Read our Profitlytrade review to see if this broker is a scam or legit. Just to clear doubts, this is a profitlytrade.com review.
Just because you are excited about trading in the financial markets is no reason for you to not be careful or skip your due diligence. You have to choose an online brokerage to start trading and this decision will take your time and attention. The company you choose will shape your overall trading experience, so it is never smart to make this decision in just a few minutes.
In addition, since scammers are also prevalent in the financial markets, it is enough to show why proceeding with the utmost caution is important. Doing so can help you uncover any issues with the broker, as this Profitlytrade aims to do.
These issues are important because while some might be acceptable, there are others that are just a deal breaker. It is because the issues may indicate that you are dealing with a fraudulent broker that is out to scam you. But, the only way you will be able to highlight them is by going through a brokerage thoroughly.
Skimming through their offerings will never be enough because the company may not be what it seems. You should bear in mind that appearances tend to be deceiving and where the internet is concerned, everything should be taken with a grain of salt.
You should never take the word of a brokerage when it is trying to sell you its services because this is something that every company is going to do. They will claim to be a genuine and reliable broker, but this does not necessarily make it true.
Scammers are also aware that this is how they can draw people to their platforms, so you need to proceed with the utmost caution to ensure you are not falling for their tricks. One of the fraudulent platforms you will come across is Profitlytrade that has done a great job of hiding its issues.
It presents itself as an authorized and licensed broker that is operating from California and this would make people think that Profitlytrade is credible. This is because the US is one of the well-regulated markets in the world, so the fact that it is licensed there will automatically reassure traders.
However, this is far from the truth and you will discover the issues that Profitlytrade has when you give it a closer look. Some of these are highlighted as follows;
Lack of licensing
First and foremost, you should verify the licensing claim that Profitlytrade has made before you look at anything else. If it is lying about it, then you will be warned and you can just drop the brokerage as an option.
Scammers are likely to make such claims because they want you to trust them, so verification ensures you are not being fooled. As per the Profitlytrade website, the company is incorporated and headquartered in California.
Most importantly, it claims that it has a business license and is owned and operated by ProfitlytradeMarkets Incorporated. However, the important thing to note is that a business license cannot substitute for a legitimate forex license.
Any broker that wants to operate in the US needs to obtain a forex license from the Commodity Futures Trading Commission (CFTC) and also become a member of the National Futures Association (NFA).
If it does not have the said license, then Profitlytrade cannot operate legally in the United States, which would be confirmation that it is a scam. When you check the online registers of the two regulatory bodies mentioned, you will not find the brokerage listed anywhere. This is the proof you need that the brokerage is outright lying and it should not be trusted.
No functional trading platform
The second feature that you will have to check about a brokerage is their trading platform because it is what you need to do the actual trades. Without the platform, there can be no trading, so you need to check what kind of platform you are given and if it has the right technology and features.
One of the biggest draws of Profitlytrade is that it is offering the best known trading platforms in the industry; the MT4 and the MT5 as well as cTrader.
These are the leading ones in the market, so obviously every trader would want to sign up with Profitlytrade to be able to access them. However, it turns out to be a complete lie that you will discover after you register yourself and are transferred to a funny looking dashboard on the website.
This is not a functional trading platform at all, which means when you sign up with Profitlytrade, you cannot do any trading at all.
Extremely high leverage
Leverage is one of the offerings of every online broker and it provides traders with flexibility during trading. Even if they do not have a lot of capital, they can still execute big trades thanks to leverage. If the trade is right, they will be able to make high profits, but if it moves in the opposite direction, their losses are also magnified.
This is a major problem because it increases the risk for traders due to which regulatory authorities have imposed limits on the amount of leverage that can offered.
When you check out Profitlytrade, you will find that it is offering ratios as high as 1:500, which is considered excessive. This shows that the broker is only trying to lure you to its platform.
Lies about payment methods
The payment methods that are advertised on the Profitlytrade website are bank wire transfers and Perfect Money, but the actual method that it supports is crypto coins. This is not really surprising because it is quite typical for scams to ask for crypto payments because they are not eligible for chargeback.
You have to deposit money with Profitlytrade in the form of bitcoins and these payments are final and also anonymous. This enables scammers to get away with your money.
Considering the numerous issues that Profitlytrade has, it is quite obvious that you are dealing with a scam and fraud broker.