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LexaTrade is a new Forex & CFD broker that has been making headlines not because of its services but due to its ever-declining reputation. Many of its users have complained about the brokerage firm running a scam. But do all these incidents indicate it to be a fraud broker? Well! This detailed LexaTrade Review 2023 will help you determine whether LexaTrade is a scam or just an odd marketing tactic by its competitors.
This in-depth LexaTrade Review 2023 will not only serve as a beginner guide but will also answer all your queries if you’re a potential user or have already been scammed by the platform. Alongside this, we will also discuss the various ways to recover your lost funds.
What Is LexaTrade And How Does It Work?
LexaTrade is a St. Vincent and the Grenadines-based CFD brokerage platform operating under Swissone Group Ltd. Currently, the platform is limited to European clients only.
Ever since its inception, the platform has been mired in several controversies regarding withdrawals, high spreads, or adverse conditions.
Also, it offers very limited trading products, spanning from Indices, Shares and Commodities to Forex. Meanwhile, the platform’s UX & UI doesn’t seem to be in favor of beginners.
Is LexaTrade A Scam?
Yes, it is a scam broker illegally operating in the European financial market. Firstly, the broker claims to be based in St. Vincent and the Grenadines, which is an offshore location and hub for shady brokers to quickly obtain operating licenses.
Secondly, LexaTrade is a blacklisted Forex trading platform by the Polish Financial Supervision Authority (KNF).
Thirdly, BCBIR – the regulatory authority that oversees the broker is itself an offshore regulator. Considering all these findings through LexaTrade Review 2023, we conclude it to be a scam broker; thus, you should avoid this broker.
How Does LexaTrade Scam Traders?
As a trader myself, when I first started using the platform, it seemed like a lucrative opportunity because of its good sign-up bonus. After that, everything went well until withdrawal. So, if you’re thinking, how does it scam traders, here’s what I have understood so far.
The broker primarily targets new traders and entices them to sign up by hooking them into its lucrative yet tricky bonus offers. And it even credits the bonus into their trading account to build trust.
However, the story takes a bad turn after you deposit and place trade orders. The broker eats all your profits by charging wider spreads and high overnight charges. And when you raise a withdrawal request, the platform keeps declining it, giving inappropriate reasons.
Therefore, our LexaTrade Review 2023 revealed the broker is high-risk and you should avoid it. Instead, trade with a reliable broker like AVA trade.
Has LexaTrade Scammed Anyone Before?
Yes, the platform has scammed many of its users and I am also among them. When we searched the internet, we found several users complaining & sharing their scam incidents on various online forums.
The majority of these complaints were against its withdrawal policy. Meanwhile, many users have complained about the broker manipulating account activities.
The platform has a below-the-average reputation among its existing users, which is clearly evident from LexaTrade Trustpilot Reviews. Additionally, it scored a 1.9-star rating out of 5, which adds another reason to avoid this broker.
What About Fund & Account Safety At LexaTrade?
Despite the broker’s big promises & claims on fund safety, its efforts don’t seem to favor traders in any way. For example, it claims to offer 100% insurance on the deposit amount.
But the insurance claims don’t work in reality, which leaves a questionable impression on us. And it lacks regulations from reliable & trusted regulators; there is no way of filing a complaint against it.
Again, as we said earlier in our Lexatrade review 2023, the broker’s dubious reputation and high-risk profile will always keep you at risk of being scammed.
Reasons Why LexaTrade Is A Scam?
While scrolling down the web for LexaTRade Review 2023, we found several reasons indicating it to be a scam broker. Unfortunately, while offshore regulation is its biggest drawback, we didn’t include this point in the list.
Poor Selection Of Trading Products
As the ultimate goal of scam brokers is to scalp money from their clients, they often invest less in offering traders favorable conditions. And this turns true in the LexaTrade case.
The broker’s limitation to just Forex, Commodities and Indices market speaks a lot about how seriously it takes its clients.
Wider Spreads & Hidden Charges
The broker charges a typical spread of 3.8 pips for a mini account, followed by 3.3 pips for a Standard, 3 Pips For Gold & Silver and 2.3 Pips For Platinum Accounts.
The spread charges are above the global industry standard of 1.5 Pips. At the same time, there are many hidden charges that will be levied on your opened position.
Unfavorable Deposit & Withdrawal Conditions
Despite the availability of several payment options for deposits & withdrawals, it still fails to make a mark. This is probably the main reason behind its ever-declining reputation.
Whenever you try to raise a withdrawal request, it gets declined without any reason. Even your personal account manager won’t answer your calls.
Leverage Trap
The broker offers high leverage of upto 1:200, which is considered a good ratio. But the broker’s unfavorable conditions will never let you profit and you always end up in losses, which expands upto 200x of your traded amount.
High Minimum Deposit
The minimum deposit requirement of the platform is set at $250, which is considerably higher than other CFD brokers. And once you deposited the said amount, you’ll never be able to recover it.
Guaranteed High Returns With No Risk
The broker offers a generous sign-up bonus that goes up to 100% for the platinum account. Additionally, its promises of guaranteed returns with no risk raise red flags.
What Trading Platforms Does LexaTrade Support?
The broker offers services through an advanced MetaTrader4 platform and a web terminal. While the MT4 platform comes with built-in tools and a proprietary user interface, there is no point in reviewing it.
Meanwhile, the broker’s web trading platform needs room for improvement. The UX and UI are just below our expectations and the website looks like it is translated from another language.
The website sectioning looks like it was created by a newbie web developer. There are way too many categories and sections available.
The user interface of the website may look too daunting for new traders. So, we wouldn’t be surprised if any trader chooses to use another broker just because of its sophisticated & clumsy user interface.
Is LexaTrade App Real Or Fake?
The LexaTrade App is a real mobile trading platform offered by the broker. It is available as an Xcritical mobile app for download on iOS and Android devices.
The functionality of this mobile application is similar to its web version. But its less user-friendliness may deliver a daunting experience, especially to beginner traders.
How To Recover Money From LexaTrade Scam?
If you believe that you have been a victim of a LexaTrade scam, here are some steps you can take to try to recover your money:
- Report The Scam: Contact the relevant financial regulatory authorities, such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA), and file a complaint.
- Gather Evidence: Keep all relevant documents and records, including emails, contracts, and transaction statements.
- Contact The Broker: Try to contact the broker or company and demand a return of your funds.
- Seek Legal Advice: Consider seeking the advice of a lawyer who specializes in investment fraud cases.
- Join A Recovery Group: Consider joining a recovery group or seeking the assistance of a scam recovery company.
Note that recovery of funds lost to scams is often difficult and not guaranteed, so it’s essential to thoroughly research and verify the legitimacy of any financial service or investment opportunity before you provide any personal or financial information or make any investments.
Final Verdict on LexaTrade Review 2023
After analyzing the LexaTrade Review 2023, we came to the conclusion that it is a high-risk broker to deal with. Its overall scam report revealed the broker’s regulation raises red flags and its offered conditions seemed to be unfavorable for both beginner and professional traders.
Therefore, we don’t recommend this broker; trade with it at your own risk. Alternatively, you can trade with a more reliable and reputed broker like AVA Trade. The broker is well-recognized and regulated by the top-tier financial regulator .
FAQs
Can I Get My Money Back From LexaTrade?
Recovering money from the LexaTrade scam is possible but not guaranteed. You can contact its customer support, but if it doesn’t work, seek a legal advice lawyer specializing in investment fraud cases.
How Do You Trade With LexaTrade?
You can trade Forex, Indices, Commodities and Stocks with this broker. But before you start to trade with this, remember to understand its trading conditions.
How Do I Deregister From LexaTrade?
Deregistering or deleting your trading account on LexaTrade is not manual. Instead, you’ll need to contact customer support alongside a valid reason.
How To Contact The Lexatrade Customer Care Number?
You can contact customer support via
- Customer Care Number: +442037697663
- Email: support-en@lexatrade.com
Can LexaTrade Be Trusted?
No, the broker has a low trust score, so we highly recommend avoiding the platform.
Is LexaTrade Legal In India?
No, the broker is not a legal entity in India and doesn’t operate in the country.
What About LexaTrade Consumer Complaints?
The broker has a below-average reputation among its existing users, with the majority complaining about it being a scam.