Tradenet Review (Meir Barak)
|April 29th, 2015, 01:27 AM||#1 (permalink)|
Futures Experience: Intermediate
Platform: scottrade elite
Favorite Futures: stocks
Posts: 1 since Apr 2015
Thanks: 0 given, 1 received
Tradenet Review (Meir Barak)
I'm writing this review because I feel it is my duty to educate new traders about how Tradenet operates, to expose the inherent conflict of interest between Tradenet and the people trading with them and, if possible, save others from losing thousands of dollars in the process.
I was looking for a new prop firm to sign up with, and came across Meir Barak's Youtube channel. I liked his strategy and what he was offering enough that I decided to join his firm, Tradenet. I signed up for the $3500 plan, and with that I got $40,000 buying power, $4000 max drawdown, free chatroom, 80/20 profit split, $0.01/share with a minimum $1.50 ticket charge, and 3 months free platform ($95/month after). The only thing that bothered me was that I wouldn't get my deposit back, and they wanted me to make $2000 in profit before I could make a withdrawal, but I didn't let it bother me too much as knew that I could make that relatively quickly. Plus, I figured that since they're willing to invest $500 of their own capital in me, it would be in their best interest for me to succeed. This was before I found out exactly how CFD trading works.
So I opened my account, started trading, hit my $2000 profit target, and put in a withdrawal request. Later that day I got a phone call from my account manager stating that I have to make the same amount I deposited ($3500) in addition to another $2500 in profit to cover the profit split, which was a total of $10,000 in my account, before I could make any withdrawals. Obviously I objected to this and stated how absurd it was. I also brought up the fact that I never signed any document/contract stating the above and they shouldn't be able to implement policies that I never agreed to. They reasoned that because I was trading "their" capital, they wanted to ensure I had enough profit cushion before I was allowed to make a withdrawal. The account manager said to keep trading and insisted I'd get there in no time.
So I kept trading, profiting, and got to that $10,000 point. That was when I put in another withdrawal request. I got another phone call from my account manager this time trying to sell me an upgrade to their $10,000 plan. I refused to upgrade, as I would've never gotten that $10,000 deposit back, I would have to double my account plus an additional $2500, and most importantly, I have a house and a family to support, so I insisted that they pay me my profits. The next day, my account was deactivated and I never received a dime of my profits, so I called the phone number they had listed for their U.S. traders and it didn't work! I sent them an email about my account and my profits. A Tradenet rep finally called me back from a number originating from Cypress and told me that I was no longer going to be trading with them because my trading strategy wasn't a good fit for their firm. And because the deposit I made was for their "education" and because I was trading "their" capital, they could get away with it. I guess they don't believe in Karma.
I decided to do some additional research into Tradenet and found out that Meir Barak is not only the CEO of Tradenet, but he's also co-owner of Colmex, which coincidentally is Tradenets CFD broker. For anyone that's not familiar with trading CFD's, when a trader places a trade, the broker, in this case Colmex, is taking the other side of that trade. CFDs, unlike a company's stock shares, are not traded on an exchange. So it's in the best interest of the broker for its traders to lose when trading, which causes the inherent conflict of interest between the trader and broker/firm. The trader's losses are the broker's profits, and vice-versa. Hence, when a good trader comes along and profits, Tradenet does their best to avoid paying out, because paying out would result in a realized loss to them, and that is also why they try to talk a successful trader into upgrading their account. If a trader upgrades their account, the traders profits are being recycled back into their firm. And if you choose not to upgrade, they kick you out so they can avoid a loss at all costs. Also, the $500 they supposedly invested in my account was never at risk since they're the ones taking the other side of my trades.
Brokers that get into the CFD business do so with the knowledge that 90% of traders fail, and they only need to take the other side of those 90%+ of failed traders to make huge profits. Just like a casino. A casino makes its money from losing gamblers. The difference is, a casino will actually pay the people that win. So in that respect, Tradenet has less integrity than a casino does because Tradenet doesn't pay successful traders their profits.
I am not posting this negative review about Tradenet out of spite. This post is to inform the traders that are interested in Tradenet, and make them aware of their business practices. In the end, I had to learn the hard way. My hope is that this post helps prevent others from blindly trusting Tradenet & Meir Barak, and thereby learn from my mistakes.
Others have also had this happen to them. You can check on investimonials by typing Tradenet into the search box and Tradenet capital Israeli will show up. Read their reviews and you'll see that they're notorious for this.