Beware! Tradefxbank 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.
Located in the Gherkin, the landmark building in the heart of London’s primary financial district, Tradefxbank wants to inspire confidence in its clients. However, if you do not want to find yourself in a pickle (pun intended), you should avoid trading with this broker.
Tradefxbank Regulation and safety of funds
If this broker is truly located in London, then its name should be in the register of the Financial Conduct Authority (FCA), the official body that regulates forex brokers in the UK. However, our search proved that such company does not exist in the UK. This is sufficient proof that this broker is not legit and trading with it will put your money at risk.
To be licensed with FCA, forex brokers in the UK must jump through many hoops. First of all, they must have a registered initial capital amounting at 730,000 EUR. Asking for such a huge amount serves to prevent scammers from sneaking in. There are also other measures to protect clients from scammers and to guarantee the safety of their funds, such as keeping their funds separately with tier-1 banks, provide protection against negative balance, report transactions on a regular basis to provide transparency, keep low leverage, etc. In addition to that, licensed brokers deduct funds towards the local Financial Services Compensation Scheme from which their clients can be reimbursed by up to 85,000 GBP per person. These are excellent conditions and reasons why should choose a broker licensed in the UK.
These conditions are matched to some extent in the EU with the only difference that licensed brokers regulated by CySec participate in the local Investor Compensation Fund which will provide recompense to the clients in case of bankruptcy by up to 20,000 EUR per person.
And if you want to expand your scope of licensed brokers, why not research what forex brokers in the US and Australia have to offer. In these two jurisdictions, forex brokers must be well-capitalised to provide protection for their clients’ funds. The initial capital in the US is the staggering amount of $20 million and in Australia, 1 million AUD. Despite the fact that there are no compensation funds or schemes, being well-capitalised means that the brokers there will still be able to protect their clients’ funds from unfavourable events.
If you are interested, please use the links above to select the best licensed broker for your trading needs.
Tradefxbank Trading software
It is hard to take seriously a broker whose server is not working and cannot register a new trading account. We do not think that any self-respecting licensed broker would have such problems in its system (screenshot below).
The only information we can provide you regarding the trading software is that it consists of a web trader.
Such platforms do very little to contribute to the traders’ successful trading experience. On the other hand, MetaTrader 4 and MetaTrader 5 trading platforms reputed for the amazing package of trading tools and instruments offer so much more! Both platforms offer an auto trading option, VPS, a financial calendar, trading signals, an app market, code base with customs scripts, etc. Also, their charting options and technical analysis indicators facilitate clients’ trading experience and help them predict the future direction of exchange rates and make a profit.
We also want to mention that it matters how the broker sets the parameters for the spread and the leverage. When the spread is low, i.e., below 1.5 pips which is the industry average, the cost of transactions will also be low. Also, please be informed that in the UK and the EU, there is a cap on leverage and for the major currency pairs it cannot exceed 1:30. Unlicensed brokers often offer leverage that is too high and in this way increase the risk of traders experiencing great financial loss.
Tradefxbank Deposit/Withdrawal methods and fees
There are 5 trading accounts altogether offered to traders – Minimum, Standard, Gold, Platinum and VIP. The minimum initial deposit for the Minimum account is $500. This may not look like such a big amount, but keep in mind that licensed brokers would as for as little as $1-5. The other initial deposits for the other accounts start at $1,000, $5,000, $10,000 and $100,000 respectively.
As the link to the Terms and Conditions is broken, we were not able to access any information regarding withdrawals, fees, dormant account, etc.
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers’ schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.