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RedStarChain Review | A Worldwide Broker or a Blatant SCAM?

by Kevin Berry
Rating: 
  1.2/5   Reviews: 2
RedStarChain Logotype

RedStarChain boasts 300,000 clients worldwide and over 1.2 billion processed trades. Whether to believe this or not is up to you. Meanwhile, the company lists an office address in Northern Ireland but lacks any licenses, which is a significant indicator of a scam. The firm also introduced some members of its management team on the homepage of its website. Reviews online are scarce, and those that can be read on the site are unlikely to be genuine. So, let’s figure out what this platform is and how safe it is.

Highlights

🏛️ Country Northern Ireland, St Vincent and Grenadines
⚠️ Regulation
🖥️ Website https://www.redstarchain.com/
🎲 Demo Account No
⏳ Start Time 2023
💲 Minimum Deposit $100
⚖️ Minimum and Maximum Leverage 1:400
⚙️ Trading Platform RSCtrader
📨 E-mail support@redstarchain.net
📞 Phone +442038661544

First Impression of Redstarchain.com

The official RedStarChain website is presented in two languages: English and French. However, the quality of the design cannot be called good. The site features pictures of people taken from the internet, and motivational offers written to prompt the user to open a brokerage account and deposit funds as soon as possible.

The firm shares some statistics of its activity, but absolutely without any verifications. Trusting bare numbers is not recommended. Anything can be written on the internet. RedStarChain also spoke about themselves, but without specifics regarding licenses and founding dates, partially opened trading conditions, and even presented two legal documents: deposit/withdrawal policy and privacy policy. For some reason, they call the user agreement a deposit/withdrawal policy, so at first glance, it might seem that there is no such document.

RedStarChain - website

Much information is simply repeated, so it may seem that the company discloses all conditions and facts from its activity, but this is far from the case. Overall, we cannot give a satisfactory rating to such a resource. Moreover, RedStarChain has made mistakes and typos, which looks very funny. For example, the screenshot below shows a step-by-step instruction on how to start cooperating with the organization, but the developers apparently did not even read what they were doing, as all three steps are the same.

Partnership and Bonuses

RedStarChain offers both an affiliate program and bonuses. However, it does not disclose precise information regarding the conditions of these opportunities, requiring a turnover 25 times the size of the bonus. The firm only mentions bonuses as non-deposit funds, and the referral code during registration hints at an affiliate program.

Account Opening on Redstarchain.com

Next, we’ll attempt to register an account, as this is necessary for a more detailed acquaintance with the broker. In general, RedStarChain offers a simple registration procedure, which is no different from other companies.

You need to provide your name, contact details, address, and the currency of the account. You also need to tick the box agreeing that you are over 18 years old.

RedStarChain - registration

However, it’s unlikely that we will get to know RedStarChain more closely because the broker does not allow registering an account. After clicking the green “Register” button, an error occurs – 505 SERVER ERROR.

It’s also impossible to try and evaluate the interface and capabilities of the platform using a demo account. For unknown reasons, RedStarChain does not offer this necessary option.

Verification

Apparently, the identity verification procedure is not required at RedStarChain. At least, it is not mandatory. For example, clients can withdraw funds without KYC, but then they have to pay a 10% commission on the entire amount.

To undergo verification, you need to provide a package of several documents:

  • Proof of identity.
  • Proof of residency.
  • Photo/scan of the bank card.
  • Deposit declaration.
Pros
  • None.
Cons
  • The firm requires a lot of documents for KYC.

Trading Software

The broker calls its terminal RSCtrader, although based on screenshots, it is known software called cTrader, but we cannot assert this for sure as we were unable to register an account. So we have to rely on what RedStarChain tells about the platform on its website. And often, brokerage firms exaggerate the capabilities and functions of their terminals.

The platform supports all types of orders, rapid execution, smart stop-out, and market research tools. RedStarChain also mentions that their terminal works not only in the browser but also on mobile devices, and the program can be downloaded to a computer. However, we haven’t seen any links. Perhaps they are available to registered users.

Features RedStarChain DukeMarkets ForexLive
Demo Account ✔️
Mobile App ✔️ ✔️
Own Development

How Can I Trade With RedStarChain?

Clients are offered only CFDs with leverage of 1:400. Among the market classes available are forex, metals, indices, stocks, commodities, and cryptocurrencies. Next, we will examine the types of accounts at RedStarChain to understand how profitable it is to trade here.

All Info About Accounts

Customers have a choice between six types of accounts. The minimum deposit for the first tariff is $2,000, although on the homepage of the website, we can see different information – $100. So, where is the truth? From what amount can traders start working?

Here is a description of the tariff plans at RedStarChain:

  • Beginner. From $2,000. The tariff includes one-click trading, basic currency USD or EUR, daily market observations and analysis, and no additional processing costs.
  • Standard. Absolutely no different from “Beginner”, but starts with a deposit of $4,500. And what’s the point of such an account type?
  • Intermediate. Not less than $18,500. Similarly, according to the description, traders do not receive anything new.
  • Advanced. From $45,000. Here new options are added: SMS & push updates for key markets, and only-available market information.
  • Integral. The minimum deposit is $100,000. Tools and resources for education (why are they here if they are needed more by beginners), complete accessibility to buying tools, administration of personal accounts, and coverage of financial sectors.

RedStarChain does not disclose details about additional services, so it’s hard to understand what they entail. For example, what is “coverage of financial sectors”? And why do traders need it?

RedStarChain - account types

In several places on the official website, the broker claims zero commissions. This raises the question – how does the intermediary earn? Possibly on spreads, but they are not specified; we don’t even know if they are tight or wide. So, there is no doubt that RedStarChain operates as a dealing desk, profiting only in the event of clients’ losses.

A leverage of 1:400 signals a lack of regulation, as financial commissions prohibit offering such high leverages. Spreads are not specified, there is no demo, conflicting information regarding the minimum deposit, and many other drawbacks. It seems RedStarChain does not fit the definition of a profitable and comfortable brokerage platform.

Pros
  • Not found.
Cons
  • Contradictory information regarding the initial deposit.
  • The business model is 100% B-Book.
  • Spreads are not specified.

Market Analysis and Education With Redstarchain.com

Additional widgets, although not an important or necessary tool, can still benefit clients. On the homepage of the RedStarChain website, sections with an economic calendar, news, and contract expiration are placed. It’s just not entirely clear how to access these widgets to use them.

Deposit, Withdrawal, and Fees

The firm allows transferring funds using electronic wallets, credit/debit cards, and bank wire transfers. This is stated in the user agreement. There is no commission for depositing, but withdrawing funds will cost from $25 depending on the method. It’s also worth reminding that in the absence of verification, a fee of 10% of the withdrawal amount is charged, as well as the same commission for those who did not complete a trading turnover exceeding the deposit size by 200 times. Such conditions can hardly be called favorable.

Features RedStarChain LiquidChart TheFinancialCentre
Debit/Credit Cards ✔️ ✔️ ✔️
Electronic Payments ✔️ ✔️
Crypto Transfers ✔️
Deposit Fee
Withdrawal Fee ✔️

How Can I Contact It?

To contact the managers, RedStarChain provided a phone number and an email address. There is no point in writing the email because it is fake, so there will be no response.

We also decided to check the office address to see if this firm is really located there. Google gave us Northern Ireland, and here’s what we found by opening maps with photographs.

It doesn’t look like an office building. It’s more like a quiet residential area somewhere on the outskirts of the city. We highly doubt that the headquarters of RedStarChain is located here.

Pros
  • None.
Cons
  • Fake contacts.

Is RedStarChain Dangerous?

Based on the trading conditions and contact details, as well as the low-quality website where registration is not possible, we can already guess what this platform really is. Nothing good. However, let’s try to find out how long the firm has been in the brokerage service market and what its situation with licenses is.

How Long Does The Broker Work?

The foundation date is not specified on the website, but the user agreement mentions the year 2016, though it’s doubtful the company existed then. It can be guessed that the document was simply copied from somewhere. The official website’s domain was only registered in December 2023, and without a website, no online broker can operate. Moreover, there are few reviews about RedStarChain on the internet, so everything adds up – the organization has been operating for a few months.

How Is RedStarChain Regulated?

The specified office address led us to Northern Ireland, which is part of the United Kingdom, meaning all brokerage companies must be regulated by the Financial Conduct Authority. However, checking the registry showed that RedStarChain is absent there.

Next, there is also mention of the jurisdiction of Saint Vincent and the Grenadines. Maybe the firm is actually registered in that country? Unfortunately, RedStarChain is also absent.

We even checked the registry of legal entities in the United Kingdom, but found nothing. The conclusion is very simple and clear – it is unknown where the broker is registered, but it is obvious that it lacks regulation. Most likely, RedStarChain is not registered anywhere.

Features RedStarChain Savoy Investment Group Buy Crypto Market
European Zone
Asian Zone
American Zone
African Zone
Offshore

Frequently Asked Questions (FAQ)

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Expert Opinion

Their office address is absurd, as revealed by Google. It’s also funny how their management team, which can be seen on the homepage of the website, looks. Scammers downloaded photos of people from the internet, made up names for them, and displayed them on their site. A typical fraudulent trick. In reality, RedStarChain cannot boast of any positive facts. Guarantees of reliability and safety are simply absent. However, the firm has many red flags: fake contacts and address, absence of a license, fresh domain, a small number of online reviews, a conflict of interest as the business model is 100% B-Book, and terrible trading conditions. In short, 100% scam.

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The level of trust
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Efficiency of technical support

2 reviews about RedStarChain

Exalt February 23, 2024 - 07:34
More of a negative opinion than a positive one
The level of trust
Quick withdrawal of funds
Efficiency of technical support

Honestly, it’s a very unfavorable broker. And what kind of name is that? As if it’s some cryptocurrency project, not a brokerage organization. Trying to get in touch with them, so far without results. I want to find out about the licenses and legal documents, as there’s nothing on the website.
I advise not to risk large amounts of money, and it’s better to find a more verified intermediary. This one looks extremely suspicious. A high probability that it’s indeed a scam and fake.

Reply
Solyana February 26, 2024 - 09:12
Stay out of this fraud
The level of trust
Quick withdrawal of funds
Efficiency of technical support

Don’t get into this black hole! You’ll just lose all your funds. They are scoundrels, initially luring in trusting people by telling fakes, and then they don’t allow you to withdraw money. They call on the phone, write everywhere, spam, and look for victims. I know people who trusted these scammers. What do you think happened to them? They all lost money. Some lost $3,000, others $5,000, even up to $20,000. In short, RedStarChain is another scam, be careful. It’s unclear exactly how they lure people into their trap, but stay away and don’t talk to the criminals.

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