Beware! Clever Trade 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.
Clever Trade is just another offshore broker appearing on our lists of brokers to review. They provide MetaTrader4, sufferable spreads, boosted leverage levels and ask for at least $1500 to let traders begin with real money. That’s a hefty requirement, and you’d better read this review first unless planning to get straight away into trouble.
Clever Trade REGULATION AND SAFETY OF FUNDS
Clever Trade is a trading name of Berlly World LTD, a company we will openly label as anonymous. That’s because it’s incorporated in the shady tax haven the Marshall Islands, which doesn’t even have a financial authority. The absence of financial control and regulations make the jurisdiction bustling with scammers, so the brokers created there are seen as overly risky. At the same time, Clever Trade claims to be headquartered in Germany, so to call them legit, they need to hold a valid license issued by the local regulator BaFin. Well, they don’t have one, so the broker is unregulated, and your funds won’t be safe if you deposit.
Avoid it and better consider the high-rated EU brokers and British brokers, which are adequately regulated and, most importantly, covered by deposit insurance funds. Hence, if you trade with a CySEC broker, you can claim up to 20 000 EUR in compensation, while the British protections are of even up to 85 000 GBP per person. Such guarantees ensure an extra layer of protection, so it’s worth opening accounts with European brokers.
Clever Trade TRADING SOFTWARE
Clever Trade delivers MetaTrader4, which is considered one of the best retail Forex platforms available on the market. The EUR/USD spread on the Demo account is 1.8 pips, which is not so bad a Buy/Sell difference, but it’s not the best on the market. In comparison, loads of reputable brokers offer much tighter spreads of 1 pip and below with their micro accounts, so Clever Trade is even costly. A good reason alone to avoid dealing with this otherwise suspected scam.
Instead, consider the high-rated MetaTrader4 brokers and MetaTrader5 brokers, which are delivering the best Forex software and excellent trading conditions. The MT platforms are packed with sophisticated features such as Expert Advisors, complex indicators, and first-class charting tools. MetaTrader also comes with a Marketplace where traders can find more than 10 000 apps, which is an unparalleled advantage.
The maximum leverage possible is 1:400, a ratio marked as inadequate for retail traders. Higher levels improve profit potential but boost risks at the same time, and if traders are not careful enough, they can blow their accounts in no time. Moreover, Germany already prohibited excessive ratios such as 1:400, which once again proves that Clever Trade has nothing to do with regulations.
In fact, leverage is so dangerous that many authorities even regulate it to reduce risks by restricting its usage. As a result, EU, British and Australian brokers have to limit retail clients to 1:30 for FX majors, while Canadian brokers and US brokers to 1:50. Overall, most high-leverage FX companies are poorly or not regulated at all, so you’d better remain sceptical.
Clever Trade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $1500, a demand around 15 times higher than the industry standards- $100 on average. At the same time, though, many legit brokers offer micro accounts starting from as little as 5 dollars, so it’s not worth even paying attention to this otherwise highly suspicious entity. The funding methods are supposedly Credit/Debit cards, Wire Transfers and e-wallets, but we can’t validate this information. Our account is still waiting for approval, so it was impossible for us to test their deposit system.
While on funding, check some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have trusted payment systems. The companies topping the lists are adequately regulated, and you won’t face scammers if you choose among the high-rated ones.
The minimum withdrawal is $50 free of charge, which is passable demand, but unfair for us. In contrast, most legit brokers impose no or minimal withdrawal restrictions, so traders can withdraw as much/little as they want for free. Clever Trade claims to process withdrawal requests within 3 days and send the money within a week.
Information about dormant account policy and inactivity fees is missing, which is a downside whatsoever. Clever Trade claims to be a world leader in Forex and doesn’t even disclose its inactive accounts policy and fees. Red flag, isn’t it?
Trading incentives are generally available, but we highly dislike the broker’s deals. We do so because Clever Trade introduces unfair additional provisions. According to the clauses, traders can withdraw bonuses and profits derived only if they execute 1/4 the bonus in lots within 60 days. In other words, after a $200 bonus, they have to execute 50 lots for 2 months, which is 5 million USD in turnover. That’s too challenging and not worth it.
Overall, Clever Trade is unregulated, which is an argument enough to stay safe and avoid it.
HOW DOES THE SCAM WORK
Today, the Internet is plagued by scammers and their deceitful deals. It all starts when you click on an appealing fraudulent offer and provide your e-mail and contact numbers. Scammers, as seasoned manipulators, would ring you at once, insisting that you should start investing as soon as possible. During the phone call, you’d be presented with bonuses, promotions, risk-free offers, Bitcoin opportunities, and anything else you could possibly imagine. Scammers would claim to work with reputable firms, banks, governments, and so on, trying to make their business appear legit. Those thieves lie big time and would promise you anything to gain your confidence and get a deposit from you.
However, the first deposit is just the beginning. Day by day, scammers would carry on asking for funds. If you lost, they’d persuade you to put more money and recover the losses. If you are profitable, you’d be asked to put more money and increase the gains. The headaches start as soon as you ask to take your money back. The scammers would do whatever it takes to discourage you and would even urge you to deposit again if you want to withdraw. The scammers’ mantra is “give me your money”, they’d push you to transfer more money over and over again for no obvious reason. Urgency is a treacherous sign, so if someone forces you to invest ASAP, that’s a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is safe from scams. If you get defrauded, 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 fraudulent fund recovery agencies are trying to double scam the victims. They ask for upfront payment, take the money but don’t do anything to help you!
Last but not least, share online your experience; it’s important to inform the public about scams. Be responsible!