Beware! Snow-Trade.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.
There are broker like Snow-Trade.com that truly amaze us with how they are able to get away with what they are doing. It’s all a matter of time until this broker gets busted, but as of now its scammer potential is in full force mode. Not to mention that it looks very much like you typical scammer site, hence our preliminary amazement. If you don’t want to lose money read the following review on how to protect yourself from and why.
It was an overall easy registration process with this broker, and in a matter of minutes we were introduced to a web trader. There the 1.3 pips for the EUR/USD seemed to us pretty decent, and surprisingly the broker does not mention any spread related commissions. The leverage is maxed at an even 1:200.
There are account types on the website that seem to apply. These accounts indicated on the website don’t really apply to registered users. I.e there is just one single account tier by default, the one we opened. The broker lies to users in order to make itself look more professional.
SNOW-TRADE.COM REGULATION AND SAFETY OF FUNDS
The broker clearly says that it abides by MiFiD rulings. Here’s two issue that we have worth this. First off, MiFiD in and of itself cannot act as a regulator because it’s not an agency but a decreed, a regulatory legislation that complements all EU regulators, like the FCA, BaFIN, CySEC, etc. Consequently, in order to adhere to these rules ths broker must also be regulated by either one of the aforementioned regulators or another EU-based Financial watchdog that covers FX regulations. It looks like Snow-Trade.com never had this in mind, and as a result it completely lack an EU license.
Moreover, the broker tells us that the relationship between parties is governed by Estonian laws. Same principle here; if one wishes to be follow local rules and guidelines one must be regulated by the local FX watchdog. In the case of Estonia, it’s the Estonian Financial Supervision Authority. But this is not the case hee re for Snow-Trade.com is not licensed there. It just uses Estonia as a scapegoat, as many illicit brokers have done in the past.
When that’s out of the way, the broker reverts to long and quite useless provisions about laws and jurisdictions, not ones mentioned by names but generalized in order to make the impression of a legit business.
Whereas Snow-Trade.com is completely illegal and unlicensed!
Unless you wish to throw your money away for no reason , there is absolutely no incentive for investing in unlicensed brokers. In fact, you would be doing them a big favor by funding their further fraudulent projects. If you wish to trade real FX and CFD with regulated brokers, looks no further that those that are regulated, especially in well known locations such as Europe, the UK, the US, or Australia. The regulators there are pedantic to a ridiculous degree and will do everything in their power to uphold the rights of the user and the integrity of the market industry. It is within their power to penalize brokers and demand client compensation, as well as to set industry standards and introduce new rules and regulation.
SNOW-TRADE.COM TRADING SOFTWARE
Here we are faced with a conundrum. On the one hand we have a decent web trader that seems out of place with this broker, while on the other hand the broker is illicit so we don’t know the real means it used in precuring the terminal.
This leaves us sort of in a shady area since we like the web trader, but not used with this broker. We recommend to users to interact with it on different brokers, and not with Snow-Trade.com.
SNOW-TRADE.COM DEPOSIT/WITHDRAW METHODS AND FEES
Clients of the broker can invest only by means of a credit or debit card, with a minimum payment requirement of $250. However, withdrawals are allowed to be channeled through a bank, a card, and some unknown crypto wallet. Having withdrawal methods different from those used for deposits isin direct violation of AML rules, and therefore acts as one of the biggest signs that Snow-Trade.com is no regulated
Here are the rest of the withdrawal conditions. It takes 2 days to process a request, and there is a small fee applied to bank transfer withdrawals that has not been revealed.
Snow-Trade.com couldn’t get worse even if it wanted. Do not invest your money here.
HOW DOES THE SCAM WORK
Getting scammed usually happens without you knowing it. It’s a deceivingly simple process that owes its success precisely because it seems so avoidable.
First, there is the matter of getting in contact with the broker which happens in one of two ways. Either it contacts you, or you it. If it calls, it means that somewhere in your net journey you accidently left a phone number or an email address. Or you were persuaded by the broker to contact it, which is why many scammer brokerage sites looks so appealing.
The hardest thing to achieve, for a fraudster, is to convince a user to invest an initial deposit. Prior to this a certain level of trust must be built, centered around a false sense of rapport. The broker will fake an interest in the user and in the process talk about market and profit opportunities, as well as investment choices. It’s all a part of a retaining strategy that will keep the user invested for at least a couple of thousand dollars, on average, until, eventually, he realizes the scammer pit he has fallen in.
When this happens, the broker will seize all contact with the user, and might even block the client from the website. It will go to great lengths not to return a single penny of the user’s money.
WHAT TO DO IF SCAMMED
The first thing you should do it to file for a charge back. That’s if you have invested by means of a credit or debit card. MasterCard and VISA have a chargeback period of 540 days giving users more than enough time to try to get their money back.
Wire transfer deposits are not as easy to acquire, and the best advice we can give you is to set up a reimbursement strategy with the bank leading the transactions. Most banks have strategies put in motion when these circumstances are met. Furthermore, if scammed via a wire transfer, it’s best to change your bank account user name and password.
Unfortunately, all crypto deposits are most surely lost for good. These transactions are untraceable and therefore once they reach the scammer end it all depends on the fraudsters if you see your money back or not.
Lastly, do not trust recovery agents or agencies. These are either separate scammers trying to get a hold of any leftovers, or can even be an extension of the brokerage scam.