Beware! 24Trading 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.
The broker we are looking at in this review is not very distinct from hundreds of other offshore companies – it operates with no governmental oversight and it provides an extremely vague set of Terms and Conditions. To the savvy trader that would be enough of a warning against investing with 24Trading – but if you want to know more, keep reading. We have many more things to say about 24Trading – sadly, not positive.
24Trading regulation and safety of funds
24Trading operates from an offshore haven – the islands of St. Vincent and the Grenadines. This is an incredibly shady detail – especially considering that the government of St. Vincent has come with a statement that it does not regulate the Forex markets whatsoever. Of course, this made scammers of all kinds flock to the tiny nation. 24Trading seemingly wishes to conceal this fact – as it has it available on its website, but in a very light color on a white background. We have highlighted it for you should you need proof:
Let’s compare the nonexistent regulation of St. Vincent to another island nation – the UK. In Britain, all brokers need to have a license from the FCA – the regulatory body, which watches vigilantly over the markets. Operating without a license is illegal and brokers that hold one need to report on a daily basis on open and closed trades, as to prevent any sort of scam from taking place. There are many more protections in place for trades with UK brokers – you can learn more here, and hopefully pick one of the UK-licensed brokers from the article.
24Trading trading software
24Trading offers a web-based trading platform, which does not really hold up when compared to the industry standard, Metatrader 5. That is because while it has some more basic charting tools, the web=based platform completely lacks MT5’s sophisticated automated trading features. Still, here is what it looks like:
Unfortunately, we could not discern what the leverage the broker offers is – it is simply not listed anywhere on its website. We could not get the information from the platform either – but considering that 24Trading is an offshore broker, it might offer leverage amounts much higher than what most regulators deem to be appropriate for the retail trader – possibly well over the 1:100 threshold. This is a common tactic among shady brokers which are simply seeking to attract more clients with the high leverage amounts.
As for the spreads on the platform, they were around 0.7 pips for the EURUSD pair, which is well within the nominal amounts for the asset.
24Trading deposit and withdrawal methods and fees
24Trading accepts deposits trough wire transfers and credit cards. If you have deposited with the broker using a card, you might be able to file for a chargeback, provided that no more than 540 days have passed since the transaction. Wire payments, however, are always final.
As for withdrawals, 24Trading mentions that fees may be applicable for them and leaves it at that. This is incredibly unprofessional and the information provided is not sufficient at all. Who knows what kind of creative excuses 24Trading will think of to charge you with such a vague clause?
How does the scam work?
Considering all the details laid out above, we have to deem 24Trading a scam – and we think it is running a very simple, yet efficient fraud model.
The scam starts when the would-be victim clicks on an ad promising them incredible returns. They are then taken to a website much like 24Trading’s, or 24Trading’s and are prompted to sign up. Once they do and the scammers have access to a phone number or an email, they start coercing the victim to deposit – the people who do that are very efficient manipulators and are not to be underestimated. They bleed their victims dry of all their funds and find creative excuses to stall or deny withdrawals. Once the victim stops paying, the scammers usually drop them without a second thought.
What to do when scammed?
Being scammed is nothing to be ashamed of – it can happen to anyone. Luckily, there are some steps you can take to limit further losses and maybe even recover your funds.
First off, it is crucial to restore your privacy – change all credit cards and forms of ID you gave the scammers access to and uninstall any desktop sharing software – i.e. TeamViewer, they had you put on your PC.
Then, you should see if you can file for a chargeback. Contact your bank and explain you were scammed and see if you can get their help.
Finally, if contacted by a recovery agency which promises to restore your funds at the cost of an upfront payment, beware! That is simply another scam!