RH Trade Company Overview:
RH Trade's official website publicly states that the broker's registered entity is RH Trade Ltd, claiming its headquarters to be in Tulsa, Oklahoma. RH Trade provides retail and commercial banking services in the central, western, and southwestern regions of the United States, ranking among the top 50 largest financial services companies in the country and the largest in the state of Oklahoma. The broker asserts that, in recent years, it has raised over $3 billion by supporting various significant projects and currently manages assets exceeding $4 billion for government and corporate entities. Additionally, as of November 15, 2023, the official domain registration for the broker is less than two months.
Is RH Trade Compliant and Legal? Does It Hold the Appropriate Financial Regulatory Licenses?
RH Trade states on its official website's company introduction section that the broker is regulated by the Financial Crimes Enforcement Network (FinCEN) in the United States, with an MSB regulatory number of 31000255363121.
However, upon verification by TraderKnows, it was found that RH Trade is only a non-member of the National Futures Association (NFA) and not subject to NFA regulation. FinCEN is an organization that supervises anti-money laundering activities, but it does not provide regulatory oversight for the financial derivatives trading conducted by RH Trade. Therefore, RH Trade appears to be leveraging investors' limited knowledge of regulatory agencies for false advertising and illegal operations.
RH Trade, along with Varna Trade, Kaerm IM, HCapitalForex, Arlington Asset Investment Corp Ltd, Huigu Limited, and several other broker websites, exhibits a highly similar design, suggesting they may be mass-produced using the same template. Moreover, they are registered with FinCEN and the NFA to potentially confuse and mislead investors.
Trading Instruments Provided by RH Trade:
According to RH Trade's official website, the broker primarily offers contracts for difference (CFD) trading services, including forex, stocks, indices, commodities, energy, and precious metals.
Trading Software Offered by RH Trade:
RH Trade only provides users with a proprietary web-based trading platform, characterized by highly opaque rules. Users may be susceptible to artificial price manipulation, slippage, and high transaction fees. The broker can potentially engage in irregular practices such as market manipulation, controlling market conditions, and enforcing forced liquidations through this software.
Fund Security at RH Trade:
RH Trade has not disclosed any third-party fund regulatory information on its official website, and users' fund security cannot be guaranteed.
Deposit and Withdrawal Channels at RH Trade:
RH Trade has not disclosed any information regarding users' deposit and withdrawal channels on its official website, making it impossible to know how users can deposit and withdraw funds.
Leverage Ratio:
The leverage ratio published by the broker is 1:100-1:500, while generally compliant brokers have leverage ratios ranging from 1:10-1:100.
Conclusion:
RH Trade is a forex broker conducting illegal financial operations by using false regulatory information. The broker has not disclosed any critical information regarding users' fund security, deposit and withdrawal channels, etc. Currently, the broker is labeled as "SCAM" on TraderKnows. We remind you that RH Trade is a highly risky forex broker, and it is advisable to stay away from this platform to prevent personal financial losses.
