Reason to avoid: Offshore License
Listed Date: October 15, 2018
Top 3 Regulated Forex Brokers
Beware AroTrade is an Offshore Broker. It is NOT SAFE to trade.
Is AroTrade a scam or legit broker?
No, it is not safe to trade with AroTrade. AroTrade is own by Speed Solutions Ltd. which is an offshore company registered in Belize.
Belize is notorious for its practically absent requirements and regulations. Due to the setup cost is low and it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as BlueMax Capital, ZeegosFX and more. We have a detailed article explaining the risk of trading with brokers from Belize.
AroTrade is a financial service provider with an asset index of over 1,000 stocks, forex, commodities and indices available on CFDs on a range of account types and platforms. The broker claims to be authorized by the International Financial Services Commission (IFSC), while the client transactions are processed by Speed PA Ltd situated in Bulgaria. That is actually quite confusing, while it seems the company performs its service within the EU with its alleged authorized operation. Indeed the AroTrade is regulated by IFSC in Belize, however, with all the respect to the regulator it is still considered to be an offshore license.
The Financial Commission is not financial regulatory body from any Government. It is an independent self-regulatory organization. From our source, It costs €24,000 per year to become a member. However, and there is no handbook or guidelines for brokers to run their business. Therefore, there is zero protection for the traders.
In addition, there were cases while the traders stated company as a scam due to their failure to withdraw funds, which is typical among the companies with non-serious regulation.
We advise all investors and traders to avoid AroTrade and other brokers from Belize. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as eToro and Plus500.