Zen Trade Review
Anyone who is thinking about trading in the financial markets is aware that they need to open an account with an online broker to get started. It will not take long for them to discover the existence of scam and shady brokerages as well. These are definitely not new, as these scams have been happening for years, but the question is why. How do people continue to fall into the trap of these brokerages? This is primarily because these scammers know just how to draw people in. This Zen Trade review is the perfect example of such a brokerage.
During your search for a legitimate and professional brokerage, you will come across the name of Zen Trade and it is definitely going to catch your eye. According to their website, the brokerage has been providing trading solutions to both institutions and investors since the forex trading industry was introduced back in 2006. They claim to offer superior trading services and have more than 60 currency pairs, along with a number of other CFDs available on their platform. They also claim to be backed up by some of the most renowned liquidity providers in the industry.
When you put all of these together, there is no doubt that Zen Trade seems to be very hard to resist. At first glance, you will find Zen Trade to be very professional and they are also offering the MT4 trading platform, which is recognized as one of the best in the market. Obviously, you want access to the best trading platform and they are offering it. Plus, you will notice that they have leverage levels of 1:200 and these are also impressive because it means you can make more profits. However, there are a number of glaring issues about Zen Trade that you shouldn’t ignore. What are they? You can discover them below:
No licensing and regulation
If you want to determine the credibility of a broker, the easiest way to accomplish this is by checking their licensing and regulation. You will find that Zen Trade fails right away in this first check because they are definitely not licensed or regulated. The problem with this brokerage is that it is essentially anonymous and doesn’t really offer much information or corporate background. Therefore, you have absolutely no idea who you are dealing with.
The only information that you will come across the Zen Trade website is that it is owned and operated by a company named Zen Trade Premier Marshal Island Ltd. and there is a post box address of the Marshall Islands as well. But, this is quite worthless because this is an offshore jurisdiction that does not regulate forex brokers. The authorities of the country are not interested in overseeing brokerages so a registration there doesn’t really mean anything. Anyone can claim to have operations in the Marshall Islands and even if they are a scam, you will not be able to take any action against them.
Offering managed accounts
One of the offers that Zen Trade has come up with for drawing people to its platform is through the offer of managed accounts. They are offering ‘Money Manager solutions’, which means that they have experts who are willing to manage the trading accounts of people on their behalf. This may sound attractive to those who want to make profits, but do not want to make the effort of trading on their own.
However, there are a number of problems with this scenario where Zen Trade is concerned. Firstly, as mentioned above, there is no forex license, which means they cannot be trusted. Secondly, if they are money managers, they need a relevant license for that as well and you will find no mention of it on their platform. This is also a big concern.
The third issue is that brokers by their nature are market makers, which means their profits depend on the losses of their clients. When you lose, they win. Thus, it is not possible for a broker to offer money management services because it creates a conflict of interest. It means that if you do use Zen Trade for money management, they are most likely going to lose it deliberately, so they get to keep the profits.
Absence of minimum deposit
Another problem that you will come across at Zen Trade is the lack of information that can have an impact on your decision. They have not mentioned the minimum amount you will be required to deposit for opening an account with them and this is a big concern. You need to be aware of how much you will be asked for in order to ensure you are willing to pay, or can look for alternatives.
Only crypto payments are supported
One of the most important offerings of a brokerage is their payment methods because you want to be able to make your deposits and withdrawals easily and smoothly in the long run. Delays and hassles are something you want to avoid for a seamless trading experience. Unfortunately, you will not find any good options available at Zen Trade. The only option that you will discover is that of cryptocurrency.
Apart from that, it doesn’t become immediately clear what other payment methods may be supported at Zen Trade. Yes, crypto is a new and popular payment option, but it is not a feasible one here because crypto payments are final and anonymous. This means that if something were to go wrong, like you feel you are getting scammed, you will not be able to get your money back. The transactions are irreversible and untraceable. In contrast, debit and credit cards are preferred because they give you the option of filing for a chargeback.
Unfortunately, this option doesn’t seem to be available at Zen Trade and this is another warning indicator.
Despite its attractive package that grabs your attention at first glance, it is evident that Zen Trade is just an elaborate scam that you should not fall for when you want to trade online.