Beware! TradeBaionics 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.
When you first take a look at TradeBaionics’s website – and if you are not paying too much attention – you might be left under the impression that you are dealing with a legitimate broker that has provided extensive information on the services they offer, their values and the essence of forex trading. It only takes a minute, however, to establish that that is not the case – the website is full of inconsistencies, the broker has provided no essential data about who they are and where they are regulated, and most of the many sections on the website contain only a few brief sentences of unspecific text. When you click the “Commissions” section, for example, you won’t get any numbers and figures, just the following: “There are commissions when you trade. The amount of commission is either a percentage of your trade size or a fixed percentage. Again, we try to keep it as low as possible for your benefit”. This tells us absolutely nothing. It seems that whoever created the website of TradeBaionics has visited the websites of legitimate brokers, saw what menus they contain and decided such menus should be added on this website too – but never bothered to fill them with actual data. All in all, TradeBaionics is not the broker that “can provide you with a safe trading platform where you can prosper as a trader and achieve the financial goals that you had always set for yourself” that they claim to be. You would definitely not prosper if you invest with them, quite the contrary – more on that below.
TradeBaionics REGULATION AND SAFETY OF FUNDS
TradeBaionics has provided absolutely no information about where they are based and regulated, or about who the people behind the company are. The only way to get in touch with them is via a contact form on the website or on a UK phone number. This is a huge red flag as the first and most important thing about a broker is their licenses. A license by a trusted financial authority serves as proof that the broker is trustworthy and will treat you in accordance to some sort of law. It shows that somebody – a regulatory body – is following closely what a company is doing and how it is handling client funds. You can not be sure of such a thing if you open an account with someone as anonymous as TradeBaionics.
The best thing you could do is opt for a broker regulated by the FCA (the UK), ASIC (Australia), CySEC (Cyprus), or by a reputable local EU-regulator like BaFin (Germany). With all such brokers, your money will be kept in a segregated account which speeds up withdrawals and makes it impossible for the broker to use your deposits for their own financial transactions. UK and EU brokers also participate in compensation schemes so if one such broker goes bankrupt, their clients can receive compensation of variable amount – up to €20 000 in the EU and £85 000 in the UK. Negative balance protection is mandatory – so your losses cannot ever exceed the size of your investment.
If a broker is legitimate, you would easily be able to find their license information on the website – usually in the footer. After that, go to the register of the regulator mentioned and check if everything is in order. Don’t trust scammers like TradeBaionics who don’t even mention the country where they are supposedly located – this will surely lead to you falling victim of a scam.
TradeBaionics TRADING SOFTWARE
TradeBaionics had menus regarding well-known platforms like MetaTrader 4 and MetaTrader 5 but we could not download either of the platforms from the broker’s website. The only trading software we did get access to, was a simple-looking web platform – such platforms are a dime a dozen.
We would advise you to stick to established platforms like MT4 and MT5 for a better trading experience. This software is greatly effective and full of useful features like Expert Advisors, possibilities for trying out strategies – either in a demo account or through back-testing, and the ability to set up customizable signals.
TradeBaionics TRADING CONDITIONS
TradeBaionics presented us with Terms and Conditions that were absurdly brief and did not contain any relevant information whatsoever.
The broker seemed unsure what the minimum deposit they demand of you is, stating that would be $250 at one place, $500 at another, and as much as $10 000 in their account type info. Considering the fact that many reliable brokers would only ask for between $1 and $100, investing with scammers should not be on your do-to list.
The leverage offered by TradeBaionics was 1:200 – which is pretty high and could turn out to be rather dangerous for inexperienced traders. Because of the fact that high leverage could lead to huge losses, many jurisdiction around the world have imposed leverage restrictions – 1:30 for forex majors for the EU and the UK, and 1:50 for the US.
The spreads we got on the platform were around 0.9 pips which is pretty good – but considering the fact that we are dealing with a scam scheme, we would not put too much trust in these figures.
TradeBaionics DEPOSIT/WITHDRAWAL METHODS AND FEES
The broker did not bother to say anything about the payment methods available although the Terms and Conditions did mention credit/debit card payments, bank transfers, and e-wallet payments. We had trouble depositing in the client area because of a website malfunction so we could not establish which payment methods were available with TradeBaionics.
The broker also offers multiple types of bonuses but did not elaborate too much on those. Keep in mind that bonuses have been banned in all of Europe, Australia and the US but are often offered by such scam brokers. Scammers often insert clauses in the Terms and Conditions which make it impossible for the client to withdraw anything from their account – even their own deposits – before reaching a huge turnover. Before you are able to reach that turnover, the scammers will probably be long-gone with your money.
HOW DOES THE SCAM WORK?
It is surprising and worrisome how many people scams like this one have fooled.
It all starts with a simple ad on the Internet promising you easy access to immense riches – the only thing you would have to do is open an account with some broker. You have heard stories of successful investors who have generated crazy returns through trading – you might even know somebody like that – so you give in and provide the scammers with your contact details.
This is the moment when you will start getting calls and emails asking you to deposit – so you do and in the beginning, everything might be looking great. It is easy for scammers to manipulate platforms to make it look like you are turning a decent profit. The only problem is you have to keep investing – the scammers will make sure to smooth-talk you into that.
But when you try to withdraw, you will start running into different obstacles – made-up fees or new procedures or obscure clauses in the Terms and Conditions. The moment you start figuring out something is wrong the scammer would be long gone – with your money in their pockets.
WHAT TO DO IF SCAMMED?
Don’t trust any sort of “recovery agents” promising to retrieve your money for a small fee – this is just another type of scam aimed at scam victims. Such people just want to rob you additionally.
What you should do is notify authorities and contact your bank or card provider (if you have used one of these payment methods) and ask for assistance. With Visa and MasterCard you could file for chargeback within 540 days and you could possibly retrieve your deposits. However, if your account has been verified, scammers might use this as a pretext to deny such withdraw and claim that you have done everything voluntarily and have lost money due to the risks of trading, not due to scam.
Be prepared that such stories rarely get a happy ending and you might never see your money again. That is why it is vital to trade with a reliable, licensed broker and always read the Terms and Conditions carefully.