Trader500 Review – Everything About This Just Screams Scam
The company we’re writing about in our Trader500 review is connected with multiple fraudulent entities from around the world. The broker itself has none of the necessary licenses, and neither do their affiliates.
Using the pretense of high quality service, this company has managed to defraud thousands of people in a short amount of time.
|Regulated by:||Unregulated Broker|
|Is This Company Safe?||No, the lack of a license makes this site highly dangerous!|
|Have Warnings from:||N/A|
|Registered in:||Vanuatu (alleged)|
|Operating since:||January 2022|
|Deposit Bonus:||Not available|
|Trading Assets:||Forex, Stocks, Indices, Spot Metals|
|Free Demo Account:||Not available|
|How to Withdraw from This Company?||Beware of unregulated entities! Our recovery experts can help you get your money back!|
Operating Without A License
First of all, there is no Terms and Conditions document on the site. As company owner, Perfect Trade Limited, Vanuatu is mentioned. VFSC has never licensed them.
The broker mentions another company as a clearing service provider, and this time it’s Baronda Services Inc. which is allegedly based in the Marshall Islands. GLOFSA, the loose offshore regulator, does not provide a quick insight into the registry of licensed companies, making it easy for swindlers to make unverifiable, empty claims.
Another unsettling statement relates to the claim in the footer of the login page, where it says the owning and operating company is Credos d.o.o., Croatia. At this point it is evident that the confusion is intentional.
In either case, without supervision from a Tier-1 regulatory body like FCA, FINMA, NFA, BaFIN, FMA or similar, unlicensed firms are known to abuse the loose safety standards and endanger the client funds.
Old Website, New Owners
By searching the WhoIs register, we can see that the trader500.com domain was first launched in 2011. It remained completely unused until January of 2022, when the swindlers started using it to target traders from these nations:
- United States
As the company website doesn’t impose a large online presence, the broker instead relies on boiler room agents to do the advertising.
These are common with other frauds like Coin2FX, and they usually approach the victim by phone, claiming unrealistic profit opportunities. All the deposited funds, however, end up in the swindlers’ own pockets. Don’t wait for the dust to settle, if you have been defrauded by these cybercriminals contact us to start a chargeback today!
Untransparent Trading Terms
Trading circumstances on this portal are completely unknown. The brokerage you rely on for the best trading conditions has to be fully honest when it’s about trading parameters. Leverage, commissions and other fees occurring are something of crucial importance.
Seems not in this case, as the shady site doesn’t reveal anything except spreads, which range from 2.3 pips to 1.9 pips and are still unattractive however you look at it. Leverage of 1:300 is only once mentioned in the user zone, but nothing confirms it.
Trading Tools – Nothing To Write Home About
As expected, the disappointingly looking website contains not even remotely useful features. The trading platform featured is the misused MT4, and the accounts offer nothing while being overly expensive. Lastly, even the available financial products are clear if they’re really there!
Tampered Trading Software
The Primary Trader500 platform is the industry standard MT4, but don’t let this deceive you. The broker doesn’t operate their own server, instead using one from TechInvest which is yet another dubious service provider with questionable legality.
After logging in, right off the bat we could see telltale signs of data tampering. The information has been manipulated to show incorrect pricing, and drain the clients’ funds. The live web trader is an MT4 web app as well.
Issues With Mobile Platform
These are, however, generic versions that require further customization to work with the broker. The problems with tampered servers remain with the mobile version as well, making it a dangerous platform.
Confusing Instrument Selection
Although some allegations do exist, the website doesn’t clarify individual instruments beyond the basic groups. Additionally, only a single table outlining Forex instruments is provided for every asset group.
This table is imported from TechInvest as well, but it doesn’t match the selection available in the trading platform. Here’s the instrument information from the MT4 server:
- Forex (EUR/USD, USD/JPY, EUR/GBP, EUR/CHF)
- Stocks (Hewlett Packard, Microsoft, IBM, Exxon Mobil)
- Indices (S&P500, Nasdaq 100, Dow Jones)
- Spot Metals (Gold)
Tiered Accounts With No Real Perks
There is an advertisement for several tiered account types similar to what Axiom Trade fraud offers. Higher account tiers yield some perks that are readily available with any regulated broker, like 24 hour support line, stop out and trading signals.
Here are the account types with initial deposits:
- Bronze- $1000
- Silver- $10,000
- Platinum- $25,000
Upon creation of Trader500 login, clients will be issued with necessary credentials for accessing MT4 platform. Although MT4 supports an integrated demo account creation option, it has been blocked with the server the broker uses.
Only Deposits Allowed
As the rest of the actions related to account funding, the Trader500 withdrawals are also located in the user area. However, once you attempt to send a payout request, the online form forces you into depositing action. It seems like withdrawals do not even exist as a concept on this site and endless depositing is all you’re allowed to do.
Otherwise, some of the payment options mentioned are bank wire transfers and credit cards, with several shady E-wallets. The trading portal in question fails in this field as well when it comes to having legal documentation that clarifies these processes.
Email Only Service
As a single communication channel presented on the website, we found one email address. Without phone numbers, live chat, online form, callback or anything else, the Trader500 support finds one email to be enough. Not even close to professional brokerage agencies, this firm evidently doesn’t care about their customers’ needs.
Don’t Let Cons Get Away!
As embarrassing as being scammed may feel, you shouldn’t let cyber thieves earn off your financial disdain. It is recommended to stay level head and report the fraudsters to the authorities immediately.
Furthermore, if you contact our fund recovery service, our legal professionals can advise you on how to take back what was stolen from you. Act today! Send us a message via the live chat and book your free consultation!
What Is Trader500?
Allegedly a broker, this firm is an unlicensed entity with dubious connections indicative of a fraud.
Is Trader500 Legit Or Scam?
The company is completely illicit, and has all hallmarks of a full blown financial scam. If you need help recovering funds from this platform, contact our chargeback experts.
What Are The Trading Platforms Available In Trader500?
Main trading platform is MT4, and it is available for desktop and mobile users. You may also access it as a web-oriented app through the website.