Beware! Trustpac 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 Trustpac, a shady broker offering nothing short of revolutionary. They claim that their platform is top-notch trading software, but this statement can’t be further than the truth. On the other hand, allegedly, they hold offices in way too many countries, including the UK, Malta, Nigeria and New Zealand, to name a few. The truth is: this broker is a scam, and we are going to show you why in the full Trustpac review.
Trustpac REGULATION AND SAFETY OF FUNDS
Trustpac claims to be worldwide presented, so they need many licenses to call themselves a legit broker. Firstly, we researched the British FCA register because it’s customer-oriented and much easier to find what you are looking for. Well, we found a warning instead of a license. Your funds are in danger if you deposit with Trustpac because the British regulator FCA exposed them as a scam scheme. For more information, have a look at the screenshot at the bottom of this section.
Avoid this broker and see the high-rated EU brokers and British brokers instead. The European markets offer high-grade security, and there are even deposit insurance funds protecting traders’ money in case of insolvency or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. The European brokers are safe, so don’t hesitate if you are interested in trading and eligible to open an account there.
Trustpac TRADING SOFTWARE
Trustpac’s platform is advertised as a high-class software, but it’s actually web-based and relatively primitive when compared to MetaTrader, for example. It can’t deliver any significant advantages, and the trading conditions provided are awful, to put it mildly. While we were doing the assessment, the market was closed, so the EUR/USD spread was very wide, but we have information that it usually doesn’t go below 10 pips. Such a Buy/Sell difference makes trading exceptionally costly, and traders won’t be able to make any money. The wide quotes difference of 10 pips is an argument enough to avoid this broker, the warning aside. The industry standard is 1 pip and below and the market is full of regulated brokers offering much more competitive trading conditions.
To help you find better opportunities, we can offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists. The MT distributions are reliable and include advanced trading features such as Expert Advisors, Algo Trading, complex indicators and advanced charting tools. Traders can also access a marketplace with more than 10 000 apps that can be successfully deployed.
The leverage levels are hidden, which is a major red flag. This means that the broker may assign a ratio such as 1:1000 whenever it wants to, which in turn can blow the account within seconds. Trustpac is a scam, so we can reasonably believe that such a scenario is possible. Also, Trustpac is a market maker, which means that they take the opposite part of the trade, so the clients’ losses eventually turn into broker’s profits. Most FX companies act as market makers, so the regulators made sure to enforce stringent regulations laid down to prevent unethical business behaviour.
In fact, leverage is the most dangerous aspect of trading, so many financial authorities imposed regulations to reduce leverage-related risks. As a result, EU, British and Australian brokers limit their clients to 1:30, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
Trustpac DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is said to be $250, but it’s actually feasible to deposit less. We tried with $100, and they were ready to process the transaction. The funding methods are Credit/Debit cards and Vouchers, which itself indicates a scam. The voucher scams are currently gaining momentum because it’s absolutely impossible to get any refund whatsoever. On the other hand, bank card funding is considered safer because people can dispute transactions and eventually get their money back.
While discussing deposit methods, see some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated brokers on the lists are strictly regulated, so you won’t face scammers.
There is no minimum withdrawal, but the fees are monstrous. Credit/Debit card transactions will be charged 3.5% of the sum, while the Wire Transfers cost $20, no matter the amount. Trustpac claims to process withdrawal requests within 2-5 days, but that’s not true because the broker is a scam, and no withdrawals should be expected at all.
The inactivity fees are also highly unfavourable. After only 60 days of inactivity, the account becomes dormant and will be charged 0.5% of the balance per month, or $50 (whichever higher). In contrast, the regulated brokers take no more than 5 to 10 dollars per month, which is the standard for the industry on average.
There are trading incentives available, but the additional provisions are terrible. When traders accept bonuses, they need to trade at least 180 times the bonus amount to become eligible for withdrawal. That’s a scam clause whatsoever.
Overall, Trustpac is an exposed scam, so you should avoid it. If they contact you, make sure to report to the authorities as soon as possible.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s effectively a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; that’s the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the trading results to show victims massive profits and ask for more money, promising to generate a fortune in no time. However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and help you, if possible, recover your money.
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!