70Traders Review Scam Complaint
70Traders is a CFD and Forex trading brokerage company which is owned by Commodius FX Limited that is a Vanuatu registered broker. This broker offers three types of accounts, Entry level, Advanced and Pro. It is an offshore company which is regulated by Vanuatu Financial Services commission. Vanuatu is known as a hub of many dishonest forex brokers. Hence, it is recommended to first go through this review before making an investment with the company.
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About the 70Traders:
70Trades brokerage company offers the Mobile Trader and web trading platform to its clients. It offers more than 5 forex currency pairs along with various indices, stocks, commodities, CFDs, gold, silver and other metals for trader’s personal investment and trading options. Any company willing to open a new brokerage in Vanuatu requires only $2000, while a company registered under the Australian Security and Investment Commission has to keep its clients funds in segregated accounts. This means, the broker or brokerage company cannot freely access its clients’ deposits and spend them. Moreover, Australian Security and Investment Commission asks for around 1 million Australian Dollar in capital holdings from a new brokerage company.
70Traders requires a minimum initial deposit of $200 which is higher than usual demanding of other brokers. When spreads and commissions are considered, 70Traders offers fixed spreads, starting from 3 pips for EUR or USD, which is above than the current industry average. A maximum leverage of 1:200 is offered by 70Traders, which is in line with the offers of other brokers and definitely enough for a sensible trading strategy. High leverage can amplify both the winning and losing of trades by the company. In fact, it can be so dangerous that US regulators have decided to set a cap for the levels offered to retail clients which is at 1:50.
Is 70Trades legit or scam?
70Trades is not a completely trustful forex broker; nothing much is sure about is regulation. 70Traders brokerage is under the oversight of the local VFSC. Being an off-shore company, it has got issues and doubtfulness. Another factor for 70trades being a scam is its trading conditions which are worse than any other current offering by other brokers. Moreover, the trading platform it is offering isn’t spectacular. Furthermore the website is missing some key details regarding license and regulations, creating an overall feeling of a scam. Therefore, letting your funds to this company is too risky.