RBCTrade – Is it Safe or a Scam?

Website URL:  https://rbctrade.io/

Founded: 2019

Regulations: Unregulated

Languages: English, Russian, German

Deposit Methods: Credit/Debit Cards, Bank Transfers, and (maybe) Crypto Wallets

Minimum Deposit: $250

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Forex, Cryptocurrencies, Stocks, CFDs in Stocks, Metals, Commodities

Trading Accounts and Conditions

RECTrade claims that it is a Forex and Cryptocurrency broker based out of Luxembourg. It offers quite a range of asset classes for trading, as well as two trading platforms, one of which is the MetaTrader4 platform.

When you read the trading conditions on the RECTrade website, they look very attractive on the surface of things, as do the various account types the broker has on offer. However, when you actually look at the spread, the benchmark currency pair EURUSD has a massive 3-pip spread. The leverage also goes up at as much as 1:500.

Here is the list of account types that RECTrade offers:

• Starting: Minimum deposit is $250, has a maximum leverage of 1:20 and a spread that starts at 0.4 pips.
• Basic: Minimum deposit is $500, has a maximum leverage of 1:50 and a spread that starts at 0.3 pips.
• Standard: Minimum deposit is $2,000, has a maximum leverage of 1:100 and has a spread starting at 0 pips.
• VIP: Minimum deposit is $5,000, has a maximum leverage of 1:100 and has a spread starting at 0 pips.

RBCTrade – Advantages

Here are the few advantages of trading on the RBCTrade platform:

• 2 Trading Platforms from Which to Choose

RBCTrade offers two types of trading platforms – the world’s most popular trading platform, the MT4, and the Status Terminal.

The first is known for its ease of use, numerous trading tools such as charting options, automated trading bots and market analysis indicators. The second one, is great for beginners. It offers pending orders, some amount of chart customization, a live news feed and other features.

• Range of Tradeable Assets on Offer

RBCTrade has a decent range of assets for trading. When you check the range of assets on the Status Terminal, you will see a wide range of tradeable assets – a large number of currency pairs, as well as CFDs on commodities, stocks and precious metals. You can also trade in CFDs on cryptocurrencies.

RBCTrade – Disadvantages

Sadly, the disadvantages of using this broker are much higher than the advantages. Here is the list of cons because of which it would be best not to trade on RBCTrade:

• Lack of Corporate Clarity

Besides a single address that puts the company in Luxembourg, there is no other information about who owns and operates RBCTrade. We don’t know the name of the company, because of which we cannot be certain about the legitimacy of this website. In other words, it is completely anonymous. This is a huge cause for concern since it shows that the broker does not answer to any single authority.

Plus500

$100

Minimum Deposit

Start Trading

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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.

 

AvaTrade

$100

Minimum Deposit

Start Trading

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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.

• No Regulatory Oversight

After going through the website of the company we have come to the conclusion that all its claims of being regulated are false.

RBCTrade claims that it is regulated by multiple government financial bodies – the NFA in the United States, the FCA in the United Kingdom (interestingly, it is spelled FSA on the broker’s website!), the CySEC of Cyprus, the British Virgin Islands and Mauritius FSC and even the Russian FSFR!

However, it is not even necessary to check the veracity of these claims, since the US NFA does not allow a broker to hold multiple licenses from other countries.

Added to that, the condition and format of the website is not in line with regulations of the very same agencies the broker has listed.

• CSSF Blacklist

RBCTrader has been blacklisted by the CSSF. The CSSF, full form – Commission de Surveillance du Secteur Financier, is Luxembourg’s financial regulator. And this is the agency that has noticed the broker’s fraudulence.

The regulator released a public warning against trading on RBCTrader’s website, stating that this broker was operating without a license from Luxembourg.

• MT4 Trading Platform Does Not Belong to RBCTrade

The broker has made a big deal about the fact that it offers its customers two separate trading platforms to use, however, when you log onto the MT4 platform, you will realize that it doesn’t belong to RBCTrade at all. In fact, it has been provided by a third party called Gelko Partners.

Gelko Partners is an offshore company that operates another possible scam site called EU Capital.

• Spreads are Much Higher than Announced

While the account types show very low spreads, when you actually go to the trading platform, you find out that the spreads are at 3pips – which is more than 2 times the industry average.

The only way we were able to discover this was by registering a live account with RBCTrade. On doing so, we observed that the benchmark currency combination, the EURUSD, was at 3 pips. These values are much higher than the 0.4 pips the broker has advertised.

Conclusion

After going through all the details mentioned on RBCTrade’s website, we would strong advise traders to not use this broker to invest their money. There are too many anomalies, all of which point to the fact that this broker is actually out to scam traders.

There is the issue of corporate anonymity, lies about its licensing and regulation, and most of all, the warning from the Luxembourg financial watchdog that this is a scam site.

It would best for you to not invest your money in this broker as the chances of you losing your hard-earned money are extremely high.

RBCTrade

3.4

User Experience

3.6/10

Payment Options

3.5/10

Security

3.0/10

Support

3.3/10

Reputation

3.5/10

Pros

• 2 Trading Platforms, including MT4
• Range of Tradeable Assets on Offer

Cons

• Lack of Corporate Information – Anonymous
• Lies About Licensing or Regulation
• Blacklisted by CSSF
• MT4 Trading Platform Belongs to a Third Party
• Spreads are Much Higher than Advertised