500.trade review – 5 things you should know about 500.trade

500.trade review – 5 things you should know about 500.trade

Beware! 500.trade is an offshore broker! Your investment may be at risk.

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500.trade is a website that claims to be offering a world-class trading experience with state of the art technology and strict security yet fails to deliver on every one of these fronts. From its bare-bones trading platform to its questionable terms and services we believe it is the exact opposite of what it states.

500.trade regulation and safety of funds

When using a broker it is important to know exactly who you’re going to be depositing your money with and under what jurisdiction they are registered. One thing that stood out to us was the lack of any real contact information. All we had to go on was an email, a phone number with a Luxembourg area code, and a P.O. box. This would imply that the broker operates there, however we suspect it is registered in a completely different country – the offshore haven of St Vincent and the Grenadines. We believe that to be the case because of this clause in the Terms and Conditions:

So why would they want to convince you that they are registered in the European country? Well, Luxembourg brokers are under the regulation of the Commission de Surveillance du Secteur Financier (CSSF). As such there are strict rules in place for Forex trading that ensure the brokers are legitimate. One such rule is the minimum starting capital requirement of 730 000 euro for a broker. There is also a strict limit on the leverage that can be offered and the broker undergoes vigilant supervision at all times. The CSSF also imposes safeguards for the trades, for example requiring the brokers participate in a fund that compensates their customers in the event of broker bankruptcy and keeping clients’ funds in segregated accounts. This is not the case for offshore brokers in locations like St. Vincent. Because such safeguards are not present there it is advisable to stick to regulated forex brokers.

500.trade trading software

500.trade offers their own web-based trading platform and Metatrader 4. MT4, along with MT5 are the two flagship platforms in the industry with their user-friendly interface. Curiously enough, MT4 is only available to what seems like the highest account tier. It is also unclear how one can upgrade their account to that tier. Therefore we have to conclude that the company does not actually provide the software to its clients.

The web-based platform is more basic than MT4 and considerably more difficult to use. Although it features most of the graphical tools like trend lines and Fibonacci graphs it is is also much more difficult to use because of the dark and dull colors.

The instruments one can use to trade are quite limited too. It seems a trader can sell or buy commodities like gold or crude oil and indices. The gold spread of $2,5 is quite wide. For reference, reputable brokers only offer a spread of about $1 for the commodity. It is unclear what the leverage the broker offers is.

There is also a Social trading tab which is strangely barren.

500.trade withdrawal/deposit methods and fees

The minimum deposit amount is 250 USD, GBP or EUR. Deposits can be made using a credit card, wire transfer or bitcoin. Depositing using bitcoin is not advisable, because it offers no chargeback options.

Withdrawals are subject to a rather suspicious clause that requires a minimum withdrawal amount of 100 USD, GBP or EUR. This is unacceptable, no company should be able to dictate that a customer cannot make use of their own money because it is under such an arbitrary amount.

Furthermore, there is a delay of up to 7-10 business days on any withdrawals, which is again, unacceptable. The vast majority of legitimate brokers are able to process such requests within 24 hours of them being submitted.

There is a mention of a margin requirement as well. Scrolling down we discover the relevant clause which states:

What this means is that to withdraw any money from your account you must fulfill the frankly absurd volume of 25 times the bonus and the deposit. There does not seem to be a way to forfeit your bonus, and in fact 500.trade doubles down in the next provision of the Terms:

This might seem like a weird requirement but it’s actually quite common with scam brokers. They place stipulations like this to make sure their victims are not going to be able to claim their money back in any way permitted by the ToS. In fact, even if you are able to miraculously reach the steep requirements your claim might be straight up rejected by the company for not providing the “correct” documents. Very often this is the case and people who choose to invest their money in such brokers rarely see any of it.

Another off-putting detail in the Terms of Service is the “Dormant trading” clause.

Now, most reputable brokers actually charge fees on inactive accounts, but they are usually well defined. Here we have the complete opposite. In the very first sentence there is a vague requirement of performing a trading requirement above a “very low volume” for an equally vaguely defined time frame he is subject to a commission which is completely up to the judgment of the company. This is a really arbitrary and unusual clause that seemingly leaves the trader completely at the whims of the broker for no good reason.

How does the scam work?

Unfortunately it would seem that 500.trade is just another fraudulent broker. Companies like that use a rather clever and simple, if completely amoral, strategy to make their profits. First off they run ads on popular social media platform that promise a quick buck, or videos that tell a rags to riches story. These ads lead to websites that promise their visitors the world, if not sometimes more. If that visitor is fooled into giving their phone number and email information the scammers go to the next stage of their plan. They start aggressively pushing the victim to be to invest, to just sit back and watch their money multiply thousands of times. The means of pushing them are nonstop emails and phone calls from “account managers” or “financial advisors”. These figures are quite patient and persistent. When the trader decides to go with their advice and deposit some money their account is usually run into the ground. In fact such accounts never make any profits. This is to get the victim of the scam to deposit more and more money until they realize they have been had.

What to do when scammed?

When scammed your options are quite limited. The most crucial detail is that you are still vulnerable to further scams. If you receive a call from a “recovery agency” do not trust what they say – they are not who they claim to be, but the final stage of the scam. These “agencies” will promise to restore your losses, at the cost of an advance fee. If you accept and send them the fee you will never see it, or the lost money ever again.

Apart from that there is some recourse. You can file a chargeback on the transaction up to 540 days after it if you have made it using a credit card. As stated above, however, if you have used bitcoin to deposit money with 500.trade there is no policy you can follow and the money is, unfortunately, probably lost.

Rich Snippet Data
Review Date
Reviewed Broker
500.trade
Broker Rating
11stargraygraygraygray

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30 Comments

  1. I am trying to get my money back from 500trade.I deposited 250 euros 3 weeks ago.,I can’t seem to get it back. It did go to 334.54 euros but John , senior manager decided to trade today without my permission today & lost money. I have sent documents requested to get my money back but they don’t want to return it. This company shouldn’t be allowed to trade on the internet. Can you advise me please

    1. Someone has now got in touch with me to sort this problem out. I would like to withdraw my complaint.

      Regards Sheila Bramald

      1. Good luck Sheila. I will keep everything crossed this works out for us both, so we can enjoy trading again

    2. This complaint was not issued with my approval.

      It has been resolved & the funds refunded back to my credit card.

      Regards Sheila Bramald

      1. I have everything crossed that I’m given an acceptable resolution today!
        So glad all went well for you

        1. I have lost 4000 euros to them.I doubt ill see it again. Dealt with micheal Mellor and Danny Roads. How do they sleep at night. Feel such a fool
          Tina Mannion

          1. I have lost 4000 euros to them.I doubt ill see it again. Dealt with micheal Mellor and Danny Roads. How do they sleep at night. Feel such a fool
            Tina Mannion

          2. I formally gave 500 trade a bad review which I would like to retract I have successfully resolved my issue with them.

    3. I invested $15,000AUD with Michael Melon. (pretty much all my savings as a single 57 year old woman) He lost the lot very quickly and wanted me to invest more funds. I feel very apprehensive about putting in any more money. I can’t believe he lost it in such a short time. feeling VERY sceptical about the company. He put a bonus in my account as an incentive but perhaps this is just a ply to get me to invest again. Advise would be greatly appreciated.

    4. This is a scam broker. Already located them, Soon more info…

  2. After ‘investing’ $24,000 over several transactions, after being bombarded daily with calls, it was flagged to me that $9,000 of my $24,000 ‘investments’ were processed in Istanbul.
    Thankfully, my bank acted quickly and I have that amount back in my bank account.
    I have since tried to withdraw my funds, only to discover 500 trade have suspended my account. Which is currently worth +€30,000 .
    Ive called .
    Ive emailed
    Noone is calling me anymore and I can’t access my money.

    Where can I go from here ?
    I have been threatened with being sued $100,000
    Ive been bullied + harrased and now I am being ignored.

    DO NOT HAVE ANYTHING TO DO WITH 500 TRADE

    1. I would like to withdraw my review above. I am currently working through my dispute with 500 Trade, and I’ve tried to remove this post – but can’t seem to do so.

      I am optimistic James at 500 Trade will help me release some of my funds which I need urgently.

      Once I have experienced a withdraw I will continue to trade with this company, as I had been really enjoying my experience

  3. So, here I am 30th December 2020 still WITHOUT A RESOLUTION from 500 Trade.

    The reason I tried to remove my original comment is because one of 500 Trade “executives” reached out to me & kindly offered to find the best solution for myself & 500 Trade.
    He could only do this if I remove / rescind any negative reviews I’d put online.

    (Thankfully this site didn’t allow me with remove my original review – hence my public ‘withdrawal’

    One of the many tricks these people use is mixing things up with different currencies.
    I invested in Aussie dollars, which converted straight into 9,922.86 Euros, but P & L is in USD….

    After much chasing my new ‘executive’ -James called me almost 2 weeks ago just before he was heading into “another meeting’ with his “managers’ to resolve account 200806066597. My account.
    Prior to James, Michael Mellon was my initial AE. He was aggressive, rude & pushy.
    I wouldn’t work with him, so Sam Jones was my AE from 10th October – 30th November when I passed onto James Pearson as my AE

    On 18/12/20 James ummed and arggghhhhed before offering me 1,500 Euro compensation…
    Thankfully my bank suspected a scam so we/12/20 managed to salvage 5,667.43 of my 9,922.86 Euro ‘investment’.

    When I closed my last position with 500 Trade on 24/11/2020 my current balance was 36,680.26 Euro with 34,251.98 Equity. This is a month after they had deducted the 5,667.43 EU which my bank recouped
    My 54,251.98 equity is after 500 Trade had taken their 5,000 EU rollover fee’s

    2 days later I could no longer log into my account.
    I reached out via their chatbot & managed to reset my password. When I did, I soon realised they’d changed my login to have xxx in front of my ID.

    When I tried to request a withdraw I couldn’t. I kept getting an error message saying my account was ‘suspended’. So I tried to open a position, again same message.

    I had tried calling and emailing but to no avail, until I begun leaving reviews online…

    I have even offered t500 trade to keep my profit, as long as they refund my 4,255.43 Euro.

    After I told James that 1,500 EU is not a resolution I haven’t heard from him.
    I’ve called. I’ve left voicemails and I’ve emailed.
    We did play a game of phone tag last week, so I emailed James to asking we converse in writing.
    I’ve been told the person in charge is ‘Mr. Johnson’, who I am still waiting for a call from.

    This has been a terrible experience.
    I will not give up though, through sheer principle!

    1. Guys,

      So, after reading the above and having deposited £250€ with 500.Trade on Sunday 24th January, I’ve just this second sent an e-mail to Michael Mellon (mentioned above) to terminate my account and, hopefully, refund my initial deposit. I was due a scheduled call with Michael this morning which should be interesting.

      In the meantime Michael has just e-mailed me saying that he’ll explain how I can get my deposit back (less Bank Charges) at 9.00am today (Tuesday 26th January).

      1. I am so glad to have helped, before you parted with any more!
        It’s interesting that the last I heard from them was that I was in breach of our agreement until yesterday…26th Jan – the day you called them out.

        I really hope you get your money back, and soon.

        My heart has actually been broken because of this.
        I’ve been unable to function because of how much money I’ve had taken from me.
        I am just so glad that I didn’t listen to Michael, even when he called me yelling that I either had to ‘invest’ more, or get my friends to open accounts with him.
        If only I’d listened to my intuition sooner, and saved myself all the time I’ve spent in fear, in mourning of all I’d saved.
        The shame & guilt I’ve felt for chasing an easy $ brought me to my knee’s, and unable to pay for my daughters treatments

        Good luck.
        I hope these guys do the right thing by us all.
        After all, they’re a multi million dollar company, as they keep telling me…
        If this were the case, my account which would be small fry to them would have been plain sailing, and I’d be 100% up or at least have everything back I put in.

        Let’s watch this space. Hopefully this can still turn out well. I would love to be wrong about 500 Trade.
        And, if I am, I’ll be the 1st to publicly apologise.

      2. Since writing the above on 26th January, I have to say that my experience of 500.Trade couldn’t be more different. I don’t know if this post will actually be posted on this thread, but after speaking with Michael a number of times together with a colleague of his Daniel Rothschild, I now see my initial 250€ deposit has been replayed into my Kraken account – together with the small amount of Profit (around 7€).
        I’m due a call with Daniel again this morning (Friday 29th January), to talk about transferring-money down from Kraken.
        I don’t know the full Sara Whithorn story, so it’s not fair for me to comment – however my experience with 500.Trade has been excellent. I do hope you resolve everything – truly, but I found Michael to be very understanding and helpful.

        1. Just to confirm, the guys who I spoke to were Michael Mellon and Daniel Rothschild.

          1. …and finally I can now confirm that the money has now been transferred from my Kraken account into my Bank Account…

          2. I am so glad you’re having a positive experience. I just don’t know why they suspended my account when I tried to make my withdraw , and made it so hard for me to even get a little of what I paid in, not to mention the profits they wouldn’t let me have.
            I wish you every success Dave. I will keep trying to get at least what I paid in back. I am happy to forfeit the what I believed to be fantastic profits so I can help pay for my daughters imminent medical procedures & treatment

    2. Scam scan scam scam scam scam scam scam
      Do not give any money to this company. It is a scam. Michael Melon was my broker. I found him to be very rude, aggressive and lost $15,000 of my money in one day. He kept wanting me to put more and more money in. He will promise you amazing returns but believe me you will loose it all. Be very very wary of this company and no matter what they promise don’t get caught up in this scam. Beware of Michael Melon!!!!!!!!!!!

  4. So, after months of being mentally & emotionally battered by 500 Trade, James was the only person who seemingly tried to help me.

    After I contacted CSSF – who have since come back to me confirming 500 trade are not registered to trade in Luxembourg, 500 Trade made me an offer.
    Part of which included not posting anything else online about them.
    until I had 4 missed calls from them yesterday… James has asked that I either remove (which I can’t), or update – hence this message

    I am still out of pocket EU 3,500 ($5,500) – despite my so called ‘account’ actually being in ‘profit’ when I tried to withdraw funds, after I had closed a ‘position’
    This may not sound like a lot, but to me, it is. I am devastated to have been so trusting, believing and allowing myself to be bullied by Michael. He even had me to the stage where he would take control of my laptop using an app / website called ‘Any desk’.

    Looking back all of the signs were there – 500 Trade caught me at my most vulnerable.
    I was just a Mum who thought she’d found the key to being able to provide for my family

    I was so desperate to have some of the EU 15,256.18 ($24,000) I gave them I recently accepted James’ offer of 4,000 EU ($6,292.53) on the condition I remove all reviews.
    I was given a document to sign, which isn’t worth the paper it’s typed on, but I just needed my money.
    Interestingly, the refund was in bitcoin.
    Actual money back into my account was not an option, James said.

    It’s so sad to think I embarked on this journey so that I could help with my daughters medical bills, when all that has happened is I’ve been conned out of my savings, and the stress it’s caused me sent me into a very dark down ward spiral where I couldn’t leave the house & was crying uncontrollably.

    Until I receive every last cent back that was stolen from me I cannot endorse this company. After all of the heartache I’ll happily forego the profits I was due, and put it all down to a life lesson

    So, 500 Trade if you really want to show the World that you’re a genuine company – let me be the one to help you.
    Give me what I you took and let me tell the World that you’re above board, and not a global scam. It’s really that easy!

    1. Hi Sara, I to was conned by Michael Melon. Did you ever get your money back??????
      I agree that Michael Melon is very aggressive in his approach. I am a single woman and he lost my entire life savings!!!!

  5. Well, I didn’t even let them in my front door as I was asking questions on where they were calling from I was reading reviews and peering into the web of lies being told to me over the phone. Subsequent calls were blocked and reported. It was all far to easy to fall under the spell but I was even more suspect because it wanted so much information too easily. Sceptic is an understatement, nice try 500.Trade, I’m on to you ya collective bag of scum.

    1. Hi James, you are smarter than me. I got totally scammed by Michael Melon. this company is a total scam. I lost my entire savings . Wish I never heard of Michael Melon or trade 500. he contacted me telling me to terrace the comments or his legal team would sue me …. GOOD LUCK!!!!

  6. I’m another person who has been taken in. At first Sam Jones did my trading for me and my account kept showing a small profit and I was very excited. I was persuaded to invest more and then Michael Mellon took over my account. He was very demanding and kept shouting at me. I told him I would only converse via email. Recently I have tried to get my money back but there is complete silence and a notice saying that my account is not available. I’m sorry other people have been scammed but it’s reassuring to realise I’m not the only one.

  7. Be very careful it is a scam . Michael Melon lost all my savings in a single night!!!!!
    Don’t invest with 500 trade or Michael Melon. He is very aggressive and intimidating . I wish I never heard of him or 500 trade.BEWARE !!!!!!!

  8. I formally gave 500 trade a bad review which I would like to retract I have successfully resolved my issue with them.

    1. On the 18th of April.
      I have lost 4000 euros to them.I doubt ill see it again. Dealt with micheal Mellor and Danny Roads. How do they sleep at night. Feel such a fool
      Tina Mannion

      1. I formally gave 500 trade a bad review which I would like to retract I have successfully resolved my issue with them.

  9. Hi Tina, did you get any money back????? Michal Melon is very aggressive and had me in tears .He is a con man and lost my entire savings in one day…then wanted me to invest again….. TOTAL SCAM!!!!!!!

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