Are the rumors about TradeMax scam real?
Forex brokers that are regulated by the Australian Securities and Commission (ASIC) have a fairly good reputation among the traders all around the world. Unfortunately, there are still some sophisticated scams among them. TradeMax Forex broker is one of them. The service described on the broker’s website does not seem to be good for any trader as the broker has a high minimum deposit, commissions, and fails to provide sufficient information about its service and policy. However, bad service is not the worst thing with the broker, as there are signs indicating TradeMax scam. If you are considering to open an account with the broker make sure to read the review as it provides full information about TradeMax, that the broker is trying to hide.
TradeMax FX brokerage background
Since TradeMax seems to be a legit broker at first glance, it is important to examine the background of the company thoroughly. TradeMax brand is operated by TradeMax Australia PTY Ltd. The company has changed its name on several occasions. It was known as Goldland Capital Group PTY Ltd, TradeMax Group PTY Ltd, and AsiaPacific Forex PTY Ltd on different occasions. It is never a good sign when the broker changes its name several times, especially when the names differ from each other that much. The company was running several brokerages and different domains such as FXUF.com or SuperTraderFX.com.au.
As I have found out while making TradeMax.com.au review the brokerage is also known as TradeMax Capital. This name is not mentioned anywhere on the site, or on the company summery in the ASIC’s document. However, there are trader reviews that talk about TradeMax Capital, that has the same domain – Trademax.com.au. There is a possibility that the broker is operating with this name outside the borders of Australia. This information can be confirmed after seeing the Facebook page of TradeMax. There are two Facebook pages TradeMax, and TradeMax Capital PH, which is dedicated to the traders from Philipines. They have the same logo, and in the “about” section they have both indicated Trademax.com.au website. Hence, there is no doubt that TradeMax and TradeMax capital is the same broker. Why is it important? let’s see in TradeMax opinions.
There are plenty of comments posted by the customers about TradeMax, TradeMax Capital, or Trademax.com.au and none of them are positive. According to the vast majority of reviews made by the traders, TradeMax is involved in the so-called “Chinese scam.” TradeMax scam scheme is very simple. Plenty of traders were contacted by Chinese girls who were very friendly and charming and who initiated close communication via WeChat with the victims. Time after time, these girls were talking about their interests in trading and were offering to open an account with TradeMax. They were insisting and pushing victims and were requesting account ID as proof that they have actually registered. They were getting commissions for it while people who were lured into it were losing the money over and over again.
Unfortunately, many traders who are searching for the new broker to trade with do not make such an investigation and base their opinion on the website of the brokerage. The website of TradeMax Forex brokerage might leave a good first impression when you go to the website it is has a lot of content that leaves an impression that TradeMax is a professional brokerage and is providing all the information that one might need. However, when you go on other pages the information is very limited. For example, there is no information about the withdrawal policy, details of the trading instruments that are available with the broker and so on. Overall, while the website might look good it does not serve visitors well. The website is available in English and Chinese only. Meaning that residents of Europe and China are the main target for TradeMax.
Features of the broker
Features of the broker are not exciting as well and reduce TradeMax rating. It offers four types of accounts Standard, Premium, Pro, and raw spread accounts. The minimum deposit for Standard account is 1000 USD that is considerably high, especially when it does not come with a lot of features. It only has a dedicated account manager. The difference between Premium and Standard account is the minimum deposit, for the premium account the minimum deposit is 50,000 USD, and there are no additional features. Hence, it is not clear why anyone should pay 50,000 for a premium account. Traders with this account can trade with 1:400 leverage.
The Pro and Raw spread accounts are also the same. The minimum deposit is 100,000 USD, the allowed leverage is 1:200, and the features that come with the account are a dedicated account manager, VIP desk, free VPN, and MAMM service.
You might still have a positive TradeMax opinion before you learn that spreads start from 1.6 with this broker. Usually, the spread that is featured on the website is the lowest. Meaning that while the spread for major currencies is 1.6 pip, which is already high, spreads for other currency pairs will be much higher.
Spreads are from 0 pip for the raw spread account. But as mentioned the minimum deposit required for opening this account is 100,000 USD. Moreover, there are commissions applied to this account, 5 USD and 9 AUD per lot.
TradeMax withdrawal policy is not well described on the webpage. It only states that processing withdrawal requests might take from one to three business days. There is also no mention of any withdrawal fees. However, the legal document states that withdrawal is only free for the Aussie traders, for foreign clients withdrawal fee is 25 AUD.
There are three possibilities to get assistance from the broker if you will face any issue while trading with TradeMax. The first and most common one is live chat. To use TradeMax live chat one needs to fill a little form and provide with its email and mobile number. It is very inconvenient, most brokers do not require any registration for connecting with the broker’s representative. Moreover, not everyone wants to provide a broker with its contact information as it might be misused. The broker has displayed a mobile number and email address as well. The mobile number is only Australian, which is also very inconvenient for foreign clients and with email communication, you can never know if the broker will ever reply. Bad customer support is also the sign of a TradeMax fraud as the legit brokers try to provide high-quality service.
TradeMax review sum up
Summing up the review of TradeMax, we can say that the broker is not legit and one cannot be sure that he will not end up being scammed. Although the broker has regulations it does not mean much for the traders who are residents of countries other than Australia. While the broker might be operating with the full legitimacy in its country, as reviews suggest it scams foreign customers. TradeMax scam outside Australia is not the only concern we have about the brokerage. Overall service of TradeMax is very bad, the minimum deposits for every account type are very high, spreads are high as well, the quality of the customer support is very law and account types are badly designed. Hence, if you are searching for a good broker TradeMax is not the one to register with.