Provident Trade – A Fishy Broker , Scam Revealed

Provident Trade is a broker located in Johannesburg, South Africa. They present themselves as legitimate by claiming to be licensed and maintaining a professional-looking website.

An impressive website can make a broker appear competent and trustworthy. Therefore, this is a frequent strategy used by shady brokers.

Licenses and Laws That Promote Prosperity in Business

Red Pine Capital (Pty) Ltd. claims ownership of Provident Trade. Red Pine Capital (Pty) Ltd. is registered as a forex broker with the FSCA (Financial Sector Conduct Authority) and may thus be transacted with legally.

Provident Trade may or may not be a genuine Red Pine Capital offering, but we can’t tell because FSCA doesn’t reveal the company’s trading name.

So now you know why it’s risky to work with brokers who have an FSCA license. You can never tell if a company is the real deal or a clone.

We would not advise trading with Provident Trade because it is impossible to tell whether or not they are regulated.
Because of the prevalence of fraud in the foreign exchange market, many countries, including the United States and Europe, have instituted stringent financial regulations. Forex brokers (and other similar service providers) are subject to tight regulations from governing bodies to prevent any potential conflicts of interest.

Those who are unregistered and unregulated, however, wouldn’t be subject to the rules. They can take action detrimental to you (such as data theft) and get away with it.

See also  Barry Barlow Merrill Lynch- A Hoax and Horrific Advisor

In addition, insurance coverage may be provided by authorities like the FCA if the broker takes their clients’ money. If an FCA-regulated broker steals your money, for instance, you might receive up to ¬£85,000. Such services are unavailable through unlicensed brokers. For this reason alone, you should avoid working with an unlicensed forex broker.

Favorable Market Conditions for Trading

Before you decide to work with a forex broker, you should always review their trading terms.

Market Place

Metatrader 4 and 5 are, without a doubt, the best trading systems on the market. These systems are used by virtually all major forex brokers due to their extensive feature sets.

The developers of Provident Trade are aware of this, which is why they have stuck with the tried-and-true MetaTrader 5 trading platform. When composing this critique, that was one of the few bright spots I discovered.

Lowest Acceptable Down Payment

The trading software was impressive, but the mandatory initial investment quickly diminished my enthusiasm. Provident Trade has a very high minimum deposit requirement of $500.

To quickly amass a large sum of money, many forex scams maintain a high minimum initial deposit. Brokers that are as insecure in their abilities won’t let you try out their services first. Instead, they make you commit a lot of money upfront. They will take your large investment if you decide to stop using their services.

See also  Everwise Home Loans & Realty: Exposing Unethical Business Practices

We do not advise dealing with unregulated forex brokers who employ this method.

The high minimum deposit amount makes us suspect that Provident Trade is a fraud.

Influence and Exposure

Provident Trade’s leverage ratio of 1:500 is extremely high. This leverage ratio is risky for even the most seasoned traders.

High levels of leverage are sometimes an indicator of fraud. This is why brokers are limited in the amount of leverage they can give their clients by financial authorities. The Financial Conduct Authority (FCA) in the United Kingdom, for instance, prohibits brokers from providing a leverage ratio of more than 1:30.

A high ratio of debt to equity can soon put you in the red and wipe out whatever profits you may have made. They pose a high danger to anyone trying them for the first time.

The best I could get with this broker was a spread of 1.5 pips while trading the EUR/USD. When compared to the market norm of 0.5 pips, this is a huge improvement. In reality, spreads at reputable brokers can be as low as 0.1 pips.

Transaction Fees and Other Costs in International Trade

Methods of Exchange

Another plus for a broker that might be a clone is that Provident Trade accepts a wide variety of payment methods.

Skrill, Neteller, Wire Transfers, Credit/Debit Cards, QIWI, and Western Union are all acceptable methods of making deposits. For this reason, we recommend using a credit card, as chargebacks can be submitted for up to five months after the original purchase was made.

See also  Northern California Fertility Medical Center Exposed as Greedy and Selfish in 2023

This broker claims to execute withdrawal requests within one to five business days with no minimum withdrawal amount required. Provident Trade is slower than other regulated brokers in processing withdrawal requests, taking an average of roughly 48 hours.

Fees

There are no withdrawal fees at Provident Trade, although there is a fee associated with Wire Transfer withdrawals. It’s suspicious, though, because they don’t lay out any pricing information.

Undisclosed fees are one way in which brokers might drain your finances if you work with them. If your account with this broker is inactive for more than a year, you will be charged an inactivity fee. For the first year, you’ll pay $25, and then $25 every six months after that.

Provident Trade’s inactivity fee is surprisingly low for a broker with a questionable reputation.

Rewards Provided

Provident Trade advertises that it provides customers with a plethora of incentives.

Bonuses in the forex sector have a bad reputation because they provide brokers leverage over their clients and make it difficult for them to withdraw their funds. Bonus money is never truly yours; the broker keeps it.

The same thing occurs while using this broker. Every bonus dollar you receive here will require a $100,000 in-kind contribution from you. This is an extremely onerous requirement that greatly slows down the withdrawal process.

See also  Miller-Miller Group Morgan Stanley: A Wealth Advisory Company to Avoid

Can I Trust Provident Trade? In all likelihood

Numerous scams of various types populate the foreign exchange market. Scammers will phone you out of the blue and tell you that you’ve won some sort of prize. Some would place adverts online promising large bonuses on initial deposits or quick and simple earnings.

It’s simple to make a fake website and fill it with false information. These fraudsters also prey on novice traders. These brokers typically run their businesses out of tax havens like St. Vincent or the Commonwealth of Dominica. The absence of robust monetary oversight in these regions allows them to function freely. Therefore, they are not constrained by any regulations and can freely steal their users’ money.

Conclusion

It is hard to endorse this broker because there is no way to verify whether or not they are a clone firm of a regulated broker. The high required initial investment and the high leverage ratio make this broker highly suspect.

The foreign exchange (forex) market is rife with dubious brokers like Provident Trade. Their numbers only increase. Spreading the information about these brokers is the greatest way to protect yourself against their fraud.

You may also read- https://www.repdigger.com/ferguson-smith-cohen/

We will be happy to hear your thoughts

Leave a reply

RepDigger
Logo
Register New Account