A Comprehensive Mitrade review revealing if the broker is a scam
The times when the main distinctive feature that set apart good brokers from bad or scam brokerages was the regulations is long gone. Nowadays as many new brokerages are appearing on the Forex trading market, one needs to examine more features of the broker, rather than simply checking if it is regulated or not. Mitrade Forex broker is a good example of it. The broker has a license from ASIC, the regulator that is considered to be very demanding when it comes to the regulations. How about Mitrade minimum deposit then? Well, Mitrade has also put nice looking offerings on the website, such as no minimum deposit requirements, low spread, leverage up to 1:200, and various trading instruments. However, before you get excited about it and open an account with the broker, it makes sense to see what exactly does it offer and how good its service is. Can Mitrade be trusted just because it has a license? This review will discuss the broker’s features in details and let you know the answer.
The regulatory background
Mitrade is operated by the Mitrade Global Pty Ltd. The company is registered and regulated in Australia, the number of ABN (90 149 011 361) and the license number(AFSL 398528) is actual and it can be checked on the website of the broker, where Mitrade provides the proof of license. It can also be checked on the ASIC’s website as well.
There are two disturbing things about the license and the company summary that is provided by the ASIC on its website. The first thing is the fact that the company behind Mitrade has changed its name several times. It is a well-used practice of the scam companies. They usually run one or two brokerages and when its scam is revealed they change the name and start operating the new brokerage. Another thing is the date of registration. The company got the license in 2011 and Mitrade was established just recently. Meaning that before that the company was operating other brokerages. Due to these, despite being regulated we can assume that Mitrade fraud is still possible.
The broker offers its trading services to the worldwide audience with some exceptions. Residents of the United States, Canada, and Japan cannot open an account with the broker. There are no other countries mentioned, meaning that most of the traders can become customers of Mitrade. However, the broker itself targets Asian and European customers. as the website is available in English and Chinese languages. Traders who want to open an account with Mitrade and at the same time are not residents of Australia should consider that the ASIC license does not protect them from Mitrade scam or wrongdoing, apart from it, it does not have customers compensation fund. Hence, if you will have any kind of problem when trading with Mitrade you cannot do anything else other than flying to Australia and complaining with the regulator.
What does Mitrade offer
With Mitrade one can trade with over 60 cryptocurrency pairs, CFDs on indices, cryptocurrencies, and commodities. Overall the broker offers about 100 trading instruments that can be traded on the custom trading platform offered by Mitrade. Unfortunately, there is no additional information about the trading platform, for example, what are some in-built tools and features that can be used by the traders. Also, the broker does not offer MT4 or MT5 which are the most commonly used trading platforms. The fact that the broker does not give customers a choice when it comes to trading platforms reduces Mitrade rating a lot.
You cannot find any information about the account types on the website. The broker only mentions that there is an only personal account and Mitrade does not offer any other types of account. There are no various personal account types that one can choose from. There is only one, and the broker does not provide any details about it. The only information about the trading account is that it can be opened in two currencies USD and AUD.
One can start trading with Mitrade with as much money as he or she has. To say in other words there is no minimum deposit required. If mitrade FX brokerage was a legit broker, it would sound good, however now it seems that the broker is trying to lure as many traders as possible with the no minimum deposit policy.
The broker offers leverage up to 1:200. However, as you might already know not all the trading assets have the same leverage. For example, one can use leverage up to 1:200 and even more for the currency pairs, but it is considerably lower for CFDs on commodities or cryptocurrencies. Unfortunately, the broker does not show allowed leverage for each trading asset.
There are not many payment methods offered for making deposits or withdrawing money from the trading account. Traders are limited to using a debit/credit card, wire transfer, and Skrill. According to the broker, there are no commissions for deposit or withdrawal. Mitrade withdrawal takes 3-15 business days. However, this is time for the transaction, the broker does not disclose how much time it is needed to process the withdrawal request.
Mitrade offerings might look good from the beginning, but Mitrade Forex review left us disappointed as the more we learned about the broker the more flaws and disadvantages we found in its service. The broker is regulated, but the background of the company looks shady and it makes Mitrade less trustworthy. It does not seem that the broker gave it enough time to design its services in the best interest of traders. Traders do not have a choice with the account types or the trading platform. The information about trading conditions is strictly limited and traders are only able to learn about them after opening an account. These together reduce Mitrade rating a lot. The broker might not be scamming Aussie traders, but even in this case, Mitrade does not have a good service. Traders outside Australia should be especially careful and avoid Mitrade at all cost.