Why 70Trades Sucks In 50 Words
The first thing that hit me was the name. Why 70Trades? It sounds so weird for a broker. But thankfully, they offer an explanation: after extensive research and testing, their studies revealed that it takes 70 trades to be successful and get high returns on investment. This couldn’t be further away from the truth! Maybe it takes 70 trades to get to know the platform you’re trading on, but to be successful and make a constant profit you need more than that, for sure.
Why 70Trades Doesn’t Suck In 50 Words
Cool combination of green, white, and black on the front page. Yes, really that’s all I could find! They don’t have awesome trading conditions, the website is an amalgamation of buzzwords and the platform is subpar. So there you have it: I don’t know why 70Trades doesn’t suck.
Is 70Trades A Scam?
Claiming that a broker is a Scam without bulletproof evidence is not something we like to do. That being said, there are a few red flags: they are registered in Seychelles, which is quickly becoming a go-to location for… let’s say, subpar brokers, mainly because they only need a few thousand bucks to open a brokerage there.
The way the website’s content is written reminds of the “old” binary options brokers. Account managers, aggressive marketing with a focus on the huge profits you’ll make, and the well-known statement about being a “true leader in the global markets”.
Another red flag (and I do mean RED) is that you will have to pay 500 USD after 3 months of account inactivity. Yes, you’ve read that right! This inactivity fee will then be paid on a quarterly basis. Furthermore, they have a “credit-out rule” which states that “In case of absence of any trading activity for a period of at least forty five (45) days, the Company reserves the right to apply the credit-out rule and remove any trading credit that exists in the Client Account”. It’s almost mind-blowing… but is it a scam? I will let you be the judge of that.
Should I Open An Account With 70Trades?
70Trades is an online broker that offers CFD trading on currency pairs, indices, stocks, cryptocurrencies and commodities. The website is owned by Securcap Securities Limited, which is located in Seychelles and authorized by the Seychelles Financial Services Authority with License No. SD012. The group of companies includes Wanakena Ltd, a Cyprus-based company.
Launched apparently in 2016, 70Trades uses a trading platform called WEB PROfit, which is available in web and mobile versions but both fail to rise up to the standards of Meta Trader 4 or other well-known trading platforms and lack the needed customization features.
Accounts start at $200 (Entry Level), continue with $1,000+ (for Advanced users) and $4,000+ (for Pros) but the extra “perks” you get for making such a high investment are not worth it in my opinion. The only differences between the $4K account and the one at $200 is free trading signals and 4 months of free Tradency. Same leverage, same asset classes, same “Course for Beginners” (which by the way is totally useless to a Pro trader and I don’t see why is listed as an advantage of the Pro account).
Education is basic and sometimes wrong as they claim that buying a stock will not give you ownership of that stock “but merely invest in the expectation that their value will either rise or fall”. That may be the case with CFDs on stocks, which is part of their offering, but trading the stock itself on a stock exchange will give you ownership, so they should get their wording straight.
Overall this brokerage looks mediocre at best but in my honest opinion, 70Trades is a brokerage That Sucks. Nothing makes them stand out except a $500 inactivity fee and the credit-out rule that allows them to take money out of your account. All in all, it looks like an old binary options brokerage rebranded to appear like a CFD/FX trading venue. And if you listen to the voices of the online community, you should definitely stay away from 70Trades.
The website is operated by Securcap Securities Limited, address Office 4, Suite C2, Orion Mall, Palm Street, Victoria, Mahe, Seychelles. The other company in the group, Wanakena Ltd, lists the address 73 Arch. Makarios III Avenue, Office 301, 1070 Nicosia, Cyprus. The broker can be contacted at email: [email protected] or phone +6531592317.
The Internet is full of people complaining about 70Trades, their high-pressure marketing tactics and even about money disappearing from accounts. These are not isolated complaints! Tons of people are calling them frauds and scammers on online review sites like Mouthshut or ForexPeaceArmy. We have also located multiple “positive” reviews, which look as fake as a rainbow unicorn. Beware!
70Trades Regulatory Warnings And Announcements
Surprisingly, we couldn’t find any warnings against this brokerage coming from a regulatory body. We will keep monitoring.
There is very little information about withdrawals other than a list of instructions for Know Your Client (KYC) procedures. The processing time is between 2 and 6 business days and the methods are cards, Netelller, Skrill, Webmoney and wires (may differ depending on the client’s location). The minimum amount and any fees that may be incurred are not specified. This is a big problem because these things should be crystal clear with any broker.
The leverage goes up to 1:200 and considering that most brokerages offer only 1:30 due to ESMA regulations, this is high. However, 70Trades doesn’t seem to follow said rules because European clients are still able to register with them.
70Trades Overall Ratings
User Friendliness 12/20
Information is hard to find, the website is tangled and with irrelevant material in many places. There are 3 available languages, mobile platforms but no Demo account. Clicking to view a Bitcoin live chart opened a Cotton Futures chart (happened with other cryptos as well), so… yea, they still need a lot of work. US clients are not accepted.
Range Of Markets, Spreads And Leverage 13/20
The choice of assets is satisfactory but not the best I’ve seen, the spreads are on the wide side (3 pips for EUR/USD) and the leverage is high (1:200) compared to other brokers after the ESMA changes. Bitcoin and a few other cryptos are available according to their website but opening a live chart display information about a totally different asset. Also, I wasn’t able to locate cryptocurrencies on their platform.
Fees And Support 8/20
The fees for withdrawals are not specified but of course, the inactivity fee is specified: 500 USD, charged after just 3 months without trading activity! To say this fee is huge would be an understatement! Usually, inactivity fees are closer to 5 bucks or a small percentage, not 500 bucks. Also keep in mind that 70Trades has a credit-out rule, which allows them to take money out of your account after 45 days of inactivity. Can we consider this a fee? Any way you look at it, it’s obnoxious.
As for support (live chat), it was totally useless and the rep couldn’t even answer the simple question “Do you offer Bitcoin?”. All his/her replies were copy/pasted.
Deposits And Withdrawals 13/20
The minimum amount to open an account is $200 but there is no clear information about withdrawals. The methods are cards, wires and e-wallets but the processing times are high for withdrawals (2 to 6 business days) and the minimum amount is not specified. Please ask for more information from one of their representatives before depositing.
Website Extras 5/20
High leverage and some awards allegedly received in 2010… but this broker has launched in 2016 for all we know (they don’t offer an exact date but online sources point towards 2016). And maybe we should include the massive wave of scam allegations here as well.