Beware! DigitalTradeZone.com 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.
DigitalTradeZone presents itself as a transparent and secure cryptocurrency trading platform. However, fact-checking reveals that it is an anonymous and highly suspicious website that was set up to cash in on the hype surrounding cryptocurrencies. DigitalTradeZone is not a regulated broker and your money would not be safe there.
DIGITALTRADEZONE.COM REGULATION AND SAFETY OF FUNDS
The main page of the DigitalTradeZone website does not specify the legal entity behind it. In the Terms and Conditions it is stated that the company behind the website is Digital Trade Zone Trading Solutions Ltd. The same company is listed as running another scam site we’ve reviewed – Coinsleverage.com. The two websites are identical in almost every aspect.
This company is stated to be incorporated in the Republic of Seychelles. This is an offshore zone that does not impose any significant oversight on brokerage firms. The required minimum capital for brokers there, for example, is barely 50 000 USD. By comparison, the minimum net capital that brokers must hold in the EU and the UK is EUR 730 000. In Australia the minimum capital is AUD 1000 000, and in the US – at least USD 20 000 000.
However, a check of the Seychelles Financial Services Authority (FSA) records shows that there is no broker named Digital Trade Zone Trading Solutions Ltd. So DigitalTradeZone is obviously lying about its registration and it is not subject to even that minimal scrutiny.
If you have a desire to trade cryptocurrencies and other financial instruments, you should avoid such anonymous websites. To avoid being scammed, contact one of the many legitimate brokers operating in the UK, EU, USA or Australia.
There, the activities of brokers are controlled by powerful regulatory bodies such as Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) and Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.
In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to EUR 20,000 EU and 85,000 GBP in the UK. An offshore broker could not provide such guarantees.
DIGITALTRADEZONE.COM TRADING SOFTWARE
DigitalTradeZone claims to offer “a broad range of powerful tools to harness your trading skills and boost profits”. But after signing up for an account, it becomes apparent that DigitalTradeZone does not actually have a real trading platform.
There is a trading menu separate from the chart, but it is designed for binary options. Nowhere on the DigitalTradeZone website is it indicated that it deals with such financial instruments.
At the time of writing this review, the trading menu did not appear to be functioning and was giving an error message when trying to place an order.
It should be noted that due to the many exploits and scams associated with binary options, trading in them is banned in a number of leading markets such as the EU, UK and Australia.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
DIGITALTRADEZONE.COM TRADING CONDITIONS
DigitalTradeZone does not offer different account types – something that has become standard for brokers and is imitated even by most scammers. On the website, one can see a claim that you can start trading with as little as USD 10. But it would be much wiser to use the services of a legitimate broker, many of whom offer accounts with a very low minimum deposit.
The website also states that DigitalTradeZone e offers Bitcoin trading with up to 1:100 leverage. These are levels that far exceed those allowed to regulated brokers. Due to the volatility of cryptocurrencies, they are subject to the strictest leverage limits. In the EU and the UK, for example, the permitted leverage for cryptocurrency trading is only 1:2. The same restrictions currently apply in Australia. In the USA the limit is slightly higher – 1:5.
On the website can be found an extensive list of fees DigitalTradeZone charges:
Тhere is a “Maker fee” for placing a pending order and a “Taker fee” for an immediately executed order. These fees are 0.019% and 0.060% respectively. On top of that, the DigitalTradeZone charges interest, a kind of rollover fee, every eight hours. This interest varies depending on the asset and goes up to 0.55%
There is no explanation of how these fees relate to the Call and Put orders that are available on the trading platform for binary options. But in general it is very doubtful that DigitalTradeZone offers any real trading, be it binary options or otherwise.
DIGITALTRADEZONE.COM DEPOSIT/WITHDRAW METHODS AND FEES
However, there is no deposit menu in the customer portal itself. This means that either the platform is not yet complete or DigitalTradeZone wants to force you to contact them directly to arrange a funds transfer.
Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Sofort or iDeal.
In the text of the Terms and Conditions can be found the alarming clause that the customer may lose cryptocurrency from his account if the DigitalTradeZone stops supporting transfers with these cryptocurrencies:
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.