Profitix Review – 5 things you should know about Profitix.com

Profitix Review – 5 things you should know about Profitix.com

Beware! Profitix is an offshore broker! Your investment may be at risk.

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Profitix is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides the MT5 trading platform, and an extremely generous leverage. Traders are extended a leverage of up to 1:400. Furthermore, there is a wide range of trading products from which to choose, but the spread of 3 pips is quite high and not in favor for the traders in our opinion. The required minimum deposit is the standard $250.

Profitix regulation & safety of funds

On the brokers website we read that the broker brand is owned and operated by a SVG-based company with the name ProfitiX Limited. Saint Vincent and the Grenadines is a well-known offshore zone and a preferred location for shady brokerage.

We remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that not only is the brokerage not regulated. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients. However, putting all this aside – the brokerage does provide the MetaTrader 5 trading platform with an available demo account. We always condone the availability of a test-drive. Here is a screenshot:

On it we could see a spread of 3 pips on EUR/USD which is exceedingly high and definitely not in favor for traders. Furthermore, the leverage extended to clients is 1:500 which, however, hides the undesirable risk of losing more than the initial deposit. The minimum deposit is the industry average of $250 and nothing surprising. We should note than when we downloaded the platform we read that it is actually supported by a third party – LBLV Ltd. This isn’t something uncommon with unregulated brokerage but it isn’t a very welcoming sign either.

Overall, the lack of regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk.

Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.

Profitix deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw via credit cards and wire transfer, however, we do not find any listed e-wallets which we consider always a disadvantage.

Going through the terms and conditions of the brokerage we did not find any information regarding potential fees. But we do read that traders have to achieve a trading volume of $20 in order to withdraw an account that has been issued the “award”

Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

How does the scam work?

Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:

Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.

After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.

Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.

It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Traderia – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

What to do when scammed?

As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.

You may contact your bank or credit card provider and file a chargeback. 

If, however, you have provided the broker with your credit card details, immediately cancel your credit card.

If you have given information regarding your online banking pass – you should switch it asap!

Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!

Rich Snippet Data
Review Date
Reviewed Broker
Profitix
Broker Rating
1.21star1stargraygraygray

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9 Comments

  1. I want to withdraw my money where i can proceed to do that so????

    The person was called me he only say go by website yet i have searching and there is no responsed at all?

  2. How would you rate profitix compared to other trading platforms?

  3. CAUTITION !!! ProfitIX is SCAM. They break their own rules and policy. I request an withdrawal/refund of my money, and according to their policy it should be happen latest after 30 days, but nothing happens. I do get even a email after promised 7 days are confirmation. Also they will try to persuade you to transfer 10 000$, after I reject it they call me an looser, lol. So, it not an professional company, stay away if you like your money.
    Regards,

  4. Hi,
    of course that my account is verfird, it is done since 5weeks, so it is happen before the withdrawal request. Let me say I had call your support 2x, about 5x write with your live agent, and write 2x email to the help desk. Regardless, same answer, “we will inform our financial department, and get a feeback within 1-2days”. I think you know what happens, nothing, no feedback to me.
    Regards

  5. Scam or not, I can`t tell.

    But they show you a little profit on the starting deposit. Then they say you need more money for the big profit. They are verry hungry for new money and call you over and over. If you as we loose money, they promise to fix it. But only if you pay even more to your account.

    If you send the money by bankwire they use some sort of odd billing procedure through companys you probaly never heard of. You will get a invoice on payment for services from a firm not related to the broker.

    My personal advice is stay away and use broker with a office.

  6. Mario Brunetti

    Hallo so wie ich es sehe sind das Betrüger unter einem Deckmantel immer die gleiche Masche aber ich hatte am anfang über Paypal eingezahlt und die kennen nicht mal die Regeln von Paypal traurig ich hoffe das Paypal die sperren tut und klarer fall für die Polizei
    ——————————-
    Hello as I see it are the scammers under a guise always the same scam but I had paid in the beginning via Paypal and do not even know the rules of Paypal sadly I hope the Paypal locks and clear case for the police

  7. I have requested a withdrawal from them today. I will let you know how I get on and how long it takes. My account is fully verified so should be within 5 working days.
    Let’s see…

  8. They said it is a 14 day money back guarantee, not true, I requested my back back after few days but until now they haven’t returned my money. I been waiting for almost a month now.

  9. The Account manager is pushy and unrealistic promise is made to the client ($100 to $150 profit in a week with an initial deposit of $100). Initial deposit is hassle-free (FAST and no supporting documents needed). Fund withdrawn is a HASSLE and QUESTIONABLE (all kinds of supporting documents are required for account verification)(Instruction and process given for account verification to actual receiving the withdrawn amount are SLOW & QUESTIONABLE). The broker did provide advice for the first few days after funding ($9.42 profit is made) then the broker went MIA. Profitix trading platform is very similar to other trading platforms.

    * REVIEW AGAIN on the ACTUAL DURATION AND AMOUNT received for withdrawn.

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