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Tao Trade Review - is it scam or safe?

Tao Trade Review - is taotrade.com scam or good forex broker?

RATING: 3 / 0 REVIEWS Tao Trade
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Trading Accounts

 

Account type Minimum deposit Minimum trade size Maximum leverage Spreads
Standard $200 0.01 1:40 3 pips on EUR/USD

 

On the broker’s website we read about “Beginners Tao” and “Experienced Tao”, however we could not find information about different trading conditions. Therefore, we assume that Tao Trade offers a single account type, which we'll call "Standard" for convenience. The website is available in English, Russian, Polish and Czech.

               

The Company. Security of Funds

 

Company

Country

Regulation

Depaho Ltd.

Cyprus

CySEC

 

Tao Trade offers online trading in wide range of products, such as forex, commodities, stocks and indices CFDs on MeTatrader 4 and PROfit platforms. The brand is operated by currently operated by Depaho Ltd., a Cyprus Investment Firm (CIF) that is licensed by the Cyprus Securities and Exchange Commission (CySEC). Previously, the brand was operated by Dragon Options Ltd., which renounced its CySEC license.

 

There was a notice on Tao Trade website, informing the public that the legal rights of the brand and the website taotrade.com will be transferred, operated and owned by Depaho Ltd., another CySEC-regulated company. Depaho Ltd. also runs the FXGM and GTCM forex broker brands.

 

 

Dragon Options Ltd. used to operate binary options brand Dragon Options, but sold its clients base to Rainbow Capital Ltd. earlier in 2017. We suspect that Dragon Options Ltd. again has problems maintaining the minimum capital requirements set to Cypriot investment firms, as its license was suspended by CySEC in March 2017, but the suspension has been withdrawn a couple of days later.

 

Either way, CySEC is one of the most popular financial regulators for forex and binary options brokers worldwide. First of all, Cyprus is Part of the European Union, so Tao Trade and all CIFs are free to provide their services in any EU member state under the MIFID regulations. Second, CySEC regulation provides a decent level of security and reliability, as it involves a number of requirements to licensed brokerages. They must meet solid capital adequacy requirements, to keep client funds separated from company assets, to report their transactions, among other things.

 

Besides, if a licensed broker becomes insolvent, the Investor Compensation Fund may cover a maximum of 20,000 EUR per person.

 

Trading Conditions

 

Minimum Initial Deposit

The minimum investment to open an account with Tao Trade is $200, which is an average minimum initial amount. Those traders who would rather invest less, have other options –global brokerage HYCM requires an initial deposit of $100.

 

Spreads & Commissions

Tao Trade offers spreads, amounting to 3 pips for the EUR/USD pair, which is a very high value. Most fixed-spread brokers provide spreads of 2 pips on EUR/USD and some even lower.

 

In comparison, HYCM provides fixed spreads of 2.0 pips on EUR/on its Basic commission-free accounts. For further information, you may look up real-time spreads of 15 leading brokers at our dedicated page.

 

Leverage

The maximum leverage level offered by Tao Trade is 1:40, which is a comparatively low ratio, yet it is in line with the latest recommendations of CySEC. The commission advised all brokerages to offer default leverage of 1:50 because of the risks involved in using high leverage ratios.

 

Those who are willing to take the risk, may use higher leverage levels, as many Cyprus-based brokers offer such - for example, , HYCM provides leverage up to 1:400.

 

Trading Platforms

 

Tao Trade supports the the widely used MetaTrader 4 (MT4), as well as PROfit platform, available as web version and mobile app. Unfortunately, we could not test any of them, which is probably due to the upcoming acquisition of the brand by Depaho Ltd.

 

MT4 platform is designed for trading in Forex, futures and Contracts for Difference (CFDs). It is customizable and easy to use and enables traders to analyze financial markets, perform advanced trading operations, run trading robots (Expert Advisors) and copy the deals of other traders.

 

The web-based PROfit platform is easy to use and allows traders to place orders with just one click, to follow important news and receive daily analysis. This platform is equipped with powerful tools that help investors easily access and trade on the global markets around the clock.

Methods of Payment

 

Tao Trade supports the following payment methods: credit/debit cards, bank wire transfer and e-wallet payment system Skrill.

 

The minimum withdrawal amount is $100.

 

Conclusion

 

Tao Trade is a Cypriot FX and CFD broker that offers online trading on two trading platforms. Unfortunately, its spreads are too high and some may find the leverage provided insufficient. Besides, by the time of writing this review, the brand is changing its owner, which creates a bit of a mess. To cut things short, here are the advantages and drawbacks with regards to this broker:

 

Pros Cons
Well-regulated High spreads
Choice of trading platforms, MT4 available Limited leverage levels
Commission-free trading No demo accounts, the brand is changing its owner 

 

Latest news about Tao Trade
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Traders` reviews for Tao Trade

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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