Beware! Supratrade 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.
To be average in a world as competitive as the forex one is not worth it. Brokers all over compete in excelling one another, yet 90% of them are happy to stay on the verge of the absurd. Supratrade, and so many others like it, is exactly that. This company does nothing special; in fact it neglects the rules, by offering shady services. Read on to find out more.
To create a profile, users must usually pass a process of registration. We went on with this principle in mind, however it turned out that Supratrade’s registratrion process was broken, or reserved to chosen clients.
We assume the later, for more and more shady brokerage choose this approach. Handpicked users are called by a representative of the company and solicited to deposit. After the initial deposit, the user is caught in a web of scams. Read the last two sections of the review for more details.
The leverage is allegedly 1:200, while the EUR/USD cost of trade is 2 pips for the Standard account. Trading assets are forex pairs, cryptocurrency, commodities, stocks, and futures. Without an account, we have to rely on the website for all information that concerns trading and payments.
Nevertheless, without an account and access to a trading platform, we do not trust these trading conditions.
As a side note, we want to make sure to include the fact that much of the information contained in the website overlaps with itself. To offer inconsistent information is one of the first sing of an unsilenced entity.
The languages that a user can access are English, Russian, German, Italian, and Spanish.
SUPRATRADE REGULATION AND SAFETY OF FUNDS
The Commonwealth of Dominica seems to be the address of this broker, as seen on the footer. This place, along side other notorious offshore zones, are a heaven for all sorts of illegal brokerages. Dominica has no forex market regulator, and so does not provide licenses.
The website further deepens the regulatory claims. In the Environment section, we found out a big list of some of the best FX overseers. To put it straight, Supratrade wishes to convince its traders that it holds licenses from all of the following agencies- the FCA in the UK (mistaken in the sub page for the FSA, the old regulatory body no longer functioning), CySEC in Cyprus, the NFA in the United States (without the CFTC; only one of these won’t do in the US), the British Virgin Islands Financial Services Commission, the Financial Services Commission in Mauritius, and the terminated Federal Financial Markets Service in Russia. Know this- it is impossible for all these organizations to regulate a single forex broker at the same time, especially when considering that the U.S’s NFA, probably the most strict of all regulators in the world, will never allow this to happen. With the risk of disappointing you, we confidently confirm that none of these licenses are applicable to Supratrade.
As it turns out, and as was expected, Supratrade is UNREGULATED, and a risk to all investments.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
SUPRATRADE TRADING SOFTWARE
Supratrade aims to offer the MT4, but fails to deliver. As part of our failure to register, we cannot confirm the presence of this, or any trading terminal.
The MT4 is always a welcome inclusion, yet it cannot get Supratrade out of the predicament that we have put it into.
However, we found out that there are commission applied to some financial instruments. The commission ranges between 0.005% and 0.015%, and 0.5% for cryptocurrencies.
SUPRATRADE DEPOSIT/WITHDRAW METHODS AND FEES
Payment information is all quoted from the website. The issue here is that most of what we are about to reveal cannot be trusted, because the broker is illicit.
The minimum deposit is said to be $100. Payment methods are said to be credit cards, debit cards, and wire transfer.
Typical withdrawal processing times range from 4 to 7 days. There are withdrawal fees, as evidenced by the attached snippet. However, we found no further proof of their numerical value.
The dormant account fee is activated if a user has not traded from her account in 6 months. The commission is 10% per month.
After the following clause, no one can have any more doubt whether Supratrade is unregulated or not. The Non-Deposited Funds clause is by far the most notorious of clauses. The just of it is that Supratrade will not allow its users to withdraw any of their profit.
All bonuses have to be turned over, prior to a withdrawal, in the following way: 25 times the initial deposit + bonus amount.
And to cap it all off, the indemnification clause that holds Supratrade innocent. There are more similar clauses expertly scattered in the legal documents.
Not only is Supratrade unregulated, but it also holds classic fraudulent broker clauses that completely annihilates any spec of hope of trust for it. Do not deposit here!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.