Beware! FTX Trades 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.
FTX Trades represents a not very convincing attempt by a financial fraud to pose as a legitimate forex broker. Obviously this scheme is aimed at people who do not have the necessary experience and knowledge of financial trading to detect that something is amiss. Let’s take a detailed look at the clues that the sole purpose of FTX Trades is to scam you out of your money.
FTX TRADES REGULATION AND SAFETY OF FUNDS
If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has. Genuine brokers also provide access to a comprehensive set of legal documentation. The availability of such information does not guarantee that it is not false or misleading. But the absence of these elements is very indicative that in all likelihood you are dealing with scammers.
According to these criteria we can categorically describe FTX Trades as a scam because this website is completely anonymous. Nowhere is the name of the owning company given, there is not even a contact address. FTX Trades does not provide access to Terms and Conditions, Customer Agreement or other documentation. We do not know exactly who we are dealing with, nor what the terms of the deal are. The only certainty is that FTX Trades is not a licensed forex broker. Under such circumstances it would be very unwise to put our money on the line.
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.
FTX TRADES TRADING SOFTWARE
The FTX Trades website promises the industry’s two most widely used trading platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5), as well as its own “world-class” platform.
But the website lacks download links for these platforms. After registering an account, we find that FTX Trades does not have any trading software. This definitively exposes this website as a low-effort scam.
Instead of the technological capacity to trade, FTX Trades offers subscription plans that allow people with no experience to use an account manager to trade for them. Some legitimate brokers offer such services, but with scammers like FTX Trades, it’s just a way to fool victims into thinking their money is really being invested.
You could always use the services of a regulated broker, the vast majority of which offer clients MT5 or the still very popular MT4. This will enable you to use the advanced features of these platforms without fear of being scammed. These platforms are preferred by the majority of brokers around the world because of their powerful automated trading capabilities, including Expert Advisor bots and customised scripts for backtesting trading strategies.
FTX TRADES TRADING CONDITIONS
Legitimate forex brokers offer a variety of trading account types tailored to the needs of clients with different capital and investment intentions. These brokers also provide clear and detailed information on trading parameters – leverage, spread, commissions, order execution method, etc.
The FTX Trades website lacks such information. On the home page we see only promises of low cost and high returns. After registering an account, we get access to a list of investment plans promising high and guaranteed returns.
A genuine broker will not and cannot promise you guaranteed profits. In fact, licensed companies are obliged by regulators to warn their clients about the high risk of losses when trading financial instruments.
The minimum deposit for these plans is 300 USD. For a significantly lower amount, you could open a starter trading account with a licensed broker, including many of the industry’s leading brands.
FTX TRADES DEPOSIT/WITHDRAW METHODS AND FEES
The FTX Trades deposit menu includes only two options – the cryptocurrencies Bitcoin and Ethereum.
This is very typical of financial fraudsters. Cryptocurrency transactions provide them with a degree of anonymity, while at the same time depriving the defrauded of the ability to claim a refund. While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Sofort or QIWI.
The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet withdrawal terms.
HOW DOES THE SCAM WORK
While browsing the interwebs there is a significant chance you will come across comments, videos, social media pages that promise easy ways to passively make money. If you follow the links you will be taken to websites claiming to be legitimate brokers or investment firms. And if you take the next step and make contact with the people behind these websites, you will be contacted by slick and experienced scammers who will lure you in with promises of easy profits. For a while they will convince you that your investment is generating impressive returns and you need to pour in even more money to make sure you don’t miss out on this once in a lifetime opportunity.
However, the attitude towards you will be changed if you want to withdraw your money. Suddenly, it will turn out that your investment makes losses and you even owe money to the fake broker for unexpected fees and expenses. They will show you clauses hidden in the Terms and Conditions, according to which you can only withdraw money after you have traded an impossible minimum volume, or that you will have to pay withdrawal fees of 20%, 30% or even more. When you try to hold them accountable you will find they are using fake names and shell companies in shady offshore jurisdictions without any regulatory oversight.
WHAT TO DO WHEN SCAMMED
Your options to recover your money are limited. If credit/debit cards were used for the transactions, you have the possibility to request a chargeback. But most scammers insist that you send them proof of identity and address with which they can dispute that the transactions were legitimate. Fraudsters also predominantly use cryptocurrencies, where refunds are impossible.
You should also be aware that there are many scammers who offer to recover your money for an upfront fee. You should not trust such offers. It is better to contact the relevant authorities in your country and warn them about the activities of the scammers.