Is plusonetrade.com a Scam?

Determining whether plusonetrade.com is an outright “scam” is a nuanced question, often depending on how one defines the term.

From a purely legalistic standpoint, if a company is registered and adheres to basic contractual obligations (even if the product is high-risk), it might not be legally classified as a scam.

However, from a practical and ethical consumer perspective, particularly within the context of Islamic finance, the offering is fraught with issues that often lead to significant financial loss for users, raising serious questions about its overall legitimacy and suitability.

Based on the information available from their homepage and standard practices in the CFD brokerage industry:

• Registered Entities: They list two registered entities: THE ONEPLUSTRADE LIMITED in the UK and PlusOneTrade Limited in St. Vincent & the Grenadines. While these registrations provide a legal basis for their existence, the UK registration is for a general company, not necessarily a regulated financial services provider. The St. Vincent & the Grenadines registration is often chosen by brokers specifically to operate under a less stringent regulatory framework than in major financial hubs.
• High-Risk Product (CFDs): Their core offering, Contracts for Difference (CFDs), are inherently high-risk, leveraged products. The website itself carries a “RISK WARNING: Trading Contracts for Difference (CFDs) and other leveraged products carries significant risk. You could lose your entire investment.” This is a standard and legally required disclosure for such products, indicating they are transparent about the potential for loss. However, the high probability of losing money with these products (studies show a significant majority of retail CFD traders lose money) often leads users to feel “scammed,” even if the broker technically fulfilled their side of the trade.
• Common Brokerage Model: The business model of offering CFDs, using deposit bonuses, and claiming global reach with offshore registrations is extremely common within the retail trading industry. Many such brokers operate legitimately within their chosen regulatory frameworks, even if those frameworks offer less protection to clients than those in tier-1 jurisdictions.

Therefore, while plusonetrade.com may not be a fraudulent scam in the sense of stealing deposits outright (though this would require a deeper investigation into their withdrawal processes and client fund segregation), its business model is built around a product (CFDs) that is ethically problematic in Islam and statistically very likely to result in losses for the average retail investor.

The allure of “boosting investments” through bonuses often draws in inexperienced traders who are ill-equipped to handle the amplified risks of leveraged trading.

From an Islamic ethical perspective, engaging in such high-risk, speculative activities that involve Riba, Gharar, and Maysir is best avoided, regardless of whether the platform itself is legally a “scam.”

Understanding the Regulatory Landscape

• UK Company House Registration: While plusonetrade.com states “THE ONEPLUSTRADE LIMITED – Officially registered in the United Kingdom under Company Number 16274124,” this is a registration with Companies House, which merely registers a company’s legal existence. It does not grant permission to conduct regulated financial activities like offering CFDs to UK residents. For that, specific authorization from the Financial Conduct Authority (FCA) is required. Without FCA authorization, offering these services to UK residents would be illegal. It’s common for offshore brokers to register a UK company purely for administrative purposes while serving clients from other regions.
• St. Vincent & the Grenadines FSA License: Their “International Business Company (IBC) under the Financial Services Authority (FSA) of St. Vincent & the Grenadines, holding License Number LLC 3084” is another common setup. The FSA in St. Vincent & the Grenadines primarily registers companies and supervises general corporate compliance, not financial services directly. They state on their own website that they “do not issue any licenses for Forex Trading or Brokerage,” nor do they “regulate, monitor, supervise or license international business companies (IBCs) which engage in Forex Trading.” This means that while PlusOneTrade might be legally incorporated there, the FSA is not providing oversight for their trading activities. This is a significant regulatory gap.
• Implications of Offshore Regulation: Operating under a lax regulatory regime (or one that doesn’t actually regulate forex brokers, as in SVG) means significantly less client protection. There are often no compensation schemes in case of insolvency, limited dispute resolution mechanisms, and generally less stringent operational requirements compared to jurisdictions like the UK, Australia, or Cyprus.

The Role of High Leverage in Perceived Scams

High leverage, while advertised as a benefit, is often the primary reason retail traders lose money rapidly, leading to accusations of a “scam.”

• Amplified Losses: With leverage, a small market move against a trader’s position can wipe out their entire account. For example, with 1:500 leverage, a mere 0.2% price drop in the underlying asset can liquidate a position if no stop-loss is used or if it’s placed too far away.
• Margin Calls: When losses eat into the initial margin, brokers issue margin calls, requiring more funds. If not met, positions are automatically closed, often at a loss. This rapid depletion of funds contributes to the feeling of being “scammed.”
• No Real Asset Ownership: Since CFDs don’t involve owning the asset, the trader has no claim to the physical commodity, currency, or stock. This abstraction means the “investment” is purely speculative.

Why Accusations of Scams Arise

Even if a broker operates legally, clients often feel scammed due to:

• Lack of Understanding: Many retail traders do not fully comprehend the complexities of leveraged CFD trading, the true implications of margin, or the high statistical probability of loss.
• Aggressive Marketing: Deposit bonuses and promises of easy profits can create unrealistic expectations.
• Withdrawal Issues: While not evident on their homepage, many offshore or less-regulated brokers are subject to complaints regarding delayed or denied withdrawals, which are definitive signs of a scam. Without more user reviews, it’s impossible to confirm this for PlusOneTrade.
• Conflict of Interest: Some brokers operate a “dealing desk” model where they act as the counterparty to client trades. If a client loses, the broker profits. While not always a scam, it creates a conflict of interest.

In conclusion, while PlusOneTrade itself might not be running an overt scam where they simply take your money and vanish (though this remains a possibility for any unregulated or poorly regulated entity), the inherent nature of the product they offer (CFDs) combined with their choice of a non-regulatory jurisdiction (St.

Vincent & the Grenadines for their main operational entity) creates a high-risk environment.

For those seeking ethical and stable investments, PlusOneTrade’s offerings are fundamentally unsuitable. How to Get Started with espn.com