Beware! Tradeditional 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.
Tradeditional is a forex broker trading in stocks, forex, commodities, indices and cryptocurrencies. At first glance, the website looks just any run of the mill forex broker’s website, so we are going to look at some key features in order to advise you whether it is safe to trade with this company or not.
Tradeditional Regulation and safety of funds
On its website, Tradeditional provides an address in Switzerland. However, after checking the Swiss Financial Market Supervisory Authority (FINMA), such broker did not appear in the register of the agency. That leads us to the conclusion that this broker is not legitimate and is possibly a scam and as such, it is not safe to trade with as your funds may be at risk.
There are a lot of brokers out there that are licensed and reliable to trade with. We want to recommend to our readers to look up brokers from the well-established jurisdictions around the world that can provide a guarantee for the safety of funds and give traders access to compensation schemes in case of bankruptcy. Forex brokers licensed in the EU and UK provide exactly that. First of all, they must have an initial fund of 730,000 EUR and they must report their transactions on a daily basis. These, among other things, are precautions against scammers sneaking in. In addition to that, brokers regulated by CySEC must contribute to the Investor Compensation Fund in Cyprus from which, in case of bankruptcy, traders will be compensated by up to 20,000 EUR per person. Similarly, in the UK, brokers regulated by FCA must contribute to the local Financial Services Compensation Scheme which guarantees compensation of up to 85,000 GBP per trader in case the broker goes belly up.
Tradeditional Trading software
Opening a trading account with this broker is super easy and quick and without much ado, you are able to access either the web trader or MetaTrader4 platforms that this broker offers to its traders. In the screenshot below, you can see the MT4 which is truly an excellent platform preferred by around 80% of the brokers around the world. This platform comes with an amazing array of trading tools and instruments. It’s got an auto trading option, which you can see in the top horizontal menu bar, in addition to the charting package which is out of this world. Traders can select different chart types and time frames and use the technical analysis indicators, such as Bollinger Bands, Fibonacci retracement or moving averages, which can help them predict the future directions of exchange rates and make a profit.
On the left-hand side of the image, you can see the menu with the major currency pairs together with their bid/ask price and beneath is the navigator to the trading accounts, indicators, expert advisors and scripts. What you see in the middle is a display of charts of currency pairs with the fluctuation in price for a given time frame. In this instance, you see displayed 4 charts of 4 currency pairs, but their number may vary according to the needs of the trader.
If we look at the top-left chart, we’ll see that the currency pair is EUR/USD. From the bid/ask price for this pair, we can calculate the spread to be 1.8 pips which is within normal limits. The leverage for this trading account is 1:100 which is rather high and traders may risk their funds if they choose to trade with such high leverage. Normally, licensed brokers in the EU will not offer leverage higher than 1:30 as there is a cap on it in Europe. Similarly, in the US, brokers cannot exceed leverage higher than 1:50. Accepting to trade via a broker that is not licensed and is offering high leverage is, indeed, a risky undertaking.
Tradeditional Deposit/Withdrawal methods and fees
Tradeditional offers 5 different account types – Basic, Silver, Gold, Platinum and Diamond. The minimum initial deposit for the Basic account is $250. The other accounts start at much higher initial deposit amounts – $10,000, $50,000, $100,000 and $500,000 respectively.
Payment methods for feeding the accounts are limited to credit/debit card or bank wire.
The minimum withdrawal amount for bank wire is 100 EUR/USD/GBP and for the other payment methods, the minimum withdrawal amount is 50 EUR/USD/GBP.
As per the company’s policy, withdrawals are charged 3.5% service fee. Clearly, this broker is reluctant to let you withdraw your money, that is why the withdrawal fee is so high. However, the first withdrawal if you have a Gold or Platinum account is free. The time for processing a withdrawal request is between 3 and 4 business days.
If no trading activity is registered for the duration of 60 days, then the account will be charged an inactivity fee of 50EUR/USD/GBP.
We must say that the deposit and withdrawal methods are not great but we have seen worse as well.
Tradeditional offers 3 different types of bonuses to its clients – Pending bonus, 1 Trade on Us bonus and a Birthday bonus. Interestingly enough, the bonuses are kept in a separate account from the trader’s personal one to allow the trader to withdraw from his/her account whenever there is a need for it. However, to be able to withdraw profits gained with a bonus, the trader must accumulate a minimum amount of Trader Points which means that every 1 EUR/USD/GBP of bonus amount will require 0.1 Trader points. If the trader receives a $100 bonus from which he/she has made a $1000 profits he/she must trade 10 lots before being able to withdraw the profits.
Although on the surface bonuses look very attractive, in reality, they may turn into a double-edged sword and cause you a lot of hassle. Please be informed that licensed brokers do not offer bonuses and free gifts and this often is a sign for a scam.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.