Protradespot review: 5 things you should know about protradespot.com

Protradespot review: 5 things you should know about protradespot.com

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Beware! Protradespot is an offshore broker! Your investment may be at risk.

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Protradespot is a brokerage house based in the UK which offers its services without the permission of the local authorities, as it doesn’t have a forex license. It is also one of those offshore brokers which doesn’t provide any useful information on its website – no data about its trading conditions or payment options. Not to mention that you can’t really see their trading platform until you make your first deposit.

Despite its claims to be trustworthy and the positive comments posted on its website (probably fake, but anyway), this firm seems more like a dangerous scam in disguise. Without giving you the opportunity to see what trading conditions and software you can benefit from, but rushing you to invest as soon as possible – this is exactly what scammers usually do.

Let’s dive into Protradespot’s website and see why it’s an outright scam.

Regulation and safety of funds

Looking at Protradespot’s website we couldn’t help but notice that this broker depends on bold claims but in fact doesn’t display any information that may be important for the customer. For example every legitimate broker would normally post which company runs it, where it is based and under which jurisdiction it operates. You will also be able to find its license number and some more legal documents. All of the above mentioned information can easily be verified on the website of the relevant authority.

So when we saw that Protradespot doesn’t mention which company operates it or whether it is licensed, we were already 100% sure that this is an outright scam. You see, not knowing the name of the company behind this broker makes it practically anonymous and any attempt to invest a sum with it would be highly unreasonable.

Furthermore, Protradespot claims to be situated in London, the UK. Any broker based in the UK must be regulated by the local Financial Conduct Authority (FCA). As you may guess, we didn’t find Protradespot in FCA’s register. Take a look:

So, at this point we know two things for sure – that this broker is absolutely anonymous as we don’t know the company it represents, and secondly that it is not licensed, therefore offers its trading services against the law. For this reason we advise you to stay away from Protradespot by all means!

Still, if you have decided to get into forex trading and invest in financial instruments, the best thing you can do is to research the broker you are dealing with. Except the legal documentation, reputable brokers provide detailed information about its trading conditions, type of software and payment methods. Only scammers hide this information.

Investing with a regulated broker with a proven reputation comes with a lot of advantages, as these brokers are obligated to meet certain requirements.

For example every licensed broker must have a minimal capital, which is a guarantee for its financial stability. Legitimate brokers in the UK and EU must hold a minimum of 730 000 EUR of initial capital. The amount in other parts of the world is even higher – 1 000 000 AUD in Australia and 20 000 000 USD in the US.

As a client of a regulated broker you can also enjoy some perks. For instance you can have a guarantee for your funds – this is the so-called compensation scheme, in which all licensed brokers in the UK and EU are obligated to take part. In short – in case the broker goes insolvent, the customer can be compensated with a certain amount by the relevant authority. In the UK the amount is up to 85 000 GBP. On the other hand, clients in most of the countries from the EU can be issued for up to 20 000 EUR.

Alongside all the obligations that brokers have, let’s not forget the safety of your funds. Regulated brokers must keep their customers’ money in segregated accounts aside from its own capital. This way you can be sure that your investment won’t be misused or stolen.

Trading Software

Protradespot doesn’t mention anything about the type of software it offers. In fact there’s not much information about anything important, as you’ll see very shortly.

After we opened an account with this broker the situation remained generally the same – we were obligated to make a deposit in order to see the trading software. Note that this broker also requires you to fill in some personal information before funding your account.

This sounds highly unfair of course, but remember that this is the way scammers operate – they want you to make a deposit and don’t care about your financial prosperity at all. It may turn out that Protradespot doesn’t offer trading software at all, or if it does – you may find really unfavorable trading conditions. Reputable brokers would never hide such important information, as we already stated. They also tend to offer the best trading software like MetaTrader 4 and MetaTrader 5.

Most reputable brokers usually rely on more sophisticated trading platforms like MetaTrader 4 and MetaTrader 5. They are proven to be the best piece of software for trading purposes nowadays and have been downloaded by millions of people so far.

MetaTrader 4 and MetaTrader 5 happen to be the most popular trading platforms around the world. Both brokers and traders praise them for a good reason, mainly because of how secure and stable they are. You can always rely on them to execute your orders promptly and efficiently. Not only that but all the essential information such as transactions and your IP address is encrypted.

MetaTrader 4 and MetaTrader 5 have some outstanding features but the best one according to traders are the Expert Advisors. These bots have one particular task – to search for certain conditions and to start trading the moment they find them. A truly unique feature that only MT4 and MT5 can brag about.

MetaTrader 4 and MetaTrader 5 are perfect for beginners as well for more advanced traders. You can keep your knowledge up to date with a variety of educational resources and daily forex news. They are also very easy to navigate – you don’t need any previous experience in order to use them. MT4 and MT5 can be downloaded on different devices like PCs, smartphones and tablets.

Unfortunately not long ago Apple removed both of them from its AppStore so MT4 and MT5 can’t be downloaded on Android devices anymore. We really hope this measure is temporary. As for the users that have already downloaded the app, they can continue using it but without any future updates or upgrades. MetaTrader 4 and MetaTrader 5 can still be installed through Google Play Store.

Trading Conditions

As we already mentioned, Protradespot doesn’t specify what trading conditions it offers – nothing about their leverage or spread, not even about the minimum deposit they require.

Such lack of information is unusual even for scammers – usually they try to display at least some information in order to lure you into investing with them. In the case of Protradespot it seems that they rely on bold claims about their experience and “awards”, as well as positive reviews by ”customers” – absolutely fake as we said.

If you have decided to invest in forex pairs, stocks, commodities or cryptocurrencies, you have to be careful what spread and leverage you trade with, as these indicators directly affect your trade.

Let’s start with the spread – remember that the lower the spread is, the lower the trading costs are going to be. Generally any spread less than 1 pip is considered perfect for trading and those between 1 and 2 pips is also advantageous. Be careful if you come across a spread higher than 2 pips, as it will certainly be more costly.

As for the leverage, remember that higher levels of leverage come with inevitable risk for your investment. As tempting as it looks, it’s more probable that you will lose everything because trading with higher levels of leverage is like walking on thin ice – very tricky and unsafe. In fact the leverage is restricted in most of the countries – 1:30 in the UK and the EU and 1:50 for the US. Anything beyond this limit is not recommended for retail traders.

Yet, if you want to trade with higher leverage we suggest looking at some of the offshore subsidiaries of reputable forex brokers here.

The minimum deposit on the other hand is usually around 250 USD – a standard amount for the sector. Sometimes you can open an account with even less – 10 USD for example.

Deposit/ Withdrawal methods and fees

Protradespot also doesn’t mention anything about its payment methods.

The condition stayed the same even when we registered – we were able to choose a currency and the amount we wanted to invest, but we had to upload some personal documents in order to go on with our deposit.

So, unfortunately we can’t confirm what payment options Protradespot accepts.

Bear in mind however that scammers usually insist on paying with cryptocurrencies. Why? It’s very simple – crypto transactions are proven to be 100% irreversible and also anonymous, so you can’t overturn the process or prove anything, even if you have been deceived. And since scammers’ only aim is to make you invest and prevent you from getting even a cent back, this payment method seems perfect for them. Be cautious if you come across any broker who offers crypto coins as the only possible transaction, as you may end up being flat broke.

Reputable brokers on the other hand accept a wide range of payment methods – traditional credit/debit card and bank transfer alongside popular e-wallets like PayPal, Skrill and Neteller are very common options. These payments are known for being not only reliable, but also can give you the chance to file for a chargeback in 540 days (Visa/ Mastercard) or open a dispute (e-wallets).

How does the scam work

Never underestimate online scammers as they happen to be unexpectedly inventive and come up with different ideas on how to deceive people literally every day. Most importantly, remember that offshore brokers don’t have any intention to actually invest your money and don’t care about your prosperity. Their only goal is to make you invest as much as you can and then drop out of sight completely (with your money of course). There are some techniques that are a red flag, so if you come across them, just flee as fast as you can.

Firstly, scammers would try to reach out to you via email or phone, so providing such information carefree is not a good idea. If they succeed in getting this material however do expect a lot of phone calls and emails that contain their promise to double your investment – “risk-free” indeed.

They might also guarantee a very high return on investment without any hard work from your side. This sounds ridiculous already – any investment on the forex market holds more or less risk and requires some knowledge. In fact regulated brokers are obligated to post a warning about trading risks on their websites.

The next step in scammers` fraudulent practice is to manipulate their trading software and make it look as if your funds are being invested and you make huge profits at the same time. This is also a lie with no doubt. Scammers just want to make you invest a “little more” again and again and will take advantage of you as much as they can.

They might also offer some kind of welcome bonus just to make you get in the game. Note that such bonuses come with strings attached – a very high volume requirement you certainly won’t be able to achieve. Not only that but reputable brokers in the EU are restricted from offering such bonuses or promotions exactly because of this malicious practice.

Unfortunately most people realize that all of the above is a lie when it’s too late. Once you try to withdraw any funds from your account you will find out that this is impossible. First however scammers might ask for a certain fee upon the withdrawal request – 10% or even 20%. Note that most reputable brokers don’t ask for a fee at all. Anyway, there’s no point in paying this fee, because even if you do, you still won’t be allowed to withdraw your money. Therefore you may end up losing everything.

What to do when scamed

Certainly there are some Dos and Don’ts when it comes to online scam.

Your first move has to be to turn to the bank that issued your credit or debit card in case you paid with one and file for a chargeback in 540 days. If you have used Skrill, Neteller or PayPal you can also open a dispute. Unfortunately crypto transactions are irreversible and anonymous as we already said, so they are not eligible for a chargeback.

It’s also 100% sure that you shouldn’t turn to people on the internet who suggest restoring your stolen funds in exchange for a certain fee. These people are most probably also fraudsters, so don’t take the risk of losing even more money!

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