24Trades – Are They a Scam?

Website URL: https://24trades.io

Founded: 2022

Regulations: Unregulated

Languages: English

Deposit Methods: Debit/Credit Cards, Wire Transfers

Minimum Deposit: €250

Free Demo Account: Unavailable

Number of Assets: 1,500+

Types of Assets: Digital Currencies, Forex Currency Pairs, Stocks and Indices, Commodities

Trading Accounts and Conditions

24Trades offers their clients the following types of trading accounts:

• Standard: For the Standard Account, the initial deposit is a minimum of €250. The maximum leverage is 1:80, and the minimum spread is 0.5 pips.
• Premium: For the Premium Account, the initial deposit is a minimum of €2,500. The maximum leverage is 1:150, and the minimum spread is 0.1 pips. Commissions start from €3.50 per lot.
• Luxury: For the Luxury Account, the initial deposit is a minimum of €25,000. The maximum leverage is 1:500 and the minimum spread is 0.7 pips. Commissions start from €10 per lot.

Cryptocurrency trading leverage is a maximum of 1:100. When we checked the broker’s trading platform, we found that the spreads were actually at 3 pips for the EURUSD currency pair.

24Trades – Advantages

There are no advantages that we can write about with regard to 24Trades. This broker is a scammer.

24Trades – Disadvantages

Here are all the red flags that tell us that 24Trades is a scam operation:

• Issues with Regulation Status

24Trades claims to be operated by 24Trades Corporation, which the broker states, is a part of 24Trades Financial Group. This company is supposedly headquartered in Zurich, Switzerland, and has branch offices in 7 locations – Hong Kong (which the broker spells Honk Kong), Dubai, Qatar, Johannesburg, Berlin, and Shanghai. The broker claims that their biggest office is in Honk Kong. The broker also claims that their company was founded in 2010 (however, their website was only created in 2022!).

Now, here are all the gaps in what this broker claims. First of all, all regulated brokers need to provide detailed corporate information. This broker has not provided an address or even a telephone number. The only contact information that this broker has provided is 3 different email addresses. This means that this broker is actually operating anonymously. This is enough evidence that we are dealing with a scam.

However, let’s also talk about the various locations and the broker’s so-called headquarters. To operate a brokerage from Switzerland, you need to be regulated by the local financial authority – the FINMA (Swiss Financial Market Supervisory Authority). We checked this regulator’s online register and were not surprised to find that there was no company or broker by this name listed there. We also checked a couple of the other locations’ regulators’ online registers – with the same results.

Our investigation proves that we are dealing with an anonymous and unregulated scammer.

Plus500

$100

Minimum Deposit

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Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

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The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Poor Trading Software

Since the trading software is the main product that a broker offers, most legitimate brokers go out of their way to secure the best trading platform the market has to offer; some of them even develop their own trading platforms that can rival the ones available in the market.

With scammers such as 24Trades, on the other hand, all you get is a shabby, poorly designed web-based trading platform that offers extremely limited functionality. In fact, the most you can do on this kind of a platform is buy and sell instruments.

When you compare this web trading platform to the most popular trading platforms, such as the MetaTrader 4 or MetaTrader 5 platforms, you will see a vast difference between them. The MT4 and MT5 platforms are not only user-friendly, they have a massive range of tools and features that make trading intuitive.

• Poor Trading Conditions

The trading conditions offered by this broker are also another red flag that spell a scam. The minimum deposit to open an account is €250. When you see that legitimate brokers offer accounts that have a minimum deposit as low as $5, you will understand why we have an issue which such a high minimum deposit requirement.

Next, the spreads are advertised as extremely low, however, when we checked 24Trades’ trading platform, we found out that the spreads were actually much too high. On their platform, the spreads started at 3 pips, which is more than 2 times the market average, making trading with this broker too expensive.

Leverages also offered here are dangerously high and illegal to boot. Forex leverages in Europe, the UK and many other parts of the world are limited to between 1:30 and 1:50. So, a maximum leverage of 1:500 is illegally high. Furthermore, crypto leverages are limited to between 1:2 and 1:5, so the maximum leverage of 1:100 is also just ridiculous.

The commissions mentioned are also highly unreasonable, especially when you see the kind of spreads the broker is offering.

All in all, these trading conditions are meant to squeeze as much money out of traders as possible.

• Poor Terms and Conditions

As with all scam brokers that actually have legal documents in place, the terms are mercenary and designed to keep as much of the traders’ money as possible.

For example, if you try and withdraw your money before you have reached a 200-times turnover, you will be charged 10% of your withdrawal amount – over and above all the other withdrawal fees 24Trades has in place.

Furthermore, if your account has not been used in 2 months, the expect to be charged another 10% fee. But what that 10% is, is not specified.

Transaction fees for withdrawals are also unreasonably high.

• Bonuses Offered

This broker offers bonuses, which is a hallmark of a scam. And, as expected, the withdrawal terms attached to this bonuses (or non-deposited funds) are so unfair that you will never get to see your money again. 

Conclusion

There are many other issues that we have found with 24Trades, but we have mentioned the most glaring ones in our review. This broker is a scam and it would be wise to avoid them.

24Trades

2.3

User Experience

3.0/10

Payment Options

2.0/10

Security

2.0/10

Support

2.2/10

Reputation

2.2/10

Pros

• None

Cons

• Issues with Regulation Status
• Poor Trading Software
• Poor Trading Conditions
• Poor Terms and Conditions
• Bonuses Offered