Beware! Super Trade Fx 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.
Super Trade Fx is part of a seemingly endless array of almost identical scam websites posing as regulated brokers. Super Trade Fx claims to offer trading in currencies, stocks and binary options, but even a basic fact check reveals that this is not true. This is a poorly disguised fraud targeting people without sufficient knowledge of financial markets.
SUPER TRADE FX REGULATION AND SAFETY OF FUNDS
The first telltale sign is that the Super Trade Fx website shares almost all of its elements with dozens of other fake brokers we’ve come across. IqFxOptions, Primextrade and Hodleltd are just some of the more recent examples. But even if you haven’t come across the identical scammers, you can easily determine that Super Trade Fx is not a legitimate business at all.
Legitimate brokers provide on the main page of their websites comprehensive information about the legal entity that operates them, the licenses they hold, and the regulatory institutions that oversee their activities. The Super Trade Fx website does not even mention a company name. Such a name is found only in the text of the short and very generic Terms and Conditions – Super Trade Fx Ltd.
But it is not difficult to establish that this name is fake. The address listed on the website is in the United States, one of the jurisdictions with the most stringent requirements for brokers:
To operate as a forex broker in the US, a broker must be registered with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA). There is no Super Trade Fx in the NFA database:
We also find in the Terms and Conditions the formulation that the name and logo of the company are trademarks in the United States and the United Kingdom. However, on the website of the UK regulator, the Financial Conduct Authority (FCA), we do not find a broker’s licence, but a warning that Super Trade Fx offers financial services without authorisation:
Super Trade Fx also allegedly offers binary options trading, which is banned in the UK. This type of trading, associated with many scams and exploits, is allowed in a limited capacity in the U.S., but as we have seen, Super Trade Fx lies about being based and licensed there.
The British regulator also warns about some of the other names used by these scammers. One of these, Wolvestradefx, can be seen on the Super Trade Fx website, presumably forgotten when copy-pasting assets from one website to the other.
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.
SUPER TRADE FX TRADING SOFTWARE
Super Trade Fx is a low-effort scam, which is evident by the fact that it doesn’t even offer an imitation trading platform. The “trading” menu in the client portal only has a simple chart with the current price of Apple Inc stocks, taken for free from the TradingView website.
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.
SUPER TRADE FX TRADING CONDITIONS
When registering for an account you must choose between four trading account types, Basic, Silver, Gold and Premium. However, no description or even mention of these accounts can be found on the website. In the client portal we find an option to upgrade our account from Basic, but there is no description of the trading conditions there either.
Basic trading parameters are mentioned in passing on the website. It advertises a “low minimum deposit of 500 USD”. However, this is not low at all, considering that many real brokers offer starter accounts with a minimum deposit of 100 USD.
On the website we also find claims of a spread of 0.2 pips for forex trading, but since Super Trade Fx doesn’t even have a trading platform, this means nothing. Leverage of 1:500 is also indicated, which can only serve as further evidence that this could not be a true broker licensed in the US or UK.
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. The FCA limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. In the US, the maximum limit is slightly higher at 1:50.
Super Trade Fx also promises generous account upgrade bonuses. All leading regulators prohibit brokers from using bonuses, promotions and similar practices.
SUPER TRADE FX DEPOSIT/WITHDRAW METHODS AND FEES
In the deposit menu of Super Trade Fx we see multiple options – Bitcoin, credit/debit cards, MoneyGram, Western Union and Skrill. But only Bitcoin is actually active. Choosing any other payment method brings up a message to “contact Live Chat agent to receive the appropriate payment details”. Here we see left by mistake the name of another website of the same scammers, dc-markettrades.com:
Scammers use predominantly cryptocurrencies because these transactions are not subject to refunds. If you are interested in licensed brokers that accept cryptocurrencies as a means of payment, take a look at this list.
HOW DOES THE SCAM WORK
Fake brokers are a type of scam that has spread especially rapidly in recent years, aided by the excitement surrounding cryptocurrencies. People looking for ways to make money online can very easily come across one of the many scam websites of this type. Scammers are very skilled at convincing people to invest – first small amounts of a few hundred dollars, and then larger sums of money. Some of the scam schemes are quite elaborate and even use trading software to convince victims that their money is actually being invested and even racking up profits.
But when you ask to withdraw those winnings, or even your deposit, you’ll find it’s impossible – you’ll be told that a sudden change in the market has wiped out all your money, or that you have to meet impossible minimum trading volume requirements and pay huge fees and commissions hidden in the terms and conditions. Fraudsters can also simply disappear because they use fake names and offshore shell companies for their operations.
WHAT TO DO WHEN SCAMMED
If you find yourself scammed, the first thing you should do is notify the financial authorities in your country about the scammers’ activities, and spread the word online to warn other potential victims.
Your options for getting your money back are limited. If credit or debit cards were used for the transactions to the scammers, you have the option to request a chargeback. Companies like Visa and MasterCard now allow such requests to be made up to 540 days after the transaction. But keep in mind that if you have provided proof of your identity to the fraudsters, they may dispute that the transaction was voluntary. In addition, fraudsters typically use cryptocurrencies and shady e-wallets that do not allow refunds.
Victims of scams are often targeted by another type of online fraudsters who promise that their money can be refunded for an upfront fee. Under no circumstances should you trust such offers.