Beware! Tredexo 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.
Tredexo is yet another offshore broker that fails to distinguish itself from the hundreds of other shady companies that are infesting the markets. Here is why Tredexo is best left avoided:
Tredexo regulation and safety of funds
Tredexo is not a regulated broker – and what’s more, it hails from one of the shadiest offshore locations out there – the island nation of St. Vincent and the Grenadines. Here is where Tredexo may be found:
So, what’s so bad about St. Vincent? Well, the islands’ government has stated publicly that it does not regulate the Forex markets in the country. This means that brokers like Tredexo are free to do as they please – and so, the majority of them are scam companies that seek to operate without accountability.
Contrast that to jurisdictions that take the safety of their citizens’ funds more seriously – they put strict rules that brokers need to follow to obtain a license to deal on their respective markets. For example, in the UK, there is a minimum capital requirement of at least 730 000 euro in liquid funds, as well as the requirement for companies to report on a daily basis on open and closed trades to make sure that no fraudulent activity can take place.
This is not the end of the rules the UK has for brokers – but hopefully you see our point – trading with licensed companies is the safer and more reasonable choice. Here is our list of top-rated brokers from the country if you are interested.
Tredexo trading software
Tredexo provides access to a rather basic web-based trading platform which lacks the majority of the features we have come to expect since the advent of industry-standard trading platform Metatrader 5 – automated trading is nowhere to be seen, for example. Still, here is what the platform looks like:
The spreads on it and the leverage are both too high – the former moving way over the accepted 1 pip difference for FX majors like the EURUDS, and the latter being much higher than what responsible regulators allow retail traders to access. Amounts like 1:200 are mostly available with offshore brokers like Tredexo, who use them in a bid to attract more clients – so watch out when you see such a leverage in the wild!
Tredexo deposit and withdrawal methods and fees
Tredexo accepts credit card deposits. Credit cards allow for a chargeback to be filed within 540 days of any transaction – this is rather beneficial, since the broker also has a ridiculous Bonus policy, which makes withdrawing your funds impossible. Here is the policy in question:
It states that accounts credited with a bonus need to achieve a certain turnover in order to withdraw any of their funds. And just how high is that turnover, you might be wondering? Here is Tredexo telling us:
The volume is not achievable for any trader, of course – even professional ones will struggle to achieve the required volumes. This kind of abuse of bonuses has led to the majority of regulatory bodies nowadays banning them outright. So, whenever you see a broker offer such incentives, you might be dealing with a scam!
But Tredexo goes a step further, with it actually penalizing withdrawals made from accounts that have not achieved the turnover:
This penalty fee is said to be as high as 30% of the account’s balance, which is just incredibly ridiculous!
How does the scam work?
At this point, it should be beyond obvious that Tredexo is running a scam – following a pattern we have seen unfold hundreds of times before. Here is how the scam plays out:
Someone stumbles upon a website like the one Tredexo runs – on it, they are prompted to make an account, leaving a phone number in the process. Once that is done, the scammers will start barraging them with calls, squeezing all of their money they can get their hands on. This continues until the victim is either bled dry or realizes what’s going on – at which point, the scammers cut them off and move on to other targets!
What to do when scammed?
If you find yourself scammed, you need to take the following steps to ensure no further losses are suffered:
Get whatever documents the scammers had access to re-issued – things like credit cards, IDs and so on. Also remove any desktop-sharing software they had you install on your PC. It is crucial to restore your privacy!
Once that is done, contact your bank and ask for a chargeback to see if you can get some of your money back. If contacted by a recovery agency, which demands an upfront payment for its services, however, do not deposit with it – this is simply an advance fee scam!
Finally, consider leaving a comment below with your own experience with Tredexo – in doing so, you will be helping us build awareness of the broker, which might help someone else avoid your fate!