Beware! Xltrade-ama.net 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.
Xltrade-ama.net is supposedly a UK-based company that offers a solid trading platform and a reliable trading option. However, just one look at the broker’s website confirmed that this is not a company you should consider depositing with. That website looked horrible and did not provide any specific information about the company itself – we were not even provided with any contact information other than an e-mail. Moreover, the broker is not really regulated in the UK or anywhere else which means that they are not under the supervision of any financial authority. If you invest with these scammers, you will probably end up scammed – which is why we advise you to avoid them. There are much more reliable brokers that can offer better trading conditions.
Xltrade-ama.net REGULATION AND SAFETY OF FUNDS
Xltrade-ama.net is run by the UK-based company Chimara Limited. We quickly established that there is in fact a company with that name that is registered in the UK. To offer financial services, however, a broker has to be more than just registered – they have to be licensed by the local financial regulator, the FCA. This is actually one of the strictest, most respected financial authorities in the world – every broker licensed by the FCA is sure to be reliable. The problem was that Xltrade-ama.net was not really licensed by the FCA.
The company also seems to be registered in the British Virgin Islands – but was not regulated in that country either. The British Virgin Islands Financial Services Commission is actually quite strict for an offshore regulator. Locally regulated brokers must maintain a minimum operational capital of between $100 000 and $1 000 000 depending on the broker and the kind of services it wants to offer. This is more than in any other offshore location.
As it turned out, Xltrade-ama.net is not regulated anywhere or monitored by any financial authority – which makes them a risky investment option.
Companies regulated in the UK, the EU, or Australia are probably your safest option for a broker. These are probably the strictest jurisdictions in the world that have countless requirements for brokers and demand that they maintain a high standard. Client money is kept in segregated accounts managed by third parties – this speeds up withdrawals, and proves that the broker could not use your investment for their own purposes. Negative balance protection is provided to all retail clients – this means you cannot lose more money than you have in your account. A minimum operational capital of some sort must be maintained by all licensed brokers – A$1 million in Australia, and€730 000 in the UK, and the EU. In addition to that, UK and EU companies are obligated to participate in compensation schemes – so if such a broker goes bankrupt, each of their clients could receive compensation of up to £85 000 in the UK and €20 000 in the EU.
Xltrade-ama.net TRADING SOFTWARE
Xltrade-ama.net actually provides access to a functional MetaTrader 5:
MT5 is one of the most popular and beloved platforms in the industry for a reason. The platform offers some advanced charting and analysis tools as well as many useful additional features such as Expert Advisors that track markets and trade in accordance with an algorithm, possibilities for creating custom scripts from scratch or with the help of pre-made building blocks, the chance to set trading signals, hedging and netting options, a community chat, a built-in economic calendar, and much more.
A truly great option indeed – but make sure to try it with a reliable broker. Many scammers use the software’s good reputation among traders to their own advantage – so that they could seem more legit and make their offer more attractive. There is, of course, nothing wrong with that. But everything else about Xltrade-ama.net point to them being an insolent scam – do not invest with shady enterprises just because they offer decent software.
Xltrade-ama.net TRADING CONDITIONS
Xltrade-ama.net offers various account types – but none of them are affordable. In order to open an account with this broker, you would have to be willing to invest at least $1000 – which 4 times the amount even the pricier among legitimate brokers would usually ask for. You would have no problem finding a great broker who could open an account for you for $100 or less – so do not waste your time on scammers.
The maximum leverage this broker seems to offer is 1:500. This serves as another concrete proof that they could not be regulated in the UK – brokers in this country, as well as in all EU countries and Australia, are banned from offering leverage higher than 1:30 on forex majors to retail traders. The reason for that is that trading with high leverage could lead to bigger losses – especially if you are an inexperienced beginner. Trading with a leverage of 1:500 without the knowledge of how to handle it could result in you losing a huge amount of money before you even know what hit you – that is why such rates are usually reserved for experienced clients and professionals.
The spread we got on Xltrade-ama.net’s platform was around 0.2 pips on EURUSD – a very good result considering the fact that the average spread for the industry is around 1.5 pips on the same pair. However, when spreads are so tight, brokers usually charge additional commissions – they have no other ways of profiting from you being a client. This broker has mentioned nothing about commissions – which makes us think that those could be huge and potentially prevent you from turning a decent profit.
Xltrade-ama.net DEPOSIT AND WITHDRAWAL METHODS AND FEES
Xltrade-ama.net only accepts deposits made with a credit or debit card. That is actually excellent news. We do not advise you to deposit with this broker since they are not reliable. But if you already have, you still have the chance to get your money back. Both Visa and MasterCard try to combat scams by allowing chargebacks within 540 days of the transaction. If you have transferred money to Xltrade-ama.net, make sure to contact your card issuer as soon as possible to see what can be done in order for you to retrieve your money.
Xltrade-ama.net also seems to offer bonuses – which is problematic because bonuses are actually banned in the UK where the broker is registered. The reason for this ban is simple. Scammers often try to use their bonuses as a means of adding peculiar clauses to their Terms and Conditions. Such clauses usually prevent clients from withdrawing before they have reached a very high turnover. Sometimes you would not be able to withdraw just the bonus and the part of the profits it has helped you generate, sometimes anything at all. This is just a trick the scammers use to prevent you from withdrawing your money too soon – so they could have more time to disappear with it and cover their tracks.
HOW DOES THE SCAM WORK?
You might think that not many people fall for such scams but you would be dead wrong – some scams are quite elaborate and have managed to fool a lot of people. That is why it is important to know what to expect and look for in order to spot a scam broker from a mile away.
The scam starts with an ad on the Internet promising you an easy gateway to forex trading or investing – the only thing you would have to do is open an account with the broker. You know that there are people who trade for a job and that even regular Joes manage to earn a nice side income through trading and wonder why not the same, there is no harm in trying. So you give in and provide the scammers with your contact details.
This is the moment when you will start getting constant calls and emails asking you to deposit – even if you have only opened a demo account. At some point, since everything seems legitimate, you do deposit and in the beginning, things might be looking great. The profits you were promised come soon but you should remember that it is easy for scammers to manipulate platforms to make it look like you are turning a profit. But you will be asked to keep on investing – and you would have no problem doing that because you will be smooth-talked into it by people who scam others for a living.
But when you try to withdraw, you will start running into different obstacles – obscure clauses in the Terms and Conditions preventing you from withdrawing, additional fees and taxes, and weird procedures. At some point, you would not be able to deny the fact you have been scammed – but it will be too late. The scammers will disappear and stop answering your calls and emails and leave you wondering what to do.
WHAT TO DO WHEN SCAMMED?
So what can be done in case you have already deposited?
Be prepared that there is a rather high chance that you would never see your money again. There is, however, still hope to retrieve it especially if you have deposited with a credit or debit card – both Visa and MasterCard allow chargebacks within 540 days of the transaction. Moreover, there are some things you absolutely have to do in order to avoid further losses of money.
Change all passwords and banking details you have provided the scammers with and remove all sorts of remote access software if you have installed such. Some scammers would promise to help you trade, or resolve different problems if you only install such software – their actual agenda is to get access to your computer and all your passwords and information.
Don’t trust any so-called “recovery agents” who offer to retrieve your money for a fee – this is just another type of scam targeting desperate scam victims, often conducted by the same people that are behind your “broker”.
Make sure to notify authorities and try to share your story online, or with your acquaintances – the more people know about such scams and how they function, the lower the success rate they will have.