Beware! SafeTrade 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.
Behind SafeTrade’s flashy exterior, there is an insolent scam. This broker obviously put enough effort and money into their website because, compared to what most scam brokers would usually offer you, SafeTrade’s website does not look too bad and uninformative. That was our impression at first glance. That impression soon got ruined by the ton of ridiculous fees, the lack of regulation and the fact that we could not access any of the platforms SafeTrade claims to use without a promo code. Scammers would sometimes do such maneuvers to make sure you are one of their prechosen, unsuspecting victims and not draw suspicion to themselves. Additionally, they literally have an image on their website advising you to quit your job once you start trading with them.
No legitimate broker would advise you to do such a thing, on the contrary – they are obligated to inform you of the exact percentage of clients that lose their deposits while trading. We have zero doubt that any money you deposit with SafeTrade will be gone forever.
SafeTrade REGULATION AND SAFETY OF FUNDS
Your funds will be anything but safe with SafeTrade. The company has not provided any license information, just a UK phone number and an address in Serbia. This country is far from the strictest when it comes to trading regulations. Brokers must maintain some sort of minimum capital but the number varies depending on the type of financial services the broker wants to offer. While €730 000 is required for a full license – the same number as in the EU and the UK – upon proving a capital of just €125 000, a broker can provide portfolio management services, give investment advice and receive and execute orders. But as the broker does not claim to be regulated by the Serbian financial authority – the Serbian Securities and Exchange Commission – even this small requirement becomes irrelevant.
What is more bothersome is that when we Googled the name of the company, we came upon a warning issued by the UK financial regulator – the FCA – on that broker.
We would choose to believe the FCA’s judgment here and avoid an anonymous, unauthorized broker like SafeTrade at all costs.
If you want to trade securely and count on a certain level of transparency, opt for a broker that is regulated by the FCA, CySEC (Cyprus) or ASIC (Australia). These brokers answer to stern regulatory bodies and have to meet a number of requirements before even being able to call themselves brokers. The minimum capital requirement in Europe is, as mentioned, €730 000 but the number is even higher for Australia – A$1 million. Additionally, all licensed brokers have to keep client deposits in segregated accounts managed by independent third parties. This way, the broker has very limited access to your money once you have deposited it and cannot reinvest it as they see fit. Negative balance protection is also a must – simply put, this means the amount of money you lose cannot exceed the funds in your account.
So choosing to open an account with a regulated broker is the best thing you can do. This is the only way to be sure your funds are being handled properly.
SafeTrade TRADING SOFTWARE
As we mentioned, SafeTrade would not give us access to any of their platforms without a promo code so we cannot speak of those platforms’ qualities. The broker claims to offer the choice between MetaTrader 4 and WebTrader as a mobile trading app.
If you want to try MetaTrader 4 – which remained the most popular platform in the industry for years before being surpassed by MetaTrader 5 recently – there are plenty of legitimate brokers that use that software. It is a pretty good choice for new and experienced traders alike because it is relatively easy to use while still being able to offer a lot of great features. You can use the platform’s own Expert Advisors or develop your personal trading bots and share them with a community of traders. You can also see how your strategies cope through back-testing or in a demo account.
SafeTrade TRADING CONDITIONS
When it comes to trading conditions, without an account we only have to trust SafeTrade’s word. No information was available on leverage. The minimum deposit for a Mini account is $250 – which for most legitimate brokers would be the upper limit.
The spreads were advertised as starting from 0.1 pips – absolutely marvelous terms if they are true. But we have our doubts here and even if these are the actual spreads, that would make the scam even more dangerous. Fake brokers like that would often fabricate great spreads to fool you into depositing more and more money with them.
SafeTrade DEPOSIT/WITHDRAWAL METHODS AND FEES
With SafeTrade, we are supposed to have access to 10+ funding methods but the broker refrains from saying what those would be.
As for peculiar clauses on fees, there are plenty. Firstly, the broker offers bonuses – something European and Australian brokers are prohibited from offering. However, to access that bonus – or any funds made on account of the bonus – you would have to reach a turnover of the bonus amount divided by 4. But who could say which money is your own and which is made thanks to the bonus in this case?
SafeTrade imposes a huge dormant account fee of $100 after just 30 days of inactivity. Legitimate brokers often have such fees but not so soon after you have stopped using an account and rarely this big.
And while supposedly, SafeTrade provides free auto-trading software, there is a $100 fee if you were using that software and chose to close your account or withdraw any funds before ‘trading at least 20 trades with the software’. No legitimate broker would obligate you to pay such fees for trading bots.
HOW DOES THE SCAM WORK?
The way such scams work is usually the same.
You are browsing and you see a banner or an ad for the scammer’s website promising you enormous profit. So you take a look at the website, think it looks good, and register – after all, who would not want to earn money so easily and quickly. And the scammers promise to make an experienced trader out of you in no time. The moment they acquire your contact info, you will start receiving emails and phone calls asking you to deposit. If you do, you will probably see you are making a lot of money soon – a trick aiming to make you invest more.
Time passes, you have made good money and now you want to withdraw. This is the moment the scammers will start making up wild reasons to delay that withdrawal – usually additional taxes. At some point you will start figuring out something is wrong and at that exact moment, the scammers will stop answering your phone calls.
WHAT TO DO IF SCAMMED?
Remain calm and don’t trust any so-called “recovery agents” that say they could retrieve your money if you only paid a small fee. Often enough, these are the same people that scammed you in the first place and even if they are not – that is a whole different type of scam aimed at desperate victims. Your “recovery agent” will disappear as soon as they receive the fee.
What you could do is ask your bank or credit card provider for assistance depending on your deposit method. With credit and debit cards you can file for chargeback within 540 days. Cryptocurrency transactions are non-refundable so don’t trust brokers only offering that payment method. Still, be prepared for the worst since such situations are rarely resolved in a happy manner. If you have verified your account, the scammers might use that as a basis for revoking your claim.
Still, make sure to change any passwords or other sensitive information scammers have received. Notify the authorities and spread the word – in your acquaintance circle and online. You can save a lot of people from the awful situation you might have found yourself in.