Beware! Platinex.co 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.
Platinex.co has an appealing website, and people may as well believe it’s a worthy broker. However, we scrutinised this entity and found some very disquieting features, so it deserved a place in our scam suspects list. You can find everything you need to know about the broker in the full Platinex.co review, so you’d better read it before depositing any money whatsoever.
Platinex.co REGULATION AND SAFETY OF FUNDS
Platinex.co is a brand name of Lithe Group Ltd, a company allegedly registered in the Commonwealth of Dominica. Well, that’s a totally anonymous entity, and it’s impossible to get information about it because the Caribbean island is a non-transparent tax haven. Worse though, the local financial authority FSU doesn’t even license or control brokers legally incorporated there, which makes Dominica overcrowded with scammers.
At the same time, Platinex.co claims to be a MiFID compliant broker, but that’s a big fat lie because they have no license issued by European regulators. The fraudulent claims indicate fraud. Your funds are in danger if you deposit with Platinex.co because it’s an unregulated offshore broker and now a suspected scam that should be avoided.
Instead, consider the EU brokers and British brokers topping both lists provided. The European markets offer high-grade security, with brokers covered by deposit insurance funds inaugurated to protect clients’ money. Hence, CySEC brokers’ traders can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. If you are eligible to open an account with a European company, you can safely do so; it’s a no-brainer.
Platinex.co TRADING SOFTWARE
Platinex.co provides only online-based trading software called Webtrader. Well, we’ve seen precisely the same platform deployed by many scam brokers, which is definitely a downside. The software is rather primitive, difficult to use, and lacks many features people using MT4 take for granted, such as Algo trading. The EUR/USD spread is 3 pips fixed, which is not a competitive Buy/Sell difference, making the broker’s services costly. The lower rates make trading more affordable, so you’d better find a regulated broker offering 1 pip or below; there are many on the market.
That said, the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists are safe, delivering upper-class software and a much more favourable trading environment. The MT distributions are packed with sophisticated tools such as Expert Advisors, many complex indicators, sophisticated charting tools and even a marketplace featuring more than 10 000 apps.
The brokers that the maximum leverage possible is 1:100, which is a risky ratio viewed as inadequate for retail traders. Worse though, MiFID compliant brokers can’t offer such a level, which once again confirms that Platinex.co has nothing to do with regulations. As leverage can be overly dangerous, many financial authorities imposed a cap on the market, forcefully restricting its usage. As a result, EU, British and Australian brokers are limited to 1:30, while Canadian brokers and US brokers can’t provide more than 1:50. Most of the high-leverage ones are poorly regulated offshore businesses, so be cautious.
Platinex.co DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Platinex.co is $250, which is in line with the offshore brokers’ requirements, but higher than the regulated industry standards- $100 on average. The funding methods are said to be Credit/Debit cards, Wire Transfers and e-wallets, but we can’t verify their claims due to ID verification issues. We didn’t want to submit documents to such a shady website because the Identity Theft danger is real.
While talking about deposits, consider the top-rated Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you are looking for a broker and have a preferred payment system. The companies on top of both lists are adequately regulated, and you won’t face scammers among them.
Platinex.co refuses to disclose anything about withdrawals or fees. The broker presents many legal documents, but none of them considers any trading provisions. Imagine now, you download the T&Cs document, print it, sign it, and then submit it back to the broker as a form of a signed contract. Well, there is nothing about fees within it, so Platinex.co can at some point impose a withdrawal fee of 50% from the withdrawal amount. Can they do it? Absolutely yes, if they want to. The absence of information about critical provisions makes the broker unreliable and shows even more evidence of a scam.
Platinex.co offers trading incentives, which MiFID compliant brokers are not allowed to do. Bonuses and promotions were prohibited by the European regulators long ago due to client’s misunderstandings and boosted risks. The Platinex.co’s offer is a 20% welcome bonus, but the broker doesn’t specify anything whatsoever.
Overall, Platinex.co is an unregulated offshore broker, which is a reason to stay safe and avoid it.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s actually a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes, and so on. Their imagination is rich, and they would invent as many stories as possible to get the deposits wanted.
Unfortunately, the initial deposit is not the end but the beginning. Gradually, scammers would manipulate victims and would urge them to invest again and again. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the results to show victims massive profits and would ask for more money, promising to get even more profits.
However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, no matter what.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
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!