Beware! Reliable Trade is an offshore broker! Your investment may be at risk.
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Reliable Trade is a broker that advertises trading in Forex, binary options, cryptocurrencies, commodities and indices. They offer four account types starting from minimum deposit of $300 and spreads of 1.9 pips.
Registering for an account required to submit personal information – First and Last Name, Email address, Phone number, Address and choose Account type and currency (USD, EUR or GBP). The registration process looked professionally implemented – an activation code was sent by email that we had to input on their website to activate the account. That was the last time we had that feeling, however. After activating the account another email was sent that included the username and password in plain form, which is against all privacy and security guidelines.
The member area was very meager in terms of functionality and design – the only thing you ccould do in it was upload verification documents – Proof of Identification and Proof of Residency. Of course, we know that regulated entities have such requirements before you can make deposits and trade, but that does not mean they cannot include any information and content about payment methods and other functionalities your account has, and a Demo option to see how it works. There is nothing like that here.
Since we did not feel safe uploading personal documents on this broker’s website, we continued with the investigation based on information provided.
Reliable Trade regulation & safety of funds
We could not find the Terms and Conditions, or any legal information whatsoever, about this broker on their website. In the About us section we read so many superlatives about the company, where it is registered and licensed, and the security it offers, that we got a little dizzy. It seems the only major regulatory agency they do not have a registration with is the Australian Securities and Investments Commission (ASIC).
First of all, they claim to be based in New York and regulated by the Commodity Futures Trading Commission (CFTC), the watchdog organization responsible for licensing Forex brokers in the US. After checking the latter’s database this proved to be false. Research on the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC) statements returned the same results – there is no such entity registered with either of them, nor with the Financial Services Board (FSB) of South Africa.
These regulatory organizations impose strict rules to the companies they license. Among these are Minimum Capital Requirements to guarantee good financial standing, Client Account Segregation (clients’ money is kept separate from the broker’s operating funds), Negative Balance Protection for traders (one may not lose more than the initially invested funds) and Compensation Schemes providing additional guarantee to clients’ funds up to a certain amount (85,000 GBP in the UK and 20,000 EUR in the EU).
Even the claim to be regulated by the International Financial Services Commission of Belize, an offshore jurisdiction, turned out bogus. Their Contact page was also dubious – they have an incomplete New York address (there is no street number) and a phone with a New Brunswick, Canada area code.
In the presence of so many outright lies in only a couple paragraphs, there is no way one can feel safe about trusting them with one’s funds. Due to lack of registration and regulatory oversight we must conclude Reliable Trade is an anonymous entity and a scam broker and your funds are not safe with them.
Reliable Trade Trading Software and Conditions
The broker offers a proprietary, web-based software – the Reliable Trade Platform. There was no link to it, however, and as we did not feel at ease uploading personal documents on their website, we could not explore the possibility that it will be available in their member area.
There are also links to download the MetaTrader4 (MT4) or the MetaTrader5 (MT5) trading platforms. We did try the MT4 but there was only a Demo server available. MT4 is considered to be the leading platform worldwide, preferred by more than 80% of users. It features an intuitive, user-friendly interface, advanced charting and analysis tools, as well as copy- and auto-trading options. Its successor, MT5, has certain advantages over the MT4. It enables traders to execute trades on different financial markets (including exchange-traded stocks) through a single account and has more trading instruments and more indicators than the older version.
From the Account types we saw that the broker claims to offer spreads from 1.9 to 0.6 pips, which are more or less in line with industry standards. Since we could explore their platforms, however, there is no way to confirm these claims. With regards to leverage there is not much information on their website apart from leverage of up to 1:5 for Bitcoin. Trading with leverage can be quite risky, because although one can make profits, he/she can also lose quite a lot, sometimes even more than initially invested.
Reliable Trade Deposit/Withdrawal Methods And Fees
As we noted above the minimum deposit amount required for opening an account is $300. Although not that high, most regulated brokers do not require more than $50 to open an account. As with the legal and regulatory data, there is no information about deposit or withdrawal payment methods also. There is no way to know if you can use credit cards, PayPal or e-wallets, such as Skrill and Neteller, to fund your account.
With regards to the fees one can only guess what the broker may charge for different services, what the processing times might be, etc. Considering the outright lies they put on their website and the total lack of information regarding important financial conditions, we have enough reasons to be certain that this broker is involved in foul play. Because of all that we recommend to our readers not to not to invest funds with Reliable Trade and stay away from them!
How does the scam work?
Users often fall prey of very simple but quite efficient scams. The first snare is usually an internet ad promising big profits over a short period of time, and all you need to do is provide your personal information, usually email address and phone number. If you do that, you will start getting calls from scam brokers who will continue with the pitches of quick and easy profits until you decide to make a first deposit of $200 to $300. On these funds the scammers get a fat commission and transfer you to senior “brokers”.
These expert con-artists are smooth talkers who start talking you into putting even more money in, because “now is the perfect moment” or “the more money you invest, the higher your profits will be”. Usually about this time most traders will start to feel the scam and will want to withdrawal their money and get out fast.
Unfortunately, the scammers will not give in easily. First, they will try to persuade you not to withdraw right now because you will miss on “big profits”, and if that does not work, they will find numerous reasons to deny or delay your request by asking you for additional documents or claiming that there are some other causes for not executing the withdrawal. The ultimate objective in such procrastination is to make the traders miss the crucial period in which a chargeback request can be filed, and thus lose the chance of getting their money back.
What to do if scammed?
If you used a credit card to make a deposit with the scammers you should immediately file for a chargeback. Both VISA and MasterCard have increased the time in which you can file to 540 days, in part specifically to fight such online scams.
If you used bitcoin or some other untraceable source, however, chances of recovering your funds are slim. You might get approached by so-called “recovery agents”, but don’t fall for their tricks. They will ask for payment up-front to recover your money, but this is just another scam and you will not get anything back.
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