Beware! TradeGBP 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.
TradeGBP is an offshore forex and CFD broker offering several account types with a leverage of up to 400:1 and the MetarTrader4 platform.
Along the selection of CFDs on gold, silver, indices and oil, they offer more than 40 forex pairs with a variety of exotic currencies, including Czech Krona, Russian Ruble, South African Rand, Mexican Peso, Romanian Lei, Hungarian Forint, Israeli Shekel, Swedish Krona, Norwegian Krone, Polish Zloty, Turkish Lira, Danish Krone, Singapore Dollar and Hong Kong Dollar.
With their starting Micro Account the benchmark EURUSD spread is fixed at 2,5 pips, which is higher than what traders would usually expect. Trading conditions put aside, however, our main concern with the broker is about their regulatory status so we will focus on that in the following paragraphs.
TradeGBP regulation & safety of funds
TradeGBP is owned by Black Parrot Limited – a company based on the Marshall Islands, but is operated by Blonde Bear OU, which is based in Tallinn, Estonia. Unfortunately, both companies are not authorized and do not have a license to offer their services on regulated markets like the European Union, UK, the USA, Australia or Japan.
And that is unfortunate, because your money are secure only with brokers regulated by reliable financial institutions such as the Financial Conduct Authority in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC), while the safety of any investment with unregulated brokers depends solely on the integrity of the people operating those brokers.
Among others, licensed brokers are required to keep all clients money in a segregated, protected form creditors account, to allow external audits, to file regular reports, to maintain a certain minimum operational capital, which in the case of EU regulators is in the amount of 730 000 EUR, to refrain form offering trading bonuses, to provide their customers with a negative balance protection and in certain cases even to insure traders money.
The insurance with FCA brokers covers 50 000 GBP of your funds, while with CySEc brokers – up to 20 000 EUR.
TradeGBP deposit/withdrawal methods and fees
TradeGBP accepts payments in lots of ways, among which all major credit or debit cards like VISA and MasterCard, e-wallets like OKPay, Payeer, QIWI, PayPal and Klarna, bank wire and even Bitcoins. The minimum deposit requirement varies between 500 USD and 50 000 USD depending on the account type.
TradeGBP, however, has some rather unusual withdraw conditions. For instance, if you have accepted a trading bonus your right to withdraw will be linked to a certain minimum trade volume.
Actually, you will have to trade 1 lot for every dollar, which you have received as a bonus. Have in mind that 1 standard lot is equal to 100 000 base currency units and in case you have received 100 USD as a bonus you will have to trade at least 10 million USD before you will be able to withdraw – something that even professional traders might find challenging.
How does the scam work?
Scams might happen in different way and yet here is one pretty common scenario fraudsters use on the retail forex market.
Many offshore scam brokers work with the so called robo – scam websites like Crypto Revolt and Bitcoin Evolution. Those are anonymous websites, where you will watch a very convincing video add with an offer to earn thousands of dollars in just a few days by simply joining an innovative trading app or a platform. And if you do register and leave your e-mail and phone, you will be instantly transferred to the web page of a unregulated, scam, broker where finally you will be asked to deposit your first 250 USD.
And be aware, that although your first trades will be surprisingly successful, that is nothing more than a trap, aimed to tempt you to deposit a larger sum. And do not full your self that you are making actual trades – that is a scam broker and they can manipulate your account as they please.
Also, at some point you will receive a call form “your senior account manager”, who will plainly explain, that if you want to make some real cash, you will simply have to invest mores – minimum 10 000 USD or so. Of course, they will tempt you with better trading conditions and trading bonuses, but that is simply another trap.
If you accept a trading bonus, your right to withdraw will be linked to some minimum trade volume requirement and basically that will be their pretext to refuse to give you any money back.
The pretext might be different, but the result will be the same. You will not be able to withdraw anything.
What to do if scammed?
In the unfortunate event you are a victim of a scam be sure to immediately file for a charged back with your credit card company. If yоu are with MasterCard, you will have 540 days to do that – that is the newly adopted policy by the company, aimed precisely to combat scammers on the retail forex market. And besides, VISA is planning to adopt the same policy in December.
Scammers may try to trick you to give them your credit card number and online banking password. If for any reason you have told them your banking details, immediately block your credit card and change your online banking password.
And finally, no matter how much money have been stolen form you, do not loose any more of your funds by contacting the so called recovery agencies. They will not render you any service, but will simply collect an upfront payment an basically that will be the end of the story.