Be Ware of Scam Forex Broker LexaTrade!

Brokersview recently learned that the forex broker LexaTrade has operated a forex scam. Based on the information we hold, the company pushed investors to make more deposits with different excuses and then cut off contact.

Pushes Investors to Add Deposit

According to an investor, he was introduced to the company by their representatives Alnorda Bright and Morgan Smith who assured him that he was going to make maximum return on investment if he invest with the company.

After the investor made a initial deposit of $250, he was told by Morgan Smith that the amount is too meagre to yield reasonable profits for him and that he should come up with $1500. The investor did that and then realized that he was scammed.

Similarly, another investor said that the broker’s account manager persistently asked him to increase his capital to at least $25,000 by threatening to stop trading for him.

“He threatened to stop trading for me. I pleaded that he continued trading as I will not do any withdrawal allowing increase of capital. The next day, I opened my web account and discovered my money has reduced to $-8. When I asked him why the loss, he claimed the market crashed and I should bring another $250 to start again,”the investor said.

From then, the investor has not received any reply to his numerous mails from the company.

(Screenshot from Investor)

LexaTrade Was Blacklisted by Polish KNF

On its website, LexaTrade claims to be a trading name of Swissone Group Ltd, a company with registered address in in Saint Vincent and the Grenadines (SVG), where forex brokers aren’t regulated in any way.

Additionally, we found that the Polish Financial Supervision Authority (KNF) has added Swissone Group Ltd to its alert list. It states that the broker is not registered in Poland, yet is offering its services to citizens of the area.

(Screenshot from KNF)

Although the regulation on the forex brokers are becoming increasingly tightened worldwide, there are many unscrupulous brokers who should not be in business. When looking for a licensed broker, it's important to verify its authenticity and business status.

Brokersview suggests investors to keep vigilant when choosing forex brokers. If you are not sure, you can search on the official website of the regulatory agencies.