A Boon or a bane to traders?
TradeFCM or Trade Forex Capital Markets is a company based out of Glasgow, the U.K. The company website is www.tradefcm.com
The city of Glasgow itself is a hub for individuals who are genuinely interested in any type of brokerage. Be it a Forex, CFDs on indices or stocks, and cryptocurrencies, Glasgow always welcomes investors.
TradeFCM is found to be a UK based company but is not regulated by the Financial Conduct Authority (FCA). FCA is the governing body that regulates international money transfers. It provides regulation to various financial organizations and financial advisors. Registration with FCA is mandatory for any broker form to generate confidence among its customers. It also mandates the minimum standards to be placed on the services and products by the companies.
Its defaulters are liable to a ban starting from one year to an indefinite ban. Also, it has the supremacy to investigate the firms and individuals. This thus collaborates to provide a safe and secure trading environment to the brokers. From time to time, FCA has been warning all of the investors from the U.K. about the risks involved in trading with a non-regulated forex company.
It is thus not recommended to trade with non regulated offshore brokers as it is highly risky and also they are operating under no strict supervision. This invites attractive deals and scams leading to loss of funds and in-genuine trades. The scope of the business itself becomes very suspicious and you technically have no protection of your funds. You are not clear of the genuine use of your funds by the broker. They can easily take your money and can disappear.
TradeFCM provides trading in currencies, future shares, commodities, CFDs on certain products, etc. The product range is relatively low as compared to other competitors.
The company has the option to choose a free demo account. It has live trading accounts as well. The minimum deposit required for the live account is $500.
It is a substantially high amount of investment. The company must make its accounts more user-friendly by decreasing the minimum deposit limit. The leverage rate is relatively high i.e. 1:1000. An ideal leverage ratio should not be more than 1:50 as is capped by many regulating authorities. It puts the funds at high risk.
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The accounts can be chosen from four options provided, Mini, Standard, Gold, and Professional. Each account has nothing much to offer except for the difference in the minimum deposit required and the average spreads.
Live trading accounts are further classified into three categories.
- PAMM Account: PAMM accounts with TradeFCM can be opened with partnership programs provided by the company. In this, the PAMM Manager can recruit an acquisition partner or an auxiliary partner.
While a PAMM Manager will be working from an individual’s behalf, it carries a huge risk of loss of the capital based on the performance of the manager. Thus PAMM accounts are not considered safe for trading. Also, the sharing percentage is considerably higher.
- Introducing Broker IB type: It is a type of company partner program. You can be associated with the company and promote its trades. The major concern here is the security of your invested money and the risk involved in credit.
- Islamic Account: People from Islam faith can go for the various accounts like Micro, Auto, Zero spread, Premium, VIP and Fix accounts. Spreads start from 1 pip and the telephonic trading facility is provided.
The company holds the right to withdraw the Islamic account status from any account at any time. A complex procedure of KYC and AML needs to be completed to get an account with TradeFCM.
The company provides MT4 and MT5 as trading platforms. Both are the products of the USA based technical company MetaQuotes Software Corporation New York, USA. Both platforms are compatible with desktop or mobile use.
Holding on to the popularity and vast usage of Meta Trader platforms, TradeFCM also sticks to the same. No other trading platform is provided.
Modes of payment
Deposits are supported through credit cards, debit cards, e-wallets like Neteller, Skrill. Bank transfers are also accepted. TradeFCM charges a standard amount of money as fees while it comes to withdrawal. High response time is another issue in withdrawing your funds. USD, EUR are the most accepted currencies.
TradeFCM review has found that the company commits the availability of 24*7 online support through mail and phone. The claims are soon grounded as customers are not very satisfied with the quality of the support offered.
While the support team works on a company eccentric approach whereas it must be customer-centric. High levels of dissatisfaction are observed in the support provided by the company to the PAMM account holders. Customers are left with the guide to preaching proper risk management and trading techniques.
Customer support provided by TradeFCM is very disappointing.
Social Media presence/ Website
While writing this TradeFCM review we were not able to connect to the genuine Facebook and Twitter accounts of the company. The non- availability of the social media accounts itself indicates the low levels of the online reputation management followed by the company.
The website of the company is also not user-friendly. It has links to social media which are not active. Lesser technical details are provided to the visitor with a lot more to give in theory. The company must understand the use of online tools to raise standard levels.
A bane with lots of issues
TradeFCM is an unregulated forex company. The jurisdiction of the matters and issues associated with the dealings with the company are not mandated.
No presence on online media has to taken as negative response management of the company as customers usually post their trading experiences online.
The high minimum investment is required. Also, you are forced to do extra investment to get good leverage at your account. Investing a high initial amount in an unregulated company is not a wise decision. Quantum amounts must be made mandatory to gain the confidence of the customers.
Weak or no help from the support team makes it a worse player in dealing with concerns of the customers. The account managers are always playing a blame game and making sure that even the funds are lost and the company must not get blamed for anything.
“Many traders have reported the fake trades inputting done by the company. In an ideal scenario, fake trades are put into your MT4 accounts resulting in huge losses. The trader is left with no other option but to go with the company’s “200% deposit bonus” due to the complete equity getting wiped out by the fake trades. You are compelled to trade again and assured to recover the loss until new fake trades are in and you are left with 100% loss.”A veteran trader of the industry
Withdrawal requests are replied with the deals to convince the customers about investing more.
The product portfolio is limited and there is no option in the stocks. With the same initial investments, you get access to many more products as compared to the product range provided by TradeFCM.
A clear conclusion of not to trade with an offshore un-regulated broker company is hence made. Investors are advised to check the online reputation of the registered company. TradeFCM highly disappoints us in terms of high investment, high leverage, no worthy customer support, limited product portfolio. We thus rate it a 1 on a 1 to 5 scale rating. Not recommending the same.
TradeFCM can deceive a new Forex trader into depositing >$500, however, it's best to avoid this broker. Not being regulated by FCA, an exorbitant minimum deposit and unreliable makes it a possible fraud.
- MetaTrader 4 & 5
- Not regulated by FCA
- $500 minimum deposit
- Unsatisfactory customer service