The internet has become a hotbed for scams and the financial markets are a favorite of cybercriminals because there is a lot of money involved. Since trading has shifted online and with the influx of traders in the market, there are endless opportunities available to them for exploiting people right and left. Thus, when you start searching for brokers in the market, you should remember that it could be a cybercriminal in disguise. After all, it is immensely easy for anyone to make a website nowadays and make tall claims about what they offer.
You will come across a horde of brokers offering their trading services online and promising to deliver amazing features and services, but the reality is very different. Not many are able to live up to what they say and if you find this out after signing up with them, it can lead to a lot of hassle, not to mention wasted opportunities. How does TradoBit fare in this regard? Offering forex, indices, crypto and commodities to its clients, the broker boasts a leverage of 1:200. But, is it truly secure? Read this TradoBit review to find out:
Regulation and Licensing
The best way to judge the security of a broker is to take a look at its regulatory status and licensing. If they are unregulated, they are going to be lacking in regard to security and this is something you need to be careful about. First off, TradoBit is based in Dominica, which is an offshore shady location. This is because the forex markets are not regulated there and this has made it the favorite destination of many scammers because they are able to setup and register their business easily.
However, the most alarming fact about TradoBit is that the CNMV, which is the financial regulator in Spain, has issued a warning against this broker. As per the warning, TradoBit was offering its services to Spanish citizens, when it is clearly not authorized to do so. A warning against the broker by a European regulator is a red flag and an indication that the platform is just a scam.
Terms & Conditions
It is the norm to agree to the Terms & Conditions of a company before you use their products or services and this is no different in the case of a broker. It is also a way to identify scams because they will have ridiculous conditions. This is something you will discover when you check out the Bonus Policy outlined by TradoBit. As per the policy, traders are required to have a certain trade turnover in order to withdraw funds from their account. According to their requirements, the turnover should be 40 times the bonus given.
Considering the volatile nature of the forex and other financial markets, it is not possible, even for an expert trader to be able to accomplish such a feat. Moreover, TradoBit’s Terms & Conditions also indicate that they charge hefty fees for inactive accounts and this is something you should know because it will increase your trading costs in the long run.
You require a trading platform for executing trades and it is the job of a broker to provide you with one. In the case of TradoBit, they are offering their clients a web based platform, which only has a few basic charting tools and not much else. As a matter of fact, you will not be able to use any automated trading features and this is certainly disappointing because the industry standard MetaTrader platforms are able to offer a lot more features and tools. Most of the genuine brokers in the market offer their clients the MT4 and the MT5 because of their technology and offerings.
Given that a European regulator has warned against TradoBit and they have an unreasonable bonus policy and lack a proper platform, it is not a secure broker.