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

RECOMMENDED FOREX BROKERS

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The Elite Trader website wants to convince us that this is a well-established forex broker serving millions of satisfied clients worldwide. But even a basic fact check reveals that the truth is the opposite. This website is nothing more than yet another online scam. In this review, I’ll show you how to distinguish the multitude of fake brokers from the real ones, using Elite Trader as an example.

Elite Trader Regulation and safety of funds

Guaranteed FundsSegregated AccountsNegative balance protection
Elite Trader
UK regulated brokers£85 000YesYes
EU regulated brokers€20 000YesYes
AU regulated brokersNoYesYes
US regulted brokersYesYesNo

Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.

According to the information in the footer of the website, this broker is operated by a company named Global Goodies Limited, which is based in the United Kingdom.

In order to operate as a forex broker in this jurisdiction, a company requires the appropriate licences from the Financial Conduct Authority (FCA). But this company cannot be found among those licensed by this regulator.

The texts of the legal documents on this website do not even mention a legal entity name. The Terms and Conditions refer to Estonian law, but this broker is also not licensed in this jurisdiction.

Financial authorities in another European country, France, have blacklisted Elite Trader.

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) 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.

Elite Trader Trading software

Analytical toolsAuto tradingCustom indicatorsMobile apps
Elite Trader platform
MT430+ indicatorsAndroid and iOS
MT550+ indicatorsAndroid and iOS
cTrader40+ indicatorsAndroid and iOS

Elite Trader implements a basic web-based trading platform. This is how it looks like:

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.

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.

On the website we also see links to download remote access software. Scammers often convince potential victims to install such software and provide access to their personal devices, supposedly to get technical help.

Elite Trader Trading instruments

CurrencyStocksIndicesCryptoCommodities
Elite Trader
XMYesYesYesNoYes
FBSYesYesYesYesYes
FXTMYesYesYesYesYes

Elite Trader  claims to offer trading in all major asset classes, including cryptocurrencies. But the FCA prohibits trading in crypto derivatives, so this is further evidence that Elite Trader is not a genuine broker licensed in the UK.

Elite Trader Spreads and cost of trading

Elite TraderXMFBSFXTM
Spread EURUSD0.10.611.1
Spread GBPUSD0.11.31.21.4
Spread USDJPY0.11.31.21.4

Elite Trader does not provide clear information on the trading price. In the trading platform we see a zero spread, which means that the broker must charge some commission. The website mentions an unspecified commission of 10 USD per trade. Real brokers charge a spread and/or commission that rarely exceeds 20 USD per lot traded.

Elite Trader Maximum leverage

ForexStocksCryptoGoldIndices
Elite Trader
500:150:120:1Not specifiedNot specified
UK regulated brokers30:15:110:110:1
EU regulated brokers30:15:12:110:110:1
AU regulated brokers30:15:12:110:110:1
US regulated brokers50:1

Elite Trader  offers leverage up to 1:500 for forex, 1:20 for cryptocurrencies and 1:50 for stocks, which is also proof that it is not a regulated forex broker. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.

All EU regulators limit leverage to 1:30 for major currency pairs, 1:20 for non-major pairs, gold and major indices, 1:10 for other commodities and non-major indices, and 1:2 for cryptocurrencies. The same rules are followed by FCA.

Higher levels of leverage are only offered to professional clients who trade entirely at their own risk. 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.

Elite Trader Deposit and withdrawal methods

At the time of writing this review the deposit menu was not active. We were therefore unable to ascertain what payment methods were available.

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.

Elite Trader Minimum deposit

Elite TraderXMFBSFXTM
Minimum deposit$250$5$10$5

Elite Trader  specifies a minimum deposit of 250 USD, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

Elite Trader Withdrawal requirements

Trading volumeFee/Tax on withdrawalMinimum withdrawal
Elite Trader 200 lots10%$250
UK regulated brokersNoNoNo
EU regulated brokersNoNoNo
AU regulated brokersNoNoNo
US regulated brokersNoNoNo

The minimum withdrawal amount is 250 USD and the withdrawal fee goes up to 50 USD depending on the payment method.

Legitimate brokers do not normally charge transaction fees. Separately, there is a withdrawal levy of 10% if the customer has not traded “200 in turnover” – presumably 200 lots, or 20 million currency units. These are typical scam traps designed to block any withdrawal request.

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