Beware! TredoTech 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.
If you look at TredoTech interface, you will find 9 reasons why you should trade with them. We, on the other hand, provide you with enough reasons why you shouldn’t.
TredoTech Regulation and safety of funds
The first reason is that this company’s address is in the Marshall Islands which is an offshore zone for forex trade. The most important thing is that in this jurisdiction there is no financial regulator and practically anyone can register a company via the Internet without even having to set foot there. This means that TredoTech is a non-registered and non-licensed broker and entrusting your hard-earned money to it is risky.
If you are looking for a reliable and licensed broker to trade with, we advise you to direct your attention to the well-established jurisdictions, such as the US, Australia, the EU and the UK, where the conditions for forex trade are excellent and clients’ funds are protected by imposing a range of rigid requirements that brokers must meet in order to get their license. First of all, brokers must be well-capitalised and invest an initial capital of huge proportions. In the US, the amount for the initial capital is $20 million, followed by Australia with 1 million AUD and the EU and the UK with 730,000 EUR. Licensed brokers in these jurisdictions must keep their clients’ funds segregated with tier-1 bank establishments, report on a daily basis their transactions and provide protection against negative balance. In case of unfavourable events, such as bankruptcy, clients’ funds will still be protected largely due to the fact that the brokers are well capitalised. However, in the EU and the UK, there are additional measures. Regulated brokers in these two jurisdictions must participate in compensation funds or schemes from which in case of bankruptcy, clients can be repaid. If the broker is regulated by FCA in the UK and deducts funds towards the local Financial Services Compensation Scheme, its clients will be repaid up to 85,000 GBP per person. Clients of brokers regulated by CySec and contributing towards the local Investor Compensation Fund will be provided with the recompense of up to 20,000 EUR per person.
TredoTech Trading software
The trading software that TredoTech offers to its clients consists of the MetaTrader 4 platform. We must say that this is an excellent choice as MT4, despite being 15 years old is still one of the most popular trading platforms among forex brokers. Its popularity is largely due to the vast choice of charting options that offer many charts, time frames and colours together with the option of customised templates. In addition to that, there is an excellent package of trading tools and instruments that include an auto trading option, trading signals, code base with customs scripts, an app market, VPS, etc. The platform is also equipped with an array of technical analysis indicators among which we can mention Fibonacci retracement, Bollinger Bands, moving averages, etc., that help traders predict the future direction of exchange rates and thus make a profit.
From the image below, you can see what the platform looks like. On the left-hand side, you have the menu with trading instruments which here is open to show the forex currency pairs with their bid/ask price. Beneath is the navigator for the accounts, indicators, expert advisors and scripts. In the middle of the screen is the display with the charts which number may vary according to the trader’s needs. Here the display contains 4 charts for 4 currency pairs. Looking at the left top corner, we see the EUR/USD pair and from its bid/ask price we calculate that the spread is 3 pips. We must say that this spread is too wide compared to the industry average of 1.5 pips. Wide spread means that the cost of transactions will be high and traders won’t manage to make a sustainable profit.
Unfortunately, there is no information on what the leverage might be. Unlicensed brokers tend to offer high leverage which looks tempting as it seems to be increasing the potential for making a big win. However, such an impression is misleading as around 70% of traders lose in transactions and using high leverage may result in suffering a great financial loss. On the other hand, licensed brokers have a cap on leverage and in the EU and the UK, it cannot go over 1:30 and in the US1:50. Only in Australia forex brokers can enjoy for a short while unlimited leverage. However, upcoming changes in March 2021 will impose a cap on leverage that will match the one in the EU and the UK.
TredoTech Deposit/Withdrawal methods and fees
On TredoTech website there is no information what trading accounts are offered to the clients. In the Terms and Conditions document, we find out that the minimum initial deposit is $500. We must say that this amount seems to be too high when compared with what licensed brokers would ask for, i.e., $1-5.
To make payments, clients can choose between payment via credit card, bank transfer or cryptocurrency. Choosing a suitable payment method is important as it may have implications in the future as you will find out in the last section of this review.
The minimum withdrawal amount is $100 and there are no withdrawal fees.
Another sign that this broker is not reliable is the fact that it offers bonuses. Please note that licensed brokers do not do that and this is how you can differentiate between them and the scammers. Bonuses may look like they add extra trading power but in reality, accepting them may prove to be tricky as they are funds belonging to the broker, not the trader and usually come with heavy to fulfil conditions attached to them. In this case, to be able to withdraw the bonus or the profits, the trader must execute a training volume that equals 1/4th of the bonus amount. This is not something easily achievable even for more experienced traders and we advise you not to accept bonuses, otherwise, they will mess up your funds and withdrawal options.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give 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.
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.
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.