Beware! Tradex 1 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.
Tradex 1 is an offshore forex brokerage registered in the Marshall islands. It provides a web-based trading platform and an extremely generous leverage. Traders are extended a leverage of up to 1:400. Furthermore, there is a wide range of trading products from which to choose and a spread of 2 pips on EUR/USD which is a bit above the industry average. The required minimum deposit is $500, twice the industry average and excessive in our view.
Tradex 1 regulation & safety of funds
According to the website the brokerage is owned and operated by Black Parrot Ltd which is registered in the Marshall Islands. While researching the brokerage we come upon a warning issued by the Italian regulator CONSOB ordering the brokerage to cease engaging Italian forex traders. Furthermore, the company Black Parrot ltd operates another broker brand – Trade 111 – about which we have suspicions of illegal activities as well. Other marked as scammers forex brokers that have connections with the notorious company are Voretex Assets, Mib700 and TradersPrime. The broker is not regulated, probably a scam and we suspect potential clients will be open to a number of risks.
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
Tradex 1 deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Visa, Master Card and Maestro, Payeer , Klarna, Webmoney, Qiwi, Moneta, Cashu, OkPay,PayPal, Neteller, bank wire, as well as bitcoin. We also come across a minimum withdrawal amount of $100, as well as the following in the brokers terms and conditions: “Customer acknowledges that the brokerage may charge a commission to cover the cost of the bank transfer.” This is worrisome and is an easy way to tell if the brokerage has ill-minded intentions about the clients funds.
In fact, we remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Besides judging the brokerage beforehand through the info given on its website, a valuable piece of information in the trading world would be precisely how a scam would go about. Here is a description of the typical three steps:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back. Furthermore, due to the high instances of fraud – both Visa and MasterCard have taken upon themselves to circumvent scammers in forex trading. Backing up their intentions – MasterCard has already increased the previous time period of six months for filing a chargeback to a year and a half and Visa is expected to follow suit in December.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!