Beware! EuTrade24 is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
At first glance, EuTrade24 conveys the impression of stability and reliability. It seems that traders who choose to trade via this platform will be successful. However, this sense of security is false and we are going to prove it by looking at some key features.
EuTrade24 Regulation and safety of funds
EuTrade24 is a forex broker trading in forex, metals, commodities, oil, indices and bitcoin. Despite its name, the company is with an address in the Marshall Islands, an offshore zone for forex brokers where there is no regulator for forex companies. In addition to that, this company is recently created and operates as of July 2020. The implications for potential traders who choose to trade via this non-regulated broker are that there are no guarantees for the safety of their funds. In addition to that, there is a high probability that you are dealing with scammers. What will happen if the broker decides to shut down the website? Your money will be gone without a trace.
Besides, CONSOB has issued a warning about EuTrade24 and its website, has described it as ‘abusive intermediation site’ and has order its blackout (screenshot below).
We strongly advise you to do some research before you select a forex broker to trade with. There are some well-established jurisdictions that provide some prevention measures against scammers sneaking in and also, a guarantee for your funds. Let us give you some examples. In the US and Australia, high capitalisation serves as a wall from scammers penetrating the ranks of legit brokers. In the US, forex broker must have an initial capital of no less than $20 million and in Australia, it’s 1 million AUD. You can’t imagine scammers investing so much money just to look legit! In other well-established jurisdictions, such as the EU and the UK, the initial deposit is ‘only’ 730,000 EUR. However, licensed brokers there must also contribute to compensation funds or schemes from which in case of bankruptcy their clients can be compensated. CySec regulated brokers that contribute to the local Investor Compensation Fund will guarantee that each and every of their clients will get compensation of up to 20,000 EUR per person if the broker is declared insolvent. In the UK, the compensation is even higher if the broker is regulated by FCA. Then the traders will be compensated up to 85,000 GBP person. The benefits for traders who choose to trade with a forex broker from these jurisdictions, do not end with a high initial capital and compensation funds. Traders are also protected by caps on leverage to reduce the risk of losing funds in transactions, no-bonus policy and transparency in transactions. You won’t be able to find better conditions than these ones and we urge you to use the links that we provided above and find a suitable licensed broker.
EuTrade24 Trading software
You can easily spot if the broker is reliable by taking a look at the trading software it offers to the clients. This broker offers a web trader. However, when we opened an account and wanted to open the web trader, a broken link did not allow us to do so. Next, we tried to download the trading platform but got a warning sign that said that our PC may be put at risk if we open the file. Let us tell you that no licensed and self-respecting broker will have such mishaps with its trading software.
So, we have very little information to share with you regarding how trading is executed with this broker. Nevertheless, we found in the account types image some information regarding the leverage offered by this broker. We are alarmed because it is very high – 1:400! No licensed broker in Europe would offer such high leverage and besides there is a cap on leverage in the EU which cannot exceed 1:30. It is a preventive measure so traders do not take high risks with their funds. If you are a newbie in forex trade you may not know and think that high leverage will lead to big win using very little of one’s own funds. That, however, is misleading. In fact, there is a risk of the trader suffering a big loss instead of making a big profit. Our opinion is based on the fact that around 70% of traders lose in transactions. So, do not trust brokers that offer such high leverage and do not trade with them!
Here, we want to point out that where trading platforms are concerned, a web trader is not the best choice. Look for a licensed broker that offers either MetaTrader4 or MetaTrader 5. These two platforms are considered the best in the forex trading world and they will truly enhance your trading experience. No wonder they are choice number one among forex brokers because they offer an amazing package of trading tools and instruments. For example, the come with a demo account, an auto trading option, code base with customs scripts, an app market, a financial calendar and trading signals that can be obtained for a subscription fee, VPS, etc. Their charting options are also to die for as they contain many analytical indicators that help traders predict the fluctuation in price and make a profit. We strongly recommend these two platforms to the newly-coined traders.
EuTrade24 Deposit/Withdrawal methods and fees
EuTrade24 offers 5 different account types (see screenshot below) – Micro, Standard, Silver, Gold and VIP. The minimum initial deposit for the Micro account is $500. We consider this amount to be high compared to licensed brokers that will ask for as little as $1-5! The other accounts start at $1,000. $2,500, $10,000 and $25,000.
To feed their account, clients have a limited choice of deposit methods – credit card or bank wire. For withdrawals, it is restricted only to bank wires! We do not think that this is to the clients’ benefit to have such a limited choice of payment options.
There are some ‘interesting’ fees that this broker will charge its clients. For example, for algo trading, the broker will deduct 25% of the profit as compensation for the service. At the same time, traders are not allowed to make a withdrawal for the duration of 6 months if they deposit funds in the algo trading accounts.
EuTrade24 offers some bonuses and special promotions to its clients. Our readers should be aware that bonuses are not free gifts, although they look like! These are funds that belong to the broker, not the trader and if you choose to accept a bonus, you must know that they come with some hard to fulfil conditions. In this case, if you accept a bonus, then you must trade 10 mini lots for each $10 granted in the form of bonus.
In addition to that, EuTrade24 offers risk-free trades. To fulfil the requirements for this incentive, the trader first must make a deposit of $3,000 but he/she must leverage his/her account up to 10 times and minimum 5 times from his/her equity. For every protected trade, the company will charge a fee which equals the initial size of the spreads of the instruments traded. Whoever said that there is no such thing as free lunch was right!
For your information, licensed brokers do not offer bonuses or other ‘special’ incentives and as a rule of the thumb, this is the difference between scammers and legit brokers.
How does scam work?
Actually, it’s quite simple and people often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
Our advice is to immediately file for a chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.
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