Beware! TradersChain 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.
TradersChain is a very stylish looking broker, an aspect that can easily hook you. Even the name of it is appropriate, and somehow fits into the whole forex spectrum. However, we do have to ask, is that all there is to it, or do the pros expand beyond visuals and presentation?
The sign up process is familiar to us, and as soon as we saw it, we immediately knew where this review was going. After filling the simplistic form, we were unable to continue with discovering the user dashboard, because it was blocked; the broker must first approve our detail, and only after that can it give us the access we need to browse through the user area. This means that we had no access to a trading software, nor did we get any real payment details.
Usually, broker will give you some access to their client dashboards, for the purpose of promoting their trading terms. However, something tells us that TradersChain will not approve our account. The reason for this can be traced to other brokers with the exact same personal dashboard, all illegal entities. With these, as with TradersChain, we had concluded that the only way to get verified is to get a call directly from a representative of the firm, and await his or her instructions. This, in turn, trigger the most popular scammer scheme, that we have described in the last two sections of the review.
Anyhow, without access to the client area, we have to rely on the website with all trading conditions and payment information. Thus, the leverage is said to be capped at 1:400, and the instruments used for trading are supposedly forex pairs, indices, commodities, stocks, and equities. There is no spread value revealed.
The website of the broker can be translated into the following languages: Russian, Polish, German, and English.
TRADERSCHAIN REGULATION AND SAFETY OF FUNDS
Here is the first major wall that we hit; the broker is incorporated into the Marshall Islands. Note, that this is the only information that we have on a location and a potential license.
The Marshall Islands are a location very well known to the shady part of the forex industry for the simple reason that there is no FX regulator present there. So, a alleged broker can easily register a company there, but to get get a license there is not possible. We do not want to over complicate things; what you need to know is that TradersChain is UNLICENSED, and therefore is a risk to invests!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
And here is proof that investments are not safe with this broker. Let us clarify. The broker has the right to pass on your money to a third party. In case this third party goes through insolvency, the client may not be able to get back all of here initial investments. When this happens, the broker will bear no responsibility!
TRADERSCHAIN TRADING SOFTWARE
As we previously mentioned, we could not open the user area, and thus the trading platform was out of our hands for this review. However, we can confirm that users who are accepted, will have access to the MT4.
The inclusion of the MT4 is a much needed boost for TradersChain. This trading terminal has always been on top of its game, and as such can satisfy every client out there. Yes, we admit, the learning curve is steep, but once you get the basics you will be too busy learning to realise that you have progressed beyond your preconceived capabilities. That is hop smooth the MT4 is!
The company has the right to commence the closure of open trading positions if the user’s margin is less than 50%.
TRADERSCHAIN DEPOSIT/WITHDRAW METHODS AND FEES
According to the website, the minimum investment requirement for opening an account is $250. The funding gateways are debit cards, credit cards, and wire transfer.
The minimum withdrawal is $50 for Credit cards, according to the Terms and Conditions. Withdrawals are said to be processed within 3 days. We could not find the presence of any withdrawal fees.
Readers should not be surprised when we say that TradersChain has a number of fees, most of which have nothing to do with withdrawals. As other illegal brokers have done before it, so has TradersChain included a bunch of questionable fees, that a) have no clear applicable circumstance, and b) have no numerical value.
The bonus trading volume requirements, that must be completed before a bonus withdrawal, is equal to the bonus amount divided by four, which is not any thing to be upset about, really. Other unregulated brokerages, sometime have unrealistic bonus turn over requirements.
Throughout the Terms and Conditions there are multiple clauses where the broker explicitly rejects all liability brought upon by users who have fallen victim to its schemes. Thus with these, the broker is, in other words, absolved of all the guilt. Below we have attached one example of the many indemnification provisions.
There is not too much to discuss in terms of legal documents shady clauses, because there just aren’t that many. Yet we cannot recommend TradersChain at all due to its lack of regulatory oversight. This is what matters in the end.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.