Beware! TraderXonline 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.
We are reviewing TraderXonline, a bamboozling broker that’s giving tons of conflicting information about themselves and the services they provide. We encountered too many discrepancies about deposit requirements, dormant accounts, platform and anything else you could possibly think about. We can boldly call this broker a scam, and you’ll see why in the full TraderXonline review.
TraderXonline REGULATION AND SAFETY OF FUNDS
TraderXonline claims to hold offices in the UK, Germany and New Zealand. To operate there they need licenses and we firstly researched the British regulator register but found a warning instead. Your funds are in danger if you deposit with TraderXonline because FCA exposed this broker as a scam scheme. For more details, see the screenshot at the bottom of this section.
Avoid this scam, and consider the high-rated regulated EU brokers and British brokers, instead. The companies on both lists are suitably regulated and also participating in the deposit insurance funds laid down to protect customers in case of insolvency or fraud. For example, CySEC brokers’ traders can claim 20 000 EUR in compensation, while the British guarantees are even up to 85 000 GBP per person. Europe is financially secure, so you can safely open accounts with EU and UK regulated companies.
TraderXonline TRADING SOFTWARE
TraderXonline claims to offer innovative trading software called Status, but the statement is miles away from the truth. They can’t deliver anything whatsoever because the sign-up page is now broken. We wouldn’t be surprised if FCA has something to do with this because it’s one of the very few regulators who has the power to take websites down as soon as a warning is being released. Nevertheless, the so-called Status is a platform we know very well, and it’s anything else but innovative. The software is buggy, lacking functionality and the charting tools are just terrible. Anyway, TraderXonline is an exposed scam you should avoid, so find regulated brokers instead.
To help you do so, we can offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists, which deliver high-class software and excellent trading conditions. MetaTrader distributions are super stable and provide advanced features such as Expert Advisors, Algo Trading, as well as sophisticated, complex indicators and charting tools. The platforms also include a marketplace, where you can find more than 10 000 apps and third-party developed solutions developed for traders by traders.
As there is no trading software accessible, we can’t discuss real-time spreads. The broker claims to offer tight spreads, but we can’t validate this information. On the other hand, the maximum leverage is said to be 1:1000, but that’s probably not true either. Anyway, 1:1000 is a level no one should use because the risks are tremendous.
In fact, leverage is so dangerous that various financial authorities worldwide even agreed on regulations to restrict its usage. Consequently, EU, British and Australian brokers have to limit the retail clients to 1:30, while the Canadian brokers and the US brokers can’t provide more than 1:50. Nonetheless, risk-tolerant traders may as well consider the Swiss brokers, which are credible, but not leverage restricted.
TraderXonline DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit requirements present more discrepancies. According to the Account Types page, it’s $10 000, but in the FAQ section, we saw it’s $250. Whatever the case, it’s not advisable to deposit with this broker. The funding methods are supposedly Credit/Debit cards, Wire Transfers and WebMoney, but we can’t validate this either. Nevertheless, it’s always safer to deposit via bank cards because it’s possible to get a refund within an extended period of time.
Speaking of funding methods, see the Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated companies on the lists are well-regulated, and you won’t face scammers.
The minimum withdrawal amount…well, no one can tell. There is information about it in the T&Cs, the Deposit Withdrawal Policy and the FAQ section, and each text presents totally different requirements. We won’t waste time discussing them piece by piece because TraderXonline won’t send any money back.
Inactivity fees- the same. According to the T&Cs, an account becomes dormant after only 30 days of inactivity and will be subject to a 5% deduction per month. On the other hand, in the Deposit Withdrawal Policy, the inactivity provisions are totally different.
There are trading incentives, but we faced yet the same problems. Too many clauses with too much conflicting information, so we won’t discuss anything. We’ll focus on what’s essential- TraderXonline is an exposed scam, and you should avoid this broker.
HOW DOES THE SCAM WORK
New types of investment scams come about literally every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.
Nowadays, scammers search for victims on the Internet and social media. Classical tactics, such as cold calling, became less widespread as the Internet got prevalent. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders got reassured that the people behind the broker have an excellent track record, and they promise high returns, seamless trading and guaranteed profits. The scammers deliberately make people believe that the Forex market isn’t a risky place, but actually, the opposite is true.
What usually happens is that scammers just pocket traders and investors money. Sooner or later, clients would ask for a withdrawal, but scammers would delay or straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or even ask for additional deposits. Either way, traders are likely to lose some or all of the capital invested. The end is always the same. When fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If you get scammed, the first thing you need to do is to protect yourself from further risk. Deactivate your card immediately, contact your bank and ask for advice.
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!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!