With the level of online trading scams today, it is vital for traders to do their research as, sometimes, even a small glance at a broker's website reveals their secrets. At Wealth Recovery Solicitors, part of what we do is investigate brokers on behalf of investors who have fallen victim to such scams, tracing their money so we can retrieve and return it.
How do we know what to look out for? We hear you ask. This insight into the broker company Trade360 will hopefully give you some pointers on what to look out for so you can prevent your future self from getting scammed.
The lowdown on Trade360: Who are they?
As the name suggests, Trade360 claims to offer a 360 approach to offering trading products that are suitable for new traders and established well-seasoned traders alike. Their focus is split between four avenues: Stocks, Contract for Differences (or CFDs as they are also known), Trading Platforms and Education. They provide access to resources for those of you wanting to learn more about making better investments.
They offer six account types, from the mini account, which requires a deposit of EUR 250, right up to the VIP account, which requires a deposit of EUR 100,000. They are owned by the company Crowd Tech Ltd, are regulated by the Cyprus Securities and Exchange Commission (CySEC), and are based in Limassol, Cyprus, which immediately perked up our ears as Cyprus has been known as a hotbed for scams in recent years. In 2019, Trade360 Australia was established through its parent company Sirius Financial Markets, which is regulated by the Australian Securities and Investments Commission and holds an ASIC licence. However, all is not as it seems.
Will you get scammed by Trade360?
There are numerous accounts on Trustpilot noting how Trade360 is an ‘absolute rip off’ and ‘this company is a big lie’, with detailed information about court proceedings due to the money the company has taken from customers. This is, of course, a big red flag. There are also suspicions raised about the positive reviews placed about them across the internet - these reviews appear to be fake due an influx of them between April and September 2020.
While Trade360 may be regulated in Cyprus and Australia, they are indeed unregulated within the UK. The Financial Conduct Authority has issued a regulated warning stating: ‘We believe this firm may be providing financial services or products in the UK without our authorisation.’ This means those who invest through them within the UK are not protected under the Financial Services Compensation Scheme.
Taking all of this into account (and we have only scratched the surface here), it is safe to say that Trade360 is a regulated scam, duping new and seasoned brokers alike.
To discover what you can do to retrieve your money following such scams, fill out this form on our website confirming a date and time suitable for you and a member of our team will be in touch.