Reason to avoid: Offshore license
Listed Date: October 28, 2018
Top 3 Regulated Forex Brokers
Beware TradeToro is a Non Licensed Broker. It is NOT SAFE to trade.
Is TradeToro a scam or legit broker?
No, it is not safe to trade with TradeToro. TradeToro is owned by Ivory Group Limited, which is an offshore company registered in the Dominica.
Dominica is notorious for its practically absent requirements and regulations. Due to the setup cost is low and it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as Global Clearing Group, Tradersway and more.
Actually, that’s a quite confusing information since it is not clear enough how exactly the TradeToro delivers its service and if comply to any of the regulations. By fact, it is obvious that not, therefore the broker’s offering is not overseen by any entity and may be considered as illegal service, as the EU requires strictest licensing.
Overall, it means TradeToro offers unreasonable risk to their investors or traders as simply there are no client’s security rules implemented. Besides, there are vast negative reviews from the traders engaged with TradeToro, as well as states that the broker is a scam. The traders faced some interruption into their trading processes, “advisory” how to place orders next and that’s apart from the issues that the money most probably never returned back to their owners.
In addition, Austrian Financial Market Authority (FMA) has issued a warning against TradeToro:
“TradeToro is not entitled to carry out banking transactions in Austria that require a licence. Therefore the acceptance of funds from other parties on a commercial basis for management purposes or as deposits is not allowed.”
We have heard brokers from Dominica deny traders withdrawing fund. We have feedbacks from traders that they cannot withdraw money. You read the feedback here.
We advise all investors and traders to avoid TradeToro and other brokers from Dominica. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as IG Markets and Plus500.