Choosing a legitimate forex broker can be overwhelming, especially if you are new to the trade. Horror forex trading scam stories from traders who have been duped can further discourage you from investing in these platforms.
But the solution is easy – know how to spot a scam trader and do not ignore the red flags.
If you have already lost your money, you do not have to let the scammer get away with it. Schedule a free consultation with us. We can help you recover it.
This ForexTB review will assess which side ForexTB falls on – a genuine or scam trader. We will dig deep and read between the lines. We will see if ForexTB is fair in its operations or only after extracting as much money as it can from investors.
ForexTB Review in a Nutshell
ForexTB Limited is the company behind ForexTB. It is a Cyprus investment firm that was licensed in 2015 but recently rebranded in May 2020. Its offices are in Nicosia.
It also owns the brand PatronFX, which is also a forex broker.
ForexTB offers its services to the European Economic Area and Switzerland. It deals in CFDs, forex, commodities, indices, stocks, and cryptocurrencies.
It does not serve the Belgium market.
ForexTB provides the MetaTrader4 trading platform and a web-based platform. There is a demo account, and three account types:
- Basic with a minimum deposit of €250
- Gold whose minimum deposit is €25,000
- Platinum that requires a €100,000 deposit
- VIP which comes with a minimum deposit of €250,000
However, ForexTB can change the minimum deposit amounts for any of the four accounts without prior notice.
Traders can operate as a retail or professional client. Professional clients get leverage of up to 1:400 while retail clients get around 1:30.
You can only become a professional client if you meet two of these requirements:
- Traded in at least 10 transactions per quarter over the previous 4 quarters
- Have a year’s experience working in the financial field and knowledge of CFDs
- Have a portfolio size of 500,000 EUR
On ForexTB’s Regulation
ForexTB is licensed and regulated by the Cyprus Securities & Exchange Commission (CySEC) under License Number 272/15.
Although trading with a regulated broker is a priority, it is not sufficient reason to trust it. There have been numerous brokers whose licenses have had to be revoked by regulatory bodies for not acting in the best interest of their customers.
The Cyprus regulator requires brokers to disclose the risk involved in trading. The risk disclosure on ForexTB’s site states that over 70% of investors lose money when trading in CFDs with this trader.
Without moving forward with this ForexTB review, this warning should be enough reason to stay away from the trader, but let’s dig some more.
A Look at the Exorbitant Fees Charged By ForexTB
A common mistake among new traders is failing to look at the legal document, especially on matters related to fees.
From what we gathered, the total amount of fees charged by ForexTB is likely to end up exceeding the amount of deposit you make. And this is one of the characteristics of scam brokers.
1. Withdrawal Fees
ForexTB only gives one free withdrawal to Basic account holders. From then on, a withdrawal fee is charged. Gold accounts get one free withdrawal per month, while Platinum accounts get three withdrawals per month.
Here are three things that are meant to discourage traders from withdrawing their money:
- Limited free withdrawals
- 5% fee for credit and debit card withdrawals
- 30 USD/EUR/GDP fee for wire transfers
There is another hurdle that is bound to discourage withdrawals. ForexTB can charge a client €80 for failing to provide adequate identification documentation by the time they make a withdrawal request. The loophole in this is that a trader cannot control what the broker deems as ‘adequate identification.’
2. Dormancy Fees
In addition, ForexTB charges a high dormancy fee of €80 for accounts with inactivity of one month or more. Note that placing one position does not count as ‘activity.’
The €80 is charged every month until there is significant activity in the account.
3. Swap Fees
There are swap fees that are charged when a position is held overnight. The exact amount depends on market conditions.
The legal document further states that the swap fee is charged three times on Wednesday to cover for weekends.
These unrealistically high fees are enough reason to draw a conclusion on this ForexTB review. But wait, there is more.
Limited ForexTB Customer Support
Considering the recent rebranding, you would expect top-level customer support from ForexTB. But the only support information you can get through the website is live chat and a phone number. And the best time to get your queries addressed is during trading hours.
A broker that cares for its customers should provide comprehensive 24 hours support at least five days a week. It should also have an email address for inquiries.
ForexTB’s Limited Negative Protection
One of the major red flags of a scam broker is the lack of negative account protection. This means you can lose more money than is in your account, resulting in a negative balance.
ForexTB only provides professional clients with negative account protection. Considering the exploitative fees charged by ForexTB, a retail trader is likely to end up with a negative account balance.
ForexTB Review Conclusion: What Next?
ForexTB’s customers are yet to share their experience trading with the broker. Still, a keen assessment of the website brings out a few details that prove it is a brewing scam that will not take long to explode in traders’ faces.
The website is sketchy and customer support insufficient, which shows a lack of concern for its customers.
The fees – withdrawal fees, swap fees, and dormancy fees are excessive. And the worst part is that retail traders do not get negative account protection. The likelihood of not just losing all your money but also owing ForexTB cash is high.
The only conclusion we make is that ForexTB is only interested in taking as much money as it can from its customers.
It is a regulated scam.
If you have been a victim of ForexTB or any other scam forex broker, we can help you recover it. Schedule a free consultation with us to get started.