Beware! Sbtradetek 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.
Sbtradetek is a fairly typical example of a website posing as a forex broker but actually representing a fraudulent scheme. In this review, we’ll take a detailed look at the clues that could tell you that this is not a trustworthy financial services provider. We will also show you credible alternatives when choosing a broker.
SBTRADETEK 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.
The Sbtradetek home page does not list the name of the owning company. A contact address in Monaco is listed:
Elsewhere on the website we find an image of a supposed licence, but not from the financial authorities in Monaco, but from the offshore zone of Vanuatu. This licence is in the name of the company Credit Financier Invest Limited. However, we have not found any evidence that there is a connection between this offshore company and Sbtradetek.
The Terms of Use, which are only available through the account registration form, do not specify a company name or applicable jurisdiction.
Such contradictions and inconsistencies are a clear sign that we are dealing with fraudsters.
If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences.
There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the 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.
SBTRADETEK TRADING SOFTWARE
Account registration gives us access to a basic web-based trading platform. It should be noted that the presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers use rigged trading software to fool their victims that their money is being invested.
While this platform has the basic functionality to place orders, it cannot compare to the capabilities provided by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It is no coincidence that these platforms have established themselves as the industry standard. They offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
SBTRADETEK TRADING CONDITIONS
On the homepage of the website we see a description of three types of trading accounts. A leverage of 1:100 is stated, which also proves that this could not really be a broker operating in a regulated jurisdiction like Monaco.
Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
It is stated that the starter account requires an investment of 1000 USD per month. Authentic forex brokers require a one-time minimum deposit, which is also much lower – often less than 100 USD.
In the FAQ section of the website we find a description of investment plans promising 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.
Sbtradetek also claims to offer bonuses, another practice banned by most financial regulators. Sbtradetek does not provide clear information on the terms associated with these bonuses. This is a red flag because scammers often use bonuses to tie potential victims to hidden fees and other extortionate terms.
SBTRADETEK DEPOSIT/WITHDRAW METHODS AND FEES
The Terms of Use only mention credit card transactions and bank transfers. But in the deposit menu the choice is only between the cryptocurrencies Bitcoin and Tether.
Cryptocurrencies are the payment method of choice for most financial scammers. The reason for this is that on the one hand cryptocurrencies provide a degree of anonymity and on the other hand they do not allow the defrauded person to ask for 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 Skrill,, PayPal, Neteller or Sofort.
Sbtradetek does not provide clear information on fees and withdrawal conditions. But if you make the mistake of giving money to scammers like this, it is highly unlikely that you will be able to get it back.
HOW DOES THE SCAM WORKS
There are many scammers lurking on the internet, luring people with promises of easy riches. These scammers arouse the curiosity of their potential victims through online ads, videos, comments and other content on social networks. Often the initial hook is get-rich-quick tips that link to websites and mobile apps of fake brokers or fake investment firms. After clicking on the ad or downloading the mobile app and having given their contact details, the victims are usually swiftly called by fraudsters presenting a concrete “investment proposal”.
These scammers are very aggressive and often even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims. When you try to withdraw your money, your request is blocked by hidden conditions and huge fees. Fraudsters can also simply disappear because they hide behind fake names and offshore companies.
WHAT TO DO WHEN SCAMMED
First of all, it is important that you do not try to recover your money by trusting people who claim to offer such a service for an upfront fee. These are also 100% scammers. If you used a credit or debit card for the transactions to the scammers, you could ask for a chargeback. But such a claim could be disputed if you provided the scammers with a copy of an ID or proof of address. Scammers usually get their victims to use cryptocurrencies that don’t allow refunds. In any case, it is advisable to inform the relevant financial authorities in your country and spread the word online to warn others not to fall into the same trap.
