Beware! SamXTrade 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.
If you read the reviews on SamXTrade website, you will believe that this broker is truly amazing and is the best option for making money. However, let’s not judge a book by its cover and dig deeper into some key features on this broker’s website.
SamXTrade Regulation and safety of funds
SamXTrade wants you to believe that it is a truly legitimate company with a genuine registration with the Australian Securities and Investments Commission (ASIC), the official body that regulates forex brokers in Austalia. However, the registration shown on SamXTrade is fake. When we searched the ASIC register the name of the company did not appear to be in it (image below). Nice try, scammers!
Australian forex brokers are strictly regulated by ASIC and one of the main requirements is for the brokers to invest the substantial amount of 1 million AUD which among other things serves as a precaution measure against scammers. Other requirements include keeping clients’ funds segregated, report transactions on a regular basis, provide accounting audits and risk management, etc. The downside of trading with Australian brokers is that unlike their colleagues in the EU and the UK they do not participate in compensation schemes or funds which serve to compensate the clients if the broker goes bankrupt. Also, Australia is the last of the well-established jurisdictions where leverage is uncapped. It means that Australian brokers are free to offer leverage as high as 1:500. This situation will change in March 2021 when Australian regulations will be aligned with those in the EU and the UK.
Alternatively, you can look up forex brokers from other jurisdictions, i.e., the EU and the UK where the conditions for forex trade are the best. To get their license, forex brokers in these jurisdictions must invest 730,000 EUR initial capital. In contrast to Australian brokers, EU and UK brokers are required to participate and deduct funds towards compensation funds and schemes from which their clients can get compensated in case of bankruptcy. If the broker is regulated by FCA in the UK and participates in the local Financial Services Compensation Commission, its clients will be repaid up to 85,000 GBP per client in case of bankruptcy. In the EU, forex brokers regulated by CySec and contributing to the local Investor Compensation Fund will be able to provide compensation of up to 20,000 EUR per person to their clients in case of bankruptcy.
SamXTrade Trading software
SamXTrade is a broker trading in cryptocurrencies. We managed to register and open an account. However, accessing the platform was impossible. If you take a look at the information about the accounts types (image below), you will notice that this broker offers daily even hourly returns of clients’ capital starting from 0.3% and going up to 10%. And if you open a Deluxe account and invest the minimum deposit amount of $100,000 that offers 10% daily return, you can start booking your next luxurious holiday and buy the shiny Ferrari you always dreamed of. But wait a second! Is this realistic? Or is this broker luring you to invest a huge amount that may be gone without a trace the next day? After all, this broker doesn’t even give you the opportunity for a self-trade and making your own money! Because there is not a trading platform!
if you are looking for access to self-trade that is offered by legit brokers we can advise you that the best ones that exist for forex trade are the MetaTrader 4 and MetaTrader 5 trading platforms. They are considered to be the Rolls-Royces in forex trade and around 80% of the forex brokers use them thanks to the many advantages they offer to the traders. For example, both platforms are equipped with an auto trading option, code base with customs scripts, an app market, VPS, a financial calendar, trading signals, etc. Key features in MT4 and MT5 are the charting options that contain many charts, time frames, colours and even the option of creating customised templates, as well as the array of technical analysis indicators that help traders predict the future direction of exchange rates and make a profit.
Low spread and low leverage will mean that the cost of your transactions will not be high and your funds will not be exposed to too much risk if the transactions are unsuccessful. As we mentioned, in Australia there is not yet a cap on leverage and you must exercise caution should you choose to trade with Australian brokers.
SamXTrade Deposit/Withdrawal methods and fees
As you can see from the image below, the trading accounts offered by SamXTrade to its clients are 4 – Basic, Gold, VIP and Deluxe. The minimum initial deposit for the Basic account is $50. The other accounts start at $500, $11,000 and $100,000 respectively.
As per the information available on SamXTrade website, deposits and withdrawals are instant.
There is no further information regarding the deposit and withdrawal methods.
How does scam work?
No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.
What to do if scammed?
You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!
Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.
Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.
Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!