Beware! TradeFM 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.
TradeFM is not a legitimate broker – and it is our sincere belief the company should be avoided – here is why:
TradeFM regulation and safety of funds
TradeFM is not a licensed broker – and what’s more, it operates from an offshore scam haven – the island nation of the Marshall Islands. Here is the broker confirming that in its own words:
The problem with the Marshalls is that the government of the islands does not regulate their Forex markets in any capacity. This means that any company that wishes to set up shop there can simply do so, no questions asked – and a lot of these companies are scams, which just want to run their schemes unopposed. And even if you are not dealing with a scam, unlicensed brokers from the Marshall Islands cannot prove they have what it takes to operate on the notoriously volatile markets.
Compare that to a broker from a stricter jurisdiction – for example, the UK – companies there are required to keep reporting on a daily basis to prove they are not running a scam. If a suspicion that they are engaging in any kind of illicit activity, for example fixing prices, it is quite easy for the regulatory body that watches over the UK markets, the FCA, to review these reports and punish any scammers accordingly.
Furthermore, to prove they have what it takes to operate on the FX markets without going under, brokers are required to hold over 730 000 euro. And if that is not enough and a company still goes under, its clients will be entitled to a compensation of up to 85 000 pounds from guarantee funds that brokers are required to participate in.
There are a lot more FCA policies that could be mentioned, but, as you can imagine, trading with a legitimate broker is much safer than using the services of one like TradeFM – here is a list of our top-rated UK companies to get you started!
TradeFM trading software
TradeFM provides access to a distribution of a web-based platform – it is quite lacking when compared to industry standard Metatrader 5, with some of the latter platform’s features not available – for example, automated trading is nowhere to be seen. Here is what that platform looks like:
The trading conditions on it are quite bad – the spreads on FX majors like the EURUSD are as high as 7 pips. This is much higher than the accepted 1 pip difference on such assets! Furthermore, the leverage TradeFM provides is too high, sitting at 1:300. Most regulators have banned the provision of such amounts to the retail trader – but unlicensed brokers are not bound by that ban, and offer the high amounts to try and get more clients!
TradeFM deposit and withdrawal methods and fees
TradeFM accepts deposits via wire transfer – these deposits are not eligible for a chargeback – and it seems that TradeFM seeks to limit the ability of its clients to withdraw their money with its Bonus policy – a lot of shady brokers bind their trading incentives with incredibly high turnover requirements, which need to be met if a client is to get their money back. However, the part of the broker’s Terms and Conditions where the bonus policy was supposed to be is curiously missing:
How does the scam work?
TradeFM is undoubtedly running a scam that we have seen unfold hundreds of times – here is what usually goes down:
First off, someone stumbles upon the broker’s website – and, on it, are prompted to make an account. If they decide to do so, the scammers demand they leave a phone number. That number is then used to harass the victim for deposits. The scammers are ruthless and their greed is endless – they will demand more and more, until their client is either bled dry or realizes what’s going on – at which point, they will cut them off and move on to new targets!
What to do when scammed?
If you have been scammed, you need to take the following steps to make sure you do not suffer further financial losses:
First off, make sure you reissue whatever credit cards and forms of ID you gave the scammers access to – and get rid of whatever form of remote control software they had you install on your PC!
Secondly, contact your bank and see if you can file a chargeback – but if one is not possible, do not trust any recovery agency that might approach you – they are simply running another scam, which prays on people who have been victimized already.
Finally, do not hesitate to leave a comment with your own thoughts on the broker in the section below – this will help us raise awareness of the scam, which is the best way to combat it!
