The Forex industry has grown exponentially in the last few years. However, because of its staggering growth, it has attracted a lot of shady organizations and scams too. In my Buy4Power review, I’ll be discussing one such scam. Buy4Power is a suspicious forex broker and I don’t recommend doing business with them.
Buy4Power Shady History
Before I discuss the trading conditions and licenses of this broker, I must first point out its past. Buy4Power is the rebranded version of TerratradeX, which received a warning from FCA recently for providing its services without getting authorization.
Getting a warning from FCA is not good for any broker’s reputation. Moreover, TerratradeX had become notorious as a scam among its customers. Many people had complained about losing their hard-earned money and deposited funds for random reasons.
So TerratradeX chose to rebrand itself as Buy4Power and restart everything from scratch. Considering their controversial past and the warning they have received from FCA, it’s clear that Buy4Power is a shady organization and you shouldn’t do business with them.
Buy4Power License and Regulation
Buy4Power provides an address for the Marshall Islands, which is an offshore area. Offshore areas don’t require forex brokers to have a license to operate. This means they don’t need to follow any regulations while providing their services and can do whatever they desire with their clients.
Read also: UK Further Trading
Buy4Power is an unregulated and unlicensed broker. I don’t trade with such brokers because it puts your funds and your data at a huge risk. You can lose your entire deposit and wouldn’t be able to do anything about it.
How do you know if a broker is scamming you?
You can use BrokerCheck, a free online tool offered by FINRA, to review a broker’s qualifications, registration, and employment history. BrokerCheck also contains a disclosure section with information about customer disputes, disciplinary events, and certain criminal and financial matters on the broker’s record.
Regulated brokers have to follow many strict rules and regulations which ensure that their broker doesn’t harm their clients’ interests. Reputed regulators such as CySEC and FCA provide insurance in case the broker turns out to be a fraud. You don’t get such benefits with an unregulated broker.
The US, EU, and many other areas have their own financial regulators where forex brokers must get a license to offer their services. It’s clear that Buy4Power has some fishy intentions that’s why it’s based in an offshore area like the Marshall Islands.
Buy4Power Trading Conditions
Shady brokers like Buy4Power tend to have very shady trading conditions. The following points will help you understand them better:
Buy4Power provides a very simple and lackluster trading platform. It doesn’t have many features and lacks plenty of functionalities you would find in common trading platforms. For example, their platform doesn’t have a menu for trading instruments so you can’t do a proper search.
You shouldn’t trade with such a terrible platform considering there are tons of Forex brokers who use far better trading platforms. In my opinion, it’s best to go with MetaTrader platforms as they offer the best features and benefits.
There are four available trading accounts each with different minimum deposit account limits. They are:
The Mini account has a minimum deposit limit of $500 and its spread starts from 3 points. With this account, the broker claims to give you bonuses worth up to 30% of your deposit and promises to process withdrawals within 48 hours.
You’d need to deposit $5000 minimum to access this account. All the benefits of this account are the same to the benefits of the Mini account except the bonuses. With this account, you can get bonuses worth up to 50% of your deposit
The Gold account requires a minimum deposit of $25,000. Here, you can get up to 80% bonuses and get your withdrawals processed within 24 hours. All the other benefits are the same.
Here, you get spreads from 1 to 2 points and bonuses worth up to 100%. You’ll need to deposit $100,000 minimum to access this account. Moreover, they claim to process your withdrawals within five hours.
Leverage and Spreads
This broker offers very risky leverage of 1:100. With this leverage ratio, you can lose 100 times of your deposited funds in an instant and get into a lot of debt. Shady brokers tend to keep their leverage ratios high so they can trap customers this way.
This is a big reason why the financial regulators in the US and Canada have restricted forex brokers to offer a maximum leverage of 1:50.
Read the review for: Golden Sky Capital
However, that’s not all. Buy4Power’s leverage can even go up to 1:200, which is double the already risky amount. Many people get attracted to such outrageous leverage ratios because of the potential profit they can make. But shady brokers like this one, take advantage of this tendency of those people and trap them.
Regarding spreads, Buy4Power offers spreads that go up to 6 pips. Again, it is too high and risky by industry standards. Regulated brokers offer 1 pip on average so you can understand how dangerous their offered spreads are. Forex brokers make money from such spreads and the trader doesn’t derive any benefit. It is a very shady tactic and puts the reliability of this broker further in question.
You must have noticed that every trading account with this broker comes with bonuses. Beware of these bonuses. The UK-based regulator, FCA, doesn’t allow its brokers to offer bonuses to its clients. Why? Because these bonuses come with tricky provisions that make withdrawals very challenging for the users.
Shady brokers use bonuses to attract new customers and then trap them through their unfair terms and conditions.
Buy4Power Payment Methods and Charges
Buy4Power doesn’t use many payment methods, which is another prominent negative point. They only accept bank wire, UPaycard, and credit cards. Reputed brokers tend to offer many other transaction methods such as E-wallets and Paypal. But you don’t get any of that here.
This broker charges you an inactivity fee of $50 if your account doesn’t have any trading activity for 30 days. It is quite a low period for charging inactivity fees. Regulated brokers tend to charge an inactivity fee if their user has remained inactive for six months or a whole year.
On top of that, the fee amount ($50) is very high compared to the industry standards.
Is Buy4Power a Scam? Yes!
Some scammers tend to lure people to their platform through bonus offers and when they make a deposit, those scammers trap them through unfair T&Cs. Moreover, Buy4Power is the rebranded version of TerratradeX, which has been notorious for stealing its clients’ funds and has even received a warning from the FCA. All of these facts indicate that Buy4Power is most definitely a scam.
Buy4Power Review: Conclusion
Buy4Power operates from an offshore area, has no license, is a rebranded version of a shady broker, and has a very high minimum deposit limit. I think these qualities are sufficient to conclude that it’s a shady organization and you should stay away from it.
I hope you found my Buy4Power review useful. If you have had any bad experiences with a forex broker, you can share them below.