70trades Review: Is 70trades.com Scam or Legit?
70trades.com is a suspicious Forex broker offering 3 types of accounts. 70 Trades claims that they are owned and operated by Commodius FX Ltd, a Vanuatu-based company that is also associated with another fraudulent broker called A3Trading.
After doing a lot of research, I was not able to find any qualifying criteria for endorsing 70trades broker in our list of reliable brokers.
However, I was able to establish that 70 Trades is licensed by VFSC to provide financial services to traders.
Although this license is better than nothing, I would never recommend trading with an offshore broker whose reputation is cheesy.
At one point, 70Trades claimed on their website that they were owned and operated by DAUFIN LTD, a company that is registered in England.
At the time, DAUFIN LTD was associated with two owners, Diaz Witwicki and Claudia Cristina (Claudia Cristina is no longer in this business as she resigned).
It is also not clear whether DAUFIN LTD was actually running 70 Trades or had something to do with this suspicious broker.
Vanuatu is famous for hosting dishonest Forex brokers. To launch a new brokerage in this island, you only need $2000. I’m not saying all companies that operate in this island are scams.
However, the relaxed rules are encouraging suspicious brokers like 70 Trades to set up base in the island.
Is 70Trades a broker you can really trust? I don’t think so, and this is my evidence and logic.
70Trades Review
The minimum deposit demanded by this broker is $200.
Someone posted on Quora that one of their sales agents called them to pursuade them to deposit $200 and when they finally did deposit the amount, the sales agent disappeared.
Still, in this competitive market, $200 is such a high minimum deposit.
Many professional and reliable Forex brokers are now letting traders open live accounts with as little as $50.
In terms of spreads, 70Trades claims to offer fixed spreads. EURUSD attracts 3 pips, which is far above industry going rate because most professional brokers offer 1.5 pips or less for this Forex pair.
I generally prefer brokers who offer floating spreads because I get the best of both worlds.
They offer a wide variety of trading instruments which include commodities, shares, indices, currencies and Bitcoin.
Leverage is up to 1:200, which is decent enough for every trader who wants to try their strategy.
But on the other side, high leverage can damage your account in no time. US financial regulators have decided to set the maximum leverage to 1:50 which is why brokers like Oanda can only give you up to 1:50.
Trading platform is the usual PROfit software. It has a classic layout and the chart window is smaller although this can be adjusted.
Otherwise, this platform seems to be intuitive enough. The downside is that if you are a lover of MT4 or cTrader platforms, you will miss your favorite trading indicators and expert advisors.
Payment methods supported by 70trades
They support the usual funding methods which include MasterCard, debit card, Bank Transfer and e-wallets such as Skrill and Neteller.
This must add an extra touch of convenience for a trader that has decided to test this broker with their money.
Why 70 Trades is a scam broker
Many people have reported that this broker is a fraud. This is expected given that they are registered at a destination that is associated with Forex fraud due to weak regulations.
Conclusion
70Trades was established in Vanuatu but before this, they seemed to have links with UK.
Trusting an off-shore registered broker is something that might result in the loss of your funds, then cat and mouse games which you might not have time for.
The trading platform offered by 70Trades is also not up to par with industry standards like MT4 platform, and you will therefore miss a lot of things besides facing the prospects of losing your money.
Having said this, I expect all of you to shun such a broker. If you have any experience with 70Trades, please contribute below.