Reality World Brokers Review: 5 things you should know about realityworldbrokers.com

Reality World Brokers Review: 5 things you should know about realityworldbrokers.com

Rating: 1

Beware! Reality World Brokers is an offshore broker! Your investment may be at risk.

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Reality World Brokers is as shady as they come. There is nothing about this broker that could convince us that investing with them is worth it. In fact, this is certainly a scam company – they are regulated by an authority that does not exist and offer unsafe trading conditions. Read the full review below.

Reality World Brokers REGULATION AND SAFETY OF FUNDS

Reality World Brokers has not provided any sort of registered address and has not said where it is based. That is our first red flag – no legitimate broker could be that anonymous. The broker has, however, provided a license. That license is supposedly issued by the International Financial Licence Service (IFLS).

The IFLS was not a regulator we had heard of before. Their website did not provide a lot of information about the regulatory authority itself – we could not figure out which country this regulator is supposed to represent. This seems to be yet another fake regulator that was created with the very aim to issue licenses for scam brokers to make them seem more legitimate. When that is the case, we cannot speak of reliability. We cannot be sure that Reality World Brokers has met any sort of requirements or that it would treat you in a fair manner once you start trading with it.

Better turn to a broker licensed by a strict authority like the FCA (the UK), CySEC (Cyprus), or ASIC (Australia) – these brokers are a sound, safe choice and are generally considered to be the best in the world because they have to maintain a high standard and meet countless requirements. Companies have to maintain a minimum operational capital to prove their financial stability – €730 000 in the UK and the EU, and A$1 million in Australia. The sum can, however, be much bigger if the broker has many clients to tend to. Client money is kept separate from the broker’s own funds in segregated accounts – to speed up withdrawals and ensure that the broker would have limited access to your money and could not reinvest it. Negative balance protection is mandatory – this means you could never lose more money than you have in your account.

Reality World Brokers TRADING SOFTWARE

Reality World Brokers offers Xone Trader – a platform that seems to be trying to replicate the well-known MetaTrader software:

In itself, Xone Trader does not seem to be a bad option for a platform. At first glance, the software offers almost the same tools and features as MT4 – with some notable exceptions. The platform does not allow algorithmic trading and does not offer a Strategy Tester – which is already a huge step back from the functionality of MT4. It is also worth noting that Xero Trader is not available on Mac or iOS. Although the platform is not bad, trading on MT4 and MT5 is not more complicated but comes with far more opportunities.

Both MT4 and MT5 offer useful features such as Expert Advisors that track markets and trade automatically, possibilities for creating custom scripts or setting customizable signals, a market for add-ons, on top of over 30 technical indicators, multiple timeframes, and pending order types.

Reality World Brokers TRADING CONDITIONS

Reality World Brokers states that you could start trading with as little as $25. That was not true – while the minimum deposit is indeed $25, opening a Standard account (the only type of account the broker offers) requires depositing as much as $5000. This is an extremely high amount of money to pay for an average account. Trading is hardly only for traders that can invest enormous amounts of money. You can start trading with a legitimate broker for as little as $10.

The spreads we got with Reality World Brokers’ were around 1.2 pips on EURUSD. This is indeed great – the industry average is considered to be 1.5 pips. However, the broker has not provided a comprehensive account description and we cannot be sure that they do not charge any additional commissions. If that turns out to be the case, trading with them might end up being anything but affordable.

The only leverage the broker allows you to trade with is 1:200. That number could not be set any lower. This is quite worrisome considering that this is pretty high leverage to trade with. There is a reason why leverage caps exist in so many stricter jurisdictions. Trading with extremely high rates – it could result in either bigger profits or bigger losses. Be very careful with your settings and do not trade with leverage higher than you are sure you can handle.

Reality World Brokers DEPOSIT AND WITHDRAWAL METHODS AND FEES

Reality World Brokers states that you would be able to deposit with your credit/debit card, via wire transfer, or using an e-wallet. That was not completely true – we were only able to transfer money to the broker via wire transfer. While such payments are safe, they are also mostly irreversible. There are few exemptions to that rule but if you have already deposited with Reality World Brokers, chances are that you would not be able to get your money back.

That is why you should not deposit with such fraudulent brokers in the first place – prevention is the best protection.

HOW DOES THE SCAM WORK?

In recent years, such scams have become more frequent than you can imagine. That is why it is very important to learn how they usually work and how to tell scam brokers apart from legitimate ones.

Always make sure to check the registers of regulatory bodies to make sure that a broker is licensed and reliable. Stay away from shady-looking websites that promise enormous profits in no time with zero effort. Do your own research – never blindly trust what a certain broker is telling you.

All scams start in a fairly similar way. You see an ad on the Internet promising immense fortune in no time – the only thing you have to do is open an account with a particular forex broker. You give in to curiosity and provide the scammers with your phone number and e-mail – at this point, you might still be reluctant to deposit. But once the scammers have your contact information, you will start getting calls and messages from them. They will ask you to deposit to unlock the full potential of their platforms and turn a profit. Keep in mind that such people are well-versed in the art of sweet-talking – they can promise amazing things and make effortless profits seem possible.

After you make an initial deposit, they would not leave you alone and keep asking for more money. You might even be happy to deposit since, at this point, it might seem like you are turning a profit. Scammers tend to manipulate platforms and results to make it look like you are doing great when you are actually just pouring money into their schemes.

The moment you try to withdraw, you will find out that something is not quite right. Reasons why withdrawals are impossible will show up – additional taxes, new clauses in the broker’s Terms and Conditions, etc. At some point, you will figure out that you are being scammed – but it would already be too late. The scammers will stop answering your calls and e-mails – and they will simply disappear with all your deposits.

WHAT TO DO WHEN SCAMMED?

The first thing you should do is contact your bank and inform them about what has happened. Change your banking passwords to ensure that the scammers would have no way of stealing more money.

If you have installed remote access software – such as TeamViewer or AnyTesk – make sure to remove it. Some scam brokers will try to convince you that such software is necessary for a better trading experience – in order for them to help you with platform issues, or even with trading. Their true goal is to get access to your computer and banking systems – so they can start draining your accounts.

If you have deposited with a credit or debit card, make sure to contact your card issuer as soon as possible. Both Visa and MasterCard try to combat scams by allowing chargebacks within 540 days of the transactions. Retrieving your money might still be possible. If you have deposited in crypto, on the other hand, there would, unfortunately, be no way for you to get your money back.

Make sure to inform the authorities in your country about the broker and share your story – online and with acquaintances. This will prevent people from getting scammed in the same way.

One final important note – never trust anyone that calls themselves a “recovery agent”. Such “agents” promise to track down the scammers and retrieve your money – for a fee, of course. This is nothing more but another type of scam directed at desperate people.

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