The forex market has always been known for its high volatility, which means higher risks and higher profits as well. This has always been the draw and millions of people all over the world trade in this market, due to which it has such an impressive daily trading volume of $5 trillion. The other financial markets also have a lot of potential and with people looking for a higher return on investment, a way to supplement their income, or a career, there is a huge influx of people in the market. In order to do so, they obviously need the services of a broker and this brings us to this Dutchrate review.
To keep up with the growing demand, a horde of brokers have been established over the years. There are literally hundreds of options and each promise great features and services to attract clients. That’s how things work in other industries as well. Every business advertises their services in the most attractive way possible to lure in clients. But, there are some shady characters everywhere that make these tall promises, but don’t live up to them. It is not that difficult to find out about all the scams and frauds that have happened online.
You will find that the financial markets have also seen a huge number of such fraudulent companies because there is a lot of money involved here and this attracts cybercriminals. The easiest way for them to defraud people is by posing as sophisticated and professional brokerages and then exploiting them once they sign up. Therefore, you have to be very cautious when you are shopping for a broker because it could be a scam as well. Setting up a website is really easy nowadays and anyone can do it and come off as legitimate. This is exactly what Dutchrate appears to have done.
It is one of the brokers that you will come across when you are looking for a broker and the neat and stylish Dutchrate website certainly leaves a positive impression. As far as the platform itself is concerned, it claims to be a leading forex and CFD brokerage that offers its clients access to an impressive variety of currency pairs, along with CFDs on commodities, stocks, indices, cryptocurrencies and ETFs. Sounds like a dream come true, doesn’t it?
To add to it, Dutchrate is also offering its clients leverage that goes as high as 1:1000, competitive spreads and the popular MetaTrader5 platform. What more could you want? It all sounds too good to be true, which means you need to be instantly suspicious. Unsurprisingly, when you dig a bit deeper, you will find that the broker bears every sign of a clear scam and is definitely not one you should use. Read on to know more:
Background and Company
If you take a look at the Dutchrate website and ignore the design, you will find that it is completely anonymous. It claims to be owned and operated by a company called Dutch Rate Company, but you will not be able to find any corporate background whatsoever. There is only a vague references that has been made to the United Arab Emirates in the Terms and Conditions that you will find on the website and nothing more. In fact, even this reference is so vague that you cannot be sure of where it is based or incorporated.
You will not find any corporate address, or even a phone number on their website. All Dutchrate has provided is an email and a couple of social media accounts. This doesn’t really mean anything because they are quite easy to set up. In the whole presentation, you will not come across any mention of licensing, regulation or authorization. This alone tells you what kind of broker it is because a legitimate forex license is of the utmost importance for protecting you from scammers and ensuring safety of funds.
Another problem that you will come across at the Dutchrate website is their implication that you will start making profits right away, as soon as you register on the platform. This is considered a clear indication of a scam because no legitimate company would ever guarantee returns, especially where the financial markets are concerned. This is because you are trading leveraged products, as is the case in with Dutchrate, where you cannot predict profit or losses. Yes, you could make high profits, but losses can be equally high as well.
If the broker is making such a promise, then there is definitely something suspicious and this is another mark against Dutchrate. A genuine brokerage usually warns its clients straight off the bat regarding the risk associated with financial trading. But, to confuse people Dutchrate has deliberately added offerings like leverage of 1:1000 and a minimum deposit requirement of about $300. This is not too high and is around the standard $200 to $250 that most brokers ask.
The biggest offering that Dutchrate has added is that of the MetaTrader5 trading platform, which is regarding as the top platform in the market. Being able to trade on the MT5 trading platform would undoubtedly be a huge perk, but as it is clear that the broker is a scam, there is a strong possibility this is a lie to get you to sign up with them.
In case you need more convincing about Dutchrate not being a legitimate broker, their lack of disclosure about the payment methods they support should be enough. Any authentic company would highlight the methods they support on their website to enable them in deciding if they want to sign up or not. They haven’t bothered doing so, which means they are probably going to ask you to deposit money in the form of cryptocurrencies, or other methods through which you cannot get a refund.
After you have done your research, it is obvious that Dutchrate is not a good broker and you need to continue looking until you find a reliable solution for your trading needs.