Beware! RaxTrade 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.
In this review, we are going to discuss yet another broker claiming to be on a mission to revolutionise the online markets. Well, it turned out to be a child’s play to refute their bold assertions. In fact, it’s a confirmed scam that was awarded a warning by a European financial authority. Find out which regulator exposed them in the full RaxTrade review.
RaxTrade REGULATION AND SAFETY OF FUNDS
RaxTrade is a brand name of ROI STOCK LIMITED, an offshore IBC incorporated in St. Vincent and the Grenadines. This means it’s a risky broker for the Caribbean island is a poorly regulated tax haven, where the local financial authority doesn’t even bother to license the Forex companies registered there. But things are even worse because the Austrian financial authority FMA issued a warning against RaxTrade, exposing this entity as a scam scheme. Your funds are in danger if you make a deposit.
Stay away from RaxTrade and see the high-rated EU brokers and British brokers instead. The European markets offer high-grade security because deposit insurance funds protect traders’ money in case of insolvency or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. It’s a no brainer if you can open a real account with a broker regulated in Europe.
RaxTrade TRADING SOFTWARE
In the present case, we couldn’t access RaxTrade’s trading software because it was impossible to sign-up due to “high-demand” and regional limitations. Nevertheless, they share absolutely no details about their platform, so it’s very likely that there isn’t any, at all.
So, consider the high-rated MetaTrader4 brokers and MetaTrader5 brokers instead. We suggest these because MetaTrader is seen as the best retail FX platform and seasoned traders highly acclaim it. It provides sophisticated features such as Expert Advisors, Algo Trading, complex indicators and various charting tools. The platform also comes with a marketplace where you can find more than 10 000 apps you can benefit from.
As we couldn’t access a functional platform, we can’t discuss real-time spreads and leverage. Moreover, RaxTrade didn’t find it necessary to mention even a word about the most important trading conditions on their website. Yet, we are going to concisely discuss leverage because it’s a potent financial tool, but very dangerous at the same time. In fact, many financial regulators even agreed on regulations and restricted its usage, due to the risks involved.
As a result, EU, British and Australian brokers are limited to 1:30, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
RaxTrade DEPOSIT/WITHDRAW METHODS AND FEES
Well, there is no information about minimum deposit requirements or withdrawal restrictions. Supposedly, the funding/withdrawal methods are Credit/Debit cards, Wire Transfers and Bitcoin, but we can’t confirm these are actually available.
Speaking of funding, see some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated brokers on the lists are strictly regulated, so you won’t face scammers.
The inactivity fees are seemingly favourable, but RaxTrade is a proven scam, so we can’t validate these provisions. Even so, the clause states that after 12 months of inactivity, an account becomes dormant and will be charged $30 per year. That’s actually in line with the regulated brokers’ practices.
There are trading incentives available, but the additional provisions are fraudulent. For example, traders need to execute a minimum trading volume of 40 times the bonus plus the deposit to become eligible for withdrawal. If they fail to do so, it’s impossible to draw any money out of the account, at all.
Overall, RaxTrade is a broker operated by scammers, so stay safe and avoid it.
HOW DOES THE SCAM WORK
Internet is plagued by scammers’ fraudulent ads and deceitful social media profiles, promising get-rich-quick schemes, and it’s tempting to at least have a look.
If you click on and provide your e-mail and contact numbers, they’d ring you at once. You’ll be offered bonuses, managed accounts, risk-free deals, guaranteed profits and so on. Most scammers are seasoned manipulators, and while trying to strike a deal, they would inevitably ask for your bank card details so that you can start investing straight away. However, their actions would indicate urgency, and that’s a treacherous sign and evidence of a scam. So if someone pushes you over the phone to start trading ASAP, then it’s most probably a scam.
Nevertheless, the first deposit is just the beginning. Gradually they’d ask for more money from you no matter what. If you lost on the market, they’d persuade you to put more money and recover the losses. If you traded well, they’d convince you to put more money and increase the profits. The troubles start when you ask for a withdrawal. The scammers would do anything to discourage you and would even ask you to deposit even more funds if you want to withdraw. The scammers’ mantra is “give me your money”, they’d demand from you to fund your account over and over again for no obvious reason. Reputable companies wouldn’t push you to make deposits, so if you feel pressurised, that’s apparently a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and 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, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!