The number of unsuspecting investors losing their money to scam forex brokers is growing daily. And the worst part is that you cannot easily tell honest brokers from fraudulent dealers. You need to know the red flags and dig deep into their reputation. You should not trust the façade they put on their website.
Let’s focus on TradeATF, for instance.
If you are a football fan, you are likely to be carried away by TradeATF’s proud display of being a digital sponsor of the Argentine National Team. But in this TradeATF review, we will provide the vital details that tell if this broker can be trusted or not.
If you have already lost your money under unfair trading conditions, we can help you recover it. Schedule a free consultation. And learn how to spot a scam to avoid falling into the same trap in the future.
Bayline Global World Limited processes payments on behalf of Bayline Trading Limited. Both companies operate the website.
TradeATF is also the brand name for Hoch Capital Limited, located in Cyprus. But the broker hardly mentions this information on the website.
But a look at Hoch Capital’s website reveals this information as accurate.
TradeATF trades in cryptocurrencies stocks, indices, and currency pairs. It also provides commodities such as Brent oil and natural gas. TradeATF provides the Metatrader4 trading platform.
The trader offers three accounts – Silver, Gold, and Platinum. The main difference between the accounts is the minimum spread and maximum leverage. Gold and Platinum account holders also get a swap discount, with 25% for Gold and 50% for platinum. The minimum deposit amount is 250 USD/GBP/EUR.
Is TradeATF Regulated?
Bayline Trading Limited is regulated by the Belize International Financial Services Commission, under license number 60/322/TS/19.
The Cyprus Securities and Exchange Commission regulates Hoch Capital under license number 198/13.
Although the Belize IFSC offers offshore regulation, CySEC is a prominent regulatory body. And at a glance, it may mislead you into thinking that you are dealing with an honest broker.
In this TradeATF review, we look beneath the surface.
TradeATF Banned From Operating in the UK
TradeATF has been on the headlines recently for the wrong reasons.
Financial Conduct Authority, which is the financial regulator in the UK, issued a statement regarding Hoch Capital Limited and three other companies:
- Magnum FX (Cyprus) Limited trading as ET Finance
- Rodeler Ltd which carries the brand 24option
- F1Markets Limited, trading as Investous, StrattonMarkets, and Europrime
According to FCA, Hoch Capital and the three companies had used fake celebrity endorsements on their social media pages and misled the market.
They had also failed to offer sufficient information to UK investors regarding the high risk involved in trading CFDs. They pressurized inexperienced investors into making substantial investments in highly leveraged CFDs, failed to disclose the fees involved in trading with the brokers, and withheld investors’ money.
Hoch Capital is, therefore, banned from offering services to UK residents.
TradeATF Suspended by the Cyprus Securities and Exchange Commission
The Cyprus regulatory body also issued a suspension to Hoch Capital Limited in a board decision dated 1st June 2020.
According to the Cyprus regulatory body, Hoch Capital had failed to act in its clients’ best interest when providing investment services. It did not pay attention to the suitability of the financial instruments to their clients.
It also failed to issue clear information to its clients in a timely and understandable form.
Hoch Capital Limited is banned from accepting new clients or advertising its services for as long as the suspension is in force.
TradeATF Poor History with CySEC
The suspension does not mark the first time TradeATF has been on the wrong side of CySEC.
In a board decision announced on 27th March 2019, Hoch Capital Limited was slapped with a €200,000 fine. The reason for the fine was a violation of CySEC regulations in its performance of investment activities and providing information to its clients.
A similar board decision was announced on 6th February 2018. Hoch Capital Limited got a €30,000 fine for again, failure to comply with the CySEC regulations.
TradeATF Banned from Operating in Italy
Hoch Capital Limited is also not allowed to provide its services to the Italian market. This is as a result of a directive issued by CONSOB, the Italian watchdog, in December 2019.
CONSOB arrived at this decision after Hoch Capital Limited violated the regulations in force multiple times. The Italian customers had also complained of the severe irregularities practiced by Hoch Capital Limited, particularly regarding the trader’s CFDs.
The Italian investors complained of losing their capital entirely and being pressurized to add deposits to their accounts, among others.
The TradeATF Website Blacked Out in Italy
Despite the prohibition to operate in Italy issued to TradeATF by CONSOB, the broker continued its operations in the country. It prompted CONSOB to take a further step and order the blackout of TradeATF’s website in the country. Here is a screenshot of the warning issued by CONSOB on 9th April 2020.
This is a clear indication of an online broker who does not respect regulatory bodies or have its client’s interests at heart.
Failure to Communicate Honestly with its Clients
As shown in the screenshot below, which is from the TradeATF website, the broker has failed to clearly disclose the prohibition to serve the UK and Italian residents on its website. It has only mentioned the US and Canada. It casually mentions ‘some other residents’, which is vague and misleading.
We have enough damning evidence to conclude this TradeATF review. But let’s look at its reputation in the market.
What Investors are Saying About Trade ATF
We looked at their reputation on Trustpilot, a reputable review website. The trader has an average score of 2.9 out of five, and all the reviews are either poor or bad.
TradeATF Review Conclusion: Can this Online Broker Be Trusted?
You cannot trust TradeATF. It’s a scam forex broker.
From its failure to communicate honestly with its clients to using account managers to pressurize unprofessional investors into trading in high-risk financial instruments, the list of reasons to avoid TradeATF is long.
Yes, it is properly regulated, but it has broken the laws set by these regulatory bodies more than once.
All we can say is that you should stay away from this broker at all costs. If you have already lost your money, you can recover it by scheduling a free consultation with us.