Investing in the forex market is a lucrative endeavor that offers excellent returns in the public domain. Be that as it may, forex investment is also the most dangerous form of investment. The market’s turbulence and fraudulent incidents are blamed for the risk. This article focuses on warning signals that a forex broker is a con.

Most brokers are not who they claim to be and will deceive you to get you to invest with them, which is precisely the strategy Optimal Trade is using. Therefore, it is wise to perform a preliminary investigation before choosing a forex broker to ensure they are trusty forex brokers.

In the following review, we share a few covert and overt red flags indicating this business is a scammer. You should consider the warning signs we have provided because they could prevent you from making an investment blunder. 

Optimaltradersfx.com Review

Optimal Trade is a company that presents itself as a regulated broker, providing financial services while strictly adhering to ethical and financial standards. According to this company, clients can access multiple trading instruments. Additionally, clients using the platform can confidently transact as accounts storing funds and personal data are heavily encrypted for security. Funds are allegedly segregated into separate accounts.  

The broker also claims to have the authorization to operate in multiple jurisdictions, such as Vanuatu and Malaysia. Shady brokers have a habit of falsifying their regulation status to gain your trust and dupe gullible investors into thinking they are worthy brokers. This broker clearly knows the right buttons to press to win your confidence. Treat such claims with contempt until you can verify whether they are true. 

Optimal Trade Deposit & Withdrawal Policy

The minimum deposit for this broker is $500. This is a relatively high trading volume requirement considering that legit brokers offer way cheaper accounts. Also, you should only entrust such a high amount of money to a straightforward broker. If you have to risk such an amount, at least be sure that the broker is authentic. 

Although Optimal Trade claims to accept PayPal deposits, the only available payment methods are Bitcoin, Ethereum, and USD Tether. This makes it convenient for the broker to defraud you. 

For starters, if you deposit funds via Bitcoins or other cryptocurrencies, your payment will be irreversible. Similarly, cryptography technology makes it hard to identify the crypto wallet owner/recipient. It would thus be pointless to pursue legal action because you do not know who took your money in the first place. To avoid finding yourself in such a predicament, steer clear of this broker. 

Funds Safety

Optimal Trade, being an offshore broker, does not comply with laws on funds segregation. Therefore, when you deposit funds, this broker can use them however they please. To use your money for their evil scheme, they might not allow you to trade. Moreover, this broker does not offer you zero balance protection, implying you can lose more money in your account balance. Worse still, unregulated offshore brokers do not contribute to the compensation scheme. If the broker goes under, you will not get a reimbursement. 

Trading Software 

Although Optimal Trade claims to provide a web-based trading platform, they don’t seem to have a trading platform. All the broker offers are third-party charts on which you cannot execute any trade. Dealing with a broker who does not let you trade beats logic; whichever way you look at it, this is a dubious broker.

Legitimate brokers support legitimate and professional trading platforms, such as the industry standards MT4 and MT5. These platforms have algorithmic trading options, enabling you to perform automatic trading sessions using robots. This feature supports all functionalities, including real-time quotations and a full range of trade orders, including pending orders. The trading bots, known as Expert Advisors, carry out trading activities in line with a specific trading strategy and can analyze the market. Therefore, the absence of reliable trading software is yet another red flag that the broker you are dealing with is a swindler.

Optimal Trade Trading Conditions

Optimal Trade fails to disclose the terms of services and engagement. The T&Cs, risk disclosure policy, and applicable charges are missing. Also, the broker does not reveal its leverage and spreads, which are important profit determiners. It would help if you did not ignore the omission of such crucial details, given their weight on investment outcomes. If you engage this broker, you will be committing to an asymmetric contract since you don’t have all the details, and this will work against you in the end.  

When vetting brokers, check whether they have all relevant legal documents. Including such documents does not necessarily imply that the broker is genuine. You still have to read the terms to ensure they are well-articulated, have no contradictory clauses, and are investor-friendly. 

Also, we recommend you explore regulated brokers offering tight spreads and low leverage. The FCA, CySEC, and ASIC impose a 1:30 leverage capping. At the same time, U.S CFTC has a leverage limit of 1:50. The capping protects investors from incurring hefty losses during market downturns. 

Optimal Trade Licensure & Regulation

 Although Optimal Trade claims to be in the U.S, we are convinced that is not the case. The U.S. Commodity Futures Trading Commission CFTC and National Future Association (NFA) are among the most stringent forex regulators. With the level of forex violations the broker exhibits, it is unlikely that it is located, let alone thrive, in the U.S. 

As earlier mentioned, Optimal Trade also claims to be licensed to operate in Labuan-Malaysia, Malta, Vanuatu, and the British Virgin Islands. Such licensure claims are not always valid, so we had to confirm. We checked with the respective financial watchdogs’ registers, including the Labuan Financial Services Authority (Labuan FSA), the Malta Financial Services Authority (MFSA), the Vanuatu Financial Services Commission (VFSC), and the British Virgin Islands Financial Services Commission (BVIFSC). However, we could not locate any company or broker named Optimal Trade in the databases. This is an explicit suggestion that we are dealing with a con.

Optimal Trade Customer Reviews

We took a look at customer reviews of this broker. As expected, over 50 % of these reviews were grievances against the company. Among these complaints was that Optimal Trades requires investors to upgrade their accounts to be able to withdraw. Also, clients complained that this broker blocked them from accessing their money. The broker’s antics to keep you from accessing your money are typical of scammers. 

Although you should not base your decision on customer reviews alone, these reviews indeed denote a broker with a bad reputation. The complaints should deter you from engaging with this broker, lest you end up like these victims.   

Our Take

Optimal Trades is a shady forex trading company. Given the risks forex trading presents, failure to be cautious would be a costly mistake. For that reason, investors must be keen on particular areas, such as regulation, trading conditions, and trading software. If a broker is not regulated, you should not wait around for another confirmation that it is a scam. The next confirmation could be your investment loss. Also, run if a broker does not provide reliable trading software! Lastly, trading conditions must be clear and beneficial to you; if not, avoid the broker. 

Forex trading is too good an investment opportunity to waste on dubious brokers. To ensure you are safe, look for trusty forex brokers. This way, you will make reasonable losses and profits and secure your funds. 

 

 

Tags: Optimal Trade Review, Optimaltradersfx.com Review