Beware! LexingtonPlus 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.
It is obvious that LexingtonPlus is a scam – and we did not even need the FCA warning on the broker to tell you that. This is an unlicensed company that does not take clients at the moment and offers a very poor trading environment. Some of the fees LexingtonPlus charges are outrageous – you will surely get robbed through fees if the broker does not straight-up scam you. Ignore this offer – it would be an awful idea to invest money in a broker like this one.
LexingtonPlus REGULATION AND SAFETY OF FUNDS
LexingtonPlus claims that it is based in Singapore but that it mostly offers services to clients in the UK and the EU. However, the broker has also managed to attract the attention of a reputable authority – the UK’s FCA. The regulator warns investors that this is an unregulated company and if you choose to work with it, you would not have access to the many protections that exist for clients of licensed brokers. Such a warning means that the broker is most probably running a scam.
Singapore is actually a big and fairly well-regulated forex market. All brokers based there must be regulated by the Monetary Authority of Singapore (MAS) – which LexingtonPlus is not.
Instead of dealing with such obvious scammers, turn to a broker licensed in the UK or the EU. The activities of such brokers are monitored by strict authorities – that is why brokers try to conduct business in a legal manner. An EU or UK license is prestigious so brokers do their best to keep those by maintaining a high standard. There are minimum operational capital requirements – at least €730 000 but potentially higher for brokers with many clients. This proves that the broker is well-capitalized and here to stay. Client money is kept in segregated accounts – this proves that the broker would not be able to reinvest your funds elsewhere, and speeds up withdrawals. All UK and EU brokers also participate in compensation schemes – if such a broker goes bankrupt, each of their clients could receive a compensation of up to £85 000 in the UK and €20 000 in the EU.
LexingtonPlus TRADING SOFTWARE
When we tried to open an account with LexingtonPlus, we were surprised to discover that the “Sign Up” button was missing completely from the broker’s website. You could log in to an already existing account, or install the remote access software AnyDesk – that is pretty much all. This leads us to the conclusion that LexingtonPlus is one of these brokers who prefer to choose clients themselves and distribute all the information you would need for logging in via email or phone. Legitimate brokers usually try to show you what they are capable of by offering demo accounts – so you could see if the broker’s conditions really suit you. Scammers are a different story altogether – they sometimes choose to handpick victims to keep the scam under wraps for as long as possible.
Installing any sort of remote access software is not advisable. Scam brokers would urge you to install programs like AnyDesk or TeamViewer and try to convince you that this is necessary and would be extremely convenient for you. They will offer help with dealing with different aspects of their platforms and software, and would sometimes even offer to trade on your behalf. Don’t fall for such tricks – all such brokers want is access to your computer and banking passwords so they could rob you additionally. And no legitimate broker would offer you help while trading – in some cases, your winning might be against the broker’s own interest (if the broker is a market-maker). But even if they are not, do not count on any such help from a legitimate broker.
We could not establish what sort of software LexingtonPlus offers without an account. However, we would advise you to turn to a legitimate broker, preferably one offering advanced trading platforms like MetaTrader 4 or MetaTrader 5. These platforms have been the rulers of the trading world since MT4’s introduction more than 15 years ago. Most traders appreciate the software’s accessibility and user-friendly interface, as well as the many features it offers. With MT4 and MT5, you would get access to a variety of technical indicators, tools like preprogrammed Expert Advisors that trade in automatically as well as the possibility to create your own trading bots and indicators, VPSs you could purchase to keep EAs operating even when your computer is off, Strategy Testers, the chance to set signals for prices going up or down, a market for add-ons, etc.
LexingtonPlus TRADING CONDITIONS
LexingtonPlus offers trading conditions that did not seem very competitive all things considered. The broker is asking for a minimum deposit of €5000 in order to open the most basic kind of account – which is simply outrageous considering the limited possibilities this account seems to offer. In contrast to that, many brokers would offer you amazing conditions and only ask for a minimum deposit of $100 or much less – even for as little as $1.
The commission the broker charges vary depending on the account – but are around 1% on the “Micro account”. The broker has not mentioned anything about spreads, and without access to a platform, we could not find out anything ourselves. However, trading with this broker does not seem like a very lucrative affair – especially considering the fact that it is scammers we are dealing with.
LexingtonPlus DEPOSIT/WITHDRAWAL METHODS AND FEES
LexingtonPlus’s Terms and Conditions were full of all sorts of horrible and dubious clauses related to additional fees and costs. Wire transfer is the only payment method you would not have to pay additional fees on – on all other payment methods, the broker charges ambiguous additional fees. If you have not reached a certain turnover, the broker will charge you an additional 4.5%.
LexingtonPlus states that it could take up to 60 days for you to receive your money after withdrawing – which is a huge period of time. Moreover, in case of a “premature withdraw” (the broker did not elaborate on what premature means), the company “will be entitled to deduct up to 33% … from the client’s total deposits”.
There is also an annual interest rate you are obligated to pay to the broker – at least 10% per year. All of these fees are unconventional, to say the least.
LexingtonPlus also offers bonuses – or credits, as it calls them – but to withdraw that bonus and all the profits you have turned, you would have to reach a turnover of your bonus plus your investments multiplied by an unspecified number.
And although sometimes do have turnover requirements you have to reach before withdrawing the bonus itself, no legitimate broker would ever deny withdrawals of profits or your own deposits – that is something scammers do.
With all these fees, you would definitely be losing money if you choose to trade with LexingtonPlus – that is if they don’t just rob you first.
HOW DOES THE SCAM WORK?
In this day and age, such scams are far more frequent than you would think. With the rising number of people willing to invest in the forex market, the number of scam brokers has increased drastically. It is important to learn how such scams work in order to spot them and avoid them. Scammers are rarely very imaginative so you would not find a lot of deviations from the following scheme.
In your search for a broker to start trading with, you stumble upon one who promises particularly great conditions. Or maybe you were not even looking for a broker but have heard stories about people getting rich by trading and are tempted to see what all the fuss is about. This particular broker promises fast effortless profits, enormous promotions, and an all-around great trading environment. So you fall for it and provide the scammers with your email and phone number.
The moment you do that, you will start getting calls from the broker asking you to invest – the scammers will be persistent and promise you all sorts of tempting profits. If you give in and deposit, you will be asked for increasingly bigger amounts – and you will gladly deposit because, at this point, you would probably be seeing profits.
The problems will start once you try to withdraw those amazing profits – all sorts of additional fees and clauses in the Terms and Conditions will prevent you from doing so, or result in huge losses of capital. At some point, you will understand that you are being scammed – but the scammers will be long-gone by then.
WHAT TO DO WHEN SCAMMED?
Prevention is key in such situations. Make sure that you choose a reliable brokerage with a solid reputation, and always check the registers of the responsible authorities to make sure that all of the broker’s regulatory claims are true. Do not trust offers that are too good to be true.
If you have, however, already deposited with a scam broker, make sure to look up chargeback options as soon as possible. Both Visa and MasterCard, for example, allow chargebacks within 540 days of the transaction. Getting your money back if you have deposited via cryptocurrency or bank transfer, would not be possible. You should make sure to change all banking passwords, and remove any software the scammers had you install from your computer. They might have you believe that you should install some sort of remote access software to help you trading, or with technical issues but that is a lie – they just want access to your banking accounts.
Make sure to notify authorities about the scam and share your story with as many people as possible – this would prevent such scams from spreading.
Finally, do not trust anyone – usually calling themselves a “recovery agent” – who offers to retrieve your money for a fee. This is just another type of scam.