Lexatrade Review: Is Lexa Trade a Scam Broker?

Welcome to the LexaTrade review.

Lexa Trade is a Forex broker that also offers trading in commodities, shares and indices.

Their main website, lexatrade.com, was created in September 2018 and ownership details hidden.

Their marketing materials suggest that Lexa Trade broker is owned by a firm called SwissOne Group Ltd, which is incorporated in the St. Vincent and Grenadines.

Only SwissOne Group Ltd (which is based in Belize) owns a license from the IFMRRC. This license was issued exactly one year after the launch of LexaTrade broker’s website.

It should be made clear that Lexa Trade does not hold an individual broker license. On the other hand, the company under which they rely on seems to be overseeing several other entities which provide financial services under one license owned by SwissOne Group Ltd.

This is mostly the case when a broker buys a white label from a company that offers MT4 trading platform for renting.

We know that the Financial Service Authority (FSA) is the one that controls non-bank entities that provide financial services locally and internationally.

Now, the SVG FSA does not regulate Forex, CFD and Binary Options. Their website says so.

This leaves us wondering whether we should trust an off-shore broker like Lexa Trade and on what grounds?

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Lexa Trade Review

We feel that we need to touch on the regulatory status of LexaTrade some more because there are many interesting things to say regarding their standing with financial regulators.

But first we will focus on the level of service provided by the broker.

LexaTrade claims to offer the tightest spread in the industry. They even tout a variety of stocks for trading claiming that this will spread the potential risk involved in stock trading.

LexaTrade offers fixed spreads on their Web Trader and variable spreads on their MT4 trading platform.

The website has not published a live spreads widget on their website. However, they’ve at least published a table showing the spreads they charge for different asset pairs.

Lexa Trade broker announces on their official website that they’re letting traders control the market. In addition to this, they claim to provide a free trial account with profit.

We’re not sure what LexaTrade broker means by saying “a free trial account with profit”. Clicking on the link to discover more takes us to a sign up page where the broker requires us to create a trading account.

The broker is also attracting new traders using a 30% deposit bonus. Remember to read the terms and conditions for accepting and using deposit bonuses with brokers.

Nearly all brokers will give you a raw deal if you fail to read their ToS regarding their deposit bonuses.

LexaTrade has listed some alleged benefits for joining their platform. They claim the following:

• Instant access
• Autochartist market analyzing technology
• Variety of trading tools and automated signals
• Personal account manager

These benefits seem to be general in nature as the broker doesn’t talk of something we’ve never heard from brokers.

Lexa Trade broker offers a maximum leverage of 1:200. This leverage is suitable for the experienced trader. However, amateurs are not encouraged to use such high leverage.

It’s a know fact that leverage can act for you and against you. So have this in mind before going for the maximum leverage.

LexaTrade Broker Withdrawal restrictions

The minimum that can be withdrawn from their trading platform is $50.

Assuming you deposited $100 and lost 60% of the funds and attempted to withdraw $40, Lexa Trade broker would never process such withdrawal request.

You would be forced to top up to the minimum of $50 before placing a withdrawal request. Also, if clients don’t have a significant trading volume yet, the company intends to charge a commission of 5%.

Traders are advised to avoid brokers who charge unnecessary fees for the use of their services. Lexa Trade is one such broker.

Bonuses and promotions plus unfavorable trading terms

Bonuses and incomes will only be withdrawn when a trader reaches a certain volume of trades.

LexaTrade broker is essentially saying that they will only give you your profit when you have attained their required volume of trades.

The worst of all is that volumes accrued from scalping transactions that last for less than 3 minutes are not counted.

This is certainly not a fair broker to trade with. The conditions for trading are obviously detrimental to the trader’s success and Lexa Trade broker is directly responsible.

Customer feedback/reviews

There are no reviews or feedback at all regarding the services offered by this broker.

Since they’ve been around for some time, it would only make sense if the broker had acquired some feedback from their customers.

It appears that due to their harsh terms and conditions, traders are naturally avoiding them.

We would like to see some real feedback from traders to even think of trusting Lexa Trade broker.

Conclusion

They’re based in an offshore location that was once famous for being an excellent tax haven.

Regulatory status is not very strong in this region meaning that brokers can defraud customers and still walk Scott free afterwards.

We don’t feel confident in this broker’s service. We recommend avoiding Lexa Trade broker services.

Thanks for reading LexaTrade review. We hope to hear your feedback regarding their services.