Beware! This is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Axe Crypto Currency (AxeCC) offers trading in cryptocurrencies such as Bitcoin, Ethereum, Ripple, etc. It uses its in-house web platform, which is relatively nice. The website of this broker, however, discloses no information on trading conditions, such as spreads, the leverage available, minimum deposit required and so on. This immediately raises some concerns over the credibility of this broker.
AxeCC Regulation & Safety of funds
AxeCC which operates from the axecc.io website is owned by Solid Capital Limited, a company registered offshore, on the Marshall Islands. Forex and CFD brokers registered offshore are not properly regulated, nor overseen by any financial authority. However, it seems that the broker targets mainly European investors, and offering financial instruments such as CFDs in European countries require a license, issued by a financial regulator of any of the EEA members.
Moreover, we found that there is a regulatory warning against AxeCC, issued by the Italian financial watchdog, CONSOB. This means that the Italian regulator has probably received complaints from local investors.
AxeCC deposit/withdrawal methods and fees
This broker accepts deposits and withdrawals by credit cards, Naspay, Praxis Pay and B2CRYPTO.
How scam works
There are many different fraud schemes in the forex and cryptocurrency sphere. Most scammers get some contact information for their victims via websites such as FinTech ltd. The creator of Fintech Ltd trading software Daniel Roberts claims to offer some top-notch trading software that turns its users into millionaires in days. Once you sign up, you are contacted by a Sales representative of a broker, and in case you deposit, both Fintech Ltd and the sales person get a commission. After that you are being transferred to the so called “Retention” team where senior scammers persuade you to deposit more, and if you do so, they get a commission amounting to around 10% of your investment. Then you get to the third circle of a trader’s Hell – Recovery. The main purpose of the members of Recovery teams is to string you along for as long as possible, preferable for 6 months. After those six months expire, you will not be able to recover your money sent by credit card.
In the case of AxeCC, it seems that this broker scams most of its clients via their managed accounts, which require a minimum deposit of $1000. After the account manager trades for a while, he or she pushes the client to deposit more. More specifically, if the account manager represents himself as senior, he threatens to transfer the account to a junior colleague, in case the client does not increase the initial investment. If the client refuses to do so or wishes to close their account, any communication, as well as chances of withdrawal/refund are cut off.
What to do if scammed
If you made a payment to a scam broker via bank wire or card, the first thing to do is contact your bank or credit card issuer and file a chargeback as soon as possible. If you have provided the scammer with some personal banking information, you must immediately cancel the card or change your web banking pass.
Don’t waste your time with third party “recovery agencies”, as some of them are also running investment scams.
Another thing you can do in case you have been scammed by a forex or binary options broker is to report the broker to the authorities and in some popular websites and forums, let the world know that they are fraudsters.