Beware! TradeFestFX 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.
TradeFestFX is not your typical broker. It is argued that it is not even a broker to begin with, but we will see that the hole goes deeper than that. TradeFestFX possess a website that does not meet the standards of the industry by one bit. This lacklustre so called brokerage website is a mess and a broken one at that. It’s easy to recognise where this review is headed towards. Read on.
The website is reminiscent of another broker that we recently reviewed (we will see which one later on). What you need to know is that this said broker was completely illegitimate. TradeFestFX’s website is definitely in the top 5 worst websites, for FX firms, that we have ever come across. The whole thing was a complete mess, with broken pages, charts, and sections of the site. Furthermore, even without the busted elements, TradeFestFX’s site is still a huge let down, for the information pool is kept extremely shallow.
There was no way to register, for the sign up page was broken, producing a delightful error page:
As always we have to remind readers that without access to a user personal area there is no way to verify that the trading conditions and the payment gateways are true to the ones indicated on the website.
We can speculate that users are chosen via unsolicited phone calls, after which they are pushed to deposit. In situations like these, brokers send links to the actual registration page… This is by far the most common scammer approach.
Unfortunately, the website is devoid of any trading details. There is no spread, no leverage, no indication of trading assets. How can you expect to attract an audience if you don’t even advertise your product. We guess that TradeFestFX has never asked itself this question.
The website can be accessed in English only.
TRADEFESTFX REGULATION AND SAFETY OF FUNDS
The only source where the broker gives away concrete licensing information is on the footer. There we find very conflicting details. TradeFestFX is supposed to be regulated by the US’s CFTC, by the IFSC of Belize, and by CySEC in Cyprus.
The most crucial thing here, and the only thing that we can say, is that the CFTC is arguably the most demanding of all FX regulators. The United States is a harsh environment for brokers to thrive in, as evidence by the small cohort of brokers in the country.
Belize on the other side, is home to many offshore brokers, and even if the country does have an FX regulator, many of its brokerages offer questionable trading services. For a broker firm to be regulated by both the CFTS in the US and the IFSC in Belize is not possible. The US based overseer would never allow this.
As of the CySEC regulation, a simple search in the agency’s database of licensed companies was enough to rule out any possible regulation for TradeFestFX.
Since there is no other sources of regulatory info to be found, we have to conclude that TradeFestFX is completely UNLICENSED, and therefore a scam! Scammer brokers will steal user’s funds. This has been proven time and time again.
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.
Another convenient proof that this brokerage is no brokerage at all, and is an unlicensed entity, is the fact that TradeFestFX is a perfect copy of UniqueFXTrade, a broker tat we recently reviewed, one that turned out to be completely illegal and a pure scam! We wonder whether the same shady parent company holds these two brokers, or they just use an old template…
TRADEFESTFX TRADING SOFTWARE
The closest thing we get to a trading platform is an image on the Home page. It suggests a very technical looking terminal, that is also cool in style and interface. Yet, as this firm is a scam, we are not sure that there is even a trading platform, for those that are able to register.
There is proof, here and there, that TradeFestFX is actually a binary options trader. Generally, these allow users to bet on assets. More specifically, binary options trading gives the opportunity to bet in case an asset’s price goes either high or low. Yet, again, there is no way to actually verify TradeFestFX supposed label as a binary options trading software.
TRADEFESTFX DEPOSIT/WITHDRAW METHODS AND FEES
The only information on payments in general that we grasped was that withdrawals are transferred to a user’s account in 3 hours and don’t need verification, and that deposits are done via bitcoin. We remind users that deposits via bitcoin wallets are untraceable, and so once done you cannot get it back, unless TradeFestFX returns them to you, which is highly doubtful.
Aside from what we just said, there is nothing to reveal.
The lack of legal documents is proof that TradeFestFX is unlicensed. Without these, TradeFestFX is allowed to do as it pleases as it is not bound by legal clauses. TradeFestFX can literally come up with scammer fees and taxes, which is yet another reason why yo should never deposit in TradeFestFX!
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.