Tradera is a trading platform that offers forex trading services. It is a popular platform among traders due to its user-friendly interface and the ability to trade in multiple markets. However, in recent times, there have been concerns about the platform and its operations. In this article, we will explore what happened to Tradera forex trading.
Tradera was founded in 2019 by Kody Sell and Eastan Harris. The platform offers forex trading services, education, and networking opportunities for traders. The company operates on a multi-level marketing (MLM) model, which means that traders can earn commissions for recruiting new members. The MLM model has been a source of controversy for the platform, with some people accusing it of being a pyramid scheme.
In August 2020, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Tradera and its founders. The CFTC alleged that Tradera was operating as an unregistered commodity pool operator and commodity trading advisor. The commission also accused the platform of making false and misleading statements to investors.
The CFTC’s lawsuit was a significant blow to Tradera, as it threatened to shut down the platform. However, the company denied the allegations and stated that it was working with legal counsel to resolve the issue. The founders of Tradera also released a video statement, reassuring members that the platform was still operational and that they were working on a solution.
In January 2021, Tradera announced that it had reached a settlement with the CFTC. As part of the settlement, Tradera agreed to pay a fine of $1.1 million and to register with the CFTC as a commodity pool operator and commodity trading advisor. The company also agreed to stop making false and misleading statements to investors.
The settlement was a significant victory for the CFTC, as it sent a message to other forex trading platforms that they must comply with US regulations. However, it was also a relief for Tradera members, who were concerned about the future of the platform. The settlement meant that Tradera could continue to operate, albeit under stricter regulations.
In conclusion, what happened to Tradera forex trading was a legal battle with the CFTC, which accused the platform of operating as an unregistered commodity pool operator and commodity trading advisor. The lawsuit threatened to shut down the platform, but Tradera was able to reach a settlement with the CFTC, which allowed it to continue operating under stricter regulations. The incident served as a reminder that forex trading platforms must comply with US regulations to avoid legal action.
