Trade Defi Review
Finding a genuine and reliable online broker has become a prominent challenge these days. No, this is not because there are too few companies for you to choose from. As a matter of fact, it is the exact opposite. There is a massive number of platforms that has popped up in the last few years and they continue to increase. The trouble here is that this quantity does not give any guarantees of quality because scams are quite active in this space. Masquerading as shady brokerages is one of the most popular scam tactics, as this Trade Defi review will highlight.
Therefore, it is understood that anyone who is thinking about signing up with an online brokerage would want to avoid such a company. No one wants to see their money go to waste in a fraudulent scheme, especially when you are delving into the financial markets for the purpose of making more money. But, you have to bear in mind that this is exactly how these impostors draw people onto their platform. They make big promises and tall claims that people often find hard to resist because they are exactly what they want. Yet, this is where you have to show some restraint or end up regretting your decision in the long run.
This means you should not just focus on the website of an online brokerage for making your decision because they are only going to show you what they want you to see. You have to do some checking of your own to see if they are telling you the truth, or just spinning a story. It requires you to be a bit proactive, but this can be worth it at the end of the day because you will be able to overcome the challenge and find the genuine and reliable brokerage you need. This tactic should be used for Trade Defi as well, which claims to be the best forex and crypto brokerage that was launched back in 2012.
According to Trade Defi, it is an award-winning platform that can be used for trading in global financial markets using cryptocurrencies like Bitcoin, USDC, Tether and more. It also promises a trading volume of more than half a million USD. All of this makes it sound like quite the package, but it is not what it seems to be and you will learn this when you check closely. Let’s take a look at some of the issues you will uncover:
Lack of license
The license and regulation of an online brokerage is extremely important because a licensed and regulated company can offer you protections, when it comes to the safety of your funds and your personal data as well. Furthermore, these companies maintain high standards and can also be held accountable, which is what people want in a brokerage. So, is Trade Defi licensed? The problem with this brokerage is that the data about their licensing status is all very confusing.
When you go through their presentation, you will find that at one point Trade Defi claims to be owned and operated by a company named Trade Defi Trading Services LLC, which is incorporated in Saint Vincent and the Grenadines. They have further elaborated that they are not required to hold any license for authorization for financial services in SVG. While this is also a fact because the Financial Services Authority (FSA) of the offshore jurisdiction has stated that they do not oversee the forex industry, it is important to note that this does not help with the credibility of Trade Defi in any way.
Moreover, the confusion comes in when at another point in their presentation, you will find that Trade Defi claims to be owned and operated by a company named Bayline Global World Ltd. This is yet another offshore firm, which is under the regulation of the International Financial Services Commission (IFSC) in Belize and also by the INTERNATIONAL TRUST SERVICE LIMITED, which is also under the regulation of the IFSC.
Moving on, you will find that Trade Defi also claims to have its headquarters located in Toronto, Canada, for which it needs to have a license from the Investment Industry Regulatory Organization of Canada (IIROC). Unfortunately, you will not find the brokerage listed in their online register, which means this is also a false claim.
No trading platform available
How does an online brokerage facilitate trading? They provide their clients a trading platform for connecting to the market and for trade execution. When you go through Trade Defi’s offerings, you will find that it promises you an award-winning trading platform. This sounds quite impressive, until you decide to take a look at the platform. This is when you discover that there is really no functional platform available at all.
Once you complete your registration with Trade Defi, they will transfer you to a funny looking dashboard. The dashboard does not appear to have a trading option at all; you can only make a deposit, which makes it evident that you are dealing with a scam brokerage. Genuine platforms will offer you the MT4 or the MT5 trading platforms.
Only bank wire transfers supported
Checking the payment methods that an online brokerage offers you is also a must because it determines how you will make your deposits and withdrawals. While you do want convenient methods, you also want safe ones and a quick look at Trade Defi shows that they have advertised a number of methods. These include e-wallets and credit cards, but this is just a lie.
In reality, you are only offered one payment method at Trade Defi and that is of bank wire transfers and for that as well, you have to get in touch with the website administrators. This is certainly not a good choice because this method does not come with a chargeback option, which means that you will not be able to get your money back in case of a problem.
These issues make it evident that Trade Defi is not a genuine and reliable brokerage and is just a sham.