TradeU2 offers trading in assets like Forex, Futures, CFDs and Crypto currencies like BTC, ETH and LTC. Although they are using the popular MT4 platform, the spreads are not friendly plus there are many things that simply make us uncomfortable with this broker.
TradeU2 does not clearly present information about their account types and spreads to its customers. They only have one account type which they claim is an ECN. The spreads are 0.8 and the minimum deposit is $500. Minimum trade size is 0.01 lot and the maximum leverage that traders can access on this account type is 1:500. Therefore, it seems as if this broker is offering many other account types as they claim that scalping is offered on ECN accounts.
It should be noted that this broker does not provide its services to traders residing in the US, Japan and some other regions of the world.
On some sections of their website, TradeU2 publishes information about their spreads ranging from 0.2 to 0.8 on a pair like EURUSD. Although this sounds good, however, the commissions that will apply has not been disclosed.
This forced us to try their demo to see what conditions would apply in our case. We found out that spreads were floating around 1.4 and 1.5 pips for a pair like EURUSD. This was without commission fees. Having said this, there are brokers who offer favorable spreads because we do not believe that you should pay 1.5 for a pair like EURUSD when you can pay less than 1 on other brokers who are in fact regulated and very professional in terms of how they handle their customers.
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They are offering the MT4 platform which is a popular trading solution among traders today. This platform is praised by the trading community because of its ease of use and the ability to accommodate any type of Forex expert advisor and indicators including charting options.
The ability to customize this option to make it even more user friendly is also something that has attracted traders very much.
Tradeu2 offers this trading platform but this does not stop them from giving you a raw deal if they wanted to.
The highest leverage that one can access on this platform is 1:500 or higher. The fact of the matter is that there are many brokers who are offering similar leverage and even higher. However, the fact that TradeU2 is offering 1:500, which is a good amount for the experienced trader who doesn’t want to risk a big chunk of his account, it does not mean that this feature will entirely favor all their traders.
Leverage is like a loan that brokers give to their traders so that they can boost their trading capacity. That means they can take bigger contracts even with a small amount of trading capital.
However, leverage can be a double edge sword in the sense that if used wisely, it will multiply your returns immensely. But if used carelessly, then it can multiply your losses too. This is not a good thing unless you are an experienced trader. If you are not experienced in trading, we implore you to use these automated trading solutions because they will help you make money even if you have never traded before.
We have realized that the demo that is offered by TradeU2 is powered by another company called Easy FX Solutions. This company is based in Vanuatu and its job is to offer brokerage incorporation services. This entity is also related to Up4x, which is a scam broker by the way. Therefore, if TradeU2 is associated with an entity that owns and continues to run a scam brokerage service, this should be a red flag, something that is not to be ignored at all.
Recently, the Italian financial watchdog, CONSOB issued a warning to TradeU2 claiming that the brokerage had not sought a license from them and was therefore illegally operating. They concluded the warning by saying they should not continue targeting Italian citizens with their unregistered products.
This broker isn’t disclosing their account types and trading conditions in an upfront manner. This is a huge red flag. If they are a decent brokerage, they should make this information available without subjecting traders to the task of digging around in order to try finding what their trading conditions are. So this is actually not a professional broker.
Broker corporate representation is rather shady as they claim that they are based in Dubai but their terms and condition make reference to Cyprus. The broker has decided not to mention or lie regarding their registration status. They are not telling us whether or not they are registered plus the recent warning from the Italian Financial Watchdog says the broker is illegally operating in their jurisdiction. More warnings are yet to emerge as this broker continues to target residents of other countries as well.
You see, the first consideration here is the minimum deposit which is set at $500. Now, remember that this broker is not registered and if that is the case, they cannot ask for such a high minimum deposit. $500 is too high for an unregulated brokerage like TradeU2.
Secondly, the brokerage is associated with another scam brokerage and it is said that the two brokers are owned by the same entity. That means our money won’t be safe in the hands of Tradeu2. There is no guarantee that our money will be safe in their hands.
The broker does not present their account types and trading conditions in a clear and concise manner which is a confidence killer. The other concern is that its MT4 platform is run by another entity which is based in an offshore region. This entity also runs a scam brokerage. Third, they are allegedly owned by SUN CAPITAL LIMITED, which isn’t regulated. Therefore, stick with our recommended brokers here.
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