Beware! Trading-Coast is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
We are reviewing Trading-Coast, a highly controversial Forex broker that’s apparently running a scam scheme. They are trying to present themselves as a British regulated business, but that’s far from the truth. Moreover, the legal credentials they are using belong to a company having nothing in common with this fraudulent broker. Find out how we exposed this scam in the full Trading-Coast review.
Trading-Coast REGULATION AND SAFETY OF FUNDS
Trading-Coast is allegedly a trading name of a British company bearing the same name. However, the address presented on the website doesn’t match the one registered in the UK’s Companies House, which makes us strongly suspect that Trading-Coast is a clone firm. Our research in the British regulator FCA’s register showed no results, so the broker isn’t licensed. Your funds are not safe if you deposit with Trading-Coast because it’s a clone firm and a scam.
Firm cloning is a common type of fraud that’s actually pretty dangerous. Scammers unlawfully use authentic companies’ credentials to present their schemes as legitimate, which facilitate scam. Unfortunately, when interacting with clones, many people may believe that they are dealing with genuine companies and lose their money to fraud.
Avoid Trading-Coast and see the high-rated EU brokers and British brokers by following the links provided. We strongly recommend those companies because Europe is a place where clients’ funds are protected by deposit insurance funds. For example, CySEC brokers’ traders can claim 20 000 EUR in compensation, while the British protections are up to 85 000 GBP per person. If you can open an account with a European company, go ahead. It’s a no-brainer.
Trading-Coast TRADING SOFTWARE
Trading-Coast offers web-based trading software as well as a Desktop client, but the file we downloaded appeared very suspicious, so we didn’t execute it due to security reasons. The online platform offered is rather primitive and can’t deliver even basic features available in MetaTrader. Moreover, the price action was quite weird- for almost two minutes, there was no change in quotes, which is very fishy indeed. That’s evidence of a scam, so you’d better reject Trading-Coast’s offers and search for reputable brokers offering decent trading software.
The high-rated MetaTrader4 brokers and MetaTrader5 brokers would be a much better choice for you as these are strictly regulated and proven reliable. Moreover, both MT platforms lead the market and provide sophisticated features such as Expert Advisors, Algo Trading and many complex indicators, to name a few. MetaTrader also features a marketplace where you can find more than 10 000 apps and third-party developed solutions you can easily fit into your strategy.
The EUR/USD spread is seemingly favourable- 0.5 pips most of the time, but as already explained, it’s likely that they manipulate prices, so don’t get excited. The Buy/Sell difference forms part of the trading costs, so lower rates benefit traders. Follow the links provided throughout the review to find a better broker than Trading-Coast.
The leverage is fixed at 1:200, which is a major drawback as traders cannot adjust it to their own preferences. Moreover, 1:200 is a very risky ratio, which means that Trading-Coast is knowingly pushing their clients into a dangerous environment where they can quickly lose all their funds.
In fact, leverage can be so risky that many financial authorities restricted its usage in their efforts to make trading safer. As a result, EU, British and Australian brokers are limited to 1:30, while the Canadian brokers and the US brokers can’t provide more than 1:50. However, if you are risk-tolerant, you may as well have a look at Swiss brokers, which are trustworthy but not leverage restricted.
Trading-Coast DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Trading-Coast is $250, which is twice higher than the regulated brokers’ standards- $100 on average. There are various funding methods presented on the website- Credit/Debit cards, Wire Transfers, Skrill and Paypal, but we can’t verify all of these are actually available.
However, if you have a first choice payment system, see the Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers. The high-rated companies on the lists are strictly regulated, so you won’t stumble upon scammers.
There is no information about withdrawal requirements, fees and inactivity charges, which certainly further undermines Trading-Coast’s credibility.
Trading-Coast offers trading incentives, but the additional provisions are unfair. For each bonus dollar, clients need to execute 10 000 units to become eligible for withdrawal. This means that if traders take $1000 from the broker, they have to reach 10 million USD in turnover to take some funds out whatsoever. The bonus policy is pretty unfair.
Overall, Trading-Coast is a suspicious clone firm, so make sure to stay away.
HOW DOES THE SCAM WORK
New types of investment scams come about virtually every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.
Nowadays, scammers search for victims on the Internet and social media. Classical tactics, such as cold calling, became less widespread as the Internet got prevalent. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders got reassured that the people behind the broker have an excellent track record, and they promise high returns, seamless trading and guaranteed profits. The scammers deliberately make people believe that the Forex market isn’t a risky place, but actually, the opposite is true.
What usually happens is that scammers just pocket traders and investors money pretending to provide some services. Sooner or later, clients would ask for a withdrawal, but scammers would delay or straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or even ask for additional deposits. Either way, traders are likely to lose some or all of the capital invested. The end is always the same. When fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!
Rich Snippet Data