Is neotrades a Scam?

At FXCanary, we don't take a broker's marketing at face value. Our investigative process cross-checks regulatory licences against official registers, scrutinises user reviews from multiple platforms, and weighs aggregated industry data to produce a Scam Risk Score that reflects the real likelihood of a trader losing funds or being denied withdrawals. For Neotrades, our research yields a score of 53 out of 100, which falls firmly in the Elevated risk category.

This score is built on a combination of weak regulatory oversight, an opaque corporate structure, and a troubling pattern of user complaints that centre on frozen withdrawals and aggressive sales practices. In this deep-dive, we unpack exactly what makes Neotrades a broker that should give any retail trader pause.

Neotrades presents itself as a CySEC-regulated broker, pointing to licence number 204/13. That licence does exist in the Cypriot register and belongs to a Market Making entity. However, the corporate entity that retail clients actually contract with is Neotrades Capital Ltd., a company registered in Mauritius at 1ST Floor River Court, 6th St Denis Street, Port Louis. Our search of the Mauritius Financial Services Commission (FSC) register found no licence for Neotrades Capital Ltd. to offer securities dealing or any other financial service.

This distinction is critical: a CySEC licence only protects clients of the licensed Cypriot company, not those of a separate Mauritian shell. Furthermore, the structured data supplied to industry databases lists the company's employee count as zero — a figure that is improbable for a supposedly operating brokerage and raises further doubt about whether any real substance exists behind the registration. The broker's own timeline also contradicts itself: its website claims establishment in 2010, yet corporate records show a foundation date of 14 June 2022. Such discrepancies are common among operations that use shelf companies to project an image of longevity and legitimacy.

A legitimate CySEC-regulated broker must segregate client funds from its own operating capital, offers negative-balance protection to retail clients, and is a member of the Investor Compensation Fund (ICF) which covers up to €20,000 per client in case of insolvency. But these protections apply only if your account is held directly with the CySEC-licensed entity. The available information suggests that Neotrades Capital Ltd. is the counterparty for most traders, and as a Mauritian entity lacking an FSC licence, it is not bound by any of these safeguards.

There is no guarantee that client money is held in segregated accounts, no statutory insurance, and no automatic protection against owing more than you deposit. In practice, this means that if the broker encounters financial trouble or simply decides to stop honouring withdrawal requests, clients have no clear regulatory path to recover their funds. The absence of these basic protections is a fundamental reason for our Elevated risk rating.

Of all the alarm bells ringing around Neotrades, the loudest is the chorus of withdrawal complaints. Across review platforms, we counted 18 separate withdrawal-related grievances, with many users painting a remarkably consistent picture. One user from Dubai reported that their funds were stuck and the office number provided was non-functional, while agents calling from Bahrain could not be reached in return. Another trader described being stonewalled on profits from Japanese stock trades, with the broker invoking vague 'trading abuse' clauses to deny the payout.

Most disturbingly, multiple reviews allege that the broker demanded additional 'fees' — sometimes thousands of dollars — to unlock promised withdrawals, a classic advance-fee fraud pattern. Even when users managed to get a response, the process was often adversarial. One reviewer noted, 'They kept changing their fee and eventually after I’d paid the full $2500 they refused to pay me my withdrawal of $21000 saying I had to pay another $500 company fee.' While a handful of positive comments mention fast withdrawals, these are drowned out by the volume and specificity of the negative reports. In our assessment, the withdrawal experience at Neotrades is far too risky to ignore.

The scam accusations are not subtle. Nine out of the ten user mentions we analysed under 'Scam concerns' were negative, with terms like 'scam company', 'cheaters', and 'massive scam' appearing repeatedly. One trader detailed how a 'risk-free' promotional offer — deposit $2,500 and one trade would be reimbursed if it lost — was not honoured, leaving them with a $1,000 loss and no recourse.

Beyond the direct fraud claims, several reviews highlight aggressive upselling. Users report being pressured to deposit more money before any withdrawal could be processed, and phone agents who were 'rude and arrogant'. The broker's failure to provide a working office number in the UAE, combined with a remote relationship manager operating from Bahrain, creates an atmosphere of evasiveness. These are not isolated incidents; they form a pattern of behavior that is consistent with operations that prioritise extracting deposits over delivering a fair trading environment.

It would be incomplete to paint Neotrades as entirely negative without acknowledging the small contingent of positive reviews. Some users have praised the MetaTrader 5 integration, the variety of account types, and the availability of copy trading. A few traders said they found the customer support helpful and even educational. However, in our experience, a broker that is genuinely safe does not generate a near-equal number of one-star and five-star ratings — such polarisation often indicates review manipulation, where glowing reports are planted to offset genuine complaints.

Moreover, positive platform functionality is meaningless if you cannot withdraw your profits. A smooth trading app and responsive support during the deposit phase are easy for any broker to provide; the true test is whether they let money leave when you want it to. On that score, the evidence is overwhelmingly negative.

Taking all findings together, Neotrades exhibits several classic warning signs of a broker that cannot be trusted to safeguard client money. The regulatory structure is a maze: a Cypriot licence that appears to have no relevance to the Mauritian company actually onboarding clients, no meaningful oversight in its home jurisdiction, and an opaque team with zero listed employees. When coupled with the flood of withdrawal-denial complaints and outright scam allegations from users across multiple territories, the picture becomes clear.

Our Scam Risk Score of 53 out of 100 reflects an elevated danger level. While we stop short of calling it an outright scam, we believe that entrusting money to Neotrades carries an unacceptably high chance of loss through non-trading events. Traders seeking a secure home for their capital should look elsewhere.

If you already have an account with Neotrades, your immediate priority should be to withdraw any remaining balance. Be prepared for delays and resistance; document every communication, including emails, chat logs, and screenshots of your account. Under no circumstances pay additional 'fees' or 'taxes' to release your funds — this is a recognised scam tactic and you will likely never see that money again.

If your withdrawal is refused, consider contacting your bank or card provider to initiate a chargeback, citing non-receipt of services. You should also file complaints with the consumer protection authority in your country and with the Mauritius FSC, even if Neotrades is not licensed there, as this helps build a record of misconduct. Finally, stay vigilant: the risk of clone sites or impersonators, while not yet reported in industry databases, is always present. Only ever use official domains that you have verified personally, and never give remote access to your device to anyone claiming to be from the broker.