Is Ontega Legit or a Scam Broker? Find Out
Ontega is a broker that facilitates trading with a variety of instruments such as stocks, cryptocurrency, indices, and CFDS. It is a regulated broker, although the nature of its regulation requires further investigation. Ontega is regulated for Vanuatu but not Cyprus, which is where the broker’s payment processer is located. Is Ontega a legitimate broker or a scam?
Trader Defender has investigated Ontega and will give you our impressions. Our team has extensive knowledge of the financial industry and is adept at identifying fraudulent and legitimate brokers. It is important to look carefully at a broker before signing a contract and starting to trade with them. This Trader Defender review is intended to make this decision easier.
|Minimum Deposit||$5 to open a low-risk beginners account|
|Product Types||CFD, Forex, Currencies, Indices, commodities, cryptocurrencies, stocks|
|Products Offered||97 products to Trade, proprietary web-based platform|
Ontega is controlled by a holding company called Greenpole and it has a broker’s license from Vanuatu. Many are under the impression that Ontega has a license from the Cypriot regulatory authority or CySec, but this is not true. Instead, its payment processor, Rehoboth, is located in Cyprus. This has nothing to do with its brokerage license.
It should be noted that CySec is a much higher caliber regulatory body than Vanuatu. There can be a valid suspicion that Ontega is trying to give the impression that it is licensed in Cyprus by working with a payment processor located there. However, there is no tangible proof for this motive, but it is worth taking note
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As noted above, Ontega has a license from Vanuatu and not CySec or Cyprus. Vanuatu, unlike CySec has a very simplified process for registration. There is only some simple paperwork required by brokerages and there is very little supervision or accountability. Although having a VFSC or Vanuatu license is better than no license at all, given the lack of accountability, it should be viewed with caution.
It is important to pay careful attention to the kind of licensing a brokerage has before signing a contract or depositing money in an account. The problem with insufficient regulation, is clients who are harmed by brokers may find they have no one to help them if the regulators have a hands-off approach. The higher caliber the license, the more protection clients receive.
Accounts and Fees
There are several types of accounts and fees vary according to the type of account a client holds. The Beginner’s account allows a minimum deposit of as little as $5 and is advertised as a low-risk account. The medium-level account requires a minimum of $25, advanced accounts require a $200 minimum and provide a $100 bonus.
Ontega says the advanced account provides customizable choices and flexibility as well as higher incentives. The VIP account requires a $1,000 minimum with a $1,000 bonus and prioritized service and tools.
Ontega does not offer Meta Trader 4 or 5 platforms or cTrader, but instead offers its proprietary Ontega platform. There are customizable features as well as a selection of charts and tools. It is web-based and does not require downloads and installations. The Ontega platform provides stop/loss features, email and push notifications, price alerts, and market updates.
Some traders may be disappointed that Ontega does not offer MetaTrader 4 or 5, but the broker cites certain features provided by its proprietary web-based platform. With scam brokers, these proprietary platforms should be regarded with suspicion, but not every broker that has its own platform is necessarily fraudulent. Some traders may want the reassurance of an outside service such as MetaTrader.
Products and Laverage
Ontega offers over 97 trading assets, including CFDs, forex, commodities, stocks, indices, cryptocurrency. However, given the types of trading offered, Ontega does not accept clients from the USA and many other areas. The reason for this is that regulations in the USA do not allow some types of investment instruments offered by Ontega and other brokers.
The leverage offered by this broker is 1:200, which is a fairly reasonable level. The standard leverage for legitimate brokers is 1:100 and shady brokers can be as high as 1:400 to 1:500. High leverage means higher profits but also higher risk. Ontega’s rate is a bit higher than that used by many reputable brokers but is half that used by those that are dicey.
Tools and Services
Clients who sign up with Ontega have access to educational tools, such as articles and videos. Included wth its trading platform is a selection of charts. One tool offered is the Ontega Autochartist which makes technical analysis easy by filtering through and organizing data to predict the movement of the markets.
There aren’t a large number of Ontega reviews which can be a slightly positive sign. First of all, the broker is relatively new and only a couple of years old. The paucity of reviews demonstrates people are not coming out of the woodwork to complain about it. When a broker is a scam, there will be many comments about how the broker refuses to allow withdrawals and isn’t cooperative.
There were only a few reviews that suggests Ontega is slow to allow clients to withdraw money. Some said they made money on the platform and were satisfied. However, the sampling of reviews was small.
Is Ontega a Scam or Is It Legit?
Ontega is one of the few poorly regulated brokers we have seen that doesn’t have numerous glaring problems, likes scores of negative reviews denouncing it as a fraud, or high leverage, added fees, strangely worded web copy or other things that signal a scam. Ontega looks, at least in practice, like a fairly reasonable broker.
However, Trader Defender can’t give Ontega a glowing review because it is poorly regulated. Its license is from VFSC, which is almost as bad as not being regulated at all. There is little to no oversight for clients.
Despite many positives, such as its relatively low fees, reasonable leverage, and tools and services, it is best to look for a well-regulated broker instead of Ontega. If Ontega is indeed behaving legitimately, as it seems to, we would be happy to see this broker upgrade its licensing in the future. For the time being, choose a broker with better licensing.
Talk to Trader Defender If You Are Unsure About a Broker
If you want to know more about Ontega or other brokers, consult with Trader Defender experts today. We investigate, detect and report fraudulent brokers. Our professionals offer due diligence services and protect clients with our in-depth investigative reports. Schedule a consultation with us and we can guide you on the road to making successful trading decisions.