Summary:
Reports indicate that Trade245 may be involved in misleading practices. Even though the company claims to be a regulated and trustworthy broker, there are dubious regulatory assertions, inaccurate licensing information, and exceedingly poor withdrawal issues that have raised alerts among many traders. Let’s discuss the reasons for this.
Why Trade245 Is Considered a Potential Scam?
Trade245 has presented itself as an investing firm with multiple regulations providing forex and CFD investing, but upon a closer look, there are inconsistencies and misleading statements that lead to the distrust of this company.
False and Cloned Regulatory Claims
FSCA Claim in Question
Trade245 claims that they are in partnership with a firm named Red Pine Capital (PTY) Ltd, which they allege is under the jurisdiction of the Financial Sector Conduct Authority (FSCA) in South Africa. They cite their affiliation with Red Pine Capital as a source of regulatory trust, but Red Pine Capital does not show Trade245 as a trading name or an authorized domain on their FSCA registry. If there is no empirical evidence available to verify this claim, it has serious implications for the firm’s legitimacy.
Widespread Withdrawal Issues
One of the most prominent signs of a bad trading platform is how it handles withdrawals — Trade245 has been mentioned multiple times.
1. Refused Withdrawals
Several traders have complained that they are unable to take their profits out of the website. Withdrawal requests have often been ignored or completely rejected without any reason given.
2. Fake Reasons for Denial
Trade245 even provides false justifications to refuse the withdrawal requests, which include:
- “Banking system errors” or “technical issues”
- Accusations of traders breaching the agreements, like “scalping”
- Requesting repeated identity verification
These are the usual alibis of the unfaithful trading platforms to postpone or evade payout for as long as possible.
Other Warning Signs Traders Should Notice
1. Unrealistic Promises
High returns, huge bonuses, and risk-free trading are all promised; these are all signs of a broker.
2. Lack of Transparency
We have not been able to get any reliable information concerning the company’s management, location, or financial statements.
3. Manipulative Tactics
Some traders said that the representatives of the company pressured them to put in more money after earning small, short-term profits, which is a technique often used by unscrupulous brokers to keep the investor’s confidence engaged in their system.
Also read Metadoro review.
Frequently Asked Questions (FAQs)
1. Is Trade245 a regulated broker?
Trade245’s regulatory status is hard to confirm, and it may even be misleading. The FSCA indicated that there was no record of authorization of Trade245 under the name Red Pine Capital. The Seychelles license can also be seen as a copy of the same type of license that other brokers have.
2. Can traders safely invest with Trade245?
Based on many complaints, Trade245 is not a safe trading platform. News regarding fake credentials and people withdrawing funds has created a very risky environment.
3. What should I do if I lost money on Trade245?
In case you lost cash with Trade245 or any other trading platform, it is best to consult an expert for the recovery of your funds. One of the services that is meant to help victims get their money back from the fraudulent trading platforms is TruClaim.
4. How can I verify a broker’s authenticity before investing?
Make it a practice to always verify the broker’s regulatory license number on the website of the respective regulating body. Do not trust services operating under cloned or offshore licenses that are not transparent.
Final Thoughts
Trade245 has numerous signs of being a potentially fraudulent platform, from cloned regulatory claims to numerous withdrawal complaints. Traders are reminded to be careful and avoid depositing funds from the aforementioned situations.
If you have suffered loss from Trade245 or from a similar broker, seek the help of professionals immediately!
Visit TruClaim – a useful service that assists victims in recovering lost money and reporting fraudulent online trading practices!
Check the list of the latest scam brokers here.
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