Scam Alert: Polish KNF Issues Warning Against LexaTrade

No matter how well you know the market, shabby brokers like LexaTrade can have various tactics to make you believe them to be a legitimate company.

Overview

LexaTrade is a brand name of Swissone Group Ltd based in St. Vincent and Grenadines. The company claims to have been regulated by International Financial Market Relations Regulation Centre (IFMRRC) under license number RU 0395 AA V0189. The broker provides trading services across multiple asset classes, including forex, shares, indices, and commodities. Besides offering lucrative bonus offers, the company entices clients with insurance protection on deposits of up to 5000 U.S Dollars.

Regulatory Status

LexaTrade is a non-regulated brokerage firm. Being an unregulated entity, it is not safe for trading. That means funds deposited with the company don't have legal protection if the company becomes bankrupt.

Clientele Feedback

LexaTrade is one of the poorly rated brokers available around. While the company's existing clients provide negative feedback for its malpractices, its formal customers do not have different opinions either. Ranging from withdrawal issues to trade execution and customer support, the company always make people suffer. Let us share some screenshots as a piece of evidence.

What Makes LexaTrade A Scam Setup？

First, the company is headquartered on an offshore island, with no legal supervisory authority except for the SVGFSA to oversee financial intermediaries. However, the SVGFSA neither regulates nor issues licenses to brokers dealing in forex and binary options trading. Instead, it only registers non-forex companies operating within St. Vincent and Grenadines.

Second, the company claims to be holding regulations from the IFMRRC, which itself is a non-governmental self-regulatory organization with no track record of being endorsed by any reputable regulatory authority.

Further, the company has been denounced in various jurisdictions by concerned supervisory authorities like Polish Financial Supervision Authority (KNF). According to KNF, the broker is not registered in Poland. It further states that clients should avoid trading with LexaTrade since it operates without the required permission.

How LexaTrade Trap Clients？

LexaTrade customer service agents keep pushing clients via phone calls and emails, asking them to fund their accounts. However, they become less concerned after receiving funds from clients and don't even bother to respond to your concerns and queries. Their only motive is to steal investors money by any means.

What to do If I've deposited my funds with LexaTrade？

Unfortunately, there isn't much you can do. Nevertheless, consider placing a withdrawal request with your broker immediately. There is no point in continuing trading with a company known to be ditching clients repeatedly. Essentially, it hurts you more when you aren't able even to file a case against it.

Bottom line

LexaTrade and other brokers alike disguise clients through different methods. For instance, a broker might pretend to have been licensed when it is not, or it might lure you into trading by making false promises. Profitable forex trading involves profound market knowledge and expertise you can't learn overnight. Therefore, do not pay any heed to brokers promising unrealistic returns. Further, always confirm a broker's regulation from the respective regulatory authority before signing up. Preferably, you broker should hold regulations from a prestigious regulatory organization.