Beware! TenXTrade 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.
TenXTrade is a weird Forex creature with strange business behaviour. It seems to be an Introducing Broker to QuickTrade, but at the same time, they make the impression that TenXTrade is the brokerage itself. It’s a controversial entity, and in the following review, we’ll explain why we do not recommend it to anyone!
TenXTrade Regulation And Safety Of Funds
Browsing through TenXTrade’s website, one will get the impression it’s a highly sophisticated South African Forex firm offering some of the best trading conditions possible. However, a few details reveal that’s not actually true. As you can see from the screenshot above, TenXTrade claims to comply with CIPC regulation, which is not really proof of legitimacy. CIPC is a South African government body responsible for company registration, intellectual property rights etc., but it’s not an official regulator, and it doesn’t authorise Forex brokers. The fact that a brokerage is registered with CIPC does not mean the service provided is regulated and practically legal. But TenXTrade insists on being regulated, and they even claim to be, which shows how dishonest the so-called brokerage actually is!
However, the truth about TenXTrade became evident as soon as we accessed the legal documents – all papers actually belong to QuickTrade, which is a South African regulated brokerage, and it’s explicitly stated that TenXTrade is a representative; it’s an Introducing Broker. And for this function, TenXTrade is even enlisted by FSCA, but that doesn’t make it a truly regulated entity. What’s more, the regulator does not provide enough information, which is a reason to label FSCA unreliable – customers could easily believe that TenXTrade is a regulated brokerage, which it’s clearly not!
You’d better avoid it and go for adequately regulated Forex firms instead! For example, both CySEC (Cyprus) licensed brokers and FCA (Britain) brokers are proven safe as both authorities force strict regulations to guarantee safety for clients’ funds. The compulsory rules include client account segregation, risk-reducing measures like leverage restrictions and negative balance protection, and increased capital requirements to license a broker (€730 000). Most importantly, though, both authorities maintain deposit insurance funds – clients of CySEC brokers can claim up to €20 000 in compensation, while the UK protections are even higher at £85 000 per person! It goes without saying that if you trade with unregulated brokers, you’ll remain unprotected and exposed to fraud risks!
TenXTrade Trading Software
On its website, TenXTrade claims to provide MetaTrader5, which is a leading and highly sophisticated platform, but that’s not actually true – QuickTrade provides it, and if you are not running Windows, you won’t get to see any platform whatsoever. Upon registration, one ends up in the Dashboard, but it would be impossible to do anything unless they provide AML/KYC verification – simply put, clients should upload copies of personal documents to open a Demo account, which is a totally unfair business practice! Demos are meant to be training accounts, and no brokerage should ask for personal documents to let clients trade with virtual money!
Nevertheless, there are download links to MT5, but as already mentioned, the platform is provided by QuickTrade, and MacOS users cannot open Demo accounts through the platform. That being so, we faced the same problem – when dealing with TenXTrade, AML/KYC is needed to access the platform. It doesn’t look good, and indeed, you’ll waste less time if you dismiss TenXTrade and go straightforward to QuickTrade. You’d better avoid TenXTrade!
TenXTrade Trading Conditions
As explained, we could access no trading platform, so the actual trading conditions remained unknown. And talking about it, we should remind you that QuickTrade provides the trading conditions, not TenXTrade itself – the latter is a misleading entity making the impression it’s a brokerage itself! It’s not!
But anyway, TenXTrade claims that it provides the following asset classes for trading – Forex, Commodities, Indices, Shares, which is actually a lie – TenXTrade is an Introducing Broker, and it basically provides nothing!
Spreads and leverage are not discussed on TenXTrade, so trading costs and trading risks generally remain unknown.
TenXTrade Deposit/Withdraw Methods And Fees
The minimum deposit with TenXTrade is allegedly 0 ZAR, which is a favourable requirement nonetheless – it’s always good if you can begin with as little as possible. However, due to the highly misleading and dishonest nature of TenXTrade, we can reasonably believe that the actual deposit requirement may be higher, depending on QuickTrade’s T&Cs.
The funding methods are as follows: Ozow, FNB, PayFast, Skrill and Neteller. In addition, the legal documents we accessed suggest that direct Credit/Debit card deposits and Wire Transfers are acceptable.
Particular withdrawal requirements and fees were not discussed, which is a red flag nonetheless – legit companies always explicitly specify all conditions to their services.
How Does The Scam Work
TenXTrade cannot be labelled a scam, but its business is highly controversial. Throughout the entire website, it was never mentioned that TenXTrade is actually a representative, not a broker itself. Moreover, the inability to open Demo accounts unless you provide AML/KYC verification is a red flag! In fact, TenXTrade shows many scam signs, and for that reason, we’ll now quickly explain how scammers usually work while carrying out their disgraceful activities.
Forex scams are different from one another, but in most cases, the fraudulent scheme is practically carried out in the same way. Scam brokers are always unregulated and usually registered somewhere offshore, which helps scammers remain anonymous and untraceable. If you open an account with such an entity, you should expect endless phone calls. Scammers will constantly try to approach you and make you deposit money as quickly as possible. Remember that urgency is always a treacherous sign, so it’s probably a scam if someone calls you twenty times per day, asking for money.
In the worst-case scenario, you’ll deposit, and scammers will persuade you to trade instead of you. You’ll soon see magnificent profits generated – false, of course, and you’ll get excited, asking to take your money back. As you probably guess, they won’t let you do so and will try to get another deposit from you, promising that much more lucrative gains are waiting. Or, they can ask for a false tax, saying that withdrawals are only possible if you cover the charge in advance. If you pay, you’ll increase the amount stolen from you, but if you keep asking for your money, you’ll soon realise it’s a scam!
What To Do If Scammed
You should first inform the authorities – call the police and contact your local regulators and other government bodies dealing with crime and fraud. Also, deactivate your cards ASAP and call your bank to inform them about what happened – they can provide essential information and help you reduce further financial damage.
If you deposited cryptocurrencies, there is not much you can do, but if you used your credit/debit cards, you could file a chargeback, hoping that all or some of the money invested can be retrieved. However, you shouldn’t go blindly looking to recover the loss because many fraudulent chargeback agencies are waiting to double-scam victims of fraud – be cautious about it!
And lastly, consider sharing your experience to help protect others and provide further information about how scams work!