Take a Tour of the Advantages and Disadvantages of Umdy Trade Review



The first thing we see on the Umdy Trade website is that it says it is a “multi-award winning forex provider.” We’ve learned not to believe these kinds of claims. This website is just one more piece of evidence that shows it’s okay to be skeptical. Checking the facts shows that this is not a forex broker that has won awards. Instead, it is a website that is unreliable and runs by a dubious offshore company.

Umdy Trade regulation and safety of funds

The first thing to look for on a forex broker’s website is what kind of legal entity runs it, where it is based, and what kind of regulatory oversight it is subject to. Companies that have licenses are also required to provide a full set of legal documents.

Umdy Trade doesn’t give you access to the Terms and Conditions, the Customer Agreement, or any other document. This is a big red flag that this website is not what it seems to be.

Umdy Trade Llc owns and runs this website. It says on its website that it is based in Saint Vincent and the Grenadines (SVG). There is such a company among the ones registered in the SVG. But this does not give customers any guarantees of safety.

As soon as you go to the website of the local Financial Services Authority, you see a warning that the organization does not license forex or other brokers and does not monitor the activities of international business companies that do these things.
If you want to invest in financial instruments, you should be aware that there are a lot of fake brokers out there. Always carefully check to make sure that the broker you choose has the right licenses. Working with a company that is licensed and supervised by an agency like the Commodity Futures Trading Commission (CFTC) in the US, the Australian Securities and Exchanges Commission (ASIC), the UK’s Financial Conduct Authority (FCA), or an EU regulator like the Cyprus Securities and Exchange Commission (CySEC) has a lot of advantages.

Negative balance protection and keeping client funds separate from the broker’s funds are two examples of how these brokers protect their clients. In the EU and the UK, brokers must also be part of guarantee schemes that cover a certain amount of the trader’s investment if the broker goes bankrupt.

These assurances are worth €20,000 in the EU and £85,000 in the UK. Regulators’ high net capital requirements make this unlikely.. In the UK and Cyprus, these requirements are EUR 730,000; in Australia, they are $1,000,000; and in the US, they are at least $20,000,000.

Umdy Trade software

On the home page of Umdy Trade, there is a reference to a trading platform, but it is not clear what kind of software is meant. Brokers who are legit put a lot of weight on the technological options they give their clients.

Umdy Trade did not ask for new account registration when we wrote this review, so we couldn’t check to see if it has any trading software at all.

If you use the services of a licensed broker, you will be able to use well-known software with advanced features and versions for all kinds of devices and operating systems. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the trading platforms that are used the most in the business (MT5). These platforms have become the industry standard because they have so many features, such as options for customization, the ability to use multiple accounts, the ability to design and use custom scripts for automated trading, and the ability to backtest trade strategies.

Umdy Trade terms & condition

When you go to the website of a legitimate broker, you will find different types of trading accounts for investors with different preferences, as well as detailed descriptions of trading parameters like the minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc. Most of the top brands offer micro accounts for new traders with a very low minimum deposit, usually between $5 and $10.
The Umdy Trade website talks about two types of accounts, Classic and Platinum, but doesn’t say anything about how to trade.
On the website, it says that Umdy Trade gives you up to 1:500 leverage. Brokers who are regulated don’t let retail traders use such high levels of leverage because it can lead to sudden and large losses. In the European Union and the UK, the most leverage that can be used is 1:30. In the US, the most leverage that can be used is 1:50.

Umdy Trade deposit/withdraw methods and fees

Umdy Trade’s homepage says that credit/debit cards, PayPal, Skrill, and Neteller can be used to make deposits and withdrawals.
 We couldn’t find out what kinds of payment methods Umdy Trade accepts. This kind of shady website will often say that it accepts traditional payment methods, but in reality, it only accepts cryptocurrencies and payments through shady payment processors. This makes it impossible for people who fell for the scam to get their money back.

Umdy Trade says that there are no fees for deposits, but it doesn’t say anything about how to get your money back. Since Umdy Trade doesn’t have the right legal paperwork, it’s hard to tell what kind of traps the scammers may have set. Most of the time, fake brokers make it impossible to withdraw money by charging huge fees and setting trade volume requirements that are impossible to meet.

How does the scam work?

Many people want to make money without doing anything, but they don’t know enough about the financial markets to invest on their own. This makes them a target for scammers who pretend to be brokers online. If you find some of them and give them your contact information, skilled con artists will get in touch with you and promise to help you with the confusing parts of investing. You will only have to put money in and take money out.

But when you try to get even a small amount of your money back, you won’t be able to. Your supposed profits will disappear all of a sudden, or you’ll find that you have to meet requirements that are impossible to meet before you can make any money. Fraudsters often add 10%, 20%, or even more in fees for customers to withdraw their money. Scammers won’t be held accountable because they hide behind fake names and offshore “shell” companies. Scammers also often use payment methods that can’t be returned.

What to do when scammed

First, you should exercise extreme caution to avoid becoming a victim of other con artists right away. A common scam is to promise to get money back from fake brokers in exchange for a fee upfront.
You can charge a chargeback if you paid with a credit or debit card. Visa and MasterCard give people 540 days to ask for this kind of service.

But remember that fraudsters can argue if you give them a copy of your ID and proof of your address. You could also let the authorities in your country and other people online know what the scammers are doing.

The views and opinions expressed in these articles are those of the source BrokerAudit.com and do not necessarily reflect the official position of ‘Skeptic Files’, which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.

This article is syndicated automatically through a third-party agency from BrokerAudit.com.

To view the original article at BrokerAudit.com, you can visit https://www.brokeraudit.com/advantages-and-disadvantages-of-umdy-trade/.




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