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Tradefred Review - Is it scam or safe?

Tradefred Review - is tradefred.com scam or safe?

RATING: 1.5 / 0 REVIEWS
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 Trading Accounts

Account type  Minimum deposit  Maximum leverage Spread
Basic $250 1:50 Fixed from 2.0 pips
Standard $500 1:50 Fixed from 2.0 pips
Advanced $1,000 1:50 Fixed from 2.0 pips
Pro $5,000 1:50 Fixed from 2.0 pips
Premium $10,000 1:50 Fixed from 2.0 pips

 

Tradefred is a forex broker, which offers multiple account types to its clients. The company also provide lots of different trading instruments, via CFDs.

 

The Company. Security of Funds

 

Company Country Regulation
MagicPath Capital Ltd. Vanuatu VFSC

 

Tradefred is owned by MagicPath Capital Ltd, which is registered in Vanuatu and is regulated by the local watchdog - the Vanuatu Financial Services Commission (VFSC). As you may already know, we avoid recommending most off-shore brokers, for reasons you may find here. That being said the company does claim to be "powered by the Betfred group". In case you don't know Betfred is a reputable bookmaker (sports betting company), regulated in the UK. If Tradefred is really associated with Betfred, that would raise their credibility. However, we could not verify their claim at the time of writing of this review. The suspicious part of this comes from the fact they are registered in Vanuatu, instead of the UK. We believe a bookmaking giant like Betfred would prefer to register a forex broker in a reputable jurisdiction.

 

A screenshot from the bottom portion of Tradefred's website

  

 

Financial regulation should be  a key concern when choosing a forex broker. Regulatory agencies, such as the Financial Conduct Authority (FCA) place certain rules on companies, which are regulated under them. For instance, if you trade with a UK regulated broker, your account would be protected up to GBP 50,000, if the broker goes bankrupt.

Vanuatu, on the other hand,  has became a hot-spot for forex brokers. This is due to the loose regulatory environment -  there is a minimal capital requirement of $2,000, for registering a new broker. In comparison the FCA demands EUR 730 000, as a sign of good will and long-term ambitions.

 

Trading Conditions

 

Minimum Initial Deposit

Tradefred requires an initial deposit of at least $250. This is higher than the current industry average. For instance, FXTM demands only $5 as a first deposit. Do not forget, this should not bother you as much as other factors, when comparing brokers. In order to survive in the dynamic financial markets, you must have sufficient capital and stringent risk management.

 

Average spreads & Commissions

Tradefred offers fixed spreads, starting from 2.0 pips on EUR/USD. This is near the industry average at the moment, with some brokers offering even better conditions. As an example, the fixed spread on this pair at FxPro is 1.6 pips, although they also offer floating spreads which are usually even tighter.

 

Leverage

The maximum leverage at Tradefred is 1:50. This is relatively low, in comparison to other brokers.
 
As you may know, trading with high leverage carries significant risk for your capital. This is one of the reasons why US regulators have set a limit on the maximum leverage, brokers can offer to retail clients art 1:50.

 

Trading Platforms

 

Tradefred provides its clients with MetaTrader 4 (MT4) and a web-based platform. As far as MT4 goes, it has withstood the test of time pretty well. The rather old platform is a fan favorite, with its custom indicators and automated systems. The simplicity, combined with great analytical potential make it a prime choice for many brokerages.

When it comes to the web based platform, we couldn't get it running for the purposes of this review.

 

Methods of Payment

 

There are several deposit and withdrawal methods at Tradefred. They are: Bank Transfer, Credit/Debit Card, Broker to Broker transfer, WebMoney and Qiwi. Keep in mind bank transfers and broker to broker transfers may take quite some time to get through.

 

Conclusion

 

Tradefred is a forex broker registered in Vanuatu and regulated by the local VFSC. The company claims to be affiliated with the famous sports-betting company Betfred, but we could not verify that claim. The situation seems rather dubious, considering the off-shore regulation of Tradefred, but if they are truly partnered, the broker's credibility would go up. On the other hand this may be a case of impersonation, which would lower our opinion of them dramatically. That being said, Tradefred offers fixed spreads, which are not that competitive. Here is a list of this broker’s pros and cons:

 

Pros Cons
MetaTrader4 Platform Off-shore regulation
  Fixed spreads
  Dubious situation regarding impersonation

 

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Spread

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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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Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

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Cons

 

 

Summary

Pros

Cons

 

 

Traders` reviews for Tradefred

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