Beware! Itraders 24 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.
iTraders 24 is supposed to be a reliable “Bitcoin-based platform, offering leveraged trading on several digital assets including Bitcoin, Ethereum, Litecoin, and Ripple” as well as a platform that could be used for trading forex, stocks, commodities and indices. The moment you open their website though, you will be able to tell that there is something wrong with the broker – the information about their location is inconsistent, the only way to deposit or withdraw is with Bitcoin, and they offer insanely high leverage on an asset as volatile as crypto. In a nutshell, this is not a company you should trust with even a cent – there is no way to be sure that all this talk about segregated accounts, negative balance protection and cold storage is true – these are things only a legitimate, licensed broker could guarantee you. iTraders 24 is not a company that will be protecting you from malicious attacks and unfortunate events – they are the ones that will be doing the robbing.
iTraders 24 REGULATION AND SAFETY OF FUNDS
iTraders 24 has provided an address in the UK and is obviously trying to make you believe that they are a trustworthy UK broker. However, they were nowhere to be found on the register of the FCA – the UK financial regulator which is known to be one of the strictest in the world.
When looking through the broker’s Terms and Conditions, we found out that they are not at all governed by the law of the UK but by the laws of the Seychelles instead – and that they are registered there under the company name AntariLLa Management Inc.
The FSA of Seychelles does impose some laws in relation to forex trading – to be licensed, a broker must have $50 000 in a local bank account and have at least two shareholders and two directors. The same person can, however, act both as a shareholder and a director, and that $50 000 does not have to state in the account – they can be used for other financial activities. Segregation of client accounts is also not a must.
The Spanish financial authority CNMV has even issued a warning on AntariLLa Management Inc proving the fact that they are complete scammers.
Compared to that the UK is much more stern in its requirements – a broker must maintain a minimum capital of €730 000 to ensure their financial stability, and those money cannot be used for any other financial activities. Segregation of client money from the broker’s own funds – so that the broker would not be able to reinvest them – is a complete must, as is negative balance protection – you can never lose more money than you have in your account. Finally, all UK brokers must participate in the the Financial Services Compensation Scheme (FSCS) – so if your broker goes bankrupt, you could get a compensation of up to £85 000. That is why working with a UK broker is a much better and safer choice.
It turned out that iTraders 24 is not anywhere to be found in the FSA of Seychelles register either – which means that they were not able to meet even the most basic of requirements and are completely unregulated and anonymous.
iTraders 24 TRADING SOFTWARE
iTraders 24 offers a web-based platform which, to our huge surprise, was not bad, especially compared to what most scammers would offer you. The software did offer some good charting tools and two pending order types (which is not exactly impressive but is still something).
However, such platforms are quite simple and offer far less opportunities and tools that established software like the one created by MetaQuotes – MetaTrader 4 and MetaTrader 5. Both of these platforms provide you with a lot of tools and features for trading while remaining fairly easy to use. See what the platforms have to offer for yourself – from Expert Advisors and possibilities for designing your own trading bots and indicators with the software’s coding languages to access to a huge trading community where you can exchange strategies with other traders, subscribe to signals, or purchase various trading apps on the MT market.
iTraders 24 TRADING CONDITIONS
The minimum deposit iTraders 24 asks for to open a trading account is $250 – which is more of an upper limit for most reliable brokers these days. Trading is becoming more and more affordable and there are enough brokers who would not ask for more than $100 for a basic account.
The spreads we got on our Classic account were around 2 pips – they are supposed to be tighter on more advanced, more expensive account types. This number is too high considering the fact that most brokers are trying to keep spreads below 1 pip and would rarely go above 1.5 pips. So trading with iTraders 24 would not only be less secure – it would be less lucrative.
The leverage the broker claims to offer – even on crypto pairs – is 1:100. This is far higher than the 1:30 that UK (and EU) brokers are legally able to offer. And that is the number when it comes to forex majors – the ratio is much lower on more volatile assets like cryptocurrencies who you can only trade with leverage of 1:2. iTraders 24 has actually given a quite good description of what leverage is and how it works – with leverage of 1:100, “every $1 provides you with $100 of buying (or selling) power. Using leverage you can get exposure to a much larger position”. But that can not only lead to bigger profits – it can lead to huge losses especially with an asset as new and unstable as crypto.
iTraders 24 DEPOSIT/WITHDRAWAL METHODS AND FEES
The only way to deposit and withdraw money with this broker is via Bitcoin. Cryptocurrencies themselves are an innovative technology providing secure, transparent payments – many legitimate brokers have started accepting Bitcoin alongside some more conventional payment methods like Visa, MasterCard, and wire transfer. However, it is only scammers that don’t give you any other options. Crypto transactions are irreversible – if you are transferring Bitcoin, you are transferring ownership of the part of the blockchain that you own. The only way to restore that ownership is if the recipient decided to give you your Bitcoin back voluntarily – something such scammers would never do.
HOW DOES THE SCAM WORK?
Such scams are rarely very elaborate so it is quite surprising that they manage to trick so many people. It seems that scam brokers are not going away any time soon so it would be good to know how to avoid them.
It all starts innocently enough – you see some impressive ad on the Internet promising to make you rich in a matter of months. And you would not have to do much – just invest a small amount of money with broker X. You are tempted so you provide the scammers with your email and phone numbers. After that, they won’t leave you alone before you deposit. Some scammers disappear right after you have transferred any sort of money but most of them are greedy – they will keep asking for more and more money. And you will be transferring because you will see that you are turning huge profits soon enough – it is very easy for scammers to manipulate platforms to make it look like you are doing great. Keep in mind that such people are well-versed in the arts of smooth-talking and convincing – they will charm you into transferring thousands before you know it.
But once you want to get access to all this money you have won, you will have trouble. The scammers will keep making up additional fees and clauses that prevent you from withdrawing – yet. At some point, they will just stop answering your calls and emails altogether.
WHAT TO DO WHEN SCAMMED?
Such stories rarely end well so prevention is key – always do your research, check registers of different regulators, and read Terms and Conditions carefully.
If you have already gotten scammed, there is still hope. Change any passwords you have provided the scammers with – that includes cases when you have given them remote access to your computer. Notify the responsible authorities and contact your bank or credit card provider to let them know you have been scammed. If you have used Visa or MasterCard to transfer money, you can try asking for a chargeback – this is possible within 540 days. Don’t trust any so-called “recovery agents” that offer to retrieve your money for a fee – this is just another type of scam and it would only lead to you losing more money.
Finally, sharing your story with others is important – this way, fewer people will fall into the same trap.