Trademezone review – 5 things you should know about trademezone.com

Trademezone review – 5 things you should know about trademezone.com

Rating: 1

Beware! Trademezone is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

Forex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

Trademezone is a dubious offshore broker that is not subject to any regulatory oversight and offers terms that are detrimental to the client. In fact, Trademezone displays all the basic characteristics of a scam. Let’s take a detailed look at why it would not be a good idea to invest your money through this website.

TRADEMEZONE REGULATION AND SAFETY OF FUNDS

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.

According to the information on the website and the Terms and Conditions, the company behind Trademezone is called Evor Limited and is based in the Marshall Islands.

The Marshall Islands is an offshore zone where there is not even a financial regulator, and a company can be incorporated entirely online. This makes this jurisdiction a preferred base for financial fraudsters.

Trademezone does not provide any guarantees or protections for client funds. In fact, there is nothing to warrant that this company is correct with its customers or that it even offers the services it claims.

You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.

In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

TRADEMEZONE TRADING SOFTWARE

Trademezone’s website does not specify what trading software it offers to customers. After registering an account, we get access to a fairly rudimentary web-based platform. Here’s what it looks like:

This platform has the basic functionalities for displaying technical indicators and placing orders, but cannot be compared with the capabilities of the software used by legitimate brokers. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (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.

It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.

TRADEMEZONE TRADING CONDITIONS

On the Trademezone website we find descriptions of five types of trading accounts. Immediately noticeable is that Bitcoin is listed as the accounts’ base currency. While many legitimate brokers offer cryptocurrency trading, they always use major fiat currencies as the account base. In most cases, you can open a starter account for a very low minimum deposit, often under 100 USD, EUR or GBP.

The descriptions of the account types lack information on some of the most important trading parameters, including spreads and commissions. In the trading platform we see a spread of well over 2 pips – a level that is too high and unprofitable for the trader.

Leverage for the different account types reaches 1:400. This is not a level that you see with regulated brokers. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders. In the EU, UK and Australia the maximum permitted level is 1:30 and in the US it is 1:50. This maximum level only applies to trading major currency pairs, with even more limited leverage for more volatile assets.

Trademezone also promises bonuses and rewards – a practice that is prohibited to regulated brokers. Bonuses are often used to bind traders to very unfavourable or outright impossible to meet terms.

TRADEMEZONE DEPOSIT/WITHDRAW METHODS AND FEES

According to information on the website, Trademezone allows deposits and withdrawals via credit/debit card, wire transfer and Bitcoin. But in the deposit menu itself, there is a single active option – PayPound. This is a shady payment processor that is used by many fake brokers we have come across.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including established e-wallets such as PayPal, Skrill and Neteller. If you are interested in licensed brokers that also accept cryptocurrencies as a means of payment, take a look at this list.

Licensed brokers rarely charge transaction fees, and when they do, those fees are low. But Trademezone lists very high fees of up to 3.5% for credit card withdrawals and even higher fees of 35 EUR for withdrawals by bank transfer.

In addition to this there is an outrageously high 20% withdrawal fee if the account has not reached “1000 turnover”. This clause is the clearest signal that Trademezone is a scam and not just an unregulated forex broker.

HOW DOES THE SCAM WORK

Many people are looking for ways to make money passively, but do not have the necessary knowledge to invest in the financial markets themselves. This makes them a target for the many online scammers posing as brokers. If you come across some of them and give them your contacts, you will be contacted by skilled scam artists who will assure you that they can take on the incomprehensible aspects of investing for you. You will only be required to invest and take profits.

But when you try to collect even just a fraction of your money, it will turn out to be impossible. Your supposed profits will suddenly evaporate, or you’ll find that you have to meet impossible traded volume requirements first. Fraudsters often insert huge withdrawal fees into client agreements amounting to 10%, 20% or even more. You won’t be able to hold scammers accountable because they hide behind fake names and shell-companies offshore. Scammers also typically use non-refundable payment methods.

WHAT TO DO WHEN SCAMMED

First of all, you should be very careful not to fall straight into the clutches of other scammers. Another common scam is to promise money recoveries from fake brokers for an upfront fee.

If you used a credit or debit card for the transactions, you can charge a chargeback. Visa and MasterCard have a long period in which they allow such requests – 540 days. But keep in mind that fraudsters can dispute if you have provided them with a copy of your ID and proof of address. It would also be helpful if you alerted the authorities in your country and other people online to the activities of the scammers.

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US4.99/5$50 Click for a special offerWebsite
UK, Cyprus, Belize4.94/5$5 Click for a special offerWebsite
Australia, Cyprus4.93/5$100 Click for a special offerWebsite
Cyprus, SVG4.8/5$100 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *