TrustLion review – 5 things you should know about trustlion.pro

TrustLion review – 5 things you should know about trustlion.pro

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

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TrustLion is an unregulated offshore broker that does not even meet the basic requirements of a trustworthy financial services provider.  In this review, we will look in detail at the clues that TrustLion is most likely a scam and should be avoided.

TRUSTLION REGULATION AND SAFETY OF FUNDS

The first thing to look for in a forex broker’s website is which legal entity runs it, where it is based and what regulatory oversight it is subject to. Licensed companies are also required to provide a comprehensive set of legal documentation.

TrustLion is represented as a trading name of Rame Partners LLC, a company based in Saint Vincent and the Grenadines (SVG).

Such a company can indeed be found among those registered in the SVG. But this does not provide any guarantees of customer protection. 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.

A large number of fraudsters are taking advantage of this lack of regulatory oversight. Therefore, in early 2023, the Financial Services Authority announced that it would begin requiring companies operating as brokers to prove that they are licensed in the markets where they offer financial services. Because of this, we are likely to see fewer scammers based in this offshore area in the future.

But it seems that TrustLion is just such a scam. The website doesn’t even provide Terms and Conditions, although agreeing to this document is required when registering an account. If you don’t know what terms you’re agreeing to, it’s not a good idea to put your money on the line.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences.

There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the 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.

TRUSTLION TRADING SOFTWARE

Like many other fake brokers we have encountered, TrustLion employs a basic web-based trading platform. Here’s how it looks like:

It should be noted that 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 use rigged trading software to fool their victims that their money is being invested.

If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading 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.

TRUSTLION TRADING CONDITIONS

TrustLion claims to offer four types of trading accounts. But the descriptions of these accounts lack information about the underlying parameters of the trade, most notably the price paid by the trader in the form of spread and commissions.

The trading platform shows a spread of 3 pips, which is double the industry norm. Even if TrustLion were to offer real trading, it would be very disadvantageous for the investor.

The maximum leverage available is 1:100. This is on the one hand lower than offered by most offshore brokers and on the other hand higher than allowed by regulated brokers.

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.

Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.

If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

According to the description of account types, TrustLion requires a minimum deposit of 250 USD. For the same or often lower amount you can open a starter account with a duly licensed and regulated broker.

TRUSTLION DEPOSIT/WITHDRAW METHODS AND FEES

We weren’t at all surprised that the only payment method accepted by the is Bitcoin and other cryptocurrencies. This is the payment method of choice for most financial scammers. The reason for this is that on the one hand cryptocurrencies provide a degree of anonymity and on the other hand they do not allow the defrauded person to ask for a refund.

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 PayPal, Skrill, Neteller or Sofort.

Since TrustLion does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.

HOW DOES THE SCAM WORKS

Scammers who promise easy money without any effort are nothing new, especially on the internet. But given the excitement around bitcoin and cryptocurrencies in recent years, malicious actors have run rampant more than ever, capitalizing not only on people’s desire to solve their financial woes with a magic wand, but also ignorance and misunderstanding of how blockchain and complex financial instruments actually work.

If your curiosity is stirred by one of the many flashy websites promising easy riches, and you provide your contacts, you will soon be contacted by skillful and persuasive scammers who will convince you to start with a relatively small and “risk-free” investment. If you agree to this, you will be transferred to even more skilled at convincing scammers, who will persuade you to invest even more. Any money you give to such people is money you are unlikely to get back.

Any attempt to withdraw deposits or alleged profits will be hampered by numerous and significant fees, as well as harsh and often prohibitive conditions written into the terms and conditions – such as high trading volume requirements, unexpected “taxes”, or withdrawal fees as high as 10% or even 20% of your funds.

WHAT TO DO WHEN SCAMMED

Recovering money you have given to fraudsters is difficult and often impossible. Fraudsters always want you to provide them with documents such as a copy of your ID and proof of address so that they can claim that it is a legitimate transaction, agreed voluntarily between both parties. If the transaction is made by credit or debit card, you can request a cashback and hope for the best, but transactions via wire transfer or cryptocurrencies are not refundable.  It is important not to trust online offers from people who offer to recover your money in exchange for an upfront payment, because this is also a well-known scam.

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