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

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Tradefxm presents itself as a leading investment intermediary offering innovative solutions for trading financial instruments. But before you put your money on the line you should always do a careful fact check. And in the case of Tradefxm, the check reveals that this website is not at all what it claims to be. Let’s take a detailed look at why it’s in your best interest to avoid Tradefxm and what more credible options you have when choosing a forex broker.

Tradefxm Regulation and safety of funds

Guaranteed FundsSegregated AccountsNegative balance protection
Tradefxm
UK regulated brokers£85 000YesYes
EU regulated brokers€20 000YesYes
AU regulated brokersNoYesYes
US regulted brokersYesYesNo

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.

Tradefxm claims that the company Tradefxm Limited has offices in London and Dubai.

However, a check of the UK’s Financial Conduct Authority (FCA) register reveals no licence but a warning to investors that Tradefxm is not authorised to offer financial services and products.

The website does not provide access to the Client Agreement, Terms and Conditions and other documents required by law. At this point, there is no reason to believe that Tradefxm is anything more than yet another online sca,.

If you have decided to invest in financial instruments you have a choice of much more trustworthy options.

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. 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.

Tradefxm Trading software

Analytical toolsAuto tradingCustom indicatorsMobile apps
Tradefxm platform
MT430+ indicatorsAndroid and iOS
MT550+ indicatorsAndroid and iOS
cTrader40+ indicatorsAndroid and iOS

Tradefxm promises clients MetaTrader 5 (MT5), which is the industry’s most popular trading platform. But after registering an account, we get neither a link to download the software nor credentials to log into a trading server. It appears that Tradefxm does not have the technological capacity to facilitate trading of financial instruments.

It is advisable to contact one of the many legitimate brokers that offer MT5 or the still very popular MT4. These platforms have established themselves as leaders because they offer a wide range of features, including a wide variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

Tradefxm Trading instruments

CurrencyStocksIndicesCryptoCommodities
Tradefxm
XMYesYesYesNoYes
FBSYesYesYesYesYes
FXTMYesYesYesYesYes

Tradefxm claims to offer trading in all major asset classes – forex, stocks, indices, commodities, bonds and cryptocurrencies. The latter constitutes further evidence that Tradefxm is not a legitimate UK-based broker. The FCA prohibits brokers from offering retail clients trading in crypto derivatives.

Tradefxm Spreads and cost of trading

TradefxmXMFBSFXTM
Spread EURUSD0.611.1
Spread GBPUSD1.31.21.4
Spread USDJPY1.31.21.4

Tradefxm does not provide clear information on the terms of trade. The laconic descriptions of the account types indicate an extremely high commission of 10%.

Tradefxm Maximum leverage

ForexStocksCryptoGoldIndices
Tradefxm500:1100:110:1100:1100:1
UK regulated brokers30:15:110:110:1
EU regulated brokers30:15:12:110:110:1
AU regulated brokers30:15:12:110:110:1
US regulated brokers50:1

Tradefxm  advertises leverage between 1:200 and 1:500, which is further proof that we are dealing with a fraud. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses.  The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

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.

Tradefxm Deposit and withdrawal methods

Deposit timeWithdrawal timePrice
Credit cardInstant24 hoursNot specified
Crypto24 hours24 hoursFee depends on crypto

Tradefxm allows the deposit of funds through cryptocurrencies and stripe.com. Scammers prefer cryptocurrencies because these transactions are not subject to refunds.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

Tradefxm Minimum deposit

TradefxmXMFBSFXTM
Minimum deposit$200$5$10$5

The minimum deposit required by Tradefxm is 200 USD. For the same or often lower amount you could open a trading account with a duly licensed and established forex broker.

Tradefxm Withdrawal requirements

Trading volumeFee/Tax on withdrawalMinimum withdrawal
TradefxmNot specifiedNot specifiedNot specified
UK regulated brokersNoNoNo
EU regulated brokersNoNoNo
AU regulated brokersNoNoNo
US regulated brokersNoNoNo

The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet  withdrawal terms.

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