Updated on March 4, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding Trades.com due to the issues we've identified.
Is Trades.com Scam or Legit Broker? ▲
Engaging with Trades.com for trading activities is not advisable. The brokerage lacks any form of licensing, a critical red flag indicating it's not a safe entity for trading. Furthermore, it appears to mimic another regulated brokerage, TRADE.COM, by closely resembling its name, which is a deceptive practice aimed at gaining unwarranted credibility. Such mimicry raises serious concerns about the legitimacy of Trades.com, suggesting potential fraudulent intentions.
Registered in: No Registration
Type of License: No License
Is Trades.com safe to trade: No
Recommended Licenses: FCA in UK & ASIC in Australia
Trades.com promotes itself as a leading global provider of forex and CFD trading, enabling traders to diversify their portfolios and minimize risks through a variety of financial trading products. The brokerage boasts of offering commission-free trading, advantageous trading terms with flexible leverage, low margins, and tight spreads. It also claims to adhere to strict measures for ensuring the safety and privacy of client accounts, including the submission of regular financial reports to regulatory bodies to demonstrate sufficient capital coverage for client balances.
Despite these appealing propositions, the crux of the matter lies in the broker's dubious identity. Trades.com's close resemblance to the well-established and regulated broker TRADE.COM is not coincidental but rather a deliberate attempt to mislead and attract clients under false pretenses. This practice is a hallmark of scam operations that aim to exploit unwary traders by pretending to be recognized and authorized firms. It is imperative for potential traders to verify the registration and licensing status of a brokerage, as reputable authorities typically maintain online listings for public verification.
In conclusion, the safety and legitimacy of a brokerage are paramount when selecting a trading partner. Licensing by renowned financial authorities, such as the Financial Conduct Authority (FCA) in the UK or the Australian Securities and Investments Commission (ASIC) in Australia, serves as a significant trust indicator. Therefore, traders are strongly advised to opt for well-regulated brokers, ensuring a secure and reliable trading environment. Given the absence of licensing and the deceptive practices employed by Trades.com, it is prudent to steer clear of this broker and consider reputable alternatives for trading activities.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
Trades.com Review 2024
