Beware! Trades Universal 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.
Trades Universal is an offshore broker suspicious enough to be blacklisted by a EU financial regulator. In this review, we will take a detailed look at why it is advisable to invest through a more trustworthy financial services provider.
Trades Universal Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
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.
Behind Trades Universal is the Marshall Islands-based company Everest Capital Ltd. It is an offshore zone where there is no financial regulator and an international business company can be incorporated entirely online. This makes the Marshall Islands a preferred base for shady brokers and outright fraudsters.
The Spanish financial regulator CMNV explicitly warns against trusting Trades Universal.
If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations.
Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
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.
Trades Universal Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|Trades Universal platform||✅||❌||✅||❌|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
After registering an account, we get access to a pretty basic web trading platform that doesn’t feature extensive customization options or advanced functionality.
We’ve seen the exact same platform being used by multiple fake brokers we’ve encountered. Scammers are using rigged trading software to fool their victims into believing that their money is really being invested and even turning a profit.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
Trades Universal Trading instruments
In the trading platform we see financial instruments of all major asset classes. But Trades Universal does not provide information on trading conditions.
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, etc.
Trades Universal Spreads and cost of trading
In the trading platform we see an extremely high spread of over 5 pips. In the industry, even a spread of 2 pips is considered too high and disadvantageous for the trader.
Trades Universal Maximum leverage
|Trades Universal||Not specified||Not specified||Not specified||Not specified||Not specified|
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
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
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.
Trades Universal Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Bank wire||2-5 business days||2-5 business days||$25+|
|Credit card||Instant||24 hours||Free|
|Crypto||24 hours||24 hours||Fee depends on crypto|
Trades Universal advertises multiple payment methods, but on the deposit menu the only option is a credit card through an obscure payment processor.
Trades Universal Minimum deposit
If you use the services of a licensed and established broker, you will be able to take advantage of the Micro Account offers with a very low minimum deposit.
Trades Universal Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|Trades Universal||Not specified||€10||€100|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
The minimum withdrawal amount is EUR 100. Smaller amounts are charged a high withdrawal fee of EUR 10.