Beware! Tradeu2 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.
Tradeu2 is a forex and CFD broker, offering several account types with a leverage of up to 500:1 and MetaTrader4.
The broker offers currency pairs and CFDs on a variety of assets, including indices, commodities and stocks.
With the Standard Account spreads are advertised to start form 1 pip, but as we were not able to open a demo account we can not confirm that.
Tradeu2 regulation & safety of funds
Tradeu2 says to be owned and operated by SUN Capital LTD – a company based in Belize, which unfortunately is not authorized to provide financial services neither in Belize, nor by any of the well respected regulatory bodies like the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK or the Australian Securities and Investments Commission (ASIC).
Have in mind that any investment with a unregulated, offshore broker comes with a unreasonably high risk of loosing your money to scammers. That is because the safety of your funds will be guaranteed solely by the integrity of the people behind the broker.
With properly regulated brokers on the other hand you will have a negative balance protection and your funds will be kept in a segregated, protected form creditors account. On top of that regulated brokers are required to maintain a certain minimum operational capital, to file regular reports, to allow external audits and in certain cases even to insure traders funds.
Thus, with a CySEC broker you can be compensated with up to 20 000 EUR in case your broker files for bankruptcy. Similarly with an FCA broker, if anything goes wrong you will be able to receive back up to 50 000 GBP of your funds.
Tradeu2 deposit/withdrawal methods and fees
The payment methods with Tradeu2 are quite limited – just major credit cards like VISA and MasterCard, as well as bank wire.
The broker, however, has some rather unusual withdraw conditions – for instance you are allowed to request a withdraw just once a month and on top of that you will be required to reach a minimum trade volume of at least 150 times your deposit. Have in mind that no legit broker will ever set conditions on your right to withdraw.
The minimum deposit requirement is 500 USD.
How does the scam work?
The most common scam happens more or less like this. Probably you will come across one of the so called “robo scam” web sites, like Bitcoin Method or Bitcoin Revolution, where you will be hooked by a video about how easily you can make thousands of dollars by just registering with an innovative trading app or platform.
And if you do leave your e-mail and phone you will be transferred to the website of a unregulated, scam broker, where you will be asked to deposit your first 250 USD. Besides, if you open an account and start trading, your first trades will most probably be amazingly successful. That, however, will happen not because you have made great trading decisions, but simply because your account will be manipulated. The rationale is that this way you will be more susceptible to the idea of investing a larger sum.
And also this is the moment when you will receive a call form a “senior account manager”, who will try to convince you exactly this – if you want to make some real cash, you will simply have to invest more – like 10 000 USD or so.
Besides, you will not realize that you have been scammed until the moment you try to withdraw some of your funds. Scammers will tell you, you can not withdraw anything until you reach some minimum trade volume requirement, possibly linked to a welcoming bonus you have accepted. Certainly it could be something else, but the base line will be the same – you will not be able to withdraw anything.
What to do if scammed?
Without delay file for a charge back with your credit card company. Fortunately just a month ago MasterCard expanded the period in which clients are allowed to file for a charge back to 540 days. A similar policy will be adopted by VISA in December.
And if you have given away your credit card number or online banking password, immediately block your card and change the password for your online banking service.
Finally, in case you have lost money to scammers, do not loose even more by contacting the so called “recovery agencies”. Those guys will collect some upfront money and will leave you even more deeper in to the red.