WorldTrade review – 5 things you should know about wordtrades.com

WorldTrade review – 5 things you should know about wordtrades.com

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Beware! WorldTrade is an offshore broker! Your investment may be at risk.

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The first question that arises when one visits WorldTrade`s website is “What exactly is the name of this company?” While multiple logos around the website itself suggest that they are called WorldTrade, the domain and the email in the contact information both lead us to believe that the name of the company is wordtrades. One cannot trust a company that is not even consistent about its own name. It is common among scammers to use various names and websites to keep scams going for as long as possible. But the unclarified brand is the least of WorldTrade (or wordtrades)`s problems. It is not in your best interest to make business with such a company because you will surely end up the victim of fraud.

WorldTrade REGULATION AND SAFETY OF FUNDS

It is not very clear where WorldTrade claims to be registered. The contact information states an address in Florida and two phone numbers – one in the UK and one with the dialing code +19 – the international dialing code for Bangladesh. In another part of the website, the phone number directs us to a contact center in Austria. It is impossible to say where this company is registered or by which regulatory body it is licensed as they have not provided any sort of legal documentation. Searches in the registers of the FCA and NFA which regulate brokers in the UK and the US respectively resulted in zero hits. This means this company is completely anonymous and unregulated.

Brokers in both the US and the UK are obligated to follow strict rules to ensure the safety of funds. US brokers are subject to extremely heavy regulation – they must maintain capital of $20 million dollars for safety reasons and keep strict records to match the many reporting requirements. These are some of the reasons why there are only a handful of brokers legally operating in the US.

Similarly, brokers in the UK have to maintain capital of €730 000 and are obligated to participate in the Financial Services Compensation Scheme. This means clients of UK-licensed brokers are entitled to a compensation of up to £85 000 if the broker goes bankrupt. Such safety nets are unavailable to clients of anonymous, unregulated brokers like WorldTrade.

WorldTrade TRADING SOFTWARE

WorldTrade claims to use the renowned platform MetaTrader 4. This platform is popular in the trading industry and provides a multitude of tools for trading like an option to copy other successful traders` signals or use Expert Advisors – programs that follow financial markets and make deals in accordance with an algorithm. It was not possible to download MT4 from WorldTrade`s website and we only managed to get to the client area.

In any case, it is better to look up regulated brokers that use MetaTrader 4.

WorldTrade TRADING CONDITIONS

WorldTrade offers three different types of accounts with the minimum deposit for the beginner one being $250. All of these accounts provide spreads from 0.0 pips and different leverage rates. While the leverage starts from 1:30, it could go up to 1:500 for a Platinum account. Since the company fails to state where it’s licensed, we cannot be sure that the usually reasonable 1:30 is in accordance with law. US brokers are allowed to only offer leverage of 1:50 while European ones have the permission to go up to 1:30 for non-professional clients. That is one of the reasons why it’s important to be sure about what kind of regulations the company is following.

WorldTrade also offers CFDs (Contract For Difference) as a trading instrument for more advanced traders. While these contracts are absolutely legal in Europe, they are banned in the US where WorldTrade claims to be situated because of their high level of risk.

WorldTrade DEPOSIT/WITHDRAWAL METHODS AND FEES

WorldTrade accepts deposits via wire transfer, Bitcoin, and the electronic payment system Perfect Money. This is another evidence they will make off with your money as soon as they get the chance. Cryptocurrencies are preferred by frauds because it is impossible for you to ask for a chargeback once you have transferred the money. Credit and debit card transactions are much safer because you are able to ask your provider for assistance and file for chargeback within 540 days.

WorldTrade`s Terms and Conditions also contains a curious clause regarding withdrawals. “Non-Deposit funds are not available for withdrawal…Bonuses issued to clients may only be withdrawn subject to execution of a minimum trading volume of 30 times the deposit amount plus the bonus issued.”

Later on, they state that “non-deposit funds including profits gained of or derived of the same, are not Client`s funds.”

Other than the fact that it mentions bonuses – something no regulated broker is allowed to offer – this clause would prevent you from accessing your profits unless you reach a trading volume 30 times your deposit plus the bonus. It is impossible to say what amount of your profit was made with this bonus. This means it would probably be impossible to access any money you have made with WorldTrade.

HOW DOES THE SCAM WORK?

Usually, such scams start with an ad or banner you see on the Internet that advertises the company in question as offering impossibly high profits. Such scammers want you to see them as the easy way to a luxurious lifestyle and would do anything to get your attention.

The moment you provide them with any sort of personal information or contact details, you will start receiving calls from these cons asking you to pay an initial deposit of a certain amount. With time, you will be asked to invest even more money. To compel you to do that, these experienced frauds can make it look like you are making huge profits. But the moment you decide to try and withdraw your money, they will come up with reasons to prevent you from doing so like making up additional taxes you should pay. This is done to ensure the time period in which you can get your money back through Visa or MasterCard withdrawals runs out. Currently, that time period is 540 days.

It is virtually impossible to get your money back if you have paid with some sort of cryptocurrency and for that reason, such payment methods are preferred by scammers.

WHAT TO DO IF SCAMMED?

If you fall victim to such a scam and are using a credit or debit card, you should file for a chargeback right away.  If you were paying through bank transfers, you should contact your bank immediately and ask for assistance. As stated, scammers might deny you the chargeback on the basis of the fact that you have verified your account and sent them your personal info. There is little you can do in such cases. If the frauds had gained access to any sensitive information like banking passwords and usernames, it would be best for you to change those.

One last thing you should remember – don’t trust any “recovery agents” that offer you a fast refund. Such people exploit scam victims` hopes of gaining their money back by either collecting a fee or asking you to reinvest. Once this is done, you will never hear from them again.

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