Is Profitix Legit or a Scam? What You Should Know
Profitix is a broker that offers a variety of trading products and various account types. It seems like a regular broker, but it should be noted that its license comes from St. Vincent and the Grenadines. This regulator is known to be lenient and to provide licenses to brokers who simply provide them with money. There is little oversight for Profitix. But does this mean it is a scam?
At Trader Defender, we have thoroughly investigated this broker and will give you our verdict. Our team has extensive knowledge of the financial industry and is adept at identifying fraudulent and legitimate brokers. It is important to look carefully at a broker before signing a contract and starting to trade with them. This Trader Defender review is intended to make this decision easier.
|Regulation||St Vincent and the Grenadines|
|Product Types||Forex, Currencies, Indices, commodities, cryptocurrencies, stocks|
|Products Offered||More than 200 products to Trade, Meta Trader 5|
Profitix is a relatively new broker, founded in 2018. There is nothing wrong with using a new broker, but keep in mind that brokers that have an established reputation can provide traders with greater validation and peace of mind. It has a license of St. Vincent of the Grenadines, a regulator known for its lack of oversight. In other words, working with Profitix is almost like entrusting an unregulated broker.
It should be noted that the FCA has previously issued a warning about Profitix to residents of the UK. This broker was caught offering unauthorized trading products. Profitix does not offer services to clients in the United States and some other countries.
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Issues with Profitix’s regulation have already been mentioned but they cannot be emphasized enough. Unless traders are prepared to lose their money and possibly their personal information, they should not trade with an unregulated broker. A license from St. Vincent and the Grenadines is almost worthless when it comes to actual enforcement of standards.
A fourth-tier regulator like St. Vincent and the Grenadines takes money from prospective brokers, issues a license, and does not do regular inspections or deal effectively with customer complaints. There is little recourse for you with this regulator if you have lost money with one of the brokers it has licensed like Profitix.
St. Vincent of the Grenadines offers a variety of trading products such as Forex, commodities, stocks, indices, and cryptocurrencies. Its leverage is 1:1 up to 400:1. Its spreads vary according to which kind of account the trader has.
Profitix offers what seems like an impressive selection of accounts. However, those who mistrust the broker can see this as a way of getting traders to constantly upgrade and to put more money into their accounts. The broker claims to offer greater perks if they open a higher-level account.
Traders are offered a mini-account for a minimum amount of $250. This carries leverage of 1:400. The next level jumps all the way up to a minimum of $25,000 with its advanced account which also has a leverage of 1:400. The Executive portfolio has a minimum of $50,000 and offers a portfolio and market analysis.
A Prime portfolio has a minimum of $100,000 and offers hedging and a pro-trading portfolio. The VIP Portfolio does not state its minimum but according to Profitix, it offers negative balance protection and market price differences.
One detail worth noting is the dramatic increase of the minimum between the mini-portfolio at $250 to the advanced at $25,000. One would think there would be an intermediate level with a more moderate increase in the minimum. This indicates there could be significant pressure to add huge amounts of money early in the process to graduate to the next portfolio level.
Tools and Services
Profitix offers trading on Meta Trader 5 and says it features daily video market updates. The site also offers educational videos. However, when visitors to the site click on the links, they are not able to see examples of these, so registration and payment are required before browsing basic site content.
Profitix insists it is secure. The site mentions that all funds are kept in segregated bank accounts in trusted banks. The phrasing says, “To ensure they are not used for any activities connected with Profitix,” when this should be the basic minimum regarding ethics assumed of any broker. Few legitimate brokers would emphasize this on homepage web copy. It is more appropriate wording for a terms and conditions contract.
Profitix insists client data is encrypted and is protected with an SSL certificate, but this does not mean that client funds are safe from fraud. The broker may be protecting client data for their own purposes. In addition, Profitix tries to reassure clients by saying that it is a broker with a “solid reputation” when it has only been around since 2018 and it has a “highly respected in the marketplace,” when it has been called out by the FCA.
We weren’t surprised to find many convincing negative reviews. One reviewer said they lost $10,000 and said that the broker refused to let them withdraw their money. Other reviewers said they were pressured to add more and more money even as the money in their accounts didn’t reflect the amount they were depositing. Profitix brokers told them they would not see the amount listed while it was being invested, but they never received the returns on the investment.
Is Profitix a Scam?
After a thorough review, it seems clear that Profitix is a scam and should be avoided. First of all, any broker that is not properly regulated should not be trusted. Second, this suspicion was validated by looking carefully at their services, the website, and reading a large number of negative reviews. In addition, the FCA warned consumers against this broker. Trader Defender also cautions avoiding Profitix.
What To Do If You Have Lost Money with Profitix?
If you have lost money to Profitix or want to know more about brokers, consult with Trader Defender experts today. We investigate, detect and report fraudulent brokers. Our professionals offer due diligence services and protect clients with our in-depth investigative reports. Schedule a consultation with us and we can guide you on the road to making successful trading decisions.