Beware! Axia Investments 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.
Axia Investments’ website does not strike with anything in particular that makes it stand out among the thousands forex brokers’ websites. The main information that contains the main features of this broker is visible enough, so we are going to look into it and advise you whether it is safe to trade with this company or not.
Axia Investments Regulation and safety of funds
Our first step is to find out if this broker is licensed and legit. We found in the footer of the company’s website that Axia Investments is the brand name of Smarttool Trading SC Limited registered in Seychelles. This jurisdiction is an offshore zone for forex trading. However, the Financial Services Authority (FSA) there is providing supervision and has put a requirement that potential brokers must incorporate a local company with a share capital of no less than $50,000. This amount is high enough to prevent scammers from infiltrating the ranks of legitimately registered and regulated brokers. However, the clients’ funds are not kept separately and the broker can use the initial capital for business activities. This is what makes trading with brokers from Seychelles risky – the lack of a guarantee for the safety of clients’ funds. Furthermore, we found out that this company is not regulated by FSA, therefore, it is non-legit.
We strongly advise you to research and find a broker that is licensed and can protect your funds. We can help you by providing some links to licensed brokers from around the world – the US, Australia, the EU and the UK. In the US and Australia, forex brokers must be well-capitalised and they must have an initial capital of no less than $20 million in the US and 1 million AUD in Australia which can serve to protect clients from unfavourable events. If you compare with the conditions offered in Seychelles, you can see that being well-capitalised makes a big difference.
There are also advantages why you should choose a broker from the EU or the UK. Although there the amount of the initial capital is lower than the one in the US and Australia, only 730,000 EUR, there are some other measures put in place to protect clients’ money. Licensed brokers in those two jurisdictions must contribute to compensation funds or schemes from which their clients can be refunded if the broker goes bankrupt. For example, if the broker is regulated by CySec and contributes to the local Investor Compensation Fund, then its clients can be reimbursed by up to 20,000 EUR per person. In the UK, the amount that the refund can reach is even higher – 85,000 GBP per person, but only if the broker is regulated by FCA and contributes to the local Financial Services Compensation Scheme. These advantages are not negligible and we advise you to thoroughly research your forex broker before engaging in any trading activities.
Axia Investments Trading software
Axia Investments is a forex broker trading in CFD, forex, commodities, stocks and indices. The trading platform offered to the traders is a web trader (screenshot below). On the left-hand side, you can see the menu with the trading products. Here, it shows the forex currency pairs with their price. In the middle is a display of the chart of one of the currency pairs, EUR/USD with the fluctuation in its price in a given time frame. On the right-hand side is the information about the same pair such as the pips value, required margin, bid/ask price, etc. Beneath the chart is the trade history, open trade and pending order buttons.
Looking at the bid/ask price for EUR/USD, we calculated the spread to be 2.1 pips which is higher than the industry average. High spread increases the cost of transactions and is not favourable for the traders. The leverage for this pair is 1:400. This leverage is very high and signifies only two things – a big win or a big loss for the traders. However tempting it may seem, high leverage increases the exposure to the risk of losing funds given the statistics that around 70% of traders lose. So, we advise you to refrain from trading with such high leverage. Please note that licensed brokers in the EU have a leverage cap of 1:30 and in the US, 1:50 to prevent traders from entering recklessly in risky transactions.
We don’t know how familiar you are with trading platforms, but let us tell you that a web trader is not one of the best as it is rather too basic and does not enhance traders’ experience. On the other hand, MetaTrader 4 and MetaTrader 5 are far more superior and offer a lot of advantages to the traders. Both platforms come equipped with an auto trading option, code base with customs scripts, trading signals, an app market, VPS, a financial calendar, etc. In addition to that, their charting options and technical analysis indicators are out of this world and help you predict the future direction of exchange rates and make a profit. We strongly advise you to find a licensed broker that offers either of these platforms.
Axia Investments Deposit/Withdrawal methods and fees
Let’s take a closer look at the trading accounts that Axia Investments offers to its clients. They are 5 – Basic, Advanced, Pro, Ultra and Prime. The minimum initial deposit is $250 for the Basic account. The other accounts start at $2,500, $5,000, $20,000 and $50,000 respectively. To feed their account, traders can choose to pay via credit card, American Express, Discover or make a bank transfer.
We found the fees this company charges rather ‘interesting’. For example, if an account stays inactive, there are different fees applying depending on the period of inactivity. It starts with 80 EUR for inactivity up to 2 months and can reach $1,000 for the inactivity of over 12 months. If the trader decides to reactivate the account, then the fee is 2,000 EUR!
Also, you must be aware that should you decide to break up with this broker and file for a chargeback, then you’ll be charged $150 research fee by the company.
We also advise you to read carefully the bonus policy should you consider accepting any bonuses from this broker as they come with some heavy to fulfil requirements attached to them. For example, if you accept a bonus, within 90 days you are expected to meet a trading volume of 10,000 times the amount of the bonus or if you wager the bonus, then your trading volume is 20,000 times the bonus amount. If you think this is easy to fulfil, you are wrong. What’s more, you’ll mess up your account and it will affect your withdrawal options as well.
How does scam work?
Actually, it’s quite simple and people often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
Our advice is to immediately file for a chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.