Beware! TopTrade500 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.
TopTrade500 surprised us by offering both a decent-looking website and actual license numbers – which already puts it way ahead of many other scam brokers we have reviewed. However, this turned out to be the license number of a different broker and the website was anything but comprehensive – we were, for example, not provided with a lot of company information, account type descriptions or any sort of legal documentation. The broker also does not offer a functional trading platform which means that you would not actually be able to trade with it. All in all, it is clear that TopTrade500 is a scam and you would definitely not benefit from trading with it.
TopTrade500 REGULATION AND SAFETY OF FUNDS
TopTrade500 claims to be based in Germany and licensed by the Cyprus Securities and Exchange Commission (CySEC). Cyprus has established itself as a main EU regulatory hub and a license by CySEC generally grants a huge dose of credibility to any forex broker. We checked the license number TopTrade500 has provided on the website to see if the broker is really regulated by this strict authority – and a company with this license number did indeed show up in the regulator’s register. It was, however, not this company but the one behind the EU branch of Plus500 – one of the most well-known and established global forex brokers.
The domains the regulated broker uses are completely different, as are their address, phone number, and e-mail. This clearly shows that TopTrade500 is trying to pass as a licensed, reliable broker when it is in fact nothing of the sort. There is no bigger sin in the world of trading than lying about regulations – after all, this is the only way a broker’s clients could be sure that they are working with a reliable company. Using someone else’s license numbers is even worse and only shows that a company had the clear intention of fooling you. This is definite proof that we are dealing with an insolent scam.
Check out these regulated EU forex brokers instead. The financial authorities of the EU – not only CySEC but also BaFin (Germany), CONSOB (Italy), CMNV (Spain), AMF (France), etc. – make sure that the EU financial market remains fair and transparent. All of these regulators operate under European Markets in Financial Instruments Directive (MiFID) which means that all of them have the same requirements for forex brokers. EU forex brokers are obligated to prove their financial stability by maintaining a minimum capital of €730 000. They must also keep client money in segregated bank accounts – which not only keeps your deposits intact in case of broker bankruptcy and speeds up withdrawals but proves that the broker would not be able to use your investments for its own agenda. The Negative Balance Protection policy prevents retail clients from losing more money than they have in their accounts. All regulated forex brokers are also obligated to report to authorities regularly to promote transparency.
Working with a regulated broker is the only way to trade safely – especially considering the huge number of scam brokers that have started operating in recent years.
TopTrade500 TRADING SOFTWARE
TopTrade500 promises its clients “the ultimate platform” that would give you “access to over 135 tradable instruments from 6 asset classes”. However, when we opened an account and tried to see what sort of trading software this broker offers, we were presented with the following TradingView chart:
TradingView is a free market tracking software that can be accessed completely for free on the Internet – you do not actually need to open an account with a forex broker if you want to use it. Moreover, this is not the sort of software that you can actually use for trading. This means that trading with TopTrade500 would not be an option.
Better check out these brokers who offer the most popular software in the industry – MetaTrader 5. This platform is very accessible (even for complete beginners) but still offers a huge level of functionality and every trading tool or feature you might need. You will get access to a wide array of charting and analysis tools – technical indicators, timeframes, and graphical objects – as well as to features like Expert Advisors that trade automatically in accordance with an algorithm, VPSs you could use to keep your trading bots open at all times, a multi-threaded, multi-currency Strategy Tester, trading signals, options for hedging and netting, a community chat, a built-in economic calendar and much more. You can even develop your own trading bots and indicators on the platform. Few platforms offer the efficiency of MT5 – try the software out today to make sure of that yourself.
TopTrade500 TRADING CONDITIONS
TopTrade500 offers a few account types – but since they do not actually provide their clients with access to a functional trading platform, opening an account with the broker is completely redundant. You would not actually be able to trade – which is supposedly the main reason for opening an account with a forex broker in the first place. This also means that it is pointless talking about terms like leverage or spreads – they are only applicable when dealing with actual brokers who offer actual trading opportunities.
Opening an account with TopTrade500 would cost you at least €250. This might not sound like a lot of money but we would say that it is more of an industry upper limit. It is fairly easy to find a reputable broker who offers trading accounts for $100 or less – even for as little as $5 in some cases.
TopTrade500 DEPOSIT/WITHDRAWAL METHODS AND FEES
When you try to deposit with TopTrade500, you will be redirected to a separate page where you would be offered the opportunity to purchase crypto – via bank transfer or with your credit or debit card. You can then use this crypto to make a payment to the broker.
A company only accepting cryptocurrency payments is never a good sign. The problem with such transactions is that they are irreversible – it would be completely impossible to get a chargeback if you have used this payment method to deposit. This is the reason why scammers prefer this payment method and would often urge you to use it. However, you should be extra careful and only deposit in crypto if you are completely sure you can trust whoever you are depositing with.
HOW DOES THE SCAM WORK?
Such scams are not only becoming more frequent but they are also surprisingly effective – which is why the first and most important step if you want to protect yourself from them, is to understand how they work.
You stumble upon a broker on the Internet – that broker promises to make you a rich, successful trader in no time. You are curious to see what forex brokers are all about – after all, you have heard stories of people becoming rich by trading – and provide the scammers with your phone number and email. After that, you would not be left alone before you have deposited – these people are seasoned scammers and will convince you to transfer money in no time.
This will not be enough though – the broker will keep asking for more and more money, and since scammers often manipulate profits and platforms, you might even be happy to invest because you would be thinking that you are turning a profit.
Once you try to withdraw, however, the problems will start – the broker will start denying withdrawals because of certain clauses in the Terms and Conditions, because of previously unmentioned fees and taxes, etc. At this point, you will find out that there is something wrong going on – but the scammers will be long-gone with your money before you can do anything.
WHAT TO DO WHEN SCAMMED?
Do not get desperate and do not employ any so-called “recovery agencies” that promise to track down the scammers and retrieve your money for a fee – this is just another type of scam.
What you should do is notify the responsible authorities in your country and contact your bank to let them know that you have been scammed. Change all your banking passwords and remove all remote access software the scammers had you install under false pretenses – they only wanted access to your computer and your banking systems.
If you have deposited with a Visa or MasterCard card, you might be able to retrieve your money – both card providers allow chargebacks within 540 days of the transaction so contact your card issuer as soon as possible.
Finally, make sure to share your story with as many people as possible to let them know that such scams exist and how they work. This way, others can avoid losing their money in the future.