ScamsTradeFred review

As consumers become smart on ways to detect scams, especially in forex trading, scam companies are also getting smarter.

They register with reputable regulation bodies but still operate using methods intended to strip investors of their hard-earned money. In this TradeFred review, we will see the unscrupulous ways used by TradeFred and its Australian counterpart.

Although they were shut down, we will open your eyes to the unethical ways they used to obtain more money from their customers. You will be better prepared to avoid them in case they return to the market with juicer deals and improved tactics. And as a plus, you will learn how to spot other scam traders.

If you have lost your money, you can still recover it easily. Schedule a free consultation so that you can discuss this with trusted experts.

TradeFred Review in a Nutshell

Although TradeFred and TradeFred (AU) used separate websites, they both ran under Bright Capital Limited. TradeFred (AU) was specifically for Australian investors, while TradeFred served customers based in the EU region.

Both traders, however, were stopped from operations by ASIC in December 2019 to protect consumers while ASIC carried out investigations. This was after ASIC received an interim asset restraint order against BrightAU Capital Pty Ltd (TradeFred’s parent company) and Maxi EFX Global AU Pty Ltd. Both companies are representatives of Union Standard International Group Pty Ltd.

This legal issue gives us a fair verdict for this TradeFred and TradeFred (AU) review and enough reason to stay away from the two in the future. But let’s dig deeper.

An Overview of TradeFred and TradeFred (AU)

TradeFred focused on trading forex and CFDs, offering around 50 currency pairs in their forex trading. TradefreAU offered stocks, indices, energies, gold, and silver on top of forex currency pairs and CFDs.

TradeFred offered three account types to its customers:

  • Basic (minimum deposit $100)
  • Standard (minimum deposit $500)
  • VIP (minimum deposit $5,000)

Both TradeFred and TradeFred (AU) enabled their customers to trade with a MetaTrader 4 (MT4) or a web-based platform.

TradeFred (AU) provided four account types – Silver, Gold, Platinum, and VIP. The minimum deposit was $250, $2,500, $10,000, and $30,000, respectively.

Licensing and Regulation

TradeFred was initially owned by MagicPath Capital Ltd and regulated by Vanuatu Financial Services Commission. This meant that clients did not get FSCS client funds protection.

It later ran under BrightFX Capital Limited, licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 342/17.

TradeFred (AU) ran under BrightAU Capital Pty Ltd, a corporate authorized representative of the Union Standard International Group Pty Ltd. It was regulated by the Australian Securities and Investments Commission (ASIC) under license number 302792.

TradeFred Scam Warning Signs

Proper regulation does not always mean that the trader is trustworthy, as we will see in this TradeFred and TradeFred (AU) Review.

There are various ways to detect a trading scam. Here are a few that stand out about TradeFred and TradeFred (AU).

1) Bonus Traps

TradeFred (AU) was very generous when it came to bonuses and promotions. They offered swap refunds, cash rewards, and birthday checks to their customers.

But there was a catch.

You could only get the cash rewards after executing 100 trades. For the birthday check, you had to close at least 25 trades per quarter and have an account that had been active for at least three months. This was only a trap to keep you investing money that you suspiciously lost when trading.

2) The Social Trading Trap

TradeFred offered social trading. This is where investors are allowed to observe the trading behavior of other expert traders and mirror their tactics for better success with their investments.

The fishy thing about this feature is that the traders sharing their strategies were anonymous. It made it difficult for those willing to engage them. It also raises questions about their genuineness. This was clearly a scam meant to lure in new investors with the hope of becoming as successful as their ‘imaginary peers.’

3) Unfair Trading Conditions

TradeFred claimed to offer low spread for its currency pairs, but they were suspicious by all standards. For instance, the EUR/USD pair at one point had a spread of 3 pips. Most legitimate brokers do not go beyond 1.5 pips.

A good broker should act in the best interests of its customers by providing favorable trading conditions. And TradeFred failed.

4) Long Withdrawal Periods

Although withdrawals were free, it could take up to 5 business days to have your money transferred from your account. This included those accounts with an instant deposit time.

Weekends and holidays further delayed the withdrawal process. It could take weeks before you could get your money back.

5) Poor Customer Support

This review by a customer from Trustpilot is evidence of the trader’s poor customer support. They would go as far as insulting their customers.

Poor customer supportWhat their Previous Customers Have to Say

The best place to learn about a company’s true colors is in review websites. You should not let the polished websites and numerous empty promises mislead you.

Let’s look at what the TradeFred reviews at Trustpilot say.

First of all, their overall score is poor.

TradeFred review in TrustpilotThis complaint by a scam victim opens our eyes to another red flag. You cannot make withdrawals under $1,000. It traps your initial investment unless you make a profit.

TradeFred scamThey push you to make significant investments, and the advisors give you misleading advice, as shown in these reviews.

Misleading advice

Caution advised

ScamThe situation is not any different at Forex Peace Army, another legit review website.

Forex peace academy complaint

TrustFred client lost moneyWithout a doubt, this was a scam trader out to play with investors’ money.

TradeFred Review: Final Verdict

For now, you cannot trade with TradeFred and TradeFred (AU) as they undergo investigations by ASIC. And the fact that they are on the wrong side of the law is enough proof that it is a scam.

Yes, the two brokers were well regulated by CySEC and ASIC. But there is enough evidence here to prove a TradeFred scam.

Even if they resume operations, stay away from them for the reasons provided in this evidence-based TradeFred review.

They will lure you into signing up for an account with the promise of favorable trading conditions and guidance from experts. Once you invest money, your account will take a surprising turn for the worst.

But the advisors will keep pushing you to invest some more with promises of better leads. And any attempt to withdraw your money will turn into a frustrating cat and mouse game.

Stay safe. And in case you lost any cash with TradeFred or any other scam broker, you can still recover your money. Start by getting a free consultation.