Beware! Tradingroomstar.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.
The first thing that we notice about Tradingroomstar.com is that this supposed forex broker uses completely different brands than the website domain – EasyTrade and EasyTrade55. Thus, we have been able to identify this as simply a new facade for a fake broker that we have already reviewed a few years back – EasyTrade55.
But even if we hadn’t encountered this scam, there are plenty of other signs that this is not the genuine broker it claims to be. Although the website is in Italian, some of the content, including the text of the legal documentation, is in English. At the time of writing this review, Tradingroomstar.com does not even offer basic functionality such as the ability to register a new account. It is possible that this website has already been abandoned and the scammers have moved on to their next project. However, it is useful to know exactly how to identify such scammers and why it is important to avoid them.
TRADINGROOMSTAR.COM REGULATION AND SAFETY OF FUNDS
When choosing a broker to invest with, you should carefully ensure that it is legitimate and licensed. Tradingroomstar.com’s homepage doesn’t even mention the owning company name, which is a big red flag. Legitimate brokers provide detailed information about their legal status in the website footer.
The Terms and Conditions state that the owner of the website is Easytrade55 Ltd.
But we have no reason to believe that such a company really exists. The homepage lists an address in Germany, but the Terms and Conditions claim that it is a Cypriot investment company.
Both countries are members of the European Union, which has strict regulations for financial services providers. We do not find anything about Tradingroomstar.com or Easytrade55 in the Cyprus Securities and Exchange Commission (CySEC) database, which means that the statements in the Terms and Conditions are false. On the website of the German financial regulator Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), we find further evidence of this. The institution warns that Easytrade55 is illegally posing as a broker and is not authorized.
Under no circumstances should you trust your money to anonymous websites that openly lie to you. Instead, it is advisable to approach one of the licensed brokers that are truly regulated by institutions such as CySEC.
There are many advantages to working with such brokers because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА). They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. When clients deposit money in their trading accounts, they are kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.
All brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. EU forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.
TRADINGROOMSTAR.COM TRADING SOFTWARE
Tradingroomstar.com claims to offer MetaTrader 4 (MT4), a trading platform that has been a favorite among brokers and traders for nearly two decades. But the links to download the software, as well as the menu for registering a new account, lead to the now defunct Easytrade55.com domain. Even if Tradingroomstar.com once really offered MT4, this is no longer the case.
There are more than enough licensed brokers offering clients the MT4 experience and/or the newer version of the software MT5. These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
TRADINGROOMSTAR.COM TRADING CONDITIONS
Tradingroomstar.com claims to offer trading in more than 1,200 financial instruments of various classes, but the website contains absolutely no information about trading conditions. When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc. Many leading brands allow you to start trading with a minimum deposit as low as 10 USD or 50 USD.
The text of the Terms and Conditions mentions that Tradingroomstar.com provides bonuses. Licensed brokers in the EU and other regulated jurisdictions are prohibited from using bonuses, promotions and prize games to attract clients. Tradingroomstar.com does not provide clear information about the terms and conditions associated with these bonuses. This is troubling, as scammers often exploit supposedly generous bonuses to tie their victims to hefty fees and other unfavorable terms.
TRADINGROOMSTAR.COM DEPOSIT/WITHDRAW METHODS AND FEES
The logos of various credit card companies as well as payment providers such as PayPal and Western Union can be seen on the homepage of the website. But in the deposits subsection, it is clearly stated that the only payment method that Tradingroomstar.com accepts is cryptocurrency.
This is typical of financial scammers who prefer cryptocurrencies because they allow anonymity while not allowing refunds. Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as Sofort, Skrill, Neteller or iDeal.
The Terms and Conditions state that if the account has not been conducting trading, withdrawals from the account are charged a 7% fee. Other than that, there is a significant inactivity fee of 50 USD.
HOW DOES THE SCAM WORK
Stories of people getting rich from cryptocurrencies tempt many to try their luck in the financial markets. But you have to be very careful not to fall into the clutches of the many scammers lurking in the online space. These scammers only pose as brokers and lure you in with promises to take on the confusing aspects of investing for you.
If you make contact with such scammers they will first convince you to give them a small initial sum of a few hundred dollars. They may even fool you for a while that your investment is generating incredible profits to convince you to give them a larger amount. But your money won’t really be invested. And when you try to withdraw your supposed profits or even your deposit, you will find that it is impossible.
The scammers may tell you that all your investments have been lost by a sudden change in the market. Or they’ll point you to clauses hidden in their Terms and Conditions that say withdrawing your money is only possible after you meet impossibly high minimum trading volume requirements. And they can simply disappear because these scam sites hide behind fake names and offshore companies that are not subject to rules and regulations.
WHAT TO DO WHEN SCAMMED
If you find yourself a victim of scammers, you should inform the relevant authorities in your country and spread the word online to warn other potential victims. However, the chances of getting your money back are not high.
If you used a credit/debit card for the transactions, you could ask for a chargeback. However, such requests can be disputed if you have provided the fraudsters with proof of identity such as a copy of an ID. Under no circumstances should you trust people on the internet who claim they can recover your money for an upfront fee. These too are certainly scammers.