Beware! Trendingraphs is an offshore broker! Your investment may be at risk.
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Trendingraphs is a Forex brokerage registered in Marshall Islands. It provides the Meta Trader 4 platform with a wide range of trading products. The leverage extended to traders is quite generous at 1:200 but the spread, however, is quite unfavorable at 3 pips on EUR/USD. The required minimum deposit is the industry average of $250.
Trendingraphs regulation & safety of funds
The corporate information shown on the website tells us that the brokerage is registered offshore in тхе Marshall Islands. Places like the Marshall Islands have become a top-destination for would-be scammers due to its very liberal laws regarding the registering of companies. The government does not even require for someone to be physically there in order to register a company. Such a loophole has surely been noticed by many ill-minded brokers and utilized. Nonetheless, it’s safe to assume that Swiss Kapita Invest, irrespective of its legitimacy, does not fall under any regulatory oversight whatsoever because the government of the Marshall Islands does not include Forex trading within its regulatory framework. On top of this, it appears that the illegal activities of the firm have fallen under the radar of the financial watchdog in Belgium. We read on the official warning posted by the Financial Services and Markets Authority (FSMA) that the broker is suspected in being involved in scam operation and further in providing financial services without proper authorization to traders in Belgium. All this inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
Trendingraphs trading software
Although the brokerage purports to provide the MetaTrader 4 we could not register for a demo account, nor even download the platform. We always consider the availability of the MT4 a huge advantage since it is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Beginner traders will find the trading platform easy to use as well, due to its user-friendly layout.
On the website we do read that the spread is quite high at almost 3 pips which obviously is unfavorable since it exceeds the industry average, however, without a demo account we have no way to verify it. The leverage is also quite generous, however, having in mind the lack of regulatory oversight and the official warning, we are inclined to question the trading conditions set forth by Trendingraphs.
Trendingraphs deposit/withdrawal methods and fees
Reading through the terms and conditions of the broker we come upon disconcerting provisions regarding the bonus promotion. We read that if an account has been funded with $1000, the trader has to achieve a trading volume of 250 lots which is absurd and is purposefully excessive in order to make the funds impossible to withdraw. This is the most popular scam with unregulated brokerages and we suggest clients to take advantage of bonus promotions only with legitimate and regulated brokers.
Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. This is why we advise traders 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?
Unfortunately, the possibility of a scam looms over almost every trade in Forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
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.
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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
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!