CeloTradeFx review – Is celotradefx.com scam or safe?

CeloTradeFx review – Is celotradefx.com scam or safe?


CeloTradeFx Key Facts

🔴 CeloTradeFx offers suspicious products and services. A scam sign!

🔴 CeloTradeFx doesn't share critical information about their business. Red flag!

🔴 CeloTradeFx is not licensed to offer financial services. Red flag!

🔴 CeloTradeFx is a 7 months old domain. A disturbing sign!

CeloTradeFx products and services

CeloTradeFx introduces as a Forex broker but actually provides with Binary Trading. In fact, it's impossible to confirm the Binaries, too because you can only test their services after you deposit money. The Binary Options are no longer considered a financial instrument, so CeloTradeFx has nothing to do with trading and investments. Their audacious promise to provide with the best trading plans makes us suspect that there is something fishy about this business.

People should always be cautious when dealing with businesses offering enormously high yields because it's scammers' trait to promise big and create unrealistic expectations. In reality, regulated financial companies cannot secure more than a few percents annually with their fixed-income products. There is a huge discrepancy between these offers and the regulated companies standards. Judging by the products and services they sell, we suspect it's a scam, so beware.

CeloTradeFx company and regulation

CeloTradeFx.com is allegedly the Celo Trade Fx‘s website, a company falsely claiming to be MFSA regulated company based in Malta. We checked but found nothing in the MFSA records. In fact, there is not even a legal entity named Celo Trade Fx, that's a fake company. Therefore, CeloTradeFx is an illegal investment scheme and a scam. We urge traders and investors to trust only licensed and adequately regulated companies. Read on to find out why.

The US financial services regulation is very complex in the USA. Derivatives markets regulation is a responsibility of CFTC and NFA. Forex brokers and most of the investments companies have to be NFA members and CFTC registered to operate in the USA. On the other hand, securities markets are controlled by the SEC, a government independent agency responsible to maintain the integrity of the financial markets.

While SEC focuses more on the procedure regulation insisting on financial reports and management discussion and analysis, NFA and CFTC impose pretty straightforward requirements. To become authorised the companies have to provide 20 million USD in paid-up capital, which is considered a guarantee that the businesses can survive in turbulent times and pay whenever they have to. 

Other customer protection measures include clients’ accounts segregation and leverage restrictions for forex brokers- 1:50. Also, CFTC brokers’ clients are not allowed hedging, which is one of the very unique US features. Unfortunately, the cryptocurrencies regulation is still inept, so traders and investors should be wary when dealing with crypto offers.

CeloTradeFx address and contacts

CeloTradeFx lists Celotradefx94, Triq Il-Wied, QRD 3043, Malta, Qrendi as their address, but that's a non-existent location. Yet another proof this is a fake investment provider. Their contact number is +1 4053 362 0597, a US phone number clear of spam reports. It makes no sense using United State contact numbers unless they want to remain hidden.

Transparency is crucial when talking about brokers and investment companies, and it's part of the regulatory framework. The regulated companies are open to financial authorities following certain transparency rules, so it's generally unlikely to conduct fraudulent activities. They are also bound to provide the public with crucial information about themselves, making it easy for traders and investors to confirm the company's legitimacy.

CeloTradeFx.com website info

CeloTradeFx.com is a domain name registered on 26th of May 2020, so it's just over 7 months old at the time of writing. The website age refutes their claim to have almost 2.8 million clients worldwide.

It's registered on Netherlands IP address: co-hosting 75 websites at the time of writing. Most of the domains are linked to companies offering investment schemes.

Alexa doesn’t even rank this domain, so it’s a highly unpopular website people do not trust, regardless of the age. The Alexa ranking isn’t a key determinant, but the lack of popularity definitely isn’t a good sign, especially when they pretend to serve almost 2.8 million users.

CeloTradeFx.com uses privacy protection services to hide the ownership of the website. The latest trend in the privacy policy around the world denies it should be a problem but considering it's an investment service we might as well consider this a disturbing sign.

Here are other shady investment schemes based on the same IP:

FxOptionProBallena Capitals
XoTradeFxEra TradeFx
FX Cloud Vest

Scam warning

We paid utmost attention to the regulation and transparency in the sections above because it’s mandatory for trading and investments. Pretty much each company offering financial services have to be authorised by the local financial authority. 

However, some entities operate unlicensed and intentionally run investment fraud. It would be best if you only dealt with companies authorised by the regulators, so always check to make sure they are. Bear in mind that if you trade with unauthorised businesses, you won’t be protected, so it’s very likely to suffer losses almost impossible to recover if things go wrong.

Online scam is trending nowadays with fraudulent websites popping up literally every day. The financial authorities increase the number of warnings issued year after year, but the dangers are still out there and growing exponentially. You’ll realise the hazards when you consider OneCoin scam- it’s still impossible to calculate the total loss, but it’s regarded as 15 billion worth fraud. Make sure to trade with licensed and regulated companies to avoid off-putting losses.

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1 Comment

  1. I’ve been scammed

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