AxiCapitals – The Warning Signs of a Scam

AxiCapitals

Online trading requires you to sign up with a broker that can offer you top-notch services to help you trade in the financial markets of your choice. This is a huge undertaking because the relationship is based on trust and you have probably heard about scam brokers. No one jumps in the financial markets to be defrauded. But, the real dilemma is that most people don’t realize that they are falling into a trap because the scams don’t come with a glaring sign that tells you the truth. You have to do a little digging to learn the truth, as this AxiCapitals review does.

Doing so will provide you with the information you need to make a smart decision. It is incredibly easy to set up a website, which has given fraudsters the opportunity they need to take advantage of people. They can create a professional website, make tall claims and big promises and get you to sign up with them. Most of the time, you will be presented with a great trading solution that seems to have all the features you need. This is deliberate on their part, but this is where you need to be cautious.

You have to be sure that you do not fall for their tricks and always look for signs that can warn you off. Bear in mind that no matter how hard a fraudulent broker tries, it can never be the same as a legitimate one. At some point, their story will fall apart and this is what you need to do. When you come across a brokerage you like, you should dig into the details and ensure that everything is what it promises and there are no signs that you are being trapped.

This is what you should do with AxiCapitals because the company looks quite convincing at first glance, especially if you consider that it claims to be authorized and licensed, have its headquarters in the UK and is offering security for your funds. But, you will come across a number of warning signs that tell you otherwise. What are they? You can find out here:

Lying about its regulation and licensing

Everyone is aware that opting for a regulated and licensed brokerage is the smart option because it keeps you safe from the fraudsters operating in the market. Regulated brokerages are monitored by a third-party, so there is accountability, security and transparency, not to mention that you get to enjoy quality services. But, you should bear in mind that a broker really needs to be regulated and not just claim to be so. You should always verify their claims and it is a good idea to do the same with AxiCapitals because it turns out it is lying about its regulation and licensing.

According to the AxiCapitals website, it is regulated in the European Union and is operating under Capital Market Commission. Furthermore, it says that it is also under the oversight of another regulator called HBMC. This will sound impressive to anyone who is not familiar with the regulatory authorities in the European Union. But, if you do a search, you will find no such bodies exist in the EU, or anywhere else, so the brokerage is just trying to mislead people.

Moreover, you will also discover that AxiCapitals claims to have its headquarters in the United Kingdom. You should note that if the company really did have its headquarters in London, then it would need to have a license from the Financial Conduct Authority (FCA), which is the regulatory body for the UK. It is one of the top regulatory authorities in the world, but its online register does not show the name of AxiCapitals, or Vie Finance, which is the parent company of the brokerage.

In addition, if you go through the Terms and Conditions on the AxiCapitals website, you will find that there is also a reference to Saint Vincent and the Grenadines, which is an offshore jurisdiction and does not oversee the forex industry. Therefore, it is often called a haven for scams and this means that the company does not have any credibility at all.

High spreads

You also need to check the spreads that are offered by a broker because these will directly affect your bottom line. People want to engage in online trading to make high profits and keep their costs low and this will depend on the trading conditions that your chosen broker offers to you. This is where you will find another warning sign about AxiCapitals because its spreads are as high as 4 pips.

This is just too much because most brokers will offer you spreads of about 1 pip and some go even lower, which is exactly what you want. Yet, you will find that AxiCapitals is not even close to that, which is what a scam broker would do.

Excessive leverage

If you are looking for more warning signs, all you have to do is look at the leverage that AxiCapitals is offering, which goes as high as 1:200. This is just too much because leverage can be quite dangerous and the FCA and regulatory authorities in a number of other jurisdictions have limited the amount of leverage that can be given to retail traders. The ratio is much lower, which shows yet again that you are not dealing with a genuine platform.

Unreliable payment methods

There are a variety of payment methods advertised on the AxiCapitals website, which are VISA, MasterCard, Neteller, SOFORT, Paysafe, Skrill, EcoPayz, Rapid, Prezelewy24 and bank wire transfers. All of these sound good, but this is just a big fabrication. You will find that the actual payment methods that you are offered at AxiCapitals are a bunch of third party payment providers, such as Paypound, Gateway and Cardpayz that allow you to use credit cards. This is obviously not safe, which makes it a warning sign.

Final Word

These warning signs all point to one thing; AxiCapitals is not the brokerage you should opt for, despite its lucrative offerings.