Promenade LTD broker review: risks and problems

Site Creation Date 

According to WHOIS data, the domain promenade-ltd.com was created on February 19, 2024. This means that the site was launched relatively recently. Therefore, the broker has been operating for less than a year.

A broker whose website was created just a few months ago poses serious risks to clients. Firstly, a short period of existence of a website may indicate insufficient experience and reliability of the company. New companies, especially in the financial sector, may have weaknesses in their security systems and risk management.

In addition, when a company has not been in operation long enough, there is no way to assess its reputation and reliability. This means that customers may encounter unexpected problems such as delays in withdrawals, customer service issues, or even losing money due to company instability.

Therefore, clients considering a short term broker should be extremely careful and research the company carefully before investing.

Regulation and Security

License 

The broker’s website states that promenade-ltd.com is licensed and regulated by GOV.UK with a Category 3 investment services license, which raises serious doubts and is a very likely case of misinformation. And here’s why:

1. GOV.UK: GOV.UK is a web portal that provides information about UK government services and programs. However, GOV.UK is not a financial services regulator. Financial regulation in the UK is carried out by the Financial Conduct Authority (FCA), and not through GOV.UK.

2. Category 3 Investment Services License: There is no category 3 license in FCA regulatory system. Instead, FCA uses different categories and types of licenses for different types of activities. For example, there are licenses for investment banks, brokers, dealers, etc., but they are not simply classified as «Category 3».

Thus, listing GOV.UK as a Category 3 license appears to be an attempt to create a false impression of regulation and oversight of the company, which may be used to attract customers, but does not actually reflect the reality of the situation.

Investor Compensation Scheme (ICS) 

The information that promenade-ltd.com is participating in the Malta Investor Compensation Scheme appears to be an attempt to reassure customers that their funds are protected in the event of a company failure. However, there are several nuances:

1. Limited amount of compensation: Compensation is 90% of the investment amount, but not more than €20,000. For some investors, this may not be enough to fully recover their losses, especially if they have large investments.

2. Process of receiving compensation: The process of obtaining compensation can be lengthy and not always guaranteed. In addition, compensation is only paid if the company goes bankrupt, which may be too late for some clients.

Negative Balance Protection

Broker promenade-ltd.com claims to provide clients with negative balance protection at their own expense, which sounds reassuring to traders. However, it is unclear exactly what situations are covered by this protection and whether limitations or exceptions may arise. Such protection is subject to Company’s own policies and may change at any time without notice.

Trading Instruments

Based on the information provided on the broker’s website, promenade-ltd.com offers its clients a wide range of trading instruments, including:

• Currency pairs
• Commodities
• Indices
• ETF (Exchange-Traded Funds)
• Stocks

We would like to note that the design of the site leaves much to be desired. It must be admitted that the site is poorly designed: there are shortcomings in the structure, design and user interface. If a broker is unable to allocate sufficient funds to create a quality website, then questions arise regarding the ability to provide negative balance protection or promised payments. Such investment guarantees seem dubious when the resource itself is unprofessional.

Trading Platform

The broker claims that their platform is the only one in the world for trading on global stock markets and is also an award-winning one, although specific awards are not specified. Such information should be documented and verified to increase clients’ trust in the broker, which Promenade LTD did not do. 

All information provided on the broker’s website is a collection of false data and low-quality content. The proposed benefits of the trading platform, such as a wide selection of instruments, instant order execution and promises of an intuitive interface, are nothing more than a marketing ploy. 

Account types 

The proposed account types on the broker’s website are as follows:

1. Classic:

   — Minimum deposit: $500

   — No commission per lot

   — Floating spreads

   — Trading micro lots (0.01)

   — Trading instruments: Forex

   — Basic trading signals

2. Silver:

   — From $5,000

   — No commission per lot

   — Floating spreads

   — Trading micro lots (0.01)

   — Trading instruments: Forex, Commodities

   — Standard trading signals

3. Gold:

   — From $10,000

   — No commission per lot

   — Floating spreads

   — Bonus from 20%

   — Trading micro lots (0.01)

   — Trading instruments: Forex, Commodities, Stocks

   — Complete trading signals

4. Diamond:

   — From $25,000

   — No commission per lot

   — Floating spreads

   — Bonus from 30%

   — All trading instruments

   — Micro lot trading (0.00)

   — Full + Internal trading signals

Bonus system

Please note that for Gold and Diamond accounts the broker offers a bonus of 20% and 30%. The bonus system offered by Promenade LTD is a red flag in the world of brokers. The bonus system of scam brokers is aimed at encouraging the client to invest a large amount (in the case of these two accounts — $10,000 or $25,000). So a large percentage here is just bait for a naive client. 

Advantages and Disadvantages

There are basically no advantages, because Promenade LTD is a scam project.

But with the shortcomings everything is simpler, since the Promenade LTD project itself is one continuous flaw:

1. The broker is not licensed by a reliable financial regulator.

2. Information about the company, its regulator and work history is dubious and not confirmed by reliable sources.

3. Bonuses to attract naive clients.

4. Unclear mechanisms for protecting client funds and compensation in the event of broker bankruptcy.

5. Poor design and functionality of the web platform.

6. Lack of Transparency: The broker does not provide enough information about its services, trading conditions and commissions.

7. Claims about broker awards have not been confirmed by independent resources.

8. Floating spreads, high deposit requirements and unclear trading conditions.

Summary

Promenade LTD is a typical representative of scam projects in the trading industry. The broker does not have a license from a reputable financial regulator, and the information he provides about the company is not confirmed by reliable sources. Bonus offers, insufficient funds protection and unclear trading conditions only highlight the risky nature of cooperation with this broker. Given numerous negative reviews and complaints about fraudulent practices, clients are advised to avoid dealing with Promenade LTD and turn to more reliable and regulated brokers to protect their investments. When investing with Promenade LTD, you risk being left without your investments and the ability to return them.