Nexo Trades review – 5 things you should know about nexotrades.com

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

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Nexo Trades presents itself as a regulated forex broker, but it is actually a blatant example of why you should always do careful fact checking before putting your money on the line. This website illegally uses the details of a legitimate company and is connected to a whole network of fake brokers. In this review, we will show you how to distinguish such scams from credible financial service providers.

Nexo Trades 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. Licensed companies are also required to provide a comprehensive set of legal documentation.

On the Nexo Trades website we only see links to two documents, the Terms and Conditions and the Privacy Policy, but both links are blank.

The home page of the website claims that the broker is operated by the company Goldenburg Group Ltd, based and regulated in Cyprus.

This company exists and indeed runs a broker whose review can be read here. However, at the time of writing this review, the license of the company has been voluntarily suspended. More importantly, this broker operates through a different domain from that of Nexo Trades – goldenburggroup.eu.

In fact, the Cyprus Securities and Exchange Commission (CySEC)  has posted an express warning that the nexotrades.com domain is not associated with an authorized company.

The trading software used by Nexo Trades is registered in the name of Maximus Global Marketing Ltd, a company based in the offshore zone of Belize. This company pops up behind many shady websites we’ve come across, for example AAATradecn, VisionFX365, ImperialCFD and Evolution Brokers.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the CySEC.

There are many advantages to working with such brokers because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА). They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. When clients deposit money in their trading accounts, they are kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.  All brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency.

Nexo Trades Trading software

Nexo Trades implements the industry’s most popular trading platform, MetaTrader 5 (MT5), available in desktop and web versions. As stated, the platform is registered in the name of a different company than the owner listed on the website.

The availability of trading software is no guarantee that this trading is real. When you are dealing with an unregulated and clearly fraudulent website there is a very high probability that the trading server has been manipulated.

It is advisable to contact one of the many legitimate brokers that offer MT5 or the still very popular MT4. These platforms have established themselves as leaders because they offer a wide range of features, including a wide variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

Nexo Trades Trading instruments

Theoretically, Nexo Trades facilitates trading in multiple financial instruments – forex, indices, stocks and commodities. But as pointed out, this trading is likely to be fictitious or manipulated to the detriment of the trader.

If you want to enter the world of financial trading, you should do so through a duly licensed and established broker.

Nexo Trades Spreads and cost of trading

Nexo Trades offers two types of trading accounts, but nowhere is there a description of the terms associated with them. Because of this, we do not know what the cost of trading is. In the MetaTrader platform we see a spread of 1.4 pips, but we do not know if the broker charges additional commissions.

Nexo Trades Maximum leverage

Nexo Trades has a default leverage of 1:200. This is further proof that this is not a regulated broker. All EU regulators limit leverage to 1:30.

Another such piece of evidence is the claim that Nexo Trades offers bonuses.

Regulated brokers are prohibited from offering bonuses and promotions. Scammers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms. Nexo Trades does not provide clear information about the conditions attached to bonuses.

If you are willing to take the risk of trading with high leverage and benefit from bonuses and promotions, the best option is to invest through an offshore division of an established brand.

Nexo Trades Deposit and withdrawal methods

At the time of writing this review, there are no active options in the deposit menu of Nexo Trades. In the withdrawal menu, the choice is between cryptocurrency and bank transfer – payment methods that do not allow you to request a refund or chargeback.

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

Nexo Trades Minimum deposit

The leading brands in the industry offer beginner traders starter accounts with a very low minimum deposit. You have no good reason to take chances with shady brokers like Nexo Trades.

Nexo Trades Withdrawal requirements

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.