Another TitanTrade regulatory warning

TitanTrade was founded in 2013 and by the looks of it would seem like a legitimate broker, but that’s only until you look under the hood. The brokerage specializes in offering binary options trading for currency pairs, stocks, indices and commodities. Since its founding, though, the company has acquired as many clients as it has bad reviews. The latest TitanTrade regulatory warning comes from Belize regulator IFSC, and this isn’t the first; former clients aren’t happy either.

What’s suspicious about TitanTrade?

The first thing to look for in a reputable broker is the location where they are headquartered and the financial regulator with which they are registered. For TitanTrade, the parent company is one Titan Trade Capital Ltd. In fact, they don’t state this fact on their website and we had to get it from a TitanTrade regulatory warning by the Ontario Securities Commission (OSC).

This company seems not to have a permanent address; at some point, it was based in Seychelles, London and now in Belize according to their website. On regulation, the company is completely unregistered as far as we can tell. As the company kept shifting headquarters all around the world, most financial regulators in those countries issued TitanTrade regulatory warning against it. These include the CFTC in America, ASIC in Australia, FSA in Italy, FMA in New Zealand, OSC in Canada and even KROUFR in Russia.

The CFTC went as far as to list TitanTrade on the red-list of binary option brokers not to work with. They now claim to be based in Belize, and the country’s regulator is the latest to denounce TitanTrade. On a report issued on February 2017, the International Financial Services Commission (IFSC), the Belize financial regulator, they stated unequivocally that TitanTrade is neither headquartered not licenced in the country. They also advised traders not to invest in them.

This is usually the first warning sign on a brokerage scam, a broker without a license number from any financial regulator whatsoever. Sure, regulation and licensing does not automatically make a broker legitimate, but working with an unlicensed broker is never advisable. To make matters worse, the company that handles their finances is Titan Trade Solutions Ltd. which is said to be based in London but not registered there. The payment service provider is crucial for a broker because they act as the liquidity provider. The lack of a reputable company handling clients’ finances should be a huge red flag to any potential client.

Then there are the client complaints which keep flooding various forums and review websites. The main complaint seems to be the delays in making withdrawals or even the complete restriction to do so. This is why it’s important to recognize the payment service provider. Despite the global war against binary options, their ease of use still continues to be an attractive incentive. Furthermore, companies like TitanTrade tend to have a very robust trading platform that makes trading seem quite easy and efficient.

Nevertheless, it’s important to remember all that glitters is not gold. TitanTrade is a glittering broker at face value, but underneath is an unscrupulous broker to be avoided like a plague.