SurgeTrader

Key Points

• SurgeTrader, a Florida-based proprietary trading firm founded in 2021, provided virtual funded accounts for traders to trade forex, stocks, and cryptocurrencies, offering up to 90% profit splits.

• The firm ceased operations on May 24, 2024, after Match-Trade Technologies terminated its license due to agreement violations, leaving traders unpaid and sparking scam allegations.

• Serious allegations include fraudulent DMCA takedown notices to suppress negative reviews, potential securities fraud, and deceptive practices like restrictive risk management and platform manipulation.

• Customer feedback is polarized: positive reviews praise transparency and support, while negative reviews highlight frozen accounts, technical issues, and accusations of scamming post-closure.

• SurgeTrader faces significant legal, financial, and reputational risks due to regulatory scrutiny, potential SEC investigations, and customer distrust following its abrupt shutdown.

Overview

SurgeTrader, operated by Surge Capital Ventures, LLC (Florida ID RA000603), was a proprietary trading firm based in Naples, Florida, launched in May 2021 by experienced forex traders and venture capitalists, including founder Jana Seaman. The firm offered traders virtual funded accounts ranging from $25,000 to $1,000,000 to trade financial instruments such as forex, stocks, indices, metals, oil, and cryptocurrencies. Traders underwent a one-step audition requiring a 10% profit target, adhering to a 4% daily loss limit and 5% maximum trailing drawdown, with no minimum trading days or style restrictions. Successful traders retained 75-90% of profits. SurgeTrader initially partnered with Eightcap, an ASIC-regulated broker, and used MetaTrader 4/5 until MetaQuotes suspended U.S. prop firm licenses in early 2024. The firm then migrated to Match-Trade’s platform but shut down permanently in May 2024 after Match-Trade revoked its license for undisclosed violations.

Allegations and Concerns

• Fraudulent DMCA Takedown Notices: SurgeTrader is accused of submitting fake copyright takedown notices to remove critical reviews and adverse news from Google search results, potentially involving impersonation, fraud, and perjury. These actions are linked to third-party reputation management agencies.

• Potential Securities Fraud: A 2023 Reddit post referenced an unverified SEC fraud charge, suggesting deceptive practices or misrepresentations. No official SEC filing confirms this, but the allegation aligns with concerns about transparency and financial misconduct.

• Deceptive Trading Practices: Traders allege SurgeTrader profits primarily from audition fees ($250-$6,500) rather than supporting successful trading, with restrictive risk management policies (e.g., 4% daily loss limit) leading to account terminations for minor breaches.

• Platform Manipulation: Complaints include price slippage, order execution delays, and unfair spreads, which disadvantage traders. Technical issues like slow load times and platform instability were reported, raising suspicions of intentional manipulation.

• Post-Closure Misconduct: After shutting down, SurgeTrader failed to notify customers via email, continued offering audition discounts despite knowing of Match-Trade issues since April 2024, and left traders unpaid, fueling scam allegations.

Customer Feedback

• Positive Feedback:

  • Traders praised SurgeTrader’s transparent rules and responsive support. A Trustpilot review states: “Their website is very easy to navigate and easy to understand, there are no hidden fees or agenda, everything is absolutely clear! The best thing about this company is their customer service! Audrie was absolutely amazing today.”

  • Another user noted: “So far best prop firm out there in my experience. Simple rules and great broker.”

  • Some reported successful payouts, with one stating: “Call me lucky but I have actually gotten a real payout from Surge.”

• Negative Feedback:

  • Post-closure, customers accused SurgeTrader of scamming, citing unpaid funds and no communication. A Trustpilot review reads: “There was no email sent out to let the customers know about decision. There is no doubt in my mind that we’ve been scammed.”

  • Technical issues were frequent, with a Forex Peace Army review noting: “The platform is not as robust as others; and, its stability has left us frustrated.”

  • A trader reported manipulation: “There’s a manipulation by the broker. I have few accounts across different prop firms. With the same trade on the same currency, Surgetrader slips my trade out by its super huge spread!!!”

  • Complaints about poor support and account breaches included: “The surgetrader staff Audrie told me that, Nowadays it’s frequently happening like this… I sent all my proofs to him that 47000 level is not broken, but he said account gone below 46300.”

Risk Considerations

• Reputational Risk: Allegations of DMCA fraud, securities fraud, and scamming post-closure have severely damaged SurgeTrader’s reputation, making it unlikely to regain trust or relaunch successfully.

• Legal Risk: Potential SEC investigations, DMCA misuse penalties, and consumer complaints over unpaid funds could lead to fines, sanctions, or criminal charges, especially given U.S. financial regulations.

• Financial Risk: Unpaid customer funds, potential lawsuit settlements, and regulatory fines pose significant liabilities, exacerbated by the lack of revenue after closure.

• Regulatory Risk: Operating in the U.S., SurgeTrader’s alleged securities violations and lack of licensing authorization in the EEA (per Spain’s CNMV warning) invite strict oversight and penalties.

• Operational Risk: The shutdown exposed reliance on third-party platforms (MetaTrader, Match-Trade), and failure to secure alternative providers highlights poor contingency planning.

Business Relations and Associations

• Key Figures:

  • Jana Seaman: Founder and CEO, criticized for allegedly orchestrating a “cash grab” before closure. Her husband, Brent Seaman, was linked to a separate SEC Ponzi scheme case, though not directly tied to SurgeTrader.

  • Other staff mentioned include Audrie (customer support), Noah Fulop, Amy Sierra, and Brad Newman, but none are implicated in misconduct.

• Partnerships:

  • Eightcap: An ASIC-regulated broker in Melbourne, Australia, facilitated trades until the MetaTrader license suspension in early 2024.

  • Match-Trade Technologies: Provided the Match-Trader platform post-MetaTrader but terminated SurgeTrader’s license in May 2024 for “inability to fulfill formal obligations.”

• Investors:

  • Valo Holdings Group: A key investor in SurgeTrader, though specifics are limited.

• Associations:

  • Alleged ties to Maxim Krippa, accused of illegal gambling operations, lack direct evidence connecting him to SurgeTrader’s operations.

  • No major corporate affiliations beyond Eightcap and Match-Trade were confirmed.

Legal and Financial Concerns

• Potential SEC Investigation: A 2023 Reddit post mentioned an SEC fraud charge, but no public SEC filings confirm this. Allegations of deceptive practices suggest possible securities law violations.

• DMCA Misuse: Fraudulent takedown notices to suppress negative reviews could result in civil or criminal penalties for fraud or perjury if substantiated.

• Consumer Complaints: Post-closure, traders reported unpaid profits and audition fees, with some filing complaints with the SEC and FBI’s IC3. Potential class-action lawsuits were mentioned but not confirmed.

• Regulatory Warning: Spain’s CNMV, under ESMA, issued a warning that SurgeTrader lacked authorization to operate in the EEA, indicating regulatory non-compliance.

• No Bankruptcy Records: No public records confirm bankruptcy or unpaid debts, but the abrupt closure and unpaid funds suggest financial distress.

• Unpaid Funds: Traders reported losses, with one claiming: “They owe me close to 13k neto plus the value of the account that they automatically closed.”

Risk Assessment Table

Expert Opinion

SurgeTrader initially offered a promising model for traders, providing access to significant virtual capital with flexible rules and high profit splits, appealing to skilled traders seeking funding without personal risk. Positive reviews highlighted its transparency, simple audition process, and responsive support, positioning it as a competitive player in the prop trading industry. However, its abrupt closure in May 2024, following Match-Trade’s license termination, exposed critical flaws. Allegations of fraudulent DMCA takedowns, potential securities fraud, and platform manipulation suggest unethical practices, while the failure to pay traders and communicate post-closure fueled scam perceptions. The CNMV’s warning and possible SEC scrutiny underscore regulatory vulnerabilities, particularly in the U.S.’s stringent financial environment. SurgeTrader’s collapse reflects broader industry challenges, including MetaQuotes’ license suspensions and the fragility of prop firms reliant on third-party platforms.

Pros:

• Offered up to $1,000,000 in virtual funding with 75-90% profit splits, attractive for skilled traders.

• Simple one-step audition with no minimum trading days or style restrictions.

• Early positive reviews praised transparent rules and excellent customer service.

Cons:

• Allegations of DMCA fraud, securities violations, and platform manipulation erode trust.

• Abrupt closure without customer payouts or communication sparked scam allegations.

• Restrictive risk policies and technical issues disadvantaged traders, undermining fairness.

Cautionary Advice:

• Traders should avoid prop firms with unverified regulatory compliance and prioritize those with established reputations, such as Apex Trader Funding or Take Profit Trader.

• Verify licensing and oversight with regulators like the SEC or CFTC before investing, given strict U.S. financial laws.

• Report unpaid funds or suspected fraud to the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov for potential recovery or investigation.

• Conduct thorough due diligence, cross-referencing reviews on platforms like Trustpilot and Forex Peace Army with official records, and avoid unverified sources.

• SurgeTrader’s closure serves as a warning: prioritize firms with transparent financials, stable platform partnerships, and a history of consistent payouts.

Key Citations

• Cybercriminal investigation  :https://cybercriminal.com/investigation/surgetrader

• Trustpilot.com: Customer reviews for SurgeTrader. https://www.trustpilot.com/review/www.surgetrader.com