Forex Trading Scams Series
This Itrader Review will answer the following questions:
- Is Itrader a scam?
- Who owns ITrader?
- Where is Itrader located?
- Is Itrader a regulated Forex broker?
- Can I get my money back from Itrader?
Is Itrader a scam?
We’ll be addressing that right now in this review, we certainly would consider them to fit into the “scam” category or at the very least the sham category. Read on to find out why this professional looking broker is likely nothing more than a boiler-room operation looking to take your money.
Is Itrader a regulated broker?
Itrader is in fact regulated in the EU by Cysec. The company behind the Itrader online service is Hoch Capital Limited, which was founded in 2012 and licensed with the Cyprus Securities and Exchange Commission (CySEC) in 2013. They’re licensed to operate throughout the Eurozone, as well as in any other countries that accept a CySEC license.
If you’re not sure if you’ve been scammed by ITrader watch the video below.
What is Itrader?
At first glance Itrader appears to be a company that’s been doing business in the foreign exchange market since 2012. The fact that they’ve been around since 2012 may seem like a strong point and one may argue that is is. However as we review this 8 year old company we’ll see just how strong they are. They claim that they are an online investment broker that manages investments in forex funds, stocks, bonds, commodities, and contracts for difference (CFD), generally referred to as derivatives. In all, they claim to offer trades in more than 170 different assets, including cryptocurrencies and market indexes, and all of these assets can be used as underlying assets for a derivative.
Itrader utilizes the MetaTrader4 trading platform, which is available both on desktop as a complete suite and through a mobile app. The MetaTrader4 is also the most popular software used by fraudulent trading companies worldwide.
So why do people hate Itrader so much?
After taking one glance at Itraders review page, it’s clear to see that a majority of individuals are very unhappy with their services. While every company, legitimate or not may have a few unhappy customers…when 82% of the people reviewing a page have clicked one star for bad service that should really sum it all up that there is a fundamental problem with this companies services.
Another Itrader Review Page
Itrader and US Investors
As with any broker that’s only registered by CySEC, Itrader is not licensed to do business in the US. If you’re a US investor and a website that looks like Itrader is willing to take your money, don’t give it to them. If you already have, you’ve been the victim of a phishing scam. Scroll to the bottom to find out how we can help!
Headquartered in Belize
We’ve talked about this in some other reviews, but it bears repeating. Be wary of any forex traders who are headquartered in Belize, Estonia, or Vanuatu. These countries have very loose financial regulations and are known as headquarters for numerous international scammers.
That said, while this is a red flag, we’d like to point out a few other concerns before concluding that Itrader falls completely into the full-blown scam category. Many startup companies are founded in these countries precisely because there’s a lot less red tape to cut through than there is in Europe or the US.
But are they really regulated?
There are two other red flags that are worth noting. First is the fact that Hoch Capital, owner of the iTrade brand, is owned by a parent company in Belize called Bayline Trading Limited. This is important since Bayline itself isn’t licensed in CySEC, only Hoch. In other words, the parent company isn’t licensed to do business in Europe.
The second red flag is that the pricing and rates are also provided by Bayline, which operates in Europe through its European subsidiary Bayline Global World Limited, which also provides rates and pricing to European, American, and Australian forex companies. This means that iTrader essentially creates its own rates and pricing. This is fishy because it indicates that they’re likely a market maker.
Itrader’s Sales Techniques
One common complaint from former Itrader customers is that their “investment advisors” behave more like salespeople than actual advisors. They call on a daily basis, sometimes more than once, which just isn’t normal unless you’re investing tens of millions of dollars or more. For retail investors, this can be a bit much.
Worse, we see near-constant reports of pushy advisors who ask for more money on a daily basis or claim that customers need to invest additional funds in order to make such-and-such a trade. These kinds of push sales tactics are a good indicator that a broker is not acting in your best interest.
And to top it all off, we’ve read several reviews from people saying that their elderly relatives lost their lives’ savings to these sales tactics. That’s not a good sign.
Itrader and CFD Trading
This is where it becomes clear that Itrader is a scam. Not only do their “advisors” use pushy sales tactics, but they consistently steer their investors towards CFDs. Of all the negative feedback we’ve seen about this company, at least 90 percent of it is related to this tactic.
But why are CFDs so much worse than other kinds of investments? Because they’re essentially bets.
With a traditional investment, you own the actual asset. With a CFD, you’re simply placing a bet on whether the asset will lose or gain value. These types of investments are very easy to manipulate. Remember how Itrader’s parent company sets its rates and prices? This allows them to virtually guarantee a profit on their derivatives trades, which guarantees that their investors lose money.
Shady Advertising and Review Practices
If scamming people through CFD manipulation isn’t enough, Itrader is also known for posting phony reviews. If you do a Google search for “Itrader review”, the first several links read more like an advertising brochure than a review. They spend a lot of time talking about investments, platform features, and potential returns, but they don’t address any of the scam allegations.
We’ve noticed the same trend on user review sites. Almost all of the 4 and 5-star reviews look similar and are written in broken English. That’s a sure sign that Itrader has been using bots or fake accounts in an attempt to boost their overall review ratings.
Another thing many users have reported is deceptive advertising. There was a – since removed – ad campaign on Facebook for a trading platform called Bitcoin Revolution. Not only was Bitcoin Revolution itself a fraud, but the link in the ad actually led to Itrader. The only reason for a company to advertise itself as another company is if they know people won’t want to deal with them under their own name.
Spreads, Fees, and Leverage
As we hope we’ve made clear by now, it’s not a good idea to invest your money with this company. At best, you’ll be dodging pushy sales calls and questioning the legitimacy of their platform. At worst, you’ll find yourself swindled of your hard-earned savings.
That said, in the interest of fairness, we should point out that Itrader actually has reasonable spreads and leverage, and that this information is easily available. The spread information can be hard to find on many brokers’ websites, and it’s nice to at least have some transparency as to what your cost is going to be on each trade.
They offer three tiers of service: a silver account that charges 2.2 pips per trade and offers 1:200 leverage, a gold account that charges 1.3 pips per trade and offers 1:400 leverage, and a platinum account that charges 0.7 pips per trade and 1:500 leverage and offers a 50% discount on swap fees. All accounts allow hedging and same-day withdrawals and require a minimum deposit of either $250, £250, or €250 depending on your preferences. Leverage is only available for professional accounts.
Investors can also open an Islamic account in any tier. These accounts are the same as standard accounts, except that they have no overnight interest and no commissions.
Is Itrader a Scam?
Yes, Itrader is a scam. While none of what they’re doing is explicitly illegal, it’s certainly unethical. To begin with, this company sets their own rates and prices for trades, which means that not only do they have no incentive to offer you good advice: in the case of CFD’s, their advisors actually have an active incentive to offer you bad advice. And in many cases, this seems to be the case.
The other tactics we talked about, from their advertising and fake reviews to their pushy sales tactics, are just icing on the cake.
Can I get my money back from Itrader?
Yes, if you’ve fallen victim to an Itrader scam or a look-alike site, and you want to get your money back, it is possible to get all or at least a portion of your money back. Moneybackhero.com has helped thousands of scam victims get their money back. Contact Moneybackhero.com Today For A Free Consultation. https://www.moneybackhero.com/schedule-your-free-consultation/
MoneyBack Hero’s experts are experienced in handling all matters related to fund recovery, and we’ve helped thousands of people retrieve their funds from forex and other investment scammers.
If you’d like to speak with one of our experts, contact us for a free consultation.
Investing in forex and derivatives is like spearfishing in a sea full of sharks. The rewards are bountiful, but you’ve always got to be looking over your shoulder. Because these investments are complex and take some study to understand, they’re fertile ground for scammers, who can easily confuse inexperienced investors into handing over their money.
Now, this doesn’t mean that every forex company is a scammer. But it does mean you need to be careful. Not only is the world full of outright fraudsters, but the forex market is also haphazardly regulated, so companies that are registered on major exchanges can often get up to some shady activity, even if it’s not outright illegal. Make sure you do your research before depositing with an online broker, even if everything appears fine. If you need assistance verifying if a broker is legitimate and trustworthy don’t hesitate to reach out to us here and we’ll let you know if your current broker or the broker you’re considering checks out or if you should steer clear.