FtmoPipsTrade – Are They a Scam?

Website URL: https://ftmopipstrade.com

Founded: 2022

Regulations: None

Languages: English

Deposit Methods: Cryptocurrencies

Minimum Deposit: $100

Free Demo Account: No

Number of Assets: 100+

Types of Assets: Forex, ETFs, Energies, Options, Shares, Indices, Crypto Assets, Commodities

Trading Accounts and Conditions

FtmoPipsTrade does not offer their clients trading accounts. Instead, the broker offers you investment plans:

• Silver Plan: The deposit range is from $100 to $700 and you are promised a profit return of 70%.
• Gold Plan: The deposit range is from $300 to $2,500 and you are promised a profit return of 120%.
• Platinum Plan: The deposit range is from $1,000 to $9,000 and you are promised a profit return of 160%.
• Diamond Plan: The deposit range is from $6,000 to $25,000 and you are promised a profit return of 250%.

The broker offers a maximum leverage of 1:1000 for forex pairs and 1:100 for cryptocurrencies. There are no other trading conditions given.

FtmoPipsTrade – Advantages

FtmoPipsTrade is a scammer and there are no advantages to trading with them.

FtmoPipsTrade – Disadvantages

Here are all the red flags that clearly tell us that we are dealing with a scammer in FtmoPipsTrade:

• Lack of Regulation

FtmoPipsTrade provides us with a partial UK address and phone number in the footer of their website. And then, in their About Us section, the broker claims to be regulated by a US regulator. However, all that license says it that FtmoPipsTrade has a business license from the United States of America by the Registrar of the Business.

Here are all the red flags that we have found with regard to this information.

First, to actually operate in the UK, a broker needs to be listed with and regulated by the FCA (Financial Conduct Authority), the country’s financial regulator. We checked the FCA’s online register and there is no broker by this name listed there.

Now, about the so-called US license. That certificate is completely fake. To operate as a forex broker in the US, you need to be regulated by the CFTC (Commodity Futures Trading Commission) and you need to be a member of the NFA (National Futures Association). Once again, we checked the registers of both these financial authorities and came up blank. So, here is another lie perpetrated by this broker.

And finally, this broker has not provided any company name. Which means that we are dealing with an anonymous broker that is not regulated and has lied about their regulation status – a pure scam.

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

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• Serial Scam Operation

The incomplete UK address is another issue we have with this broker. When we Googled this address, we found out that this is an address that has been used by numerous other brokers – all of whom were revealed as scammers. Some of them are: Kylex CryptoFx, Globalfxtpro.com, CAMFX TRADE, BRIGHT FX TRADING, etc.

This revelation leads us to believe that we are actually dealing with a serial scam operation.

• No Trading Software

When you go through FtmoPipsTrade’s website, the broker boasts of offering their clients the latest, most advanced trading software. However, when we checked, we found out that this was yet another lie. In fact, this broker does not even have a working trading platform.

• Issues with Investment Plans

Another red flag that tells us clearly that this broker is a scam is their so-called Investment Plans. Legitimate brokers offer their clients trading accounts of various types. The different accounts allow traders to invest funds of different amounts, and they get different trading conditions for each of these account types. You can then choose the one that best suits your budget or risk appetite.

With FtmoPipsTrade, you are offered Investment Plans. This broker expects you to invest money with them and then promise you profit returns. Now that is the red flag. No broker can ever promise you returns on your investment. The nature of the forex market is such that most traders lose money while trading. In fact, legitimate brokers are required by regulators to publish how many of their clients have lost money while trading; that number ranges from 75% to 85%. As you can see, the majority of traders are actually losing money. So, how can any broker promise you profits? And that too at 250% of your investment?

• Very High Leverage

The only trading condition that this broker mentions is the leverage ratio they offer. According to their website, FtmoPipsTrade offers their clients a maximum leverage of 1:1000 for forex pairs and 1:100 for crypto pairs.

This kind of leverage is illegal in most jurisdictions, especially the two that this broker seems to be targeting – the UK and the US.

Because of how dangerous high leverage ratios can be, most regulators have limited the amount of leverage their brokers can offer clients. In the UK, brokers cannot offer more than 1:30 for forex pairs and not more than 1:2 for crypto pairs. In the US, the maximum leverage allowed is 1:50 for forex and 1:5 for cryptos.

Therefore, the kind of leverage this broker is offering is not only dangerous, it is also illegal.

• Lies About Payment Options

On their website, FtmoPipsTrade claims to offer multiple payment options – PerfectMoney, Ethereum, Bitcoin and Litecoin. However, when you check their FAQ section, there is only one option – cryptocurrencies.

Scammers prefer to have transactions carried out via cryptos since such payments cannot be refunded or even traced. Therefore, if you are using a broker for the first time, it would be advisable to use a payment method that allows for chargebacks, such as credit or debit cards. This way, if you are scammed, at least you can file for a chargeback and there is a chance that you may be able to recover your money. 

Conclusion

FtmoPipsTrade is part of a serial scamming operation and they are to be avoided at all costs.

FtmoPipsTrade

2.7

User Experience

3.5/10

Payment Options

2.3/10

Security

2.6/10

Support

2.5/10

Reputation

2.5/10

Pros

• None

Cons

• Lack of Regulation
• Serial Scam Operation
• No Trading Software
• Issues with Investment Plans
• Lies About Payment Options