A broker website, Trade-24.com, was recently listed on warning notices released by various financial regulatory boards for displaying suspicious activities as increasing number of customers post complaints concerning the firm. The complaint levels have risen to a noticeable degree; most were about delayed or ignored withdrawal requests.
Trade24 is a brokerage website which claims to have the leading edge in terms of trading platforms, social trading, and managed accounts. It was cited on its ‘About Us’ section that the company started in 2007 in Switzerland. Trade24 also referenced that it has global offices including in London, Paris, and Zurich but there were no specific regulatory status included on the description.
The site offers both STP/ECN interface, and includes a conventional market-maker model. Trade24 offers forex and other assets on its website. Majority of the firm’s traffics comes from Kazakhstan (15.9%), Russia (13.2%), Canada (8.8%), Singapore (8.3%), and Japan (7.5%).
However, recently in 2016, the claims made by the firm were frequently attested by reviews made by previous clients claiming that there were delays in honoring the customers’ withdrawal requests and issuing fraud alerts for the firm. Due to these reviews and complaint reports, regulatory boards were compelled to conduct an investigation to look into the affairs of the company.
The International Financial Services Commission (IFSC) of Belize released last June 2016 a formal warning notice stating that the license used by Trade24 was a forgery and a fake. “We confirm that ‘TRADE24 Investments Ltd.’ is not licensed by the international Financial Services Commission of Belize or any other competent authority in Belize to engage in any type of trading business,” said IFSC on its released official notice.
Also included on the notice was that the License No. IFSC/60/350/TS/15-16 carrying the company’s name and indicating that it was signed by Mrs. Nerj J. Matus, the Director General of IFSC of Belize was a complete forgery. The board advised anyone associated with the broker company to steer clear from the company for a while and monitor with extreme caution for any further warnings and alerts.
After the announcement released by the IFSC, other regulatory boards such as the UK’s Financial Conduct Authority(FCA), New Zealand’s Financial Markets Authority(FMA), Italy’s Commissione Nazionale per le Societa e la Borsa(CONSOB), Canada’s Ontario Securities Commission(OSC), and Australia’s Australian Securities and Investments Commission(ASIC) followed suit on issuing statements regarding the forgery made by the broker. All of the boards added Trade24 on their warning lists labeling the firm that it was conducting business without the proper authorizations.
FCA released a statement saying that traders should be aware of unauthorized firms because they would not be covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme if ever a crisis takes place.