Legal Information: Is Smartytrade Regulated?
The Marshall Islands is not considered a secure jurisdiction due to its local regulator’s inadequate enforcement of financial market regulations. Consequently, an entity registered there cannot be deemed adequately regulated. Offshore brokers operating from such jurisdictions typically do not bear the responsibility of compensating clients in cases of insolvency or suspicious losses. Additionally, they are not obligated to segregate traders’ funds in separate bank accounts.
Certain Smartytrade reviews we came across suggest that this brokerage firm is based in Canada, contradicting the information provided on its website. For these reasons, we strongly advise against trading on this platform.
Instead of placing trust in offshore entities, it is advisable to opt for regulated providers operating under the supervision of reputable financial authorities such as the FCA (UK), CFTC & NFA (US), ASIC (Australia), IIROC (Canada), BaFin (Germany), MAS (Singapore), CySEC (Cyprus), among others.
Smartytrade’s Target Audience
According to information from godaddy.com/whois, the Smartytrade.com website domain was registered on December 16, 2020. Since its inception, this questionable brokerage has primarily catered to unsuspecting traders residing in the following countries:
- United Kingdom
- United States
- Canada
- India
Unlike the Marshall Islands, these countries are known for stringent financial market regulations, particularly the UK and the US. They enforce a common law that mandates each financial market participant to hold the necessary license or permit. Smartytrade, however, operates without a license and directly contravenes the regulations in these countries. For instance, the broker offers leverage of up to 1:100, whereas the legal limits for retail clients in the UK and the US are 1:30 and 1:50, respectively. If you are an American trader, we recommend exploring alternatives like Lightspeed.com for a more compliant trading experience.
Deposit and Withdrawal Procedures
Smartytrade offers three payment methods for funding live trading accounts:
- Credit/debit cards (MasterCard, VISA).
- Wire transfers.
- Cryptocurrencies.
If you have made a deposit using a MasterCard or VISA credit/debit card, you have the option to request a chargeback from the issuing bank within a period of 540 days, allowing you to reverse the transaction. Wire transfers can be reversed through a recall, but this can only be effective for transactions that have not yet been completed.
Reversing cryptocurrency transactions can be quite challenging, and it is recommended to seek professional assistance. Fortunately, we have a team of experts available to help you recover your funds.
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