Beware! ExtraDex 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.
ExtraDex isn’t the broker it pretends to be. This firm tries to mislead its customers into believing that it’s reputable, licensed and trustworthy, however the truth is poles apart from what it claims. ExtraDex isn’t regulated or authorized by any financial authority and most certainly operates outside the law.
Also note that there are some huge drawbacks in its trading conditions, so investing here is certainly not worth it. Let’s take for example the unnecessarily high minimum deposit requirement of 1000 USD, that exceeds multiple times the standard amount for the sector. Or maybe the second-rate trading platform and very shady payment methods (that include only crypto coins by the way). As you see, ExtraDex is obviously not a good choice when it comes to investing your hard-earned money. Don’t make the mistake to risk losing everything overnight – instead read the full review and you may reconsider trading here.
Regulation and safety of funds
ExtraDex is a complicated type of broker. Its website may seem credible at first, but there are some warning signs that can’t be covered up. For example, it was difficult to find where this broker is situated, as there is no contact section on the website. Eventually we managed to find out that this broker claims its registered address to be in Monaco. When it comes to forex brokerage activities this country adheres to the rules set by the European Union, so every broker based there must be authorized by the local Financial Activities Supervisory Commission. ExtraDex however doesn’t mention anything on the topic, so we decided to make our own investigation. Our search didn’t have much success, just because there was no record found regarding this company. ExtraDex is certainly not regulated by this authority.
Moreover, ExtraDex also posts a licensing act issued by the Vanuatu Financial Services Commission (VFSC). Now, in general Vanuatu is a popular offshore forex broker jurisdiction that licenses brokers, but its offshore regulation doesn’t come with very high client protection. But all of this doesn’t matter, as ExtraDex is certainly not authorized there either. If you take a closer look at the purported license you’ll notice that the name of the company is Credit Financier Invest Limited. What’s more, we searched the registers of VFSC, but there was no data about ExtraDex or Credit Financier Invest Limited either, so this license is most probably fake. Take a look at the search results down below:
As you see, this firm is certainly not authorized to provide investment services. On top of that it makes everything possible to confuse its customers by choosing a registered address and regulation that are not widely popular. This way it can swindle unwitting investors and pass itself off as a reputable broker, which it isn’t. If we were you, we wouldn’t trust it an inch, as this firm bears all the hallmarks of scam possible.
Trading with a regulated broker with a proven reputation would be much wiser. As we mentioned above, Vanuatu provides an offshore regulation that isn’t the best to be honest. On the contrary, licensed brokers in the EU are obligated to meet much more requirements and offer much higher client protection. For example they must keep your money in segregated accounts and must also ensure your investment for up to 20 000 EUR in case of broker’s insolvency.
ExtraDex claims to offer its own innovative trading platform. We registered in a blink of an eye and got access to a simple web-based software, take a look:
The first thing that catches the eye is the fact that everything is in Russian, which seems rather suspicious. Apart from that, the platform seems simple and isn’t innovative for sure. Just the opposite – you can use just some basic tools and custom indicators, but nothing more advanced.
If you want to benefit from truly unique software we suggest looking at reputable brokers who offer the industry standard MetaTrader 4 or MetaTrader 5.
MT4 and MT5 have been praised by both brokers and traders for a good reason. They definitely surpass their predecessors in so many ways – they are more advanced, have more functionalities and tools to choose from at least to say.
You can be sure your funds and personal information are safe, as all transactions are encrypted and so is your IP address. MT4 and MT5 are definitely platforms you can fully trust to execute your trading operations promptly and effectively.
Among all great features that MT4 has for example, the most popular are the Expert Advisors. These trading bots can do the job for you – they search for certain conditions and start trading the moment they find them. As simple as that!
MT4 and MT5 have desktop, mobile and browser-based versions. All of them are very easy to navigate even for beginners. Don’t worry – these platforms are free and don’t require any payments.
Unfortunately for all of us MetaTrader 4 and MetaTrader 5 are no longer available on AppStore, as Apple has recently removed both of them. If you are using an iPhone or iPad and you have already downloaded one of them, you can continue using it but without any further updates or upgrades. Hoping this is only temporary and that Apple shall bring them back as soon as possible. MT4 and MT5 are still available for download on Google Play Store.
ExtraDex claims to offer three account types – Beginner, With experience and Professional. You can see some more details down below:
As you see, the minimum deposit for the Beginner account is 1000 USD, which is certainly too much. It isn’t worth the risk of getting deceived, especially when there are so many genuine brokers who ask for around 250 USD in order to start trading. What’s more, some legitimate firms also offer micro accounts, which require around 10 USD.
This broker also claims to offer a leverage of 1:10 for its Beginner account. This amount is fine in general, as it won’t be so risky and is in line with the requirements in the EU – the leverage there is limited to 1:30. The rest of the accounts however offer a leverage of 1:50 and 1:100, so be careful with them. These volumes are certainly going to be very risky. Still, if you want to invest with higher leverage, you can look at some of the offshore subsidiaries of reputable forex brokers.
In addition, there is no data about the spread this broker offers. After we opened the trading platform there was a spread of 0.9 pips for EURUSD, which seems fine. However be extra careful, as there might be some commissions at the end. For safe and secure trading experience, better look at regulated brokers who offer tight spreads below 2 pips.
Deposit/Withdrawal methods and fees
On the website there is also no information about the payment methods this broker accepts. This is not a good sign either, as most legitimate firms would normally describe this in detail – from the payment options, through the execution time, to any additional fees or taxes, if there are any.
In this case, it was obvious at first glance that there is something fishy around here. And we weren’t wrong. After we registered it turned out that there is only one payment option – via crypto coins (Bitcoin and Tether to be precise). Take a look:
This is yet another warning sign for scam. Crypto transactions are proven to be completely irreversible and anonymous, that’s why fraudsters insist on using them.
As you see, ExtraDex is obviously not to be trusted. Stay away from this shady broker for your own good!
How does the scam work
Remember that financial scammers are only interested in your money, not in your trading or financial success. They happen to come upon new ideas on how to deceive people every day. Unfortunately despite the efforts of all financial institutions there are still a lot of offshore brokers that claim to invest your money in the best possible way but in fact aim to steal everything. The worst part is that they use various techniques to win your trust and to make sure it’s almost impossible for a beginner to tell them apart from a reputable broker. Here’s a list of their most common tricks you should watch out for.
First of all, scammers tend to offer incredibly high return on investment. They assure you there’s nothing to worry about, as trading with them is easy as a, b, c. Offshore brokers might even promise they can handle the trading for you and your only job is to relax and wait for the “fantastic results”.
Bear in mind that scammers can manipulate their trading platform and make it seem as if your funds are being invested, but in reality no such thing happens. They also can fake your trading results thus making you believe they have been very profitable – this is made to make you invest more and more, because your trading is “so successful”.
Scammers might also claim that trading with them is risk-free and so on. That is another ridiculous lie – reputable brokers even tend to display on their website the exact amount of trading losses as a warning.
Furthermore they might offer you some kind of bonuses just to make you invest right away. Don`t believe them however as such promotions usually come with a very high volume requirement that is a challenge even for experienced traders.
Another scam alert is the presence of a certain fee upon any withdrawal request – this fee may start from 10%, 20% and go higher depending on the broker. It’s important to know however that most regulated brokers don’t usually ask for a fee in order to allow withdrawal.
Nevertheless even if you decide to pay the fee you still won’t have access to your money – with most scam firms this scenario is very likely to happen. You may realize that a withdrawal is impossible – no matter if it comes to your initial deposit or the so-called “profits”. So finally you may end up losing everything plus the paid fee.
What to do when scammed
Most people that have been scammed usually try to take some actions to retrieve their stolen funds. Unfortunately in such cases you can’t really turn to any official financial institution as offshore brokers` actions are not overseen by any regulator. So a regulatory body can’t help you here. What most people do in such circumstances is to turn to people on the internet who promise to retrieve their money in exchange for a certain fee. This is probably the worst thing you can do, actually. These people are most certainly also fraudsters who want to take advantage of your despair and steal even more of your funds. It may even turn out that they are the same scammers that already deceived you.
The best possible thing you can do is to turn to your bank and file for a chargeback if you used your Visa or MasterCard. If you have paid using PayPal or Skrill you can also open a dispute. Paying with crypto coins like Bitcoin and Ethereum is not eligible for a chargeback as we already said and the funds cannot be restored.