LocalTrade Crypto Exchange Review: Risks, Red Flags, and Why You Should Avoid It
Apr, 9 2025
LocalTrade sounds like it could be a solid choice for trading crypto-low fees, mobile apps, 24/7 support. But if you dig deeper, what you find isn’t a platform built for traders. It’s a ghost town with a website.
It’s Not Regulated. At All.
LocalTrade claims to be based in the UK, but it doesn’t answer to any government agency. Not the FCA. Not the SEC. Not any financial watchdog in the EU, US, or anywhere else. That’s not a loophole-it’s a warning sign. Every major exchange you’ve heard of-Binance, Coinbase, Kraken-has some form of licensing. They’re regulated because governments demand it. LocalTrade doesn’t even try.Why does this matter? If your funds disappear, there’s no one to call. No ombudsman. No insurance fund. No legal recourse. You’re on your own. And if you’re in the US, you’re technically breaking rules by using an unregulated platform-even if LocalTrade says you can trade. The IRS doesn’t care if a site lets you deposit. They care if you report your gains. And if your exchange gets shut down or frozen, you’re stuck.
Trading Volume? Probably Fake.
CoinGecko says LocalTrade did $463 million in volume back in 2021. CoinMarketCap says it’s not even worth tracking. That’s not a mistake. That’s a red flag.Exchanges with real volume don’t have this kind of mismatch. When platforms inflate numbers, they’re trying to trick new users into thinking they’re popular, liquid, and safe. Fake volume = fake trust. And once you’re in, they don’t need you to trade much-they just need you to deposit.
Today, LocalTrade doesn’t appear on CoinMarketCap at all. That’s not a technical glitch. That’s a deliberate removal because the platform no longer meets basic transparency standards. If a top-tier tracker won’t list you, you’re not a real exchange. You’re a placeholder.
Users Are Getting Screwed-And It’s Not Rare.
On Reviews.io, LocalTrade has an average rating of 1.4 out of 5 stars. That’s not bad. That’s catastrophic.One user wrote: “This scam broker cost me dearly.” Another said they went through “the worst period of my life.” These aren’t complaints about slow withdrawals. These are people who lost life savings.
And here’s the creepy part: every single negative review includes a link to some other company-BROADOAK-CAPITAL, Cipher-forensics.com, Arbix.is. These aren’t random sites. They’re recovery scams. The same people who lost money on LocalTrade are being targeted again by fake services promising to get their crypto back-for a fee. It’s a cycle. The original scam takes your money. Then another scam takes your hope.
Deposit Methods? Only Wire Transfers.
Most exchanges let you deposit with credit cards, bank transfers, PayPal, or even crypto. LocalTrade? Only wire transfers. That’s a huge red flag.Wire transfers are irreversible. Once you send money, there’s no chargeback. No dispute. No refund. If you realize you made a mistake-or if the site vanishes-you’re out of luck. Compare that to Binance or Kraken, where you can deposit Bitcoin directly, or use a debit card with fraud protection. LocalTrade forces you into the riskiest possible payment method. Why? Because they don’t want you to be able to reverse the transaction.
What About the App and Interface?
Yes, LocalTrade has apps for iPhone, Android, Windows, Mac, and Linux. Sounds impressive, right? But having an app doesn’t mean it’s safe or functional.The interface is basic: order book, price chart, buy/sell buttons. No advanced tools. No stop-loss orders. No margin trading. No chart indicators beyond the bare minimum. If you’re serious about trading, you’ll hit a wall fast. There’s no reason to use LocalTrade over a free platform like TradingView or a regulated exchange with better tools.
And while they claim to offer API access for developers, there’s no documentation available publicly. No GitHub repo. No developer forum. No code examples. If you can’t find it, it doesn’t exist-or it’s not meant for real use.
Customer Support? Don’t Count On It.
LocalTrade says they offer 24/7 live support, phone, and training webinars. Sounds great. But if you look at the reviews, no one’s getting help.People report waiting weeks for replies. Some say their accounts were frozen with no explanation. Others say they couldn’t withdraw even after submitting all required documents. The support team either doesn’t respond-or responds with copy-paste messages that don’t solve anything.
Real exchanges have support teams that answer within hours. LocalTrade? It’s like shouting into a void. And if you’re already out of money, who’s going to pay for your time?
Why Is This Still Online?
LocalTrade was founded in 2017. That’s older than many crypto exchanges that are now gone. So why is it still up?Simple: it’s not trying to be a real business. It’s a money grab. It doesn’t need to grow. It doesn’t need to innovate. It just needs to collect deposits from new users who don’t know better.
Its web traffic stats are terrifying. SimilarWeb shows it ranked 584 out of 589 crypto exchanges for organic traffic. Zero bounce rate? Zero time spent per visit? That’s not a real website. That’s a placeholder with bots or fake traffic. Real users don’t visit a site and leave instantly. They explore. They trade. They come back. LocalTrade doesn’t get that.
What’s the Bottom Line?
LocalTrade isn’t a crypto exchange you can trust. It’s not a risky platform. It’s a dangerous one.Here’s what you’re signing up for:
- No regulation = no protection
- Fake volume = fake credibility
- Only wire transfers = no safety net
- Overwhelmingly negative reviews = real people lost money
- Recovery scams in reviews = you’re being targeted again
- No real customer support = you’re on your own
If you’re looking to trade crypto, there are dozens of safe, regulated, and user-friendly options. Binance, Kraken, Coinbase, Gemini-all of them are transparent, licensed, and have real track records. They don’t need to hide behind fake volume or obscure payment methods.
LocalTrade doesn’t deserve a second look. It’s not worth the risk. Save yourself the stress, the losses, and the emotional toll. Walk away.
What Should You Do Instead?
If you’re new to crypto, start with a regulated exchange. Use one that’s been around for years, has clear licensing, and lets you deposit with multiple methods. Start small. Learn how the market works. Don’t jump into unknown platforms just because they have low fees.Here’s a quick checklist before you deposit:
- Is the exchange regulated by a known authority? (FCA, SEC, ASIC, etc.)
- Does it appear on CoinMarketCap or CoinGecko with verified volume?
- Can you deposit with credit card or crypto-not just wire transfer?
- Are user reviews consistent across multiple sites (Trustpilot, Reviews.io, Reddit)?
- Do negative reviews promote recovery services? (That’s a scam pattern.)
If even one of these is a no, move on. Your money isn’t worth gambling on a ghost.
Is LocalTrade a scam?
Based on user reports, regulatory status, and traffic data, LocalTrade exhibits multiple red flags of a scam operation: no regulation, fake trading volume, irreversible wire-only deposits, and a pattern of negative reviews that promote recovery scams. While it may not be a traditional “scam” that steals funds outright, its structure makes it nearly impossible for users to recover money if something goes wrong-making it functionally equivalent to one.
Can I withdraw my crypto from LocalTrade?
Some users report being able to withdraw, but many others say their accounts were frozen after depositing. Withdrawals are not guaranteed, and there’s no public record of how long it takes or what conditions apply. The lack of regulation means there’s no oversight to ensure fair treatment. If you deposit, assume your funds could disappear without recourse.
Why does LocalTrade only accept wire transfers?
Wire transfers are irreversible and offer no consumer protection. By forcing users to use this method, LocalTrade eliminates any chance of chargebacks or disputes. This is a common tactic among unregulated platforms-it ensures users can’t undo transactions if they realize they’ve been misled. Legitimate exchanges offer multiple deposit options to build trust and reduce friction.
Is LocalTrade safe for US users?
No. While LocalTrade claims US users can trade, the platform is not licensed to operate in the United States. Using it may violate state or federal regulations. If your funds are lost or seized, you have no legal standing to recover them. The IRS requires you to report crypto gains regardless of the exchange used-but if the exchange is unregulated, you also have no protection if things go wrong.
What are better alternatives to LocalTrade?
For beginners, Coinbase and Kraken are simple, regulated, and offer credit card deposits. For advanced traders, Binance and Bybit offer low fees, strong liquidity, and advanced tools. All are regulated in at least one major jurisdiction, appear on CoinMarketCap with verified volume, and have transparent customer support. Avoid platforms that don’t meet these basic standards.
Why do some sites still list LocalTrade as active?
Some crypto directories rely on outdated data or accept payments to list platforms. CoinMarketCap removed LocalTrade because it failed transparency standards. Sites that still list it are either not updating their data or have financial incentives to keep it visible. Always cross-check with multiple trusted sources like CoinGecko, Trustpilot, and Reddit before trusting any exchange.
Final Thought: Don’t Be the Next Victim
Crypto is risky enough without adding unregulated exchanges into the mix. LocalTrade doesn’t offer innovation. It doesn’t offer security. It doesn’t offer support. It offers one thing: a way to take your money and disappear.You don’t need to gamble on a platform that’s already failed. There are better, safer, and more reliable options out there. Use them. Protect your money. Walk away from LocalTrade-today.
Tom MacDermott
November 27, 2025 AT 14:07Oh wow, a 1,400-word essay on a site that probably has three employees and a Google Form for support. Classic. I love how people treat crypto like it’s a bank, when the whole point is to bypass banks. LocalTrade might be sketchy, but so is every other exchange that doesn’t have a CFA license stamped on its logo. At least it’s not charging me 1% every time I move a Satoshi. If you’re not comfortable with risk, maybe stick to savings accounts and Netflix subscriptions.
Susan Dugan
November 28, 2025 AT 12:40I get where you're coming from - LocalTrade looks like a dumpster fire with a decent UI. But let’s not throw the baby out with the bathwater. There are legit small players out there trying to build something without the corporate overhead of Coinbase. Maybe they’re not regulated because they’re too small to afford lawyers, not because they’re scammers. I’ve used lesser-known platforms before and had zero issues - as long as I only deposited what I could afford to lose. The real villain here? FOMO. Not the exchange. Don’t let fear paralyze you - just stay smart.
Puspendu Roy Karmakar
November 29, 2025 AT 14:12Bro, I tried LocalTrade last year. Deposited $500. Waited 3 weeks. No withdrawal. No reply. Then I saw their reviews - same story everywhere. One guy said he lost $12k. I cried. Not because of the money. Because I trusted a website that didn’t even have a real phone number. I switched to Binance. Now I sleep better. Don’t be like me. Don’t wait until it’s too late. Just walk away. Your peace of mind is worth more than any ‘low fee’.
Tina Detelj
December 1, 2025 AT 10:37Let’s be real: the entire crypto ecosystem is a glitter-covered dumpster fire… and yet, somehow, we keep poking it with sticks. LocalTrade? It’s not even the worst. It’s just the most *vividly* bad - like a horror movie where the monster is just a guy in a cheap mask screaming ‘I’m a scammer!’ into a webcam. The fact that people still fall for it? That’s the real tragedy. The recovery scams in the reviews? That’s the sequel. The sequel where the villain is… YOU, because you didn’t listen. And now you’re paying for your own trauma. The system isn’t broken - it’s designed to prey on hope. So… stop hoping. Start verifying. And for the love of Satoshi - check CoinMarketCap before you send a dime.
priyanka subbaraj
December 2, 2025 AT 21:07