Beware! Platinex.io 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.io is the brand new, shiny domain of Platinex.co – scammers we reviewed a few months ago. Well, some things never change and this is most certainly true about scammers – the broker’s offer is not better in the slightest, nor has anything in their whole presentation changed. Platinex.io are and will remain an obvious scam, no matter how many domains they change. Among scammers, it is a quite common practice to change names and website but there is always that little something, the breadcrumb trail that could lead you from one scam broker to another. And in this case, it is not even a little something – we are obviously dealing with a network of scammers determined to rob you to the biggest extend possible. Read our review to find out why you should not trust Platinex.io under any circumstances.
Platinex.io REGULATION AND SAFETY OF FUNDS
Platinex.io is registered in the Commonwealth of Dominica. The reason why you will find a lot of scammers registered in that country is that the local financial authority does not consider forex trading to be a separate line of business – and as a result imposes no laws and regulations in the sphere. Scammers can pretty much run free and do whatever they want without having to worry about strict laws and restrictions, and merciless regulatory bodies they have to answer to. Which leaves you, as a client, completely unprotected.
Such is not the case if you choose to work with a broker regulated in the UK, the EU or Australia. All of these countries have some quite reputable financial regulators that would be looking out for you and make sure that you are treated fairly and in accordance with all laws. A broker cannot obtain a license just like that – to do so, they would have to meet a ton of requirements and maintain a very high standard of service. For example, all brokers, no matter if they are licensed in the UK (by the FCA), the EU (by the Cypriot regulator CySEC or by a reliable local financial authority such as the German BaFIN or the Italian CONSOB), or Australia (by ASIC) have to maintain some sort of minimum capital – A$1 million for Australia and €730 000 for the EU and the UK. This proves that the broker has enough money to survive on the volatile markets. Negative balance protection is a must – your losses cannot exceed whatever funds you have in your account. Client deposits must be kept separate from the broker’s own funds in segregated accounts managed by third parties – your broker would not be able to use your money for their own financial operations and could grant you faster withdrawals.
While conducting our research on Platinex.io, we found not one but two warnings issued on the broker – one by the Italian regulator CONSOB, and one by the Spanish one CNMV. This makes the guess that this broker is a scam a proven fact. Stay as far away form Platinex.io as possible.
Platinex.io TRADING SOFTWARE
Platinex.io offers a simple Webtrader. Less complicated platforms with less features are not necessarily a bad thing – there is a time and place for everything – but they get boring fast because they don’t have all that much to offer you.
Better look legitimate brokers offering highly functional platforms like MetaTrader 4 or MetaTrader 5 – both versions of the software have become quite the industry staples. MT4 and MT5 have every trading tool you can think of in store for you – from preprogrammed Expert Advisors and VPSs that keep trading bots operating even when your computer is off to customizable signals and a market for trading apps. Check out what the software is capable of, you would not be sorry.
Platinex.io TRADING CONDITIONS
Although the broker claims that the minimum amount they require in order an account is $250 – which is already more of an upper limit for most legitimate brokers – in reality, we were not able to deposit a cent under $1000. This is a far too big amount to ask for especially considering how unreliable this broker is.
The spreads we got were around 3 pips – when most legitimate brokers try to keep their spreads under 1.5 pips. Such a wide spread would probably not lead to any huge profits.
Platinex.io surprised us by offering a quite reasonable leverage rate on Standard accounts – up to 1:30 which is in line with the leverage restrictions than exist under many jurisdictions. The reason the leverage cap in the EU and the UK is capped at 1:30 for forex majors and even less for more volatile assets is that high leverage can be dangerous – it can lead both to huge profits and to huge losses. However, Platinex.io offers higher leverage, too – the leverage on Expert accounts could go up to 1:100. If you have sufficient knowledge and experience, high leverage can be a useful tool – just make sure that the broker offering it is reliable.
We were surprised that although Platinex.io does not charge commission on more basic accounts, the commission on Expert accounts is huge – $25 round-turn per micro lot. Most legitimate brokers charge around $8-$10 per lot – the numbers can, of course, vary but they are rarely as high as $25.
Platinex.io DEPOSIT/WITHDRAWAL METHODS AND FEES
The only way to deposit money with Platinex.io is if you use some sort of cryptocurrency. Crypto is an innovative technology that provides secure transactions – which is why many legitimate brokers have started accepting crypto payments. However, scammers adore this payment method because any transaction made via crypto cannot be reversed by default – such is the nature of the blockchain. If you transfer money to Platinex.io, you would never be able to ask for chargeback.
The broker offers a 20% bonus upon your first deposit and a 15% refer-a-friend bonus. There is a reason why bonuses have been banned under so many jurisdictions – scammers often attach clauses to such offers. These clauses might later prevent you from withdrawing from your account before you reach a certain ridiculously huge turnover – and we don’t necessarily just mean you would not be able to withdraw the bonus. Often enough, you would not be able to withdraw your profits or even your own deposits.
HOW DOES THE SCAM WORK?
This scam and those like it are rarely very imaginative – they usually happen in a similar manner which is why it is important to learn how to detect them.
The scam starts with something as innocent as an ad on the Internet – a broker promises you never-before-seen conditions and insane returns of investment – the only thing you have to do is deposit a certain sum. You have heard stories of people making huge profits while trading or investing so you decide to be one of them and open an account with the scammers – providing them with your phone number and email in the process.
After that, they would not leave you alone before you transfer a little deposit. Some of them will disappear right there and then but most scammers are greedy – they will do whatever it takes to make you deposit more and more money, including manipulating platforms and making it seem like you are turning a huge profit.
The problems will start once you try to withdraw – your broker will deny withdrawals under different pretexts including additional taxes or clauses in the Terms and Conditions. Sooner or later, you will figure out something is wrong – but the scammers will be long gone by that time.
WHAT TO DO WHEN SCAMMED?
Be prepared that you might never see your money again – although there are still things you could and should do.
Change any passwords and banking details you have provided the scammers with to avoid further frauds – that includes cases when you have provided them with remote access to your computer. If you have deposited with Visa or MasterCard, that is great news – their policies allow you to ask for chargeback within 540 days. Don’t trust any so-called “recovery agents” that offer to retrieve your money for a fee – this is just another type of scam targeting desperate scam victims. Make sure to notify the financial authorities in your country and try to spread the word about such scams – the more people know about them, the less such blatant robberies will happen. Even something as simple as a 1-star Google review could save dozens of people from losing their money.