Why is this scam
The story begins in 2016. when iTrader employees charged with fraud, providing unlicensed investment advice, obstruction of justice.
The ISA accused the seven men of providing investment advice without a license, as well as aggravated fraud. All of this allegedly occurred between May 2013 and May 2016.
iTrader was one of several companies who had applied for a license to operate a retail FX brokerage in Israel under the new laws from the ISA.
However, they were not granted such a license.
The Marker magazine published an article earlier that year relating to how iTrader uses aggressive marketing tactics to onboard new customers.
The magazine reported, in some cases promising a 90% yield. They conducted a telephone investigation posing as a customer. Later they published a transcript (in Hebrew) of the overly sales-led conversation that the company’s representative had with the reporter. The representative used tactics to persuade the reporter to deposit funds.
FinanceFeeds has received several accounts from sources across the world that have had close dealings with iTrader.
This confirmed that iTrader was continuing to peddle its services via an outsourced call center in the Philippines.
The sources allege that the structure of the entity is as follows: iTrader outsources its binary options sales to a business process outsourcing (BPO) company called I.B.D marketing in the Philippines.
These sources claim that iTrader is continuing to market its services.
“The company name that I refer to is iTrader which is from Israel” stated source. “The company is operating inside the BPO Company named I.B.D. Marketing Inc. located at Clarkfield, Pampanga, Philippines.”
Official website: https://global.itrader.com/
The signs of confirmation
The story escalated this year in June. At least eight Israelis suspected of a multimillion-dollar online scam. They were operating as members of call-center of the company known as International Branding Development Marketing Inc. connected with iTrader.
According to Philippine police, IBD Marketing operated as a call center on behalf of an online trading site called FTOCapital.com, whose call center operators tried to persuade investors to invest in bitcoin.
In particular, several employees of the Philippine company were previously employed in Israel at Delta P.D. Media Ltd. and/or Gal Media Trade Ltd., two closely linked Israeli companies that operated the binary options websites FMTrader.com and Itrader.co.il.
Let’s see the other signs.
The most important things to look for in a broker are regulation and good reputation; ITRADER has both and overall they look like a well-oiled machine. They officially only offer FX and CFDs, not Binary Options. But as we know they were involved in Philippine scandal and scam with binary options.
Their customers claim: Their politic is never close a trade. They will push you to take even loans in order to maintain the positions opened.
This has 2 consequences: 1 your account will not hold with the big lots they ask you to open and 2 the SWAP commissions will eat you.
Constant phone calls, sometimes 10 a day from various departments in their head office in Cyprus as well as the UK. If you block one number, another of their numbers will call. Absolute nightmare.
On the other hand, some traders have complained that account managers asked them to deposit more money and others have complained that they had to send ID verification. It’s a well-known fact that nowadays all brokers ask for IDs in order to prevent money laundering so the fact that ITRADER asks for these documents should be considered normal, not a cause for concern.
When account managers ask for larger deposits they have to do their jobs, so think about how much you want to invest and don’t let them sway you. We have to mention that we cannot verify any of these online complaints, so take them with a reserve.
Recommendation
Fully regulated by CySEC and registered with more than 20 other financial watchdogs across Europe.
Frankly, we found some advantages and drawbacks with regards to this broker: The most important things to look for in a broker are regulation and good reputation.
ITRADER has both and overall they look like a well-oiled machine.
They officially only offer FX and CFDs, not Binary Options. But as we know they were involved in Philippine scandal and scam with binary options.
So, be careful. But red flag no, still not.