FTXTrade comes with a professionally built website and offers standard Forex pairs traded on MetaTrader5. However, it fails to prove it’s legitimate and even make claims we can dismiss as fraudulent. FTXTrade is an unreliable broker, and we are going to explain why in the following review.
FTXTrade REGULATION AND SAFETY OF FUNDS
FTXTrade is allegedly a brand of FTX TRADE STOCK COMPANY LTD, a company registered in the UK in January 2021. However, there is no solid proof it’s linked in any way with the entity we are reviewing, and we can reasonably suspect that FTXTrade is a clone firm. We are just speculating, but it’s a fact that the broker has no license issued by the British regulator FCA, as you can see from the screenshot below. So, your funds will be in danger if you deposit with FTXTrade as it’s unregulated. Moreover, we saw the broker falsely claiming to be ASIC, CySEC and IFSC licensed, which further indicates it’s potentially a scam scheme.
As FTXTrade is highly distrustful, you can check the high-rated EU brokers and British brokers instead. We recommend them as the licensed European companies are covered by deposit insurance funds created to protect investors’ money if things go wrong. For example, CySEC brokers’ clients can get up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. It’s worth opening accounts with European companies if eligible to do so.
FTXTrade TRADING SOFTWARE
FTXTrade delivers MetaTrader5, a leading platform that recently surpassed MetaTrader4 in terms of brokers offering it, so it’s the most widespread as of now. Still, in this case, the excellent software provided is a downside because many people may believe that FTXTrade is legit while it’s not.
Anyway, the EUR/USD spread is floating around 0.5 pips most of the time, which is a good Buy/Sell difference. At the same time, though, most of the regulated brokers are offering the same competitive conditions, so it’s a waste of time to deal with suspected scams like FTXTrade.
While on platforms, we can suggest the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists to our readers. The MTs are market leaders packed with advanced features such as Expert advisors, many indicators, and excellent charting tools. The software also includes a marketplace with more than 10 000 apps and third-party developed solutions, which is an unrivalled advantage.
Now, we are going to raise a red flag, as FTXTrade offers 1:500 leverage to retail clients- an excessively risky ratio that can inflict severe losses if not carefully deployed. Well, regulated British and Australian brokers can’t provide such a ratio any longer, which shows again that FTXTrade is fraudulently pretending to be regulated. Beware!
In fact, leverage can be utterly dangerous, and that’s why many regulators are now restricting its usage. Namely, due to regulations, licensed EU, British and Australian brokers have to limit retail clients to 1:30 for FX majors, while Canadian brokers and US brokers to 1:50. Swiss brokers are trustworthy but not leverage restricted, so experienced and risk-tolerant traders eligible to open an account in Switzerland can safely go for it. The rest of the brokers offering excessive ratios are either poorly regulated or not at all, so you should be careful with those.
FTXTrade DEPOSIT/WITHDRAW METHODS AND FEES
FTXTrade fails to explicitly specify its deposit requirements. Still it indicates that the minimum is $50. That’s pretty much in line with the industry standards, but many legit brokers now let traders begin with as little as 5 to 10 dollars, so you shouldn’t consider even sending a dime to the questionable FTXTrade.
The broker mentions nothing about funding methods, but upon registration, we saw Cryptos (ETH, USDT and TRX) and Help2pay deposits are accepted. We need to warn traders that all those options do not allow chargebacks, so if deposited, they won’t be able to get a refund.
Anyway, as FTXTrade is unreliable, see our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred e-wallet or a trusted payment system. The high-rated companies are sufficiently regulated, and you won’t face scammers, so you can safely open accounts.
FTXTrade seemingly imposes no withdrawal restrictions, and the Credit/Debit card transactions are allegedly free of charge. On the other hand, each Wire is said to cost $30, which is definitely too much, but we can’t actually take the broker’s word for it. How can we believe that it sends the money via bank cards and Wires as long as those methods are not accepted for funding? Fishy!
As for inactivity fees, according to the clause, after 90 days of inactivity, the account will be subject to a monthly handling fee of $15. Then, after 6 months, the account will be put dormant, but FTXTrade mentions no charges thereon. At the same time, though, they claim that dormant accounts should be refunded via Wires to become active, but as already known, they do not accept this method for depositing. Inconsistency and a red flag again!
Finally, on the screenshot below, you can see how sloppy this broker actually is. They mention some entity named SwissCapitalFX out of the blue, which we know nothing about actually. That’s probably a blunder, but it’s yet another red flag nonetheless. Beware.
Overall, FTXTrade is an unregulated broker acting suspiciously. That’s more than enough to stay away from this dubious business.
HOW DOES THE SCAM WORK
Scammers are liars and thieves. They’ll promise opportunities that sound too good to be true, get-rich-quick schemes, guaranteed risk-free profits and so on. By creating a false sense of hope, they are trying to entice people into their fraudulent plots.
It all starts with the ads. Scammers create numerous websites and social media profiles to promote their fictitious services. You can see Instagram pages showing lush lifestyles, yachts, cars, money and pictures of winning trades. Such a showcase make people interested and easier to suck into the fraud.
Once you provide your phone number, scammers won’t stop calling you. They’ll promise you the moon and the stars to make you start investing ASAP. If you agree, they’ll pretend to manage your account, and out of the blue, you’ll see mind-boggling profits on your name. You’ll probably sincerely believe that’s true and will most likely ask to take your money out. Well, they won’t let it happen but will skillfully manipulate you to deposit again, promising much more lucrative deals. Before you know it, you may depart with your savings waiting for scammers to make you a millionaire overnight. That’s not going to happen, though, and those crooks will carry on asking for additional deposits. They’ll shamelessly announce to you that you have to pay to withdraw your money. At this point, the scam should be pretty obvious. From then on, scammers will cut communication, and you’ll never hear them again.
WHAT TO DO WHEN SCAMMED
Getting scammed may have long-lasting consequences. However, the first thing you have to do is to start actively looking for assistance and reduce further possible risks. Deactivate your bank card immediately and call your bank.
Quickly report what happened to the authorities, file a complaint, call the police. Seek help actively!
Then, it’s critical not to act hastily because fraudulent fund recovery agencies and individuals can double-scam you.
Share online your experience; it’s important to protect others, too. Be responsible!
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