RedFinance review – 5 things you should know about

RedFinance review – 5 things you should know about

Rating: 1

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


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


RedFinance claims to be a forex broker presenting a quality choice for traders. But in preparing this review, we found neither quality brokerage services nor even proof that this is a genuine broker. In fact, this offshore company-controlled website demonstrates many characteristics of a typical online scam. Let’s take a detailed look at why it’s in your best interest to stay away fromRedFinance.


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 website’s homepage, the company behind this alleged broker is Shenanigans Consulting LTD, based in Saint Vincent and the Grenadines (SVG).

Such a jokey name is a red flag in itself. However, there is indeed such a company registered in SVG. But that means nothing in terms of the security of your funds. SVG is an offshore zone with no broker regulations in place. As soon as you open the website of the local Financial Services Authority  you see a warning that the institution does not licence forex and other types of brokers and does not supervise the activities of International Business Companies engaged in such activities.

Furthermore, we cannot actually be sure that even this unregulated company is the real owner of RedFinance. The legal documentation available on the website does not mention the name of this or any other legal entity. Moreover, the Terms and Conditions list Poland as the relevant jurisdiction instead of the SVG. An offshore broker cannot operate in regulated jurisdictions such as this EU member state. Such inconsistencies and contradictions are typical of scams.

Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online.

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.


RedFinance uses a fairly basic web-based trading platform. In fact, we’ve seen the exact same platform at dozens of fake brokers we’ve reviewed. Here’s what it looks like:

While this platform has the basic functionality to place orders, it cannot compare to the capabilities provided by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It is no coincidence that these platforms have established themselves as the industry standard. 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.

The presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers have trading software to fool their victims that their money is being invested.


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.

On the RedFinance website, we see a list of four account types, but their descriptions do not specify many of the basic trading parameters.

The minimum deposit required by RedFinance is 250 USD. For that amount you could start using the services of almost any licensed broker. Many leading brands offer beginner investors Micro accounts with a symbolic minimum deposit.

The leverage offered by RedFinance reaches 1:100. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.  A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.

RedFinance promises “tight spreads,” but in the trading platform we see just the opposite – a spread of 3 pips, which is more than double the industry average. Even if RedFinance offers real trading, it is very disadvantageous for the trader.


On its website, RedFinance advertises that it allows deposits and withdrawals via wire transfer and credit cards, and that it does not charge transaction fees.

But in the deposit menu itself, the wire transfer option is missing and the credit card one is not active. The only payment method actually available is cryptocurrencies.

Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like Skrill,, PayPal, Neteller or POLi .

In the Terms and Conditions we see a typical scam trap – if the account has received a bonus, withdrawing the bonus and any profits requires meeting minimum traded volume requirements. These requirements are very high – 25 times the amount of the deposit plus the bonus. Regulated forex brokers are prohibited from offering bonuses and promotions.


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.


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.

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