Hextraprime review – 5 things you should know about hextraprimeasia.com

Hextraprime review – 5 things you should know about hextraprimeasia.com

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Beware! Hextraprime is an offshore broker! Your investment may be at risk.

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Hextraprime insists that it is a regulated forex broker, but even a superficial glance at the website provides us with numerous clues that this is not true.This website is operated by a dubious offshore company that is not subject to regulatory oversight. And more suspiciously, it lacks the technical capacity to offer the services it claims. In this review we will take a detailed look at why it is advisable to choose another broker through which to invest in the financial markets.

HEXTRAPRIME REGULATION AND SAFETY OF FUNDS

The first thing to look for in a forex broker’s website is which legal entity runs it, where it is based and what regulatory oversight it is subject to.

Hextraprime claims to be regulated, but the company behind the website, Hextra Prime LTD, is based in Saint Vincent and the Grenadines (SVG).

While this country has a financial regulator, unlike other offshore areas, it does not regulate the activities of forex and CFD brokers. Тhe Financial Services Authority (FSA) of St. Vincent and the Grenadines have repeatedly issued warnings on this issue.

If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations.

You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.

In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

HEXTRAPRIME TRADING SOFTWARE

Hextraprime claims to offer clients one of the most established trading platforms, MetaTrader 4 (MT4). But the installation file, which can be downloaded from the website, is for a platform registered in the name of a different offshore broker using a different domain, rforextrade.com. Hextraprime does not provide certificates for logging into its own trading server. Therefore, this alleged broker cannot offer real trading in financial instruments.

There are plenty of legitimate, regulated brokers who enable their clients to take advantage of MT4 and newer MT5‘s capabilities. These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

HEXTRAPRIME TRADING CONDITIONS

On the Hextraprime website we see a description of four types of trading accounts. The terms seem to be standard for an offshore broker. According to them, the trader pays a spread of 1.5 pips or a commission of 6 USD per lot depending on the type of account. But in the absence of their own trading software, the parameters described on the website have no real meaning.

Hextraprime promises extremely high leverage up to 1:5000. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States. This maximum level only applies to trading major currency pairs, with even more limited leverage for more volatile assets.

Hextraprime also advertises a variety of bonuses. This also contradicts the claim that this is a regulated broker. All leading financial regulators prohibit the use of bonuses and promotions. Fraudsters and shady brokers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms and hidden fees.

Hextraprime requires a minimum deposit of just 15 USD, but that shouldn’t tempt you. Many licensed brokers offer Micro and Cent accounts with an equivalently low or even lower minimum deposit.

HEXTRAPRIME DEPOSIT/WITHDRAW METHODS AND FEES

Hextraprime does not provide information regarding payment methods and transaction fees on its website and Terms and Conditions. The deposit menu is not available unless the account has been verified by providing a copy of identification.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill, Neteller or FasaPay.

You need to be  wary of  websites that only allow cryptocurrency deposits. These transactions do not allow refunds to be requested, which is why they are favored by scammers. If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.

Hextraprime’s Terms and Conditions specify two fees – 5 USD per month for inactive accounts and a 150 USD “research fee” if a chargeback is requested.

HOW DOES THE SCAM WORK

Many people are looking for ways to make money passively, but do not have the necessary knowledge to invest in the financial markets themselves. This makes them a target for the many online scammers posing as brokers. If you come across some of them and give them your contacts, you will be contacted by skilled scam artists who will assure you that they can take on the incomprehensible aspects of investing for you. You will only be required to invest and take profits.

But when you try to collect even just a fraction of your money, it will turn out to be impossible. Your supposed profits will suddenly evaporate, or you’ll find that you have to meet impossible traded volume requirements first. Fraudsters often insert huge withdrawal fees into client agreements amounting to 10%, 20% or even more. You won’t be able to hold scammers accountable because they hide behind fake names and shell-companies offshore. Scammers also typically use non-refundable payment methods.

WHAT TO DO WHEN SCAMMED

First of all, you should be very careful not to fall straight into the clutches of other scammers. Another common scam is to promise money recoveries from fake brokers for an upfront fee.

If you used a credit or debit card for the transactions, you can charge a chargeback. Visa and MasterCard have a long period in which they allow such requests – 540 days. But keep in mind that fraudsters can dispute if you have provided them with a copy of your ID and proof of address. It would also be helpful if you alerted the authorities in your country and other people online to the activities of the scammers.

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