Beware! Eurotrade.co 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.
On its website EuroTrade claims to be “one of the most respected brokers in the industry” who offers “100% transparency” and “all-inclusive trading environment”. In fact, it is a completely anonymous site that only poses as a broker and aims to scam you out of your money.
EUROTRADE.CO REGULATION AND SAFETY OF FUNDS
EuroTrade is suspicious at first glance, because the name and logo of the website imitate those of a legitimate broker operating on European markets – Eurotrader.
The address listed on the EuroTrade website is in London, United Kingdom. In order to operate in the UK, a broker must be licensed by the Financial Conduct Authority (FCA). However, on the regulator’s web portal we do not find a licence, but a warning that the EuroTrade website offers investment services without authorisation:
The Marshall Islands is an offshore zone with no financial regulator at all. It is therefore a preferred base of operations for fraudsters claiming to be brokers.
Under no circumstances should you trust your money to such anonymous sites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK.
As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
EUROTRADE.CO TRADING SOFTWARE
The software has the basic features for placing orders, customizing charts and applying technical indicators. But it lacks advanced features like one-click trading and scripts for automated trading and back-testing trading strategies. Such functionalities can be found in platforms such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are used by the majority of brokers worldwide.
EUROTRADE.CO TRADING CONDITIONS
EuroTrade’s website describes four types of trading accounts – Basic, Silver, Gold and Platinum. Even the Basic account is tied to a significant investment of over 5 000 USD. In comparison, many licensed brokers offer micro accounts with a minimum deposit of around 100 USD.
The leverage for different account types ranges from 1:50 to 1:400. These are not levels that can be seen at regulated brokers in European markets. Higher leverage allows for higher profits, but also carries a correspondingly increased risk of excessive losses. Therefore the FCA and the European Securities and Markets Authority (ESMA) limit leverage for retail traders to 1:30.
EuroTrade also offers welcome bonuses to clients, a practice that is banned by regulators.
No spread level is specified in the account description. In the trading platform levels of 0.3-0.4 pips are visible. This would be an extremely competitive level if EuroTrade was a legitimate broker. But since it is not, these values mean practically nothing.
EUROTRADE.CO DEPOSIT/WITHDRAW METHODS AND FEES
On the EuroTrade’s website the logos of payment methods such as Skrill, Cashu and Bitcoin can be seen. In the actual deposit menu, however, the only options are three widely unknown and very fishy payment platforms – NeoBanQ, GateWay and Oobit. These questionable payment methods have been used by numerous fraudulent websites that we have reviewed.
The minimum amount the deposit menu accepts is 250 USD.
Nowhere on the website or the legal documentation can one find specific rates for fees and charges levied by EuroTrade. However, a trap often used by scammers can be found in the Terms and Conditions. If the client has received a bonus, the withdrawal of any funds from his account becomes conditional upon the fulfilment of high minimum trading volume requirements. In this case – 30 times the amount of the bonus plus the deposit amount. Such clauses aim to make withdrawing money almost impossible for the victims of the scam.
HOW DOES THE SCAM WORK
With all the buzz surrounding skyrocketing prices of cryptocurrencies, many people are starting to consider investing in the financial markets as a bid to improve their fortunes. Scammers on the internet have taken notice of that and take advantage of the ignorance of the general public by creating countless websites posing as brokers. These websites offer no real brokerage services and only deceive people into believing that their money is really being invested.
If you come across such a scam website and give out your contacts, you will be contacted by experienced scammers who will convince you that they can take on all the frighteningly complex aspects of investing for you. But you will never get any real profits, nor will you be able to get back the money you deposited. The terms and conditions of these websites are riddled with clauses that make withdrawing funds from your account unfeasible – for example, extremely high minimum trading volume requirements or hefty fees of 10%, 20% or even more of the amount.
Scammers hide behind fake addresses and names and operate through offshore companies that are not subject to regulation and scrutiny. So even if all the withdrawal requirements are met, they may simply disappear and move on to their next fraudulent scheme.
WHAT TO DO WHEN SCAMMED
It is very important not to rush into trusting people on the internet who offer to magically refund your money for a fee. These are also scammers, and they may even be the same ones who scammed you in the first place.
If you have made the transfers using credit or debit card, you can claim a chargeback. Visa and MasterCard allow this to be done within 540 days. However, such a request may not be approved if you have given the fraudsters documents such as a copy of an ID and proof of address. This will allow them to claim that the transaction is legitimate and approved by both parties.