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 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 doing. That being said, there are a few red flags: they are registered in Vanuatu, which is quickly becoming a go-to location for… let’s say, subpar brokers, mainly because you only need $2,000 to open a brokerage there. Another important thing is that we couldn’t locate their company on the Vanuatu Financial Services Commission official website. This regulator offers a guide on how to search for a company and although we followed it step by step, we couldn’t find Commodius FX LTD. Maybe the brokerage could offer some insight on the matter.
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”. Does all this make them a scam?
Should I Open An Account With 70Trades?
70Trades is an online broker that offers CFD trading on currency pairs, indices, stocks and commodities. The website is owned by Commodius FX Ltd, which is located at Law in Vanuatu and is authorized by the Vanuatu Financial Services Commission (VFSC) with license number 14654.
Launched apparently in 2016, 70Trades uses a trading platform called 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 difference between the $4K account and the one at $200 is free trading signals and 4 months of Tradency free. 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 under advantages of the Pro account).
Education is basic and sometimes wrong as they claim that buying 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 stock CFDs, 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 and 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 Commodius FX Ltd in conjunction with Wanakena Ltd, registration number 379327, address Agias Zonis 4, Palatino Building, Flat/Office 202, 3027 Limassol, Cyprus. The broker can be contacted at email: [email protected] or phone +448000465424.
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. 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. They don’t specify the processing time, the methods, the minimum amount or any fees that may be incurred. This is a big problem because these things should be crystal clear with any broker. Deposit methods are Skrill, Neteller, cards and wire transfers so probably the same methods are used for withdrawals as well.
The leverage goes up to 1:200 and considering that most brokerages offer only 1:30 due to ESMA regulations, this is very 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 5 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.
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 in their Terms and Conditions, they mention a monthly inactivity fee of 100 USD, which starts 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 100 bucks which is the minimum deposit at most brokerages. 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. We can only assume the same methods for deposits will be used for withdrawals but we cannot guarantee it so 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.