Scam Brokers

Digital Premium Trade – Can You Trust Them?

Chainbits Staff | Publish date: 03/23/2022 (Last updated: April 04, 2022 07:45 AM)

Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Digital Premium Trade - DO NOT TRADE WITH THIS PROVIDER

2.5/10

$100

Minimum Deposit

updated 2022

Try other platforms

The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.

Try these regulated brokers if you want to start trading cryptocurrencies

Plus500 Review - Regulated broker

Plus500CY Ltdauthorized & regulated by CySEC

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

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

Website URL: https://digitalpremiumtrade.com

Founded: 2022

Regulations: Unregulated Broker

Languages: English, Yandex Translate

Deposit Methods: Bitcoin, Contact Broker for Western Union and MoneyGram

Minimum Deposit: Not Specified

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Cryptocurrencies, Forex Options Contracts

Trading Accounts and Conditions

Digital Premium Trade does not offer any information about the types of trading accounts or trading conditions they offer. Therefore, we do not know how much the minimum deposit is, the spreads are or even what the leverage ratios are.

Despite the fact that the broker did not specify the minimum deposit requirement, when we entered the client area after registering with them, we found out that you could deposit as little as $1 with Digital Premium Trade.

Digital Premium Trade – Advantages

We would advise all traders not do conduct business with Digital Premium Trade; there are no positives to this scammer.

Digital Premium Trade – Disadvantages

Here are all the reasons why it would be disadvantageous for traders to do business with this broker:

Lack of Regulation

When you check Digital Premium Trade’s website, you will see a United States address given at the footer of their homepage. However, when you go through their terms and conditions, they state that they are governed by French laws. Both these statements are red flags which lead us to believe that this broker is a scammer. Here’s why.

To be able to operate a forex brokerage in the United States, a broker needs to be regulated by two separate financial authorities – the NFA (National Futures Association) and the CFTC (Commodity Futures Trading Commission). The reason why most brokers do not even attempt targeting the US market is because of the exceedingly stringent requirements the NFA and CFTC have. Brokers need to have at least $20 million in operational capital at all times. They also have to report their transaction data regularly. Hedging is not allowed, and leverage is restricted. And these are just a few of the rules.

Anyway, just to be sure, we checked the NFA register. Of course, it was no surprise to find that Digital Premium Trade was not listed there. So, the address this broker is presented on its homepage is fake.

Next, to operate in France, a broker needs to be regulated by the AMF (Autorite des Marches Financiers). The requirements for being able to operate in France are almost as stringent as in the US. These rules are the same for all EU member countries; they need to follow the MiFID (European Markets in Financial Instruments Directive) as laid down by the EU. Brokers licensed by one EU member nation can operate anywhere in the EU (which is probably why this broker has claimed to be regulated in France), however, they need to maintain an operating capital of at least 730,000 Euros and need to participate in compensation schemes (call them a type of insurance for their customers). They also need to ensure that their accounts are segregated from their customers’ and they offer Negative Balance Protection.

When we checked the AMF’s registers, once again, we came up empty – there is no broker by the name of Digital Premium Trade listed there.

All of this tells us that we are dealing with an anonymous broker that is offering its services illegally.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

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

Start Trading

Read Review

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.

No Real Trading Platform

The main service a broker has is its trading platform, which is why legitimate brokers ensure that they offer their clients the best possible trading software in the market. And this usually means providing the MetaTrader 4 or the MetaTrader 5 trading platforms. These are the two best interfaces in the market today – very user-friendly, with tons of features and functionalities.

Of course, with scammers, it is another story. Like with Digital Premium Trade. When we checked their so-called platform, we found out that it was actually just a chart that tracked various markets. When we tried to use the buy/sell option, we were shown a message that stated that automatic trading bots were running and that if we wished to disable it, we would need to get in touch with the broker.

This is a sure sign of a scam, since no legitimate broker would be running trading bots without their clients’ permission. Furthermore, since there is no real option to trade, then opening an account with this broker is actually pointless.

No Trading Conditions

We did not find any trading conditions anywhere on this broker’s website – as mentioned earlier. When we logged into the client area, we did find that you could make a deposit that was as low as $1, but that could be because the broker may not even have bothered to set a minimum deposit limit.

However, once we found out that this broker doesn’t really have an actually trading platform, then the whole point of having trading conditions is unnecessary!

Limited Deposit Methods

On their website, Digital Premium Trade claims to offer a variety of deposit methods – debit card, credit card, MoneyGram, Western Union, and Bitcoin. However, when we checked the payment portal, we found out that the only way you could make a payment immediately was via Bitcoin. There was also a message there that if you wished to make a payment using Western Union or MoneyGram, then you would need to contact the broker directly. This leads us to believe that the only way you will be allowed to make a payment would be through Bitcoin.

This, of course, is yet another common tactic used by scammers; Bitcoin (any other cryptocurrency) payments are anonymous and irreversible. Which means that once you have deposited that money with this broker, there is no way you will ever get it back.

Conclusion

Digital Premium Trade is a shoddy scammer that is best left alone. This is a broker that has lied about pretty much every claim on its website.