Beware! Traderactive 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.
Traderactive claims to be the broker of choice for every trader who demands high-quality services, a fact which is confirmed not only by the experience and opinion of the trading community but also by the ratings given by major online publications, rating agencies, and financial journals. Traderactive is also authorised by the regulators SFINS (Switzerland) and MFA (United Kingdom), but the problem is that both authorities are fake and fraudulent! In other words, scammers regulated scammers, which indeed tells you what kind of a brokerage Traderactive actually is! That’s a scam, and we’ll prove it in the following review!
Traderactive Regulation And Safety Of Funds
As mentioned, Traderactive is claiming to hold licenses issued by SFINS and MFA in the UK, but both regulators are fake. They are essentially fraudulent websites created by scammers to falsely authorise scam Forex brokers! At this point, you can clearly realise that Traderactive is a scam, but that’s not the end of the story! The same Traderactive also happens to be an exposed scam as the Luxembourg regulator CSSF issued a warning against it, confirming that its activities are illegal and practically fraudulent. Trustworthy financial authorities regularly update their lists with scams, and it’s a must to stay away from brokers with warnings on their names!
Avoid the exposed Traderactive and go for regulated brokers instead! For example, both CySEC (Cyprus) licensed brokers, and FCA (Britain) brokers are proven safe as both authorities force strict regulations to guarantee safety for clients’ funds. The compulsory rules include client account segregation, risk-reducing measures like leverage restrictions and negative balance protection, and increased capital requirements to license a broker (€730 000). Most importantly, though, both authorities maintain deposit insurance funds – clients of CySEC brokers can claim up to €20 000 in compensation, while the UK protections are even higher at £85 000 per person! It goes without saying that if you trade with unregulated brokers, you’ll remain unprotected and exposed to fraud risks!
Here is a screenshot of the CSSF warning:
Traderactive Trading Software
Traderactive’s trading software remained inaccessible as the broker wanted us to deposit before we could open any platform whatsoever. Even the Webterminal was locked, which clearly shows unethical business behaviour – every broker should provide access to demo trading accounts so that customers can practice and test the broker before a deposit! Traderactive refuses to grant access, so with or without an official warning, we would still shout that people should avoid it!
But anyway, whatever the platform, Traderactive is an exposed scam to avoid! For that reason, we’d like to suggest the regulated MetaTrader4 and MetaTrader5 brokers on both lists, as they provide arguably the best platforms for retail Forex trading. The MTs are stable, intuitive, highly customisable, and come with many advanced features such as automated trading and analytical tools, sophisticated complex indicators, and a marketplace with thousands of trading apps! MetaTrader broker is always a good choice, but make sure to pick regulated ones only!
Wrapping things up, we cannot confirm that Traderactive even provides trading software!
Traderactive Trading Conditions
With no active platform to test, we cannot discuss real-time trading conditions – asset classes, trading costs (spreads) or trading risks (leverage). Nevertheless, we will cover the broker’s claims to hear what they say about it.
According to the account types section, the trading costs are standard – the EUR/USD spread can be as low as 1 pip, which is pretty much in line with the industry standards. The asset classes available for trading are allegedly Forex, Metals, Energies, Equities, Cryptos, Indices and Futures, but this information is unverifiable. The trading risks are unknown as Traderactive does not even mention a word about leverage, which is a red flag nonetheless as the broker withholds critical information! At any rate, Traderactive is an exposed scam, so whatever the real conditions, the brokerage should be avoided!
Now, look what happened when we clicked on the Webterminal button:
Traderactive Deposit/Withdraw Methods And Fees
The minimum deposit with Traderactive is $250, which is a standard requirement for offshore brokers, but it’s at the same time twice higher than the industry standard. Not to mention that many brokers now ask for no more than 5 to 10 dollars to let clients open real accounts. So, with those things considered, we conclude that Traderactive is generally expensive!
The funding methods are two – Bitalvosta and Lax Exchange, both of which are standard crypto exchanges buying and selling Bitcoins! Hence, it turns out that customers should first buy cryptocurrencies that would later be transferred to Traderactive – that’s evidence of a scam! We claim so because it’s scammers’ practice to make people do so as deposits are practically in crypto, which means that no chargebacks are possible! Eventually, we confirm that only crypto deposits are accepted, so whenever people get scammed by Traderactive, they’ll have absolutely no chances of recovering their money! You should definitely stay away as this is a dangerous scam!
Information about withdrawals and fees is missing, but even if there were some provisions, the details would be strictly fraudulent! Nevertheless, the lack of information is a red flag in itself as Traderactive yet again conceals critical information!
And here is the deposit page, revealing the only funding methods acceptable:
How Does The Scam Work
Forex scams are different from one another, but in most cases, the fraudulent scheme is practically carried out in the same way. Scam brokers are always unregulated and usually registered somewhere offshore, which helps scammers remain anonymous and untraceable. If you open an account with such an entity, you should expect endless phone calls. Scammers will constantly try to approach you and make you deposit money as quickly as possible. Remember that urgency is always a treacherous sign, so it’s probably a scam if someone calls you twenty times per day, asking for money.
In the worst-case scenario, you’ll deposit, and scammers will persuade you to trade instead of you. You’ll soon see magnificent profits generated – false, of course, and you’ll get excited, asking to take your money back. As you probably guess, they won’t let you do so and will try to get another deposit from you, promising that much more lucrative gains are waiting. Or, they can ask for a false tax, saying that withdrawals are only possible if you cover the charge in advance. If you pay, you’ll increase the amount stolen from you, but if you keep asking for your money, you’ll soon realise it’s a scam!
What To Do If Scammed
You should first inform the authorities – call the police and contact your local regulators and other government bodies dealing with crime and fraud. Also, deactivate your cards ASAP and call your bank to inform them about what happened – they can provide essential information and help you reduce further financial damage.
If you deposited cryptocurrencies, there is not much you can do, but if you used your credit/debit cards, you could file a chargeback, hoping that all or some of the money invested can be retrieved. However, you shouldn’t go blindly looking to recover the loss because many fraudulent chargeback agencies are waiting to double-scam victims of fraud – be cautious about it!
And lastly, consider sharing your experience to help protect others and provide further information about how scams work!