Updated on April 1, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding 70Trades due to the issues we've identified.
Is 70Trades Scam or Legit Broker? ▲
Through meticulous research into the operations of 70Trades, we have determined that it poses significant risks to traders. 70Trades, under the ownership of Commodius FX Ltd., is incorporated in Vanuatu, a location notorious for its lenient regulatory environment. The process of setting up a brokerage in Vanuatu is alarmingly straightforward, requiring a mere online registration, a nominal initial capital of just $2,000, and a fee, culminating in a swift registration process. This ease of establishment has unfortunately made Vanuatu a haven for questionable Forex brokers like Circle Markets and Wigmarkets. Regarding its license from the Vanuatu Financial Services Commission (VFSC), our investigations reveal that despite the annual membership fee of €24,000, there exists no comprehensive regulatory framework or guidelines for brokers, leaving traders without any form of protection. Given these concerns, we advise traders to steer clear of 70Trades and opt for brokers regulated by more reputable authorities.
70Trades is an offshore brokerage that offers its clients a wide array of trading options, including Stocks, Commodities, Currencies, and Indices. They boast customer service available 24/7, user-friendly platforms, and support in multiple languages including English, Arabic, and Spanish. The broker claims to provide a straightforward withdrawal process, online trading courses, up-to-date market news and analyses, professional analytical support, tailored training sessions, and webinars. Nevertheless, these features do not mitigate the substantial risks associated with the lack of fund safety and potential issues that may arise while trading. Behind 70Trades is Wanakena Ltd., which purportedly has registration in Cyprus. Despite these claims, it lacks proper oversight by any credible regulatory body, such as the Cyprus Securities and Exchange Commission, making it ineligible to offer financial services lawfully. Reports from traders regarding difficulty in fund withdrawal further underscore the risks involved with 70Trades.
Upon evaluating 70Trades against a benchmark of over 1000 brokers, we have assigned it an overall ranking of 1.5 out of 5. This low score reflects the serious concerns regarding its regulatory status, safety of trader's funds, and the reliability of its trading conditions. Compared to other leading brokers in the industry, 70Trades falls significantly short of providing the level of security and trust that traders should expect.
70Trades has outlined several methods for depositing funds, including Bank Transfer, Credit/Debit Cards, and various e-wallets like Skrill, Neteller, and Webmoney, aiming to facilitate easy account funding. The minimum deposit to start trading is set at $200, and all accounts are denominated in USD, necessitating currency conversion for all deposits. Notably, 70Trades imposes a steep inactivity fee of US$500 after three months of account dormancy, charged quarterly, which is considerably higher than industry standards. Moreover, the broker applies a rollover fee of 0.02% on CFDs for Indices, Currencies, Stocks, and Commodities, and a significant 0.50% on Cryptocurrencies, reflecting the high volatility of these assets.
70Trades provides a mobile trading platform, catering to the modern trader's need for accessibility and functionality on the go. Compatible with both Apple and Android devices, the platform is designed to be user-friendly, offering comprehensive market analysis tools. This mobile platform ensures that traders can manage their investments and respond to market changes promptly, anywhere and at any time.
In a notable limitation of its service offering, 70Trades does not provide a demo account. This omission deprives potential clients of the chance to familiarize themselves with the platform, test trading strategies, and gain confidence without risking real money. The absence of a demo account is a significant drawback, particularly for novice traders seeking to develop their trading skills in a risk-free environment.
Considering the grave concerns regarding 70Trades, including its dubious regulatory standing, the lack of trader fund protection, and the transparency issues identified, we strongly advise against investing with this broker. Traders should prioritize engaging with brokers that are regulated by reputable authorities, ensuring the safety of their investments and the integrity of their trading experience. In light of our findings, it is our recommendation to seek alternative, more reliable trading partners to safeguard your financial interests and trading aspirations.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
70Trades Review 2024
