So, you have heard about the SureTrader platform and want to know more about investment options. Well, it seems the business closed its doors. You may still find articles and Suretrader reviews on the net describing this platform’s main features and quality of customer service. Negative reviews were really rare. But the Company doesn’t exist anymore since there were regulatory compliance issues. The Suretrader scam was discovered by financial regulators back in 2019. Actually, the Company had a history of bad business practices abroad and at home. In the following lines, we explain what’s behind this financial scam story.
Closing the business
So what was it all about the SureTrader scam? SureTrader shut down in November 2019 upon notifying their clients they could either liquidate all their positions, withdraw funds or transfer their securities to F1 Trade. The clients were in an unenviable position to place closing transactions. As for the main reason, they briefly stated a change in business terms with their clearing broker.
SureTrader scam, or you can trust this project? SureTrader was a trading business that was owned by Swiss America Securities. Since the Company closed its doors, Swiss America was rebranded to Mint Global Markets. Their main franchise now is the SpeedTrader trading platform.
It seems that Gentile had many ups and downs due to regulation issues with different governments. In 2016 the Gentile was indicted in the State of New Jersey. The SEC had worked on investigating Gentile’s operations for a couple of years. In the case’s filings, Gentle complained that his business in the Bahamas was stigmatized and hindered due to the long nine years of investigation. The Securities Commission’s main complaint regarding SureTrading’s business operations is that the Company solicited US clients. Soliciting American clients by an off-shore brokerage platform violated US securities regulations.
Suretrader Scam – The Rise and the Fall of the Company
SureTrader was registered in the Bahamas in 2012. The main reason for setting up the business at this location was to avoid day trading regulations in the US. In one year, the Company had more than 30 000 trading transactions daily. SureTrader became the biggest broker in the Bahamas.
By the year 2013, the clients placed approximately 100 000 trades per day. They dwarfed all other trading platforms operating from the Bahamas. The Company could bring in more than twenty-five million in 2014. But it wasn’t meant to last long.
The first hint about the Suretrader scam and that there were some issues with the company occurred in 2018. The regulators fined the Company $200 000 for multiple rule infractions. These infractions included the following:
- Not compiling with know your customers rule
- Not maintaining account records properly
- No permissions for some types of financial transactions
- Lack of details regarding insurance coverage
- Failing to monitor the risks of trading accounts
Later on, in 2019, the SEC closed SureTrader business for a couple of days. They prevented all trading activities by the clients. The Company was also forbidden to handle assets as long as the suspension was on. For the closure, there were no clear explanations. Upon meeting with the SCB officials, the SureTrader business license was reinstated.
Although no explanation was given for the closure, SureTrader said it wasn’t about the Company’s liquidity or solvency. After meeting with the SCB, SureTrader was again authorized for their business operations. Only a couple of months later, the broker shut the business.
SureTrader platform’s main perks
The main perk this broker was offering to its clients was not complying with the PDT rule – pattern day trading rules. A PDT or pattern day trader is a regulatory designation for all traders or investors who execute more than four-day trades over five business days using a margin account.
There were also some other advantages for clients. The broker accepted deposits by credit and debit cards. Moreover, it offered a variety of assets besides stocks: options, over-the-counter equities, and penny stocks.
The platform operated on the DAS Trader Pro system and had direct access to routings, news articles, options chains, and charting tools for professional traders.
However, SureTrader had many bad sides. For instance, they charged $40 for withdrawals. This practice annoyed many of their US clients.
F1Trade
Once the SureTrader scam was discovered and the company shut down its business, its clients moved to F1 Trade. The most important difference between these brokerages is that F1 Trader is not registered in the Bahamas. F1 is registered in the Caribbean, in St Vincent and Grenadines. F1 Trader complies with the regulations imposed by the Financial Securities Authority. Brokers that operate from St Vincent don’t have to hold any license for the financial services they offer, which is quite odd practice.
Other perks at F1Trade comprise 6:1 trading leverage with no routing fees. The broker charges just half a penny per share for trades with a $1 minimum commission. The F1 Trading platform operates on the DAS Trader Pro system, the same as at SureTrader.
F1 enables browser-based trading for free. It has similar functionalities as the desktop version minus Level II quotes.
What are the alternatives for SureTrader broker?
The question of choosing the best broker is one that any trader who wants to succeed in trading should seriously consider.
With new online brokerages arriving daily, choosing the best platform for you often takes a lot of research and patience.
To save you time and help newbie traders, we have identified some key things every trader should consider when selecting a broker. We have compiled a list of the best brokers in the market that may be an alternative to SureTrader.
eToro
For more than a decade, this broker has been a leader in the brokerage market and in the global Fintech revolution.
The platform has millions of traders and a range of innovative trading and investing tools. eToro is constantly working to ensure that its platform makes online trading and investing accessible to everyone.
Striking a balance between being easy to learn for beginners and perfecting the essentials for more experienced traders, eToro has established itself as the world’s premier social trading platform.
eToro offers short-term options for day traders and long-term options for investors. The trading tools are easy to use, providing access to all information on the platform, whether on the mobile app or on the website. It is not surprising that over ten million traders and investors worldwide choose eToro as their favorite trading platform.
eToro is available in many countries, including Switzerland, Luxembourg, Spain, France, the UK, Germany, and many more. With its many advantages, eToro is definitely the best broker for beginners in 2023.
XTB
XTB was founded in 2002 and today. It’s one of the most reliable online brokers in the world, trusted by hundreds of thousands of traders. It is, to date, one of the most reputable sites for online trading. The XTB trading platform is available in a large number of countries, including France, Belgium, Canada, Switzerland, Italy, Luxembourg, and many others.
Thanks to a powerful and easy-to-use trading platform, great customer support, XTB greatly facilitates access to trading and stock market investments for as many people as possible. With XTB, you will be able to trade Forex, indices, commodities, stocks, and ETFs, as well as CFDs on Bitcoin and other cryptocurrencies.
For stocks, we can consider that XTB is among the most interesting, with a considerable choice of the most popular and prominent stocks today, such as Tesla, Netflix, Amazon, Apple, Google, and many others. In addition to its large choice, this platform gives you a 0% commission on shares. You should know that XTB offers its customers one of the most innovative trading platforms on the market. This meets both the needs of novices and the requirements of experienced traders.
The XTB platform is fully customizable, has advanced trading tools, and provides fast order execution, bulk position closing, and other features. When it comes to technical support, XTB stands out for its ability to respond quickly to customer requests. Additionally, the site provides courses for newcomers as well as more advanced training for confirmed investors. Due to its multiple strengths and global reputation, XTB is worthy of inclusion in our comparison of the best trading platforms for beginners.
AvaTrade
Founded in 2006, AvaTrade is today one of the best brokers for beginners. This broker offers a selection of trading platforms, both for automated and manual trading, with unique features and tools.
It has an amazing range of trading instruments such as Forex, stocks, ETFs, commodity trading, or CFD stock indices. Whether you want to trade alone or copy other people’s trades, AvaTrade is designed for all traders. You will undoubtedly find the solution that suits you.
It’s also possible for registered traders to open a demo account on the platform, where you can practice trading. So you can hone your skills before wetting your feet in real trading and the real market with your own money.
Avatrade, therefore, deserves its place in the Top 10 best trading platforms for beginners. AvaTrade is available in many countries, Canada, Switzerland, Luxembourg, Belgium, Madagascar, Spain, the United Kingdom, Germany, and many others.
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