Beware! Nekstra 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.
Nekstra is a Forex broker that refuses to disclose the information about their legitimacy fully. They have presented a ton of legal documents, but none of them really prove that it’s a legit company that you can trust and start investing with. There are also plenty of unfair clauses that certainly worsen the trading conditions for the customers. Find out everything you need to know about this Forex broker in the full Nekstra review.
Nekstra REGULATION AND SAFETY OF FUNDS
Nekstra is an anonymous Forex broker that claims to offer an innovative trading platform, expert education and state-of-the-art security measures. However, they fail to present evidence that will undoubtedly prove that it’s a legit Forex broker that really takes care for the funds of the customers. In fact, it is a totally anonymous enterprise that only list contact numbers in Poland, Russia, Lithuania and Kazakhstan, they do not even give a headquarter address on their page.
On their Terms and Conditions, however, they mention that their activities are governed by the law of Estonia, which certainly doesn’t prove anything and doesn’t change the nature of Nekstra. Still, it remains a fishy entity which the traders should avoid because, as expected, our research in the register of the Estonian financial regulator didn’t produce any results.
Your funds are not safe if you deposit with Nekstra, it’s an unlicensed, unauthorised and unregulated business creature which doesn’t act like a true Forex broker.
Avoid anonymous and offshore Forex brokers and trust the European ones, because the EU and UK succeeded to create the safest financial environment in the world. The licensed European entities have to hold the clients’ funds in segregated accounts, separate from their own, meaning that the broker cannot use the clients’ funds for operational transactions or investment. As a result, the deposits are protected at all times, and the Forex broker isn’t exposed to unnecessary risks. It also means that the traders fully control their money, can withdraw whenever they want to, and the withdrawal processing time significantly decreases, as well.
But most importantly, there are deposit insurance funds inaugurated, such as ICF in Cyprus and FSCS in the UK, which are set to protect the deposits made by the clients. Under CySEC(Cyprus) supervision, you can claim up to 20 000 EUR in compensation per client, while in the UK under FCA you are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Nekstra TRADING SOFTWARE
Nekstra doesn’t offer MetaTrader4 or MetaTrader5 to its customers, which certainly puts them on the bottom of the list. MetaTrader is the most popular Forex trading platform, because of its stability, reliability and user-friendliness. It also features sophisticated trading features such as Expert Advisors, Automated Trading Robots and Complex Indicators, to name a few. MetaTrader has also developed its own marketplace where you can find even more tools, which you can apply in your trading routine.
Instead, Nekstra offers a web-based platform, which is very primitive and incomparable to the MetaTrader. It includes a TradingView chart, meaning that the Buy/Sell panel is most likely not connected to the chart price and therefore prone to manipulation. On top of that, demo trading is not available, despite being advertised as an option. You should never trade with Forex brokers that do not provide a stable trading platform and demo accounts because it’s most likely a scam!
The EUR/USD spread is fixed at 3 pips, which is way too big a difference between Bid and Ask. The industry standard for the pair is less than a pip. The spread constitutes a part of the trading cost, the bigger the spread, the lower the profits that you can make.
The maximum leverage possible is said to be 1:200, but we were unable to find a way to adjust it to our own preferences, which is a major red flag. In fact, we were not able to see what the default leverage is! The leverage creates opportunities, but at the same time brings a considerable risk for traders with little or no experience. EU and UK imposed a leverage cap of 1:30 as a customer protection measure because the data showed that the traders accumulate much more significant losses using increased levels. Australia is one of the very few properly regulated jurisdictions which host brokers offering increased levels. Still, from the Spring of 2021, there will be a leverage cap of 1:30 imposed there, as well. We recommend that you should stop looking for brokers offering increased levels such as 1:500 or 1:1000 because you are more likely to lose your money on the market or might quickly end up being scammed!
Nekstra DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit with Nekstra is $250. There are many funding methods advertised such as Skrill, Neteller, Yandex Money, WebMoney and so on, but in reality, you can fund your account only with Cryptocurrencies or through some unreliable e-wallets! You should never use payment systems you are unfamiliar with because it poses a risk for your funds!
The minimum withdrawal is said to be $75, which doesn’t seem like a fair condition. The true Forex broker will allow you to withdraw any sum that you want. The fees that Nekstra impose, however, are harsh and indicate that they make money by charging unbearable fees on the traders’ accounts, which is yet another major red flag!
Nekstra charges unbearable fees, making their trading conditions genuinely unfavourable. There is a monthly maintenance fee of 30 (no currency specified) which is totally unacceptable. Trustworthy Forex brokers do not impose such fees on their clients! The Withdrawal fee is said to be 3.5% from the Withdrawal amount, but not less than $50 per transaction! There is even a verification fee of $150, which is a clause that is rare to be seen! It means that you will be charged if you do not verify your account, which itself is a poor KYC policy showing that Nekstra is going to accept deposits without Proof of Identification! It is another significant scam sign!
The dormant account policy is similarly harsh. An account becomes dormant after only a month of inactivity and will be subject of $200 handling fee, which is another totally unfair clause. Most of the true Forex brokers will allow at least 6 months to pass before freezing your account, and the inactivity fee will usually not be higher than $20 per year.
Nekstra offers Deposit Bonus starting from 20%, depending on the type of the account. It is called a Welcome bonus, automatically inserted in your balance, which effectively blocks your funds and you would be unable to withdraw. To make a withdrawal, you have to execute a Minimum Trading Volume of at least 30 times the sum in your account…or 40!
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they will rely on the quantity; they will publish tens or hundreds of websites and will wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
Cryptocurrency funding went extremely popular among scammers because this form of digital money is absolutely uncontrolled. It’s an obvious scam sign if an alleged Forex broker is accepting only Crypto deposits because it’s almost impossible to make a refund!
WHAT TO DO WHEN SCAMMED
No one is immune to scam; anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience; it is essential to protect others, as well. Be responsible!