Beware! Arrowteks is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
The smiling face of the young man that greets us from the interface of Arrowteks is perhaps there to inspire confidence that if you trade with this broker you too, perhaps, will be smiling as the funds in your bank account are piling up. Is this likely to happen, though? We search for answers.
Arrowteks Regulation and safety of funds
The whereabouts of this broker are unknown. Nowhere on its website is given any address or registration. The only geographic points we see is in the ‘contact us’ section where there are 2 telephone numbers, one for the UK and one for Australia. To make sure that we didn’t miss anything, we checked for possible registration of the company in these 2 jurisdictions. Unfortunately, Arrowteks did not appear in any of them. This is sufficient proof that this broker is non-legit and as such trading with it will put your hard-earned money at risk.
If you are searching for a reliable and licensed forex broker, we suggest that you research the links we provide below of licensed forex brokers in the well-established jurisdictions of the EU, the UK, the US and Australia where there are strict regulations for obtaining a license. First of all, forex brokers in the EU and the UK must deposit an initial capital of 730,000 EUR. This is one of the measures for protecting clients against scammers as they will never invest so much money for the benefit of looking legit. Other measures include keeping clients’ funds separately from the broker’s with tier-1 bank establishments, provide protection against negative balance, report transactions on a regular basis and keep limit on leverage. One of the biggest advantages in trading with licensed brokers from the EU and the UK is that they must participate in compensation funds or schemes which serve to recompense clients in case the broker goes bankrupt. For example, if the broker is regulated by CySec and deducts funds towards the local Investor Compensation Fund, its clients will be reimbursed up to 20,000 EUR per client in case of bankruptcy. In the UK, the amount of recompense is much higher – 85,000 GBP per clients if the broker is regulated by FCA and participates in the local Financial Services Compensation Scheme.
In the US and Australia, the fact that the forex brokers must be well-capitalised serves as protection of clients’ funds in case of unfavourable events. That is why in the US the amount of the initial capital is sky-high – $20 million and in Australia is 1 million AUD. However, there are no compensation funds or schemes.
Arrowteks Trading software
Arrowteks is a forex broker trading in stocks, indices, commodities, forex and cryptocurrencies and the trading software offered to the clients consists of a web trader (image below). The menu on the left-hand side shows the trading products and in the middle of the screen, you see displayed the chart of the EUR/USD currency pair with the fluctuation in its price. The quality of this chart, as you can see, is of dubious quality. From the bid/ask price for the same currency pair, we can see that the spread is 6.5 pips which is quite high compared to the industry average of 1.5 pips. Keeping in mind that the broker derives its revenue from the spread, we can understand that the broker will be getting rich at your expense and should you choose to trade with it, the cost of transactions will be too high and you won’t be able to make a sustainable profit.
Unfortunately, that is not all. If you take a look at the last image showing the information about the different trading accounts, you will notice that the leverage can reach up to 1:400. If you think that this high leverage will amplify your potential for making a big win, we must burst the bubble and tell you that given the fact that 70% of the traders lose in transactions, chances are that this high leverage will amplify the risk your funds will be exposed to and may end in a substantial financial loss. Our advice is to avoid brokers offering high leverage. Please keep in mind that legit and reliable brokers in the EU and the UK have capped leverage which cannot exceed 1:30 and in the US, leverage cannot go over 1:50.
Arrowteks trading platform
If you are looking for a really gratifying trading experience, we suggest that you find a licensed broker that offers either MetaTrader 4 or MetaTrader 5 to its clients. These trading platforms are considered to be the best in forex trade and are used by around 80% of the forex brokers. Both platforms offer a lot of advantages compared to other trading software. For example, they have an auto trading option, code base with customs scripts, trading signals obtainable for a subscription fee, VPS, an app market, a financial calendar, etc. Key features for these platforms are the charting options which contain many charts, time frames, colours, even the option of customised templates, as well as an array of technical analysis indicators, such as Fibonacci retracement, Bollinger Bands, moving averages, etc., which help traders predict the future direction of exchange rates and make a profit.
Arrowteks Deposit/Withdrawal methods and fees
Arrowteks clients have a choice of 4 trading accounts – Silver, Gold, Platinum and VIP. The minimum initial deposit is 250 EUR. The deposit and withdrawal options consist of payment via credit card, bank wire and Bitcoin. Choosing the right payment methods may have implications in case you want to file for a chargeback, as you can find out in the last section of this review.
The minimum withdrawal amount via Bitcoin is $250 and for the other methods, it is 100 EUR/USD/GBP. Be aware that for every withdrawal you make, the company will charge you a hefty fee which is 1% with a minimum of 30 EUR/USD/GBP and maximum of 300 EUR/USD/GBP. In addition to that, the withdrawal request processing time may take between 7 and 10 business days, hardly beneficial to traders.
Arrowteks trading accounts
Similarly to other dodgy brokers, this one too offers bonuses. In contrast, legit brokers never offer bonuses or other incentives. Bonuses are funds that belong to the broker, not the trader, and they usually come with some hard to fulfil conditions attached to them. In this case, to be able to withdraw the bonus amount or the profit made, the trader must execute a trading volume which equals 50,000 times the bonus amount. Hardly an easy task even for an experienced trader.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
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