TradeFinancial is a forex and CFD broker and has, over the years, gained a huge reputation of being one of the leading binary options traders. It has a huge clientele who can trade on any of the broker’s four account types accessible on the web-based platform. It is, however, an offshore-broker, a matter that raises eyebrows.
To determine whether you should trust this broker or not, this article reviews every aspect of TradeFinancial Forex.
The website looks as legitimate as any other legitimate forex broker online, but TradeFinancial is an unlicensed Forex Broker owed by Armenson Ltd that is based in the Republic of Vanuatu. Now if you know anything about the regulation of forex brokers, you know all too well that the Vanuatu registration/ regulation of a broker is not to be trusted since such brokers are known for not paying taxes among other issues. With lax tax rules, Vanuatu is a tax haven for most untrustworthy forex brokers.
This broker is not licensed by South Africa’s FSB which means that trading on the site is not something we recommend.
Note that even though this broker has South African contact details, the website does not have any licensing or regulation details for the company.
If this were a trustworthy broker, it would be regulated and licensed by a respectable institution like the Cyprus Securities and Exchange Commission, CySEC, the Australian Securities & Investments Commission, ASIC, or the Financial Conduct Authority, FCA. These regulatory bodies abide by the strictest ethical and fiscal rules which include ensuring the maintenance of a specific amount of resources in operating capital and keeping of funds from traders in segregated accounts by the brokers. These are features missing from TradeFinancial brokers.
This forex broker allows trading in about 43 forex pairs. Some of the traded currencies are exotic currencies like the Polish Zloty, the Russian Rubla, the Hong Kong Dollar, Czech Krona, the Mexican Peso, South African Rand, Turkish Lira, Norwegian Krone, Singapore Dollar, Danish Krone, and the Swedish Krona.
Besides these currencies, the broker also allows trading in CFDs for spot metals like copper, silver, and gold. This broker also has natural gas, coffee, oil, stocks, and indices as its other trading assets. Their portfolio also has cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dash, and Ripple.
This forex broker has four types of trading accounts; Mini, Silver, Gold, and VIP.
In the Mini account, the minimum acceptable deposit it $250. There are 190 tradable assets for all the accounts, and every account holder receives a daily market review and trading alerts. The Gold and VIP account holders get priority withdrawals and personal account managers.
At $250 as the minimum deposit for the Mini account, it is clear that this broker asks of its clients too much. Most of the trusted brokers on the market have a minimum deposit requirement of $100 with others allowing you to trade with as low as $5.
The Silver account has a minimum deposit of $3000; the Gold account requires $12,000 while the VIP account demands a hefty $60,000. Such amounts are excessive.
TradeFinancial Forex offers a maximum leverage of 1:400. This leverage is enough for most, if not all trading strategies. But, keep in mind that high leverage means a big risk of losing your money faster. If you are a professional forex broker, you know not to accept trades with leverages exceeding 1:100.
Besides the unbelievably high leverage, the broker offers spreads of 2 pips. While this sweetens the deal, it makes trading on the site appear to unreal, and obviously, too good to be true.
On the demo account, the EUR/USD spread is at an unreasonably high value fixed at 3 pips.
Multiple payment options
TradeFinancial lets you deposit and withdraw funds using any of the major credit and debit cards such as Visa, MasterCard, as well as e-wallets like Neteller, Skrill, China’s Union Pay, and it allows bank transfers.
TradeFinancial allows trading on the MetaTrader4 platform. Currently, trading is only accessible on the web-based platform, and even there, it lacks multiple essential functionalities for trading. So, even though MT4 is a leading trading platform, its use in TradeFinancial is unreliable. Also, time will tell whether or not the broker will release a mobile trading platform and if they will improve the MT4 platform for better functionality.
The broker’s orders’ execution model makes TradeFinancial a hybrid broker, which means that the company an a-book and also a b-book broker or a market maker.
- Multiple trading assets
- Multiple payment options
- Trades in exotic currencies accepted
- A high 1:400 leverage
- Unrealistic spreads
- It is unregulated
- The minimum deposit requirement is too high
- MT4 is not fully-functional
- “Lost at least $8000 in days and I was unable to withdraw any money.”
- “Withdrawal Issues and no communication from the company’s representative.”
Trade Financial is an off-shore unregulated forex broker. Its credibility is very limited, and the spreads are neither attractive nor realistic, and with the high minimum deposit requirement, this broker is not the best.
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK