iTradeFX has a very peculiar URL (itradefx.capital) and it seems as if the broker doesn’t want people to find it very easily. The unique nature of their URL makes them appear shady however, it would be wrong to judge a book by its cover.
So in my iTradeFX review, I have covered all the aspects of this forex broker to figure out whether you can trust them with your funds or not:
iTradeFX License and Regulation
The first thing you should always look for is the broker’s address. The address of a broker would determine which jurisdiction it would fall into. In case the broker belongs to an offshore area such as Marshall Islands or St. Vincent and the Grenadines, you should stay away from them.
The ‘About Us’ page claims the parent company of iTradeFX is MM Capital Group Limited however, there is no information available on the internet about this firm.
All I could find on MM Capital Group Limited is that a company with this name used to exist in the UK but got dissolved in 2016.
On other places, iTradeFX has mentioned completely different companies which suggests this broker has copy-pasted information from various companies and is using it in its About US and similar pages.
In the ‘Our Values’ section of their ‘About Us’ page, they claim to be AX-Capital:
Then, they have mentioned themselves as Mason Ford, a blacklisted company by the Belgian regulator FSMA (Financial Services and Markets Authority):
While mentioning so many different company names in their documents, they never mention their regulator. iTradeFX gives no information about its license, indicating that it is indeed an unregulated and unlicensed broker.
Unregulated and unlicensed brokers are very dangerous as they can steal your funds (through hidden charges) and even your private data!
Regulatory authorities such as CySEC (Cyprus Securities and Exchange Commission) or FCA (Financial Conduct Authority) have many rules and regulations. These regulations make sure the broker doesn’t harm the interests of their users, and doesn’t deceive them.
Moreover, regulatory authorities have insurance policies in case one of their licensed brokers breaks a regulation or steals their users’ funds. With unlicensed brokers, you don’t get any of these benefits.
iTradeFX Trading Conditions
Even though the license of a broker can tell you a lot about its reliability, the second-most important factor is its trading conditions. What trading platform does it offer? What’s the minimum deposit limit? We’ll discuss these factors in detail to determine whether iTradeFX is a reliable broker or not:
To write this iTradeFX review, I needed to create an account with this broker. So I signed up there by giving my phone number, email ID and name. However they didn’t send any email verification message sent to me which seemed very suspicious.
Let’s talk about the trading platform now. iTradeFX offers you a generic web-based trading platform that offers you very few functionalities and features.
This broker offers a generic and low-quality web-based trading platform to its clients. It is quite disappointing.
The most popular trading platforms in the industry are Metatrader 4 and Metatrader 5. They pack a lot of features and benefits while providing excellent customer support. That’s why around 80% of the industry uses these platforms. In my opinion, you should only trade with a broker which uses these platforms.
The minimum deposit to start trading with this broker is $2,500. This is too high and suggests that the intentions of this broker aren’t good. Most regulated brokers keep their minimum deposit requirements around $100 or $50 so the iTradeFX demands at least 25 times the industry norm as its initial deposit requirement.
A high minimum deposit usually indicates that the broker is a scam. While regulated brokers strive to give their new users a chance to experience their services without making a big financial commitment, shady brokers don’t want you to test out their services.
Shady brokers force you to invest a heavy amount at the start so they can steal at least that amount from you. You should stay away from brokers that have high minimum deposits.
Leverage and Spreads
This broker claims to offer spreads that start from 1 pip. When I checked their trading account, I verified this claim and it holds up.
Their offered spread matches the industry average of 0.5 to 1.5 pips. The tighter the spread is, the more profits a trader can get, so I liked that iTradeFX offers competitive spreads.
However, I can’t ignore the suspicious nature of the forex broker so even if they offer a good spread, I don’t recommend their services.
Surprisingly, iTradeFX doesn’t give any information about the leverage it offers. I’m suspecting it’s because their offered leverage is too high or very unimpressive. A high leverage ratio usually indicates that the broker is a scam, that’s why some shady brokers don’t share this information on thier sites at all.
If a broker offers a very high leverage, you should be wary of them. Many financial regulators in different regions have imposed restrictions on how much leverage brokers can offer to their clients.
For example, in the US, a broker can offer a maximum leverage ratio of 1:50.
They have these restrictions because a high leverage ratio can cause you huge losses very quickly. Such leverage ratios are dangerous for new traders particularly.
iTradeFX offers multiple trading accounts to its clients. However, they don’t let you open a demo account and test out their platform or services.
I noticed a very interesting thing about their demo account. They show two buttons on their homepage, one for opening a Trading account (live account) while the other for opening a Demo account.
However, no matter which one you click on, you’ll be directed to their ‘Open Live Account’ page. It means the broker is lying to you by having a separate button for opening a ‘Demo Account’. iTradeFX is misleading people and it’s certainly not something a reliable broker would do.
Let me point to you the various trading account iTradeFX offers:
The minimum deposit for this account is $2,500. You get recommendations, 24-hour support and up to 10% margin loan.
You get all the benefits of the previous account along with 35% margin loans. The minimum deposit requirement for this account is $10,000.
This account requires a minimum investment of $50,000 and offers daily market reviews, expert account consultancy, higher leverage ratios, and up to 50% margin loans along with the benefits of the previous accounts.
This account requires a minimum investment of $100,000 and access to a personal VIP consultant, risk free trades, VIP events, higher trade amounts and up to 100% margin loans.
Unlike most shady brokers, iTradeFX uses the concept of margin loans to attract traders. Beware of them as taking such loans would only make it difficult for you to get your funds back from this broker.
iTradeFX Payment Methods and Charges
iTradeFX claims to offer three payment options for adding funds or withdrawing them: Wire transfer, bitcoin, and credit card. But here’s the interesting part. WHen I tried to use the banking method to add funds to my trading account the website showed me a message staying they don’t support this payment method and I should contact the customer service of the website.
This means iTradeFX is lying about the payment options available on its website. Without banking methods, the only payment method that remains is Bitcoin which I never recommend to use.
The problem with Bitcoin is that its transactions are non-refundable. With bank cards or Paypal, you can file a chargeback in case the broker turns out to be a scam. However, with Bitcoin, you don’t get the option to file a chargeback.
This is why scammers prefer using Bitcoin and wire transfers (also non-refundable).
“iTradeFX claims it offers three payment methods but out of them only one (Bitcoin) works. It is deceptive and another indication that this broker is a scam.
iTradeFX claims to charge a dormant fee if your account remains inactive for twelve consecutive months. They will charge you $50 or deduct the entire account balance if the balance is below $50.
Apart from the dormant fee, they don’t give any information about any of the other charges they might have. The broker doesn’t claim that it does not charge any fees. So it’s clear that iTradeFX has kept its fee-related information hidden from its prospective clients.
Forex scams usually keep their fee-related information hidden so they can charge whatever they prefer and steal their clients’ funds.
iTradeFX offers margin loans to its clients, which are similar to bonuses. Note that you shouldn’t trust a broker simply because it offers bonuses.
Bonuses can be quite dangerous as they allow the broker to impose certain restrictions on withdrawal without the user knowing about them. Forex scams use bonuses to lure people into signing up on their platforms too.
This is why the UK’s financial regulator, FCA, prevents its brokers to offer bonuses to their clients.
Is iTradeFX a Scam? Yes!
The forex industry has expanded exponentially in the last few years. Because of that, many kinds of scams have entered this sector as well. Usually, a scammer would target novice traders through bonus offers and bogus claims so they would sign up on their platform. Such brokers usually have unfair terms and conditions but people rarely read them before accepting the same.
When a person finally signs up and makes a deposit on their account, the broker can do whatever they desire. They can steal the user’s funds through hidden fees or even steal their private data.
Usually these brokers operate from offshore areas such as St. Vincent. These regions don’t have financial regulators like the US or the EU so they have become havens for shady forex brokers.
iTradeFX Review: Conclusion
iTradeFX is an unlicensed broker which gives contradictory information on nearly every important document. On top of that, it offers a terrible trading platform and has kept its fee-related information hidden. It is obviously a scam and you should avoid trading with them.
I hope my iTradeFX review helped you make an informed decision regarding this broker. There are many scams in the forex industry similar to this one. It’s best to stay alert and do some research before signing up with a new broker.This review has been syndicated from The Skeptic Tank To read the full review, go to – www.skeptictank.org/itradefx/