Promenade LTD is a brokerage firm that has garnered attention for all the wrong reasons. In this follow-up review, we’ll delve deeper into the questionable practices and risks associated with this broker. This review will shed light on its lack of regulation and dubious offerings, as well as trading conditions, customer service, and overall reliability. Read below as we uncover the truth behind Promenade LTD and why it’s crucial to approach with caution.
Website Issues
According to WHOIS data, the domain promenade-ltd.com was created on February 19, 2024. This means that the site was launched relatively recently. Consequently, the broker has been operating for less than a year.
A broker whose website was created just a few months ago poses serious risks for clients. Firstly, the short time the site has been in existence may indicate insufficient experience and reliability of the company. New companies, especially in the financial sector, may have flaws in their security systems and risk management.
Moreover, when a company has not been operating for long enough, there is no opportunity to assess its reputation and reliability. This means that clients may encounter unexpected problems, such as delays in fund withdrawals, customer service issues, or even loss of funds due to the company’s instability.
Thus, clients considering a broker with a short tenure should exercise extreme caution and thoroughly research the company before investing.
Regulation and Security
License
The broker’s website states that promenade-ltd.com is licensed and regulated by GOV.UK with a Category 3 license for providing investment services, which raises serious doubts and is very likely to be a case of false information. Here’s why:
- GOV.UK is a web portal providing information about government services and programs in the UK. However, GOV.UK is not a financial services regulator. Financial regulation in the UK is overseen by the Financial Conduct Authority (FCA), not through GOV.UK.
- There is no Category 3 license in the FCA regulatory system. Instead, the FCA uses various categories and types of licenses for different types of activities. For example, there are licenses for investment banks, brokers, dealers, etc., but they are not classified simply as “Category 3.”
Thus, the mention of a GOV.UK Category 3 license appears to be an attempt to create a false impression of regulation and oversight of the company, which may be used to attract clients but does not reflect the actual situation.
Investor Compensation Scheme (ICS)
The information that promenade-ltd.com participates in the Maltese Investor Compensation Scheme seems like an attempt to reassure clients that their funds are protected in the event of the company’s bankruptcy. However, there are several nuances:
1. The compensation is 90% of the investment amount, but no more than €20,000. For some investors, this may not be enough to fully recover losses, especially if they have large investments.
2. The process of receiving compensation can be lengthy and not always guaranteed. Additionally, compensation is paid only in the event of the company’s bankruptcy, which may be too late for some clients.
Negative Balance Protection
Promenade-ltd.com claims to provide clients with protection against negative balance at its own expense, which sounds reassuring for traders. However, it is unclear which situations are covered by this protection and whether there may be limitations or exclusions. Such protection may be provided according to the company’s own policy and may change at any time without notice.
Trading Instruments
Based on the information provided on the broker’s website, promenade-ltd.com offers its clients a wide range of trading instruments, including:
1. Currency Pairs (Currencies)
2. Commodities
3. Indices
4. Exchange-Traded Funds (ETFs)
5. Stocks
Trading Platform
The broker claims that their platform is the only one in the world for trading on global stock markets and is award-winning, yet specific awards are not mentioned. Such information should be documented and confirmed to increase client trust in the broker, which Promenade LTD has not done.
All the information provided on the broker’s website is a compilation of false data and low-quality content. The offered advantages of the trading platform, such as a wide range of instruments, instant order execution, and promises of an intuitive interface, are nothing more than a marketing gimmick.
Account Types
The offered account types on the broker’s website are as follows:
1. Classic:
– Minimum Deposit: $500
– No commission per lot
– Variable spreads
– Micro Lot Trading (0.01)
– Trading Instruments: Forex
– Basic Trading Signals
2. Silver:
– From $5000
– No commission per lot
– Variable spreads
– Micro Lot Trading (0.01)
– Trading Instruments: Forex, Commodities
– Standard Trading Signals
3. Gold:
– From $10,000
– No commission per lot
– Variable spreads
– Bonus from 20%
– Micro Lot Trading (0.01)
– Trading Instruments: Forex, Commodities, Stocks
– Full Trading Signals
4. Diamond:
– From $25,000
– No commission per lot
– Variable spreads
– Bonus from 30%
– All Trading Instruments
– Micro Lot Trading (0.00)
– Full + Inside Trading Signals
Bonus System
Please note that for Gold and Diamond accounts, the broker offers a bonus of 20% and 30% respectively. The bonus system offered by Promenade LTD is a red flag in the world of brokers. Bonus systems with scam brokers are designed to encourage clients to invest larger sums (in the case of these two accounts – $10,000 or $25,000). Thus, the high percentage here is just a lure for naive clients.
Promenade LTD Pros & Cons
In essence, there are no real pros because Promenade LTD is essentially a scam project.
However, when it comes to shortcomings, it’s quite straightforward as the entire Promenade LTD project is just one continuous flaw:
1. The broker lacks a license from a reliable financial regulator.
2. Information about the company, its regulatory body, and its operational history is questionable and lacks credible sources.
3. Offering bonuses to entice naive clients.
4. Unclear mechanisms for protecting client funds and compensating in the event of the broker’s bankruptcy.
5. The website suffers from poor design and functionality.
6. Lack of transparency: The broker doesn’t provide sufficient information about its services, trading terms, and fees.
7. The broker’s claims of awards remain unverified by independent sources.
8. Floating spreads, high deposit requirements, and ambiguous trading conditions.
Conclusion on Promenade LTD
In conclusion, Promenade LTD presents a significant risk to potential investors. The broker operates without a credible license, its website is full of misleading information, and its promises of financial security and rewards are highly doubtful.
With a lack of transparency, questionable practices, and a short history, it’s evident that Promenade LTD is not a trustworthy broker. Clients who invest with Promenade LTD are at risk of losing their funds without any recourse, making it imperative to avoid this broker altogether.
