Beware! Meteor 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.
Meteor Trade is a shady broker that is not deserving of your money or time – here is why:
Meteor Trade regulation and safety of funds
Meteor Trade is not a licensed company – and, in fact, the broker hails from an infamous offshore scam haven – the Commonwealth of Dominica. Here is Meteor Trade confirming that:
The country has such a bad reputation, because it refuses to regulate its Forex markets in any capacity. That makes it incredibly valuable as a destination to scammers, who set up shop there to run their schemes without facing any opposition.
Trading with an unlicensed offshore broker is risky, because there are no guarantees that the company is not running a scam – contrast that with a stricter jurisdiction like the UK, which demands all brokers report on a daily basis on open and closed trades to prevent market manipulation and you see why. The UK also envisions some protections from the volatility of the markets for the retail trader – brokers are forced to participate in guarantee funds that pay out up to 85 000 pounds in the case of a broker going under. So, the sensible thing to do is to trade with a licensed company – here is a list of our top-rated brokers from the UK.
Meteor Trade trading software
Meteor Trade does not provide access to a conventional trading platform like industry standard Metatrader 5 – instead, it opts for the following web-based software, which lacks most of MT5’s features, with automated trading completely unavailable:
As for the actual trading conditions on it, the spreads Meteor Trade has are 3 pips on FX majors like the EURUSD, when they should be well under 1 pip!
The leverage available with the broker is also too much – amounts of over 1:50 are generally banned by most regulators around the world, and yet, Meteor Trade has ones of up to 1:200 available to anyone! Most offshore brokers have such high leverage available, in what is nothing more than a bid to attract more clients – if you see it advertised in the wild, you are most likely dealing with a company like Meteor Trade!
Meteor Trade deposit and withdrawal methods and fees
Meteor Trade only accepts credit card deposits – which is actually quite beneficial, since these payments are eligible for a chargeback within 540 days of any transaction. And a chargeback might be the only way you have of getting your deposit back – meanwhile, your profits are forfeit, because Meteor Trade has the following clause available on its website:
It states that funds made with bonuses issued by the broker are ineligible for withdrawal – but there is no way to know what money is made using what. The purpose of this clause is to deny withdrawal requests for profits. Similarly, the ability to withdraw the bonus is completely illusory – executing such a high turnover is not something that any trader can reliably achieve.
Meteor Trade also charges some fee on inactive accounts, but all we know about it can be found below:
Such vague clauses about fees always lead to brokers abusing their clients with insane fees!
How does the scam work?
Unfortunately, we have to conclude that Meteor Trade is running a scam – the broker also does so following the pattern described below:
Whenever someone stumbles upon the website Meteor Trade runs, they are prompted to make an account with the scammers – and a requirement to do so is to leave a phone number. If the scammers get their hands on it, they will start calling around the clock to demand deposits – more and more will be taken from their victim, until they are bled dry or realize what’s going on – at which point, the scammers cut them off and move on to new targets.
What to do when scammed?
If you have been scammed, you need to take the following steps to make sure you do not suffer further losses:
First off, reissue whatever credit cards and forms of ID the scammers had access to – and remove any remote control software they had you install on your PC.
Secondly, contact your bank to see if you can file a chargeback – but even if you cannot, do not trust any recovery agency that demands an upfront payment for its services – that is yet another scam!
Finally, do not hesitate to leave a comment with your thoughts on Meteor Trade – that will help us raise awareness of the scam, which is the best way to combat it!