Beware! Traderhouse.com 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.
Trader House wants us to believe that it is a brand “authorized in various jurisdictions around the world and is a reputable Forex & CFDs online brokerage”. However, careful inspection reveals that we have no good reason to believe these claims. At the time of writing this review the Trader House website lacks basic functionality including the ability to register an account. But the information available is enough to conclude without a doubt that this is not a real broker, but a scam.
TRADERHOUSE.COM REGULATION AND SAFETY OF FUNDS
The company that supposedly owns and operates Trader House is listed only once in the footer of the website – the Panelid Limited. It is stated that the registration number and the date of non-registration “То be announced” – which is unacceptable for a broker who wants you to entrust him with your money.
A contact address in the United Kingdom is provided. There is indeed a company with that name on the UK general register of companies, but it is not a forex and CFD broker, and there is no evidence that it is linked to the Trader Housewebsite. To offer such financial services in the UK, a broker must be licensed by the Financial Conduct Authority (FCA) However, no broker with such a name can be found on the regulator’s register.
The text of the Terms and Conditions and other legal documentation does not mention a company name at all. In addition, it is stated that the applicable jurisdiction is not that of the United Kingdom but that of Hungary. Verification shows that this statement is also false.
Trader House is a practically anonymous website which openly lies that it is authorised to provide financial services. Under no circumstances should you trust your money to such anonymous sites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK. As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
TRADERHOUSE.COM TRADING SOFTWARE
On its website, Trader House claims to use one of the most popular trading platforms among brokers worldwide, MetaTrader 5 (MT5). However, Trader House does not provide links to download the software. The registration and login buttons are not active, so we were not able to create an account and check if that would give us access to a trading platform. It is possible that Trader House is not yet fully operational or has already been abandoned, as is often the case with scam websites.
You could always use the services of a regulated broker, the vast majority of which offer clients MT5 or the still very popular MT4. This will enable you to use the advanced features of these platforms without fear of being scammed. These platforms are preferred by the majority of brokers around the world because of their powerful automated trading capabilities, including Expert Advisor bots and customized scripts for backtesting trading strategies.
TRADERHOUSE.COM TRADING CONDITIONS
Trader House claims to offer five types of trading accounts. The only specific information in the description of the accounts is the ridiculously high minimum deposit of 10,000 USD. All legitimate brokers allow you to start trading with much smaller amounts, often around 100 USD.
Trader House does not specify the underlying trading parameters associated with the accounts – leverage, spread, commissions. Elsewhere on the website, spreads of 0.0 pips are mentioned, but that means nothing insofar as Trader House obviously offers no real trading. As further proof that Trader House is not a regulated broker, the website states that welcome bonuses are offered. Bonuses, promotions, prize games and similar practices are banned by all leading regulators.
TRADERHOUSE.COM DEPOSIT/WITHDRAW METHODS AND FEES
According to the website, Trader House’s payment methods are credit cards and bank transfer. The legal documentation also explicitly mentions cryptocurrencies. Due to the inability to register an account, we cannot verify what payment methods are actually available. Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or FasaPay.
The Deposits and Withdrawals Policy states that the minimum amount for a single deposit is 250 USD, to withdraw – 100 USD/EUR/GBP or 0.026 BTC or equivalent in cryptocurrencies. Trader House charges a substantial withdrawal fee of 5% when using credit cards and 0.1% when using cryptocurrencies. Most legitimate brokers do not apply transaction fees.
But the main problem with Trader House is that if you have deposited money, it is impossible to withdraw it. This is understood by a confusing clause, according to which, if the account has received a bonus, the withdrawal is allowed only after fulfilling a certain minimum traded volume – one standard lot of 100,000 currency units for every dollar of bonus.
In addition to this, there is a monthly inactivity fee of 100 USD for accounts that have not traded for 30 days.
HOW DOES THE SCAM WORK
Fake brokers are a type of scam that has spread especially rapidly in recent years, aided by the excitement surrounding cryptocurrencies. People looking for ways to make money online can very easily come across one of the many scam websites of this type. Scammers are very skilled at convincing people to invest – first small amounts of a few hundred dollars, and then larger sums of money. Some of the scam schemes are quite elaborate and even use trading software to convince victims that their money is actually being invested and even racking up profits.
But when you ask to withdraw those winnings, or even your deposit, you’ll find it’s impossible – you’ll be told that a sudden change in the market has wiped out all your money, or that you have to meet impossible minimum trading volume requirements and pay huge fees and commissions hidden in the terms and conditions. Fraudsters can also simply disappear because they use fake names and offshore shell companies for their operations.
WHAT TO DO WHEN SCAMMED
If you find yourself scammed, the first thing you should do is notify the financial authorities in your country about the scammers’ activities, and spread the word online to warn other potential victims.
Your options for getting your money back are limited. If credit or debit cards were used for the transactions to the scammers, you have the option to request a chargeback. Companies like Visa and MasterCard now allow such requests to be made up to 540 days after the transaction. But keep in mind that if you have provided proof of your identity to the fraudsters, they may dispute that the transaction was voluntary. In addition, fraudsters typically use cryptocurrencies and shady e-wallets that do not allow refunds.
Victims of scams are often targeted by another type of online fraudsters who promise that their money can be refunded for an upfront fee. Under no circumstances should you trust such offers.