The Active Trades Company

The Active Traders Company: An In-Depth Review

1. Company Overview

Founding Date and Background

The Active Traders Company, often referred to simply as "The Active Traders," was founded in 2012. It positions itself as a forex and CFD broker, offering a broad range of trading instruments and services. However, the company has faced scrutiny regarding its legitimacy and regulatory status.

Parent Company/Ownership Structure

The Active Traders is operated by a company that claims to be registered in the United Kingdom. However, there are indications that it may actually be operating as an offshore entity, which raises concerns about its ownership structure and transparency.

Headquarters Location

The company claims to be headquartered at SFP 9 Ensign House, Admirals Way, Marsh Wall, London, E14 9XQ, United Kingdom. Despite this assertion, various reviews suggest that the company may not be based in the UK as stated, with some sources indicating ties to Dominica.

Global Business Scope

The Active Traders offers its services globally, targeting both retail and institutional clients. However, its operations are marred by a lack of transparency, and it has been blacklisted by regulatory bodies in various countries, including Italy.

Main Regulatory Bodies

The Active Traders operates without valid regulatory oversight. It has not been licensed by any major financial regulatory authorities, raising significant concerns about its legitimacy and the safety of client funds.

2. Company History and Development

Key Milestones

Since its inception in 2012, The Active Traders has undergone various developments, including the introduction of multiple account types and trading platforms. However, the lack of a solid regulatory framework has overshadowed these milestones.

Business Expansion Journey

The company claims to offer a wide range of trading instruments, including forex, commodities, indices, and shares. Despite its claims of expansion, the absence of regulatory backing has limited its credibility in the marketplace.

Customer Base Growth

The Active Traders has reportedly attracted a customer base that is interested in high-leverage trading options. However, the actual growth figures and user satisfaction rates remain unclear due to the lack of transparent reporting.

Platform Development History

The trading platforms offered by The Active Traders include a proprietary web-based platform and mobile trading applications. However, many reviews indicate that these platforms lack the advanced features found in industry-standard platforms like MetaTrader 4 and 5.

Important Awards or Recognitions Received

As of now, The Active Traders has not received any notable awards or recognitions that would validate its claims of quality and service excellence.

3. Trading Services Offered

Forex Trading Options

The Active Traders claims to provide access to over 80 currency pairs, including major, minor, and exotic pairs. However, the quality of service and execution speed has been questioned by users.

Stock Trading Options

The company offers trading in shares of publicly traded companies, but specific details regarding the stocks available for trading are not well-documented.

CFD Trading Products

The Active Traders provides a range of CFD products, allowing clients to speculate on price movements of various underlying assets, including forex, commodities, and indices.

Other Financial Instruments

In addition to forex and CFDs, The Active Traders also claims to provide access to commodities such as gold and oil, as well as indices like the S&P 500 and NASDAQ. However, there is limited information available regarding the specifics of these offerings.

Special Services or Unique Advantages

The Active Traders promotes features such as high leverage options (up to 1:1000) and a proprietary auto-trade platform that allows users to mirror the strategies of successful traders. However, the effectiveness and reliability of these features remain questionable.

4. Regulatory and Legal Background

Detailed Regulatory Information

The Active Traders operates without any valid regulatory oversight. It has been blacklisted by the Italian financial regulator, CONSOB, due to concerns about fraudulent activities. The company claims to be registered with Companies House in the UK, but this does not equate to legitimate financial regulation.

Legal Entity Structure by Region

While The Active Traders claims to operate in the UK, it has also indicated that its operations are subject to the laws of Dominica. This dual claim raises questions about its legal standing and compliance.

Client Fund Protection Measures

Due to the lack of regulatory oversight, there are no clear client fund protection measures in place. Clients' funds are not segregated, which poses a significant risk in the event of the company's insolvency.

Countries/Regions Served

The Active Traders offers its services globally, but it is particularly focused on regions where regulatory enforcement is weaker. This strategy allows it to operate with minimal oversight.

Compliance History

The Active Traders has a poor compliance history, having faced warnings from multiple regulatory bodies. The absence of a legitimate license further complicates its compliance standing.

5. Competitive Landscape

3-5 Main Competitors

The Active Traders competes with various other brokers in the forex and CFD space. Notable competitors include:

• FXTM (ForexTime) – A regulated broker known for its educational resources.
• XM – Offers a wide range of trading instruments and is well-regarded for its customer service.
• IG Group – A well-established broker with a strong regulatory framework and diverse offerings.

Positioning in the Industry

The Active Traders positions itself as a high-leverage broker catering to traders seeking aggressive trading options. However, its lack of regulation significantly undermines its position in the industry.

Market Differentiation Factors

The primary differentiating factor for The Active Traders is its high leverage offerings and the promise of a wide range of trading instruments. However, these advantages are overshadowed by the substantial risks associated with unregulated trading.

Conclusion

In summary, The Active Traders Company presents a concerning picture for potential investors. With its unregulated status, lack of transparency, and numerous warnings from regulatory bodies, it is strongly advised to exercise caution when considering engagement with this broker. Thorough research and due diligence are essential to ensure the safety of your funds.

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