Beware! AximTrade is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
AximTrade is a Forex brokerage registered in Saint Vincent and the Grenadines. It provides the MetaTrader 4 trading platform. Furthermore, the website flaunts with a wide range of trading products and there isn’t a required minimum deposit. The trading conditions are favorable, however, the leverage goes up to 1:3000 which is absurdly high.
AximTrade regulation & safety of funds
On the brokers website we read that the broker brand is owned and operated by two companies – one registered in SVG and the other in the British Virgin Islands. Furthremore, they claim to fall under regulatory oversight, however, such statements are bogus. Both Saint Vincent and the Grenadines and the British Virgin Islands are well-known offshore zones and a preferred location for shady brokerage. Readers are reminded that the government of SVG has had to publicly state quite a few times in the past that it does not regulate 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. We highlight the danger in doing business with a fraudulent website since the people behind it do not answer to any authority and have no reason to uphold the client agreement. Even though, while researching the brokerage on the web, we did not come upon an official warning issued by a financial regulator, it is a safe bet that soon enough AximTrade will fall on the radar of the European authorities for targeting European traders without proper authorization. All in all, it’s safe to say that trading with the brokerage carries with it much unwanted 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.
AximTrade trading software
The MetaTrader 4 trading platform is supported which is something we always consider an advantage since the MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Through a demo account we could see a spread of 1.1 pips which is favorably low, however, the leverage goes up to 1:3000 which, even though is common for unregulated brokerages, remains alarmingly high especially compared to the the regulatory levels for Europe which are at 1:30. Furthermore, without regulatory oversight we have reason enough to be suspicious whether the website isn’t involved in foul play and we always recommend to readers not to risk it and steer clear from such offers.
AximTrade deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via the standard Visa and MasterCard, as well as bank wire and China UnionPay, QuickTransfer, AliPay. FasaPay and Bitcoin. Popular, preferred by traders e-wallets such as Skrill and Neteller are not supported.
Reading through the terms and conditions of the brokerage we did not come upon other withdrawal fees either, however, dealing with unregulated brokerage we may never be sure whether they wont charge unexpected fees once the clients have deposited their funds. Furthermor, we warn readers that usually there are also withdrawal conditions pertaining to accounts that have taken advantage of the bonus promotion. A trader has to achieve a certain trading volume in order to be eligible for withdrawal. Legitimate brokerage which are regulated in Europe do not offer such promotions and even if they do, the information regarding potential withdrawal requirements is always presented straight-forward on the website, not hidden away in the terms and conditions.
Such website are also the reason 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 Bitcoin Evolution or The bitcoin miner 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 achargeback 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 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!