IQOption247Trade review – 5 things you should know about iqoption247trade.com

IQOption247Trade review – 5 things you should know about iqoption247trade.com

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Beware! IQOption247Trade is an offshore broker! Your investment may be at risk.

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IQOption247Trade claims to be an award-winning, regulated forex and CFDs broker. However, a closer inspection reveals that this website is full of false and misleading information, and that IQOption247Trade does not provide the services it claims. You shouldn’t trust your money to IQOption247Trade because you will be scammed.

IQOPTION247TRADE REGULATION AND SAFETY OF FUNDS

IQOption247Trade claims to be based in Belize and to be regulated by the International Financial Services Commission (IFSC) of Belize under the name IQOption247Trade Ltd:

Belize is an offshore zone with no significant regulations for brokers, except for a fee to obtain a license. However, a check of the IFSC registry shows that neither the IQOption247Trade nor the domain used is listed there:

Apparently, IQOption247Tradeis not just an offshore and unregulated broker, but a scam website hiding behind fake company names.

The main page of the website does not mention the name of a legal entity and links to the legal documentation lead to a “page not found” error. There is a working link to the Terms and Conditions only on the account registration form. In this text, another brand, “platinumstrade”, is mentioned alongside IQOption247Trade. This is in all likelihood a reference to another project by the same scammers, accidentally left in the text.

If you have decided to start trading on the financial markets, you should be careful not to fall into the clutches of the many fraud websites, pretending to be brokers. You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or 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 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

IQOPTION247TRADE TRADING SOFTWARE

IQOption247Trade claims to use the two most popular trading platforms – MetaTrader 4 (MT4) and MetaTrader 5 (MT5). However, the links to download the software lead to blank pages. After registering for an account and logging into the IQOption247Trade client portal, we find only a rather simplistic web platform:

The platform displays only a limited number of cryptocurrencies, although the website claims that IQOption247Trade offers hundreds of financial instruments, including currencies, indices, commodities and stocks.

The software has basic functions for applying technical indicators and customizing charts, but the options for placing pending orders are limited. The platform is a far cry from the advanced features found in MT4 and MT5, such as ability to design and implement custom scripts for automated trading and backtesting trade strategies.

IQOPTION247TRADE TRADING CONDITIONS

The IQOption247Trade website describes three types of trading accounts – Classic, Pro and Platinum. The minimum deposit is 1000 USD. You should be aware that many legitimate, regulated brokers allow starter accounts with a minimum deposit of as little as 100 USD or even less.

The description of the accounts states that the Classic account has a “fixed” spread, but no specific level is specified. For the Pro account, a floating spread from 1.2 pips is specified, and for the Platinum account, a floating spread of 0 pips with a fee of 3 USD per lot. Theoretically these are competitive levels, but it is obvious from the state of the trading platform that the IQOption247Trade does not offer real trading. Therefore the values quoted have no real meaning.

A leverage of 1:500 is specified for all accounts. These are levels that can only be seen with offshore brokers and scammers.  High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.

In the EU and UK regulators limit leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. The same rules currently apply to Australia. In the US, the maximum limit is slightly higher at 1:50.

IQOption247Trade also claims to offer bonuses and prizes. This is also prohibited by all leading regulators.

These bonuses are linked to traps set in the text of the Terms and Conditions. If the account has received a bonus, the withdrawal of funds becomes conditional upon meeting high minimum traded volume requirements. The Terms and Conditions define these conditions as “at least 3.3 lots in real money mode for each unit of $10 bonus granted”:

According to the example given by the IQOption247Trade, this means that if the client has received a bonus of 30 USD, he must trade 10 lots, or 1 000 000 currency units. The “real money” wording probably means that leveraged trades don’t count, making the requirements even more unattainable.

Apart from bonuses, the Terms and Conditions mention “rewards” which can only be withdrawn after fulfilling “a trading volume of a minimum of 25 times for every $1 reward”. Scammers often use such confusing clauses to block any requests to withdraw money.

DEPOSIT/WITHDRAW METHODS AND FEES

Credit cards, Бank transfer and Neteller are mentioned as available payment methods in the Terms and conditions of IQOption247Trade, and the Visa, Maestro, MasterCard and e-wallet Skrill logos can be seen on the index page of the website.

However, the deposit menu itself primarily includes Bitcoin and other cryptocurrencies. At the end of the list you can see options for bank transfer, Western Union , MoneyGram and PayPal, but these require you to contact support. This means that the only options actually available are cryptocurrencies.

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.

The minimum initial deposit is 1000 USD and the minimum amount for subsequent deposits is 50 USD. The minimum withdrawal amount is also 50 USD. IQOption247Trade claims that it does not charge any deposit fees.

HOW DOES THE SCAM WORK

Many people have a desire to invest in the financial markets but lack the necessary knowledge and experience. This makes them a potential victim of the many internet scammers posing as brokers and investment intermediaries. These types of scams have exploded alongside the cryptocurrency boom.

If you trust such a website and give them your personal information, you will be contacted by experienced scammers who will entice you with promises of easy profits. The scammers usually offer to take over all aspects of investing for you, sometimes even prompting you to install remote access software on your personal computer. After investing an initial low amount, they will convince you that you are already making incredible profits and urge you to invest more.

But you will never get the promised profits, nor will you be able to get your money back. If you want to withdraw funds from your account, you will find that you have suddenly lost everything in the market, or that you have to meet impossibly high traded volume requirements, or that you have to pay huge fees. It is also possible that fraudsters simply disappear because they hide behind fake names and shell companies in offshore areas that are not subject to any control and regulation.

WHAT TO DO WHEN SCAMMED

One of the few options to get at least some of your money back in such a situation is to ask for a chargeback. But this is only possible if you have used a credit or debit card for the transaction. Scammers typically use cryptocurrencies or dubious e-wallets that make it impossible to get your money back.

Under no circumstances should you trust people and websites that promise to magically refund your lost money for an upfront fee. This is also a well established scam. You may even fall victim to the same scammers again.

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