Welcome to the F1 Trade review.
The company behind F1trade.com is known as F1Trade Ltd.
F1Trade ltd is incorporated in the St. Vincent and the Grenadines, a lawless cove in the Caribbean that is infamous for hosting numerous Forex and investment scams.
In fact, the fine print appearing at the footer of this website states very clearly that F1 Trade is not required to have any authorization or financial services license.
In the US, trading CFDs with unlicensed brokers is considered a felony and is usually a big risk to traders and brokers who provide such services.
Does F1 Trade have visitors or customers coming from the United States of America?
Yes of course.
Does this constitute a felony as per the laws of the US? That seems to be the case.
Therefore, if you’re learning about CFDs for the first time, the following piece of information will be helpful:
CFD or Contract for Difference lets traders go long or short based on their agreement with the broker.
Orders are not routed to the market and the trading conditions provided by the broker are basically a replica of what is happening in the real market.
So if the trader’s position closes in profit, the broker pays the trader. If it results in a loss, the broker takes away the trader’s money.
In other words, a CFDs broker must create a situation where there’s conflict of interest in order to make his profit. Otherwise they’ll keep paying traders until the business goes bankrupt.
This is the exact business strategy of F1Trade.
Their website claims that the business is operated from Griffith Corporate Centre, P.O. Box 1510, Beachmont, Kingstown.
Although information about the owners of F1 Trade stock broker isn’t explicitly published, it appears as if this stock broker is run by Guy Gentiles and his ex-wife Karen Gentile.
When a stock broker admits that they are unlicensed, unregulated and uninsured, they are essentially saying that they’re going to steal your money.
F1 Trade Review
Let’s be honest.
F1 Trade is a securities fraud. Majority of people who are customers with this stock broker are potentially ex clients of Guy Gentiles who could have met him through the now defunct Sure Trader.
To confirm this suspicion, investors at Sure Trader have reaffirmed that their accounts were automatically switched from Sure trader (Speed Trader) to F1 Trade.
F1 Trade is managed and run by the same people who operate Sure Trader (speed trader).
In fact, F1Trade website mentions Sure Trader in many places.
The brand Sure Trader (which is now Speed trader) was closed down due to multiple securities violations. Just keep this in mind.
So what exactly is the appeal of this scam?
Well, Guy Gentile promises day traders a platform that enables them to trade at racing speeds, hence the name F1.
Trading fees start at $1 per trade. F1 Trade promises over 10,000 symbols which also includes stocks for Apple, Facebook and Amazon.
They claim to be the best stock broker around.
In addition to this Guy Gentiles promises zero routing fees. He can only afford to offer zero routing fees because the way CFDs work don’t require trades to be routed to the market.
Remember when I said CFDs is a contract between the broker and the trader, not trader and the market.
Minimum deposit is $500 and leverage can be up to 1:600. However, you should read the rules of margin trading with this stock broker very clearly.
Otherwise you’ll be surprised.
Here’s a recap of what F1Trade rules say about their margin trading conditions:
Margin Rules & Information
- Leverage is only applicable to accounts with equity exceeding $500.
- $100 account will be liquidated.
Margin Calls & Flags
Whole account balance or a portion may be liquidated. A $25 Margin Call fee applies if:
- Account exceeds 6:1 margin during intra-day trading (9:00am – 3:30pm) EST
- Account exceeds 2:1 margin beginning at 3:30pm EST.
- If you’re using margin to trade:
- OTC Markets
- Any stock below $3.00
- Sub-penny stock.
- Using magic with equity less than $500.
Pattern day traders are promised trading with freedom and without rules. In fact, F1 trade declares that they’re the best stock broker with no regulations or account minimum requirements.
Nevertheless, the rules above show that this broker is dishonest and unfair.
The stock broker offers desktop and mobile trading through the DAS platform. They even claim that F1 Trade can’t be a scam if it is bringing all these features to the trader.
F1 Trade review: More spectacular promises
The stock broker wants traders to know that their funds are held in segregated accounts.
Unfortunately, we know that this is a stupid lie.
Brokers who are regulated by some financial services watchdog are required to put their clients’ funds in segregated accounts.
However, if a broker like F1Trade is not regulated, it means they’re operating without any laws or rules and this is one of the rules they’ll definitely break.
They also claim that traders are personally insured up to the sum of $2,000,000.
This is yet another clever lie. If the stock broker was regulated, they would have made sure that this was the case.
Since they’re violating regulator’s requirement, don’t assume Guy Gentile will follow any of these rules.
Who is Guy Gentile of F1 Trade?
He’s been involved in several penny stock pump and dump schemes.
In fact, he is always being dragged to the courts because of one violation or the other.
As much as he would his followers to believe he is an investment guru, the fact of the matter is that this guy is a perennial pump and dump con man.
His previous two scams almost landed him behind bars in a Federal prison.
He was somehow able to fight his case with the FBI and so all his scammer friends ended up in prison except him.
After a short while, he appeared again with two other $$$ pump and dump scams. These are currently being investigated by the SEC.
At the same time, Guy Gentile is being sued by those he has scammed in his multi million pump and dump schemes.
The owner of F1 Trade has so far put up a shit show of multiple securities frauds and if he is truly connected with this CFDs scam, he will definitely be charged yet again.
At this juncture, we also need to remember that Guy Gentile of F1Trade is accepting funds from US investors and traders.
Offering CFDs in the US without a proper license is a crime.
Before I forget, F1 Trade even shares the same physical address with a scam broker called FX Finest.
And be reminded that if you are a customer of this stock broker and are living in the US, you’re committing a felony and so you should get your money out.
According to CFTC and the SEC, there’s still a chance to escape criminal or civil violations if you take advantage of this Whistle blowing program.
The CFTC and the SEC understand that there are many people who get caught up unknowingly in these network of scams.
Finally, as we conclude this F1 Trade review, I’d like to say there’s big money to be won as a Whistle blower.
Therefore, it’s just a matter of time before the F1trade scam gets shut down as a result of a regulatory action.
Thanks for reading the F1 Trade review.
Drop your comments below this review if you have something to say regarding this stock broker or Guy Gentiles for that matter.