Beware! Trademorefx 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.
There is very little doubt that Trademorefx is not a legitimate broker. Even if it was not for the fact that there is an official warning issued on them by a reputable financial authority, there would be more than enough signs that could lead you to the conclusion that whoever is behind the broker is running a rather badly designed scam scheme. There is very little information on Trademorefx’s website – nothing is said about the company itself or what kind of accounts and terms it offers – you will get to learn that you can trade forex, indices and commodities and that is all. All in all, there are only a few brief paragraphs of text on the website and that is not enough for us to believe that this broker is legitimate – legitimate brokers would always provide you with extensive information about who they are, what they offer, what sort of commissions and fees they have, etc.
Our advise would be to stay as far away from brokers like Trademorefx as possible – they are surely scammers and you will deeply regret depositing any sort of money with them.
Trademorefx REGULATION AND SAFETY OF FUNDS
Trademorefx has provided a UK address so we have to assume that they are UK-based and therefore regulated by the UK financial authority, the FCA. However, not only did the broker not show up in the FCA register but the financial authority has actually issued a warning on Trademorefx because they are offering financial services in the UK without being authorized to do so.
This warning alone should be enough to make you reconsider investing anything with Trademorefx. Licenses are an incredibly important element you should consider when choosing a broker – and working with unregulated brokers that are proven to be scammers should be your last choice.
Don’t hesitate to open an account with a licensed UK broker since such brokers are regulated by one of top financial authorities in the world – the FCA. It is not at all easy to obtain a license by the regulator – you would have to maintain a minimum capital of €730 000 but that sum could be bigger for brokers with more clients. Brokers are obligated to provide funds for the Financial Services Compensation Scheme (FSCS) – if the broker that you are working with goes bankrupt, you could receive a compensation of up to £85 000. Finally, all client deposits must be kept in segregated accounts which ensures your broker could not use your investment for their own purposes because they have very limited access to your money once you have deposited it.
It seconds to check the FCA register to make sure that your broker is actually regulated so don’t just trust empty promises and do your own research.
Trademorefx TRADING SOFTWARE
Considering how illegitimate Trademorefx’s website looks, we were actually surprised that we were able to download a functional MetaTrader 5 as the broker promised. MT5 is currently the trading platform with the most clients – it recently surpassed the older version of the software, MetaTrader 4. We would definitely recommend that you try MT5 out – the platform gives access to a variety of tools and features you could use to optimize and customize your trading experience. You could use pre-programmed Expert Advisors that track the market and trade automatically or develop your own trading bots and indicators using the MQL4/MQL5 language. Purchasing a VPS to keep bots running even when your computer is off is also an option. Setting up signals or subscribing to other people’s signals could also be a pretty useful feature.
Even a great platform like MT5 could not save this broker however – it only shows that they were willing to invest quite a lot into this scam since a MT5 license is not cheap.
Trademorefx TRADING CONDITIONS
The broker did not state what amount of money they would require to open an account – before you invest anything with a scam broker like this one, consider that there are enough legitimate brokers that would only ask for between $1 and $100 for to open an account – so look some of them up instead.
The spreads we got with Trademorefx were around 0.2 pips – which is more than great when the average spread you would find across the industry is around 1.5 pips. But those amazing spreads should not tempt you – who knows what sort of commissions this broker will be charging and what they have done to manipulate the platform in order to get to 0.2 pips.
The leverage we were offered proves once again this could not be a UK-licensed broker – we were able to set our leverage as high as 1:400 when UK brokers could not legally promise the possibility of anything higher than 1:30. High leverage could be dangerous – it enables you to trade on a larger scale and subsequently make more money. The chance of you losing more money also increases though – which is why so many jurisdictions have imposed some sort of leverage restrictions, at least when it comes to the leverage available to retail clients.
Trademorefx DEPOSIT/WITHDRAWAL METHODS AND FEES
The only way to deposit and withdraw money with this broker is via bank transfer. The “Deposit” button on their client area was, however, broken and would not lead to any sort of deposit form – so there is currently no way of depositing with Trademorefx. This is actually good – it means there is no way they could scam you, at least for the moment.
In the client area, we found a “Bonus” section – which is a huge red flag because bonuses are banned in the UK where the broker claims to be based.
HOW DOES THE SCAM WORK?
The weird thing is that such scams are never very imaginative but they seem to trick a lot of people – you see an ad on the Internet for a broker’s website and decide to check their website out. Then you start thinking to yourself “Man, that actually sounds great, I should maybe register an account to find out what they have to offer.”
Once the scammers have received your contact details, they won’t leave you alone before you deposit – and with time, they will start asking for bigger and bigger sums. You will probably see that you have turned unbelievable profit in no time so you will keep transferring money – just know that it is fairly easy for platforms to be manipulated. At some point of course, you would want to withdraw and this is where it gets complicated. All sorts of clauses in the Terms and Conditions and additional fees will show up – the scammers will try to delay your withdrawal and milk you as much as possible. By the time you figure out something is wrong, your “broker” will be long gone – with your money.
WHAT TO DO IF SCAMMED?
Be prepared that happy endings are not very likely and the chances of you seeing your money again are not big. That is why prevention is key – you should always read Terms and Conditions carefully and make sure that your broker is legitimate by checking if they are actually licensed.
If you got scammed, there are still things you could do. Notify the authorities in your country and share your story with as many people as possible – this way, they would know to avoid such types of scams. Change all passwords that you gave the scammers access to. If you have deposited with a credit or debit card, ask your card provider for assistance – you could get a chargeback within 540 days with both Visa and MasterCard. Bank transfers are a bit harder to reverse but that is still not impossible.
Finally, don’t trust anyone trying to pass as a recovery agent and offering to retrieve your money for a small fee – this is just another type of scam, usually conducted by the same people that robbed you in the first place.