How about a Forex broker whose website consists of a single webpage and a registration form only? Is this a legal entity? Well, anyone can guess, and the answer is no. We are talking about Simple Tradex, an anonymous broker claiming to be your friend in the world of trading. What a ridiculously unprofessional statement! This is a scam, and we are going to show you why in the full Simple Tradex review.
Simple Tradex REGULATION AND SAFETY OF FUNDS
We tried to assess the brokers’ legitimacy but there is absolutely no trustworthy information about it you can possibly find. Simple Tradex doesn’t reveal its headquarter address, company name, licenses, if any or other significant information about itself. Nevertheless, we researched to find no licensed companies associated with this so-called broker, so it’s unregulated, and your funds won’t be safe if you deposit. In fact, Simple Tradex is just another scam broker, and we’ll prove it in the following sections.
Avoid Simple Tradex and better check the high-rated EU brokers and British brokers by following the links provided. The companies topping both lists are licensed and a part of money protection schemes created to secure clients deposits if things go wrong. For example, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. So if you are eligible to open accounts with European companies, you can safely go for it.
Simple Tradex TRADING SOFTWARE
Simple Tradex has no trading software whatsoever. Upon registration, you’ll end up with a single informative chart only, which is totally useless for trading. Eventually, Simple Tradex can’t provide any Forex services whatsoever. That’s a scam and you should avoid it!
While talking about software, why don’t you see the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists? The companies we recommend are licensed and deliver the best platforms available. Both MT4 and MT5 are packed with advanced tools such as Expert Advisors, many complex indicators, sophisticated charting tools and a marketplace featuring more than 10 000 apps.
As there is no platform, we can’t show real-time spreads or leverage levels. Nevertheless, Simple Tradex claims to offer a leverage of 1:100, but that’s a blatant lie. Even though, we have to note that 1:100 is a risky ratio having the potential to inflict severe losses if not properly used by clients.
In fact, leverage is so dangerous that it’s now part of the regulatory framework in various jurisdictions worldwide. For example, due to regulations, EU, British and Australian brokers have to limit their clients to 1:30, while Canadian brokers and US brokers can’t provide more than 1:50. On the other end, most high-leverage FX companies are unlicensed or deficiently regulated, so you’d better stay cautious.
Simple Tradex DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $2000, or 20 times more than the regulated brokers’ standards on average- $100. Still, too many reputable companies now let traders begin with as little as 5 dollars, so it’s anyway worthless dealing with shady entities asking for 2K.
The funding methods are said to be Bitcoin, PayPal and Gift Cards, so there is apparently something fishy going on. No reputable broker will accept Gift Cards, or at least we know no such company. Simple Tradex chose those funding methods because, as a fraudulent entity, it certainly doesn’t plan to deal with chargebacks. Bitcoin and Gift Card payments are final and non-refundable, while PayPal funds restoring can be complicated especially when there are no goods involved. Regardless of the broker though, it’s always safer to fund accounts directly via Credit/Debit cards because you can file a chargeback for up to 540 days if things go wrong.
Nevertheless, we’d like to suggest our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The companies on top of both lists are adequately regulated, and you won’t face scammers.
Overall, Simple Tradex is a scam scheme we just exposed, so you should avoid it and make sure to report immediately to the authorities if they approach you.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud, and it’s actually a process. In the typical scenario, the victim clicked on a fraudulent ad, then received a phone call, and at some point got convinced to deposit money. To make people accept fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes, and so on. Their imagination is rich and would invent as many stories to get the craved deposits.
Unfortunately, the first deposit is not the end but the beginning. Gradually, scammers would manipulate victims and would urge them to invest repeatedly. For example, con artists may not allow people to trade themselves but would pretend to manage the accounts. Forged results would show victims massive profits, and scammers would ask for more money, promising to secure more gains.
The first indications of a scam come forth when people ask for withdrawals. Scammers would make excuses to refuse withdrawals and even require additional deposits to let people take their money out. Those criminals won’t stop asking for funds, no matter what. In the worst case, the victim would believe in the scammers’ falsehood and deposit again and again. However, sooner or later, the scam would become evident, the fraudsters would cut the communication and eventually disappear. They would drop the website, create a new one and carry on with their criminal business untouched, while people would be left with losses almost impossible to recover.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scams. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened so that they can give you instructions and help, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush to recover funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!
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