Beware! 10xGoldtrade 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.
10xGoldtrade is a dirty clone that replicated the whole website of a legit broker and stole everything else from it, except for the logo and the name. In the following review, we’ll show you more details about this scam and explain why firm cloning is one of the most dangerous scam strategies.
10xGoldtrade REGULATION AND SAFETY OF FUNDS
With no further ado, 10xGoldtrade is a dirty scam impersonating FXCC, which is a legit CySEC regulated broker. The license number seen from the screenshot above belongs to FXCC, but 10xGoldtrade abuses it, meaning that the latter is a clone firm. Firm cloning is a common type of fraud, in which scammers pretend to represent or work for authentic businesses, thus seeking to gain confidence and take investors’ guards off. It’s a rudimentary scam strategy, but it proves to be highly effective as the number of clones constantly increases. The Forex market is plagued by impersonators, so it’s mandatory to check twice before you’ve made an initial deposit with a new broker or other financial company.
Needless to say, 10xGoldtrade is a scam, so you’ll lose your money if you deposit. However, the brokerage reviewed also mentions a Vanuatu company not in any way linked with FXCC, so it’s probably the one actually servicing the crooked scheme. If that’s true, then 10xGoldtrade becomes even more dangerous because of its linkage with offshore shell companies. Vanuatu is a tax haven allowing the creation of International Business Companies with undisclosed identities, meaning that the people running the scam will remain anonymous and impossible to track down. Moreover, these IBCs are not required to provide access to their accounts or file financial reports, so finding out how much money they have and what they do with it is just another impossible task. In other words, once you deposit with 10xGoldtrade, your money most likely goes offshore, where it literally disappear without a trace, and you’ll have almost no chargeback options available.
Now, we need to note that Vanuatu licenses Forex brokers, but the regulatory regime is too loose and doesn’t really make the authorised entities reliable. The only regulation worth mentioning is the minimum capital requirement of $50 000, which is not even close to the European (€730 000) or the US (20 million USD) ones. Anyway, 10xGoldtrade isn’t licensed there, but even if it were, that wouldn’t change anything- it’s still a scam.
If you are genuinely interested in trading, you’d better go for brokers licensed by trustworthy authorities like CySEC or FCA, for example. Due to regulations, the European brokers should keep deposits segregated, which guarantees that people won’t lose their money if a company goes bankrupt. In addition, clients benefit from improved transparency, faster withdrawals, easier chargebacks, and better control over the funds. On top of all that, though, European brokers are covered by deposit insurance funds laid down to reimburse clients in case of unforeseen events- CySEC brokers’ clients can get up to €20 000 in compensation, while the British guarantees are even up to £85 000.
10xGoldtrade TRADING SOFTWARE
We couldn’t get to a trading platform as the brokerage didn’t send us a verification code. We made multiple registrations, but in vain. Nevertheless, the so-called brokerage claims to offer MetaTrader 4 and MetaTrader 5, but that’s not true as it just replicated the entire Platforms page from the FXCC’s website.
So, it’s worthless talking about spreads and trading costs as we can’t even prove that 10xGoldtrade has a platform at all. It says to offer zero spreads, but that’s irrelevant in this case. Nevertheless, we’ll pay attention to the leverage claims, as they outright prove that 10xGoldtrade has nothing to do with CySEC regulation. Namely, the leverage is purportedly 1:500, which is a ratio that the Cypriot regulator prohibited a few years ago (1:30 is the maximum).
10xGoldtrade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $300, which is around 3 times more than the industry standard on average. At the same time, though, many legit companies will readily accept clients for as little as $5, so it’s anyway worthless dealing with this otherwise fraudulent broker.
We can’t discuss funding methods, withdrawal conditions and fees as the information displayed on the website is strictly fraudulent. Also, due to the registration issues, we couldn’t test the deposit system either, so we can’t present any valuable information about the matter. And we don’t actually have to, in this particular case.
HOW DOES THE SCAM WORK
10xGoldtrade is a fraudulent clone firm, and now we’ll quickly relate how fraudsters usually work. So, when scammers get hold of your contact numbers, they’ll approach you immediately, promising the moon and the stars. To gain your trust, those criminals usually pretend to work for governments, financial authorities, banks, reputable companies etc. Scammers will be confident in what they are saying, and if you don’t recognise the warning signs, you may end up depositing. However, just then, the Forex fraud actually begins. Once they have your money, the cons will distort prices and forge fake reports to make you believe that you are on the winning side, manipulating you to start thinking big and consider more deposits.
Gradually, the fraudsters will ask you to increase the size of your investment and will make up stories claiming that you need to fund your account for whatever reasons. Sooner or later, you’ll get determined to withdraw your money, and then scammers will ask you to deposit again because, according to their words, there are taxes and fees that you should pay. At this point, you’ll probably realise that there is something wrong, and when the scam becomes too apparent, the fraudsters will simply cut the communication and disappear. Later, the whole website will be brought down, replaced with a new one so that the scammers can carry on with their criminal activities.
WHAT TO DO WHEN SCAMMED
It would be best if you first call your bank to inform it and deactivate your card to avoid getting exposed to additional risks, as the scammers may as well have obtained your details.
Then, call the police, inform the financial authorities, file complaints and don’t forget to spread the word online so that other people can find out about the fraudulent scheme. Still, it’s crucial not to rush trying to reclaim your funds as numerous scams are disguised as chargeback agencies set up to double-scam victims.
Finally, we know it’s an awful experience to get scammed, but please share your story to help protect others!