Beware! NuxTrade 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.
NuxTrade presents itself as a next-generation forex broker, but it is actually nothing more than a typical online scam. In this review, we will take a detailed look at why you should under no circumstances trust your money to this shady website.
NuxTrade Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
When you visit the website of a legitimate broker you can expect to find clear and detailed information about the company that owns and operates it, where it is based and what regulatory regimes it is subject to. Licensed financial services providers are also required to provide a comprehensive set of legal documentation.
All of this is missing from the NuxTrade website. It states that the company behind NuxTrade is based in an offshore area – Saint Vincent and the Grenadines (SVG) – but does not specify the name of the company. There are no Terms and Conditions, Customer Agreement or other documentation to explain exactly who we are dealing with and what terms we are agreeing to when we create an account.
We don’t find a company whose name includes “NuxTrade” among those registered with SVG, so we don’t know if this is even true.
Even if the actual owner of the NuxTrade is based there, that doesn’t provide any guarantees for customers’ money. SVG is an offshore zone with no broker regulations in place. As soon as you open the website of the local Financial Services Authority you see a warning that the institution does not licence forex and other types of brokers and does not supervise the activities of International Business Companies engaged in such activities.
It should be noted that after registering an account, the website redirects once to the pipsworkshop.com domain. This website is registered in Bulgaria and claims to sell vaguely defined financial literacy education packages.
If you have decided to invest in financial instruments you have a choice of much more trustworthy options.
Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
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.
NuxTrade Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|cTrader||40+ indicators||✅||✅||Android and iOS|
NuxTrade offers a standard-looking web-based trading platform. Here’s what it looks like:
It is no coincidence that these platforms have established themselves as the industry standard. 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.
It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use rigged trading platforms to fool their victims that their money is actually being invested.
NuxTrade claims to offer trade in currency, commodity and cryptocurrency. But the website does not offer detailed information on tradable instruments and trading parameters, as you will find with legitimate forex brokers.
NuxTrade Spreads and cost of trading
The trading platform shows a very low spread of 0.2 pips. Such a raw spread is usually coupled with commissions, but NuxTrade does not provide information on commissions and other costs paid by the trader.
NuxTrade Maximum leverage
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
NuxTrade claims to offer very high leverage up to 1:600.
This is not a level that you see with regulated brokers. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders. In the EU, UK and Australia the maximum permitted level is 1:30 and in the US it is 1:50.
This maximum level only applies to trading major currency pairs, with even more limited leverage for more volatile assets.
Higher levels of leverage are only offered to professional clients who trade entirely at their own risk. If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
NuxTrade Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Crypto||24 hours||24 hours||Fee depends on crypto|
We weren’t at all surprised that the only payment method accepted by NuxTrade is Bitcoin. Cryptocurrencies are the payment method of choice for most financial scammers. The reason for this is that on the one hand cryptocurrencies provide a degree of anonymity and on the other hand they do not allow the defrauded person to ask for a refund.
While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.
NuxTrade Minimum deposit
The minimum deposit in NuxTrade is denoted in the cryptocurrency Tether – 500 USDT. This is equal to 500 USD – an amount for which you can open an account with any licensed broker in the world. Established brands usually offer starter accounts with a much lower minimum deposit.
NuxTrade Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|NuxTrade||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet withdrawal terms.