TradoFX – Can You Trust This Broker?

Website URL: https://www.tradofx.com/

Founded: 2018

Regulations: None

Languages: English & German

Deposit Methods: Bank Wire, Credit Card, Debit Card, QIWI, Paysafecard, AstroPay

Minimum Deposit: $250

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Currencies / CFDs on Indices, Stocks, Commodities, Precious Metals, Cryptocurrencies

Trading Accounts and Conditions

TradoFX claims to be an innovating Forex broker that offers its clients the following types of trading accounts:

• Basic: To begin trading on this account, you first need to make a minimum deposit of $250. The spread offered begins at 2.5 pips.
• Gold: To trade on the Gold account, you need to make a minimum deposit of $5,000. The spread for this account starts at 2.0 pips.
• Platinum: To trade on the Platinum account, the minimum deposit required is $10,000. The spreads start at 1.6 pips.
• VIP: For the VIP account, you need to first make a deposit of $50,000 at the minimum. The spreads for this type of account start at 1.1 pips.

The leverage ratio offered on all the account types is 1:500.

TradoFX – Advantages

Here is the list of advantages of trading with TradoFX:

• Range of Trading Instruments

TradoFX offers its clients a solid collection of trading assets. This includes 24 currency pairs as well as a range of contracts for difference (CFD) on 12 indices, precious metals, 100+ stocks, commodities and a large number of cryptocurrencies.

• High Leverage Available

TradoFX also offers its clients a very high leverage ratio for trading, which stands at a maximum of 1:500. This means that traders with all types of trading strategies will be able to execute trades with ease on this broker’s platform.

However, we also need to warn our audience that high leverage levels come with high risk levels. This is why many financial regulators have limited the amount of leverage brokers in their jurisdictions can offer.

TradoFX – Disadvantages

Here are the disadvantages of trading with TradoFX:

• Conflicting Company Information

The corporate as well as legal information that TradoFX has presented on its website is quite conflicting and confusing.

On the broker’s home page, it is stated that the owner of this brand is ITQ Code Ltd. However, in the Contact Us page, another company name is given – Tradofx Ltd. The broker claims that both these companies are based out of the United Kingdom.

The confuse matters even more, there is a third company mentioned, called Infocom Media Ltd. This company is registered in the Marshall Islands.

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• No Regulatory Oversight

We decided to check the UK’s financial regulator’s online registry to see if any of the companies mentioned by TradoFX was licensed by them. However, when we checked the FCA’s (Financial Conduct Authority’s) website, we found that neither of the two companies were listed there. This means that neither company is regulated by the FCA and so does not have authorization to offer financial services via the UK’s financial regulator.

Now, we know that the third company is registered in the Marshall Islands, but we also know that the government of this jurisdiction has clearly stated that it does issue licenses for companies that offer financial services.

Thus, our investigation into TradoFX’s regulatory status has shown that this broker is operating without a license and outside the law. Trading with such a broker is extremely risky as it means that you have no protection from scamming or fraud when dealing with them.

• Regulatory Warning Against TradoFX

If corporate anonymity and a lack of regulation aren’t enough to scare of some traders, then you should also know that this broker has been blacklisted by the Austrian FMA (Financial Market Authority).

According to the warning by this regulator, TradoFx is not authorized to offer its services in Austria. This should be a clear warning to all traders that this broker is to be avoided at all costs.

• No Support for MT4 Trading Platform

Next to the already listed red flags, having the wrong kind of platform seems a minor issue. However, it isn’t. A trader needs the best platform to be able to execute effective and efficient trades. So, the fact that TradoFX does not offer the MT4 trading platform is still another black mark against this broker.

TradoFX offers its clients a web-based trading platform that does offer some advanced charting options, but it cannot compare to the world-class MT4 (MetaTrader 4) interface, which offers not just charting options, but also market indicators as well as trading bots. And all of these features can be customized to suit a trader’s personal trading style.

• Very High Spreads

The Basic account that TradoFX offers has a spread that starts at 2.5 pips. This is a spread that is extremely unfavorable for the trader, since it means that the cost of trading is very high.

And even if you opt for the higher-end account type such as the Gold account, you will still look at a relatively high spread of 1.6 pips to 2.0 pips. It just doesn’t make practical sense to trade with such an expensive broker.

• High Dormancy Fee

Another red mark against this broker is the fact that it charges unreasonable dormancy fees. According to its terms and conditions, TradoFX will charge you 10% of your balance every month if your account is dormant (i.e., you have not executed any trades on your account).

Conclusion 

Our conclusion is that TradoFX is not a broker that you should trust. There are clearly the legal risks of trading with this broker, as well as the fact that this broker has some extremely high charges for its clients trading on its platform. Overall, TradoFX is a broker that is best avoided.

TradoFX

2.4

User Experience

3.0/10

Payment Options

2.2/10

Security

2.5/10

Support

2.4/10

Reputation

2.1/10

Pros

• Range of Trading Instruments
• High Leverage Available

Cons

• Conflicting Company Information
• No Regulatory Oversight
• Regulatory Warning Against TradoFX
• Very High Spreads
• High Dormancy Fee