Beware! TradersCM 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.
TradersCM is a unregulated forex and CFD broker offering several account types with leverage of up to 500:1 and the MetaTrader4 platform.
The available forex pairs are over 30 with some exotic currencies like Swedish Krona, Norwegian Krone and Turkish Lira. Other instruments include CFDs on gold, silver, platinum and palladium, coffee, copper, corn, sugar, wheat, natural gas, oil and a few indices.
Spreads are advertised to start form 2,4 pips with the opening Mini Account and that is about a pip higher than the spreads most brokers offer with their standard accounts.
Trading conditions put aside, however, we have some serious issues with the regulatory status of the broker, which we will discus in the following paragraphs.
TradersCM regulation & safety of funds
TradersCM says to be owned by the UK based Traders Capital Markets Pvt Ltd and apart form London the broker also says to have offices in Beijing and Riyadh, Saudi Arabia, claiming to be regulated both by the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC).
About the offices in Beijing and Riyadh we do not know, but TradersCM is not regulated neither by FCA nor by ASIC – we diligently checked the registers of the two institutions and were unable to find the name of the broker or the company behind it there.
That means TradersCM is a low credibility unregulated broker that deliberately tries to mislead its potential clients and most probably is involved in scam.
The safety of your investment on the retail forex market can be guaranteed solely by proper regulation. All brokers, supervised by official regulatory authorities like the FCA in the UK, ASIC in Australia or the Cyprus Securities and Exchange Commission (CySEC) are obliged to abide by strict rules, among which to give traders a negative balance protection, to keep their money in a segregated account, to maintain at all times a certain minimum operational capital, to file regular reports, to allow external audits and in some cases even to insure traders money.
For example, if you trade with a FCA broker you will not have to worry about the first 50 000 GBP in your account, even if the broker goes bankrupt. Similarly the insurance with CySEC brokers covers up to 20 000 EUR of your funds.
TradersCM deposit/withdrawal methods and fees
With TradersCM you can choose to deposit funds with e-wallets like Neteller, Skrill and WebMoney, credit cards like VISA and MasterCard and bank wire. The minimum deposit requirement is 100 USD, which is more or less what most other brokers would ask you for as an initial investment.
However, you should be aware of any trading bonuses that the broker may offer you, because trading bonuses always come with special withdraw conditions that might prove difficult to fulfill.
How does the scam work?
Among the various scam scenarios it is worth mentioning the one involving the so called robo scam websites like Crypto Revolt and Bitcoin Evolution, which are especially designed to mislead gullible investors in to the hands of scammers.
Basically a robo scam website is usually all about a video add that promises you fast and easy returns in exchange of 100% risk free investment. And all you will be asked to do is fill a simple registration form with your e-mail and phone. And when you do that all of a sudden you will be transferred to the web page of a unregulated scam broker, where you will have to invest your first 250 USD or so.
Take a note that your first trades with the scammers will be amazingly successful. That, however, will not be real. Scammers will manipulate your trading results with the sole intention to trick you to invest a larger sum. And probably about the same time you will receive a call form your senior account manager, who will expertly explain, that if you want to wake up rich the next day you will surely have to invest at least 10 000 USD.
And probably you will not realize you have been scammed until the very moment you decide to withdraw some of your funds. All of a sudden it will turn out this is not possible, because of some minimum trade volume requirement, linked to the trading bonus you have accepted in the first place.
The pretext to refuse your withdraw request might be different, but in the end it will all come to the same – scammers will not give you a single dollar back.
What to do if scammed?
Honestly, if you are a victim of of scam you do not have too many options to get your money back. Possibly, however the best option you have is to file for a charge back with your credit card company. Fortunately both MasterCard and VISA recently extended the period in which you will be able to do that to 540 days.
And also if under any pretext scammers have managed to get to your banking details like your credit card number or online banking password, be sire to immediately cancel you credit card and change the password.
Finally, do not seek the services of the so called recovery agencies – they will not retrieve your money back, but will simply take some money in advance and that will be the last time you will hear form them.