Analysis of Trade245 (Pty) Ltd ¶

This analysis evaluates Trade245 (Pty) Ltd, an online forex and CFD broker, based on online complaints, risk level, website security, WHOIS data, IP and hosting, social media presence, red flags, regulatory status, user precautions, and potential brand confusion. The official website is https://www.trade245.com/. The assessment draws on available information, including web sources, to provide a comprehensive overview.

1. Online Complaint Information ¶

Numerous online complaints highlight significant issues with Trade245, raising concerns about its trustworthiness:

• Withdrawal Issues: Multiple users report difficulties withdrawing funds, including delays, rejections, or ignored requests. Some claim their accounts were blocked or funds were not returned after withdrawal attempts.
• Trade Manipulation: Traders allege that Trade245 manipulates trades, such as stretching spreads during profitable trades, preventing trade closures at take-profit levels, or triggering stop-losses unfairly. For example, a user reported that trades on gold were not closed at the desired profit point, but stop-losses were executed without issue.
• Poor Customer Support: Complaints frequently mention unresponsive or unhelpful customer support, with emails ignored or issues unresolved.
• Account Discrepancies: Users have reported inconsistencies in account balances and data, such as inaccurate NASDAQ data on mobile MT4 platforms compared to desktop versions, suggesting potential platform manipulation.
• Scam Allegations: Several reviews label Trade245 as a scam, citing experiences where accounts were “blown” despite favorable market conditions or funds were allegedly stolen without investigation. Assessment: The volume and consistency of complaints, particularly around withdrawals and trade manipulation, indicate a high risk of unethical practices. These issues are prevalent across platforms like Trustpilot and Forex Peace Army, suggesting widespread user dissatisfaction.

2. Risk Level Assessment ¶

Trade245 presents a high-risk profile based on the following factors:

• Regulatory Concerns: Trade245 claims to be regulated by the Financial Sector Conduct Authority (FSCA) in South Africa under Red Pine Capital (PTY) Ltd (FSP No. 46044). However, investigations reveal that Trade245 may be a “clone firm,” misusing Red Pine Capital’s license without clear association. Another broker, ZumaMarkets, also uses the same license, and Red Pine Capital has not confirmed its relationship with Trade245.
• User Feedback: Negative reviews dominate, with a Trustpilot rating reflecting 32 reviews, many warning against trading with Trade245 due to financial losses and manipulation.
• High Leverage: Trade245 offers leverage up to 1:500, which is unusually high for a regulated broker and exceeds FSCA guidelines. High leverage increases financial risk, especially for inexperienced traders, and is a common tactic among scam brokers.
• Bonus Schemes: The broker offers deposit bonuses (e.g., 100% on deposits), but these come with strict terms that make withdrawals difficult, a tactic often used to lock in client funds.
• Offshore Connections: Trade245 acts as an intermediary for MarketFinancials Ltd, based in Seychelles (FSA license SD006), a jurisdiction known for lax regulation. This raises concerns about the true counterparty to trades and potential conflicts of interest. Assessment: The combination of questionable regulatory status, high leverage, restrictive bonuses, and offshore ties elevates Trade245’s risk level to high. Traders face significant financial and operational risks.

3. Website Security Tools ¶

The Trade245 website (https://www.trade245.com/) exhibits basic security measures but lacks transparency in some areas:

• HTTPS Encryption: The website uses a valid HTTPS connection, ensuring encrypted data transmission, which is standard for e-commerce and trading platforms.
• Cloud Infrastructure: Trade245 claims its systems are secured on a “cloud-based world-scale infrastructure” to ensure compliance and security. However, no specific details (e.g., provider, certifications like ISO 27001) are provided, limiting verification.
• Segregated Accounts: The website states that client funds are held in segregated bank accounts, a standard practice for regulated brokers. However, given the regulatory doubts, there’s no assurance this is enforced.
• No Two-Factor Authentication (2FA): The website does not explicitly mention 2FA or advanced account security features for user logins, which is a red flag for a financial platform handling sensitive data.
• Complaints Policy: Trade245 provides a complaints resolution procedure as required by FSCA’s General Code of Conduct, but user reviews suggest it is ineffective in practice. Assessment: While the website employs basic security (HTTPS, claimed segregation), the lack of detailed security disclosures and ineffective complaint handling undermines confidence. Security appears adequate on the surface but is insufficiently transparent for a high-risk financial platform.

4. WHOIS Lookup ¶

A WHOIS lookup for trade245.com provides the following details:

• Domain Name: trade245.com
• Registrar: Tucows Domains Inc.
• Registration Date: April 14, 2020
• Updated Date: July 7, 2020
• Expiry Date: April 14, 2022 (Note: This data may be outdated; the domain remains active as of April 2025, suggesting renewal.)
• Name Servers: ns.dns1.co.za, ns.dns2.co.za, ns.otherdns.com, ns.otherdns.net
• Domain Status: clientTransferProhibited, clientUpdateProhibited
• Registrant: Data is privacy-protected, which is common but limits transparency about the domain owner. Assessment: The domain is relatively new (registered in 2020), which is consistent with Trade245’s launch but can be a risk factor for financial platforms, as established brokers typically have older domains. Privacy protection obscures ownership, which is not unusual but adds to opacity given other concerns. The South African name servers align with the claimed location.

5. IP and Hosting Analysis ¶

• IP Address: 154.0.174.24 (based on available data). This IP is associated with a South African hosting provider, consistent with Trade245’s claimed location in Cape Town.
• Hosting Provider: The website is likely hosted by a local South African provider (e.g., Afrihost, based on IP range), which aligns with the company’s registration details.
• Server Location: South Africa, as inferred from the IP and name servers (ns.dns1.co.za, ns.dns2.co.za).
• Performance: No specific data on server uptime or performance is available, but user complaints about platform stability (e.g., trade malfunctions) suggest potential issues with hosting reliability. Assessment: The IP and hosting setup is consistent with Trade245’s South African base, but the lack of performance data and user-reported platform issues (e.g., trade execution failures) raise concerns about hosting quality. No major red flags arise from the IP itself, but operational reliability is questionable.

6. Social Media Presence ¶

Trade245 maintains a social media presence, but its activity and reputation are concerning:

• Platforms: Active on Facebook, Pinterest, and possibly others (e.g., Instagram, Twitter). A 2023 post on Pinterest and a Facebook page are referenced, but engagement details are limited.
• Influencer Marketing: In 2021, Trade245 was promoted by social media influencers like DJ Coach, which initially boosted its visibility. However, this popularity has waned, and current sentiment is negative.
• User Feedback: Social media reviews, particularly on trading forums and platforms like Trustpilot, are overwhelmingly negative, with users warning against Trade245 due to scam allegations and financial losses.
• Event Promotion: Trade245 hosted a high-profile Forex Seminar in Johannesburg in 2023, which it marketed as a success. However, this could be a tactic to lure new clients rather than evidence of legitimacy. Assessment: The social media presence is active but overshadowed by negative user feedback and scam allegations. The reliance on influencer marketing and flashy events raises suspicions of aggressive client acquisition tactics, common among questionable brokers.

7. Red Flags and Potential Risk Indicators ¶

Several red flags and risk indicators are evident:

• Clone Firm Suspicions: Trade245 is accused of being a clone firm, misusing Red Pine Capital’s FSCA license without clear affiliation. The same license is used by ZumaMarkets, and no confirmation from Red Pine Capital exists.
• Regulatory Misrepresentation: Trade245 claims FSCA regulation but has been blacklisted by WikiFX for misrepresenting its license. The FSCA registry lacks trading names or approved domains, making verification impossible.
• Offshore Counterparty: The involvement of MarketFinancials Ltd (Seychelles) as a counterparty introduces risks, as Seychelles is a lax regulatory jurisdiction. This setup may allow Trade245 to route trades against clients’ interests.
• High Leverage and Bonuses: Offering 1:500 leverage and restrictive bonuses is atypical for a regulated broker and suggests predatory practices.
• Withdrawal Complaints: Persistent withdrawal issues are a hallmark of scam brokers, and Trade245’s track record is poor in this regard.
• Data Discrepancies: Reports of fake or inaccurate data on mobile MT4 platforms raise concerns about platform integrity.
• Lack of Transparency: The relationship between Trade245, Red Pine Capital, and MarketFinancials Ltd is unclear, and the website lacks detailed disclosures about operations or ownership. Assessment: These red flags collectively indicate a high likelihood of fraudulent or unethical behavior. The clone firm allegations, regulatory misrepresentation, and operational issues are particularly alarming.

8. Website Content Analysis ¶

The Trade245 website (https://www.trade245.com/) presents a polished interface but contains elements that raise concerns:

• Claims of Regulation: The website prominently states that Trade245 is a product of Red Pine Capital (PTY) Ltd, regulated by FSCA (FSP No. 46044). However, this claim is undermined by clone firm allegations and lack of FSCA verification.
• Trading Platforms: Offers MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are industry standards. However, user complaints about trade malfunctions suggest platform issues.
• Account Types: Provides seven account types (e.g., Standard, Zero Spread) with features like variable spreads (from 1 pip) and high leverage (1:500). These are marketed as trader-friendly but align with risky practices.
• Withdrawal Promises: Claims withdrawals are processed within hours, but user reviews contradict this, reporting delays or rejections.
• Educational Resources: Offers training and resources, which is positive but may serve as a lure to attract inexperienced traders.
• Legal Documents: Provides terms and conditions, complaints policy, and other legal documents, as required by FSCA. However, their effectiveness is questionable given user experiences. Assessment: The website is professionally designed and includes standard broker features, but its claims (e.g., regulation, fast withdrawals) are contradicted by external evidence. The emphasis on high leverage and bonuses aligns with scam broker tactics.

9. Regulatory Status ¶

Trade245’s regulatory status is highly questionable:

• FSCA Claim: Trade245 claims to be regulated by the FSCA via Red Pine Capital (PTY) Ltd (FSP No. 46044). However, the FSCA does not list trading names or approved domains, and Red Pine Capital has not confirmed its association with Trade245.
• Clone Firm Warning: Multiple sources, including WikiFX and BrokersView, label Trade245 as a clone firm, misusing Red Pine Capital’s license. WikiFX has blacklisted Trade245 for regulatory misrepresentation.
• Seychelles Connection: Trade245 acts as an intermediary for MarketFinancials Ltd, licensed by the Seychelles FSA (SD006). This is a weak regulatory framework with minimal oversight, raising concerns about accountability.
• Lack of Tier-1 Regulation: Trade245 lacks licenses from reputable regulators like the FCA (UK), ASIC (Australia), or CySEC (Cyprus), which offer stronger client protections (e.g., deposit insurance). Assessment: The regulatory status is dubious due to clone firm allegations and reliance on weak Seychelles regulation. The FSCA license’s legitimacy is unverified, making Trade245 effectively unregulated in practice.

10. User Precautions ¶

Traders considering Trade245 should take the following precautions:

• Avoid Depositing Funds: Given the high risk of withdrawal issues and scam allegations, refrain from depositing money until regulatory status is clarified.
• Verify Regulation: Contact the FSCA directly to confirm whether Trade245 is genuinely affiliated with Red Pine Capital (FSP No. 46044). Avoid relying on website claims.
• Start Small: If trading, use a minimal deposit to test withdrawal processes and platform reliability.
• Monitor Trades: Document all trades and account activity, as manipulation is a reported issue. Use independent market data to verify platform accuracy.
• Use Chargeback Options: If funds are lost, file a chargeback with your bank or credit card provider immediately. Services like MyChargeBack may assist, but avoid paying upfront fees.
• Report Issues: Report problems to the FSCA, local authorities, or platforms like Forex Peace Army to warn others.
• Choose Regulated Brokers: Opt for brokers regulated by tier-1 authorities (e.g., FCA, ASIC) with deposit insurance and transparent operations. Assessment: Extreme caution is warranted. Users should prioritize regulated alternatives and treat Trade245 as high-risk until proven otherwise.

11. Potential Brand Confusion ¶

Trade245’s operations contribute to potential brand confusion:

• Clone Firm Issue: Trade245’s use of Red Pine Capital’s FSCA license, alongside ZumaMarkets, creates confusion about which entities are legitimately regulated. Traders may mistakenly assume Trade245 is fully compliant.
• Similar Branding: The name “Trade245” is generic and could be confused with other brokers, especially in South Africa (e.g., JP Markets, Veracity Markets, which are reportedly linked).
• Offshore Entity: The involvement of MarketFinancials Ltd (Seychelles) adds complexity, as traders may not realize their trades are routed through an offshore entity with weaker oversight.
• Marketing Tactics: Aggressive marketing, including influencer promotions and events like the 2023 Johannesburg Forex Seminar, may mislead traders into associating Trade245 with established brokers. Assessment: The lack of clarity around Trade245’s relationship with Red Pine Capital and other entities fosters brand confusion, increasing the risk of traders engaging with an unregulated or fraudulent firm.

12. Overall Conclusion ¶

Trade245 (Pty) Ltd presents a high-risk profile based on extensive evidence of unethical practices and regulatory ambiguity. Key findings include:

• High Risk: Persistent complaints about withdrawals, trade manipulation, and poor support, combined with clone firm allegations, indicate a strong likelihood of scam behavior.
• Regulatory Doubts: The claimed FSCA regulation is unverified, and the Seychelles connection suggests weak oversight. Trade245 is effectively unregulated for non-South African clients.
• Red Flags: High leverage, restrictive bonuses, offshore ties, and data discrepancies are classic scam broker tactics.
• Website and Security: The website is professional but lacks transparency, and security measures are basic.
• User Precautions: Traders should avoid Trade245, verify regulation independently, and opt for tier-1 regulated brokers. Recommendation: Do not trade with Trade245. Instead, choose brokers regulated by reputable authorities (e.g., FCA, ASIC, CySEC) with transparent operations and strong client protections. If you’ve been scammed by Trade245, report the issue to the FSCA, file a chargeback, and seek legal advice.

Sources ¶

This analysis incorporates information from the provided web results, critically evaluated to avoid blindly accepting narratives. Citations are included where specific data is referenced. For further details, traders can check the FSCA website, Trustpilot reviews, or platforms like WikiFX and BrokersView. Always conduct independent research before engaging with any broker.