SimpleTrading review – 5 things you should know about simpletrading.broker

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

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

The SimpleTrading website tries to convince us that it would be a good idea to invest in the financial markets through this forex broker. But careful inspection shows that this would be a mistake because SimpleTrading is not a legitimate financial services provider at all. Let’s unravel suspiciously how you could identify this scam and how to find a trustworthy and suitable investment intermediary for yourself.

SimpleTrading 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.

SimpleTrading does not disclose the name of the company behind this website and does not provide access to Client Agreement or other legal documentation. If you do not know exactly who you are dealing with and what terms you are agreeing to it would be an unforgivable mistake to put your money on the line.

The website lists a contact address in the United Kingdom, but SimpleTrading is not listed among the brokers authorised by the UK’s Financial Conduct Authority (FCA).

Another European regulator, the Spanish CNMV, has published warnings to investors that SimpleTrading is not authorised.

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 FCA or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.

SimpleTrading Trading software

SimpleTrading  uses a basic web-based trading platform. Order placement functions are not available unless a deposit is made, therefore we were unable to test the functionality of the software.

It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use rigged trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.

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.

SimpleTrading Trading instruments

SimpleTrading advertises forex, indices, stocks, metals, energies and cryptocurrency trading but does not provide a list of tradable instruments. Since the FCA prohibits trading in crypto derivatives, this is further evidence that SimpleTrading is not a UK-based broker.

SimpleTrading Spreads and cost of trading

SimpleTrading does not offer different account types and does not provide information on basic trading parameters.

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.

SimpleTrading Maximum leverage

A leverage level of up to 1:500 can be selected when registering an account.

This is not a level that you see with regulated brokers. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders.

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.

SimpleTrading Deposit and withdrawal methods

SimpleTrading claims to allow credit card deposits, but the deposit menu is not functional. Instead, you get a message that your request has been accepted and a manager will contact you.

Experience has shown that fake brokers routinely advertise conventional payment methods, but actually steer their potential victims towards cryptocurrency transactions. This not only guarantees them anonymity, but also deprives the defrauded of the option to request a refund or chargeback.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

SimpleTrading Minimum deposit

A minimum amount of 250 USD is set in the deposit menu. For the same or often a much lower amount you could open a starter trading account with a legitimate and established forex broker.

SimpleTrading Withdrawal requirements

Since SimpleTrading does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.