first calls are made by the first level of fraudsters, the rookies. Their one and only goal is to compel users to deposit for the first time. Once a deposit is made, the user is hooked onto the scam.
The second wave of scammers, the core of the fraud, sometimes called “account managers”, will try to keep you invested in the shame for as long as possible. They might even pay some profits, just to keep you invested. The user will deposit an additional 2-3 times, which is actually the perfect scenario for these criminals. At some point, the user will realize he or she is in the middle of a scam
There are no more steps to the scam. The user has deposited as much as he or she did, and the fraudster have disappeared. The money is gone, and users cannot withdraw.
What to do if scammed?
If money was lost through a credit or debit card, the good news is that most credit card companies have an easy way of recovering money. Furthermore, MasterCard and VISA have a chargeback period of 540 days.
Wire transfer frauds, that is broker/investment scams, are harder to recuperate, but not impossible. The crucial thing to do is to change your bank account username and password! Aside from that, we advise users to contact their banks, because most banking institutions might have a plan on how to deal with money lost to investment scams!
Never invest in unregulated brokers through any sort of cryptocurrency wallet, no matter how good the returns sound! Crypto deposits are untraceable!
The last scam that users might stumble upon is in fact most of the time one that has nothing to do with the investment scam, although a potential relationship between the two is not excluded. We are talking about the so-called recovery agents or agencies. These will claim to be able to recover lost funds in return for a fee. After users pay this charge, they can kiss their money goodbye!