With the sheer volume of trading platforms and brokers out there, it’s not surprising that a number of them aren’t all that they seem. No matter if you’re a relatively new or highly experienced trader, you will likely have heard about NuxTrade. There are numerous mentions of this broker across the internet on forums, chatrooms, social media and emails, but this all raises the question as to whether it is a legitimate trading provider.
The answer is no. NuxTrade is not a trusted broker as, currently, it is not regulated by a financial authority. Although it is among the many online investment brokers you can use, it’s important to act with caution or avoid it altogether, with many traders falling victim to online fraud. We’ve helped many clients recover money after using supposedly legitimate online trading brokers or falling victim to scams.
Online brokers are individuals or businesses that carry out transactions between modern traders – you cannot access the trading sphere without a broker. These brokerage platforms offer their services in exchange for commission when the deal they have brokered is finalised. They essentially serve as middlemen between the trader and the platform.
On the surface, NuxTrade looked like a legitimate broker platform. The site is user-friendly and uses many features and tools which, particularly for newer investors, could make the experience much easier and less overwhelming, compared to larger crypto and trading platforms. However, the cases we have heard of have used this to their advantage. Many scammers will operate behind a legitimate-looking platform to deceive traders.
What Makes This A Scam?
We’ve found many red flags when looking at these cases, all of which point towards it being a scam. Firstly, NuxTrade is not regulated by the FCA (Financial Conduct Authority). The FCA warns it “may be providing financial services or products without our authorisation” – legitimate brokers will strive to ensure that they are FCA compliant. They actively target traders in the UK, although they are registered in St Vincent and the Grenadines, a part of the world which doesn’t regulate trading services. As a result of these two findings, investors and traders aren’t protected by the Financial Ombudsman due to the lack of FCA regulation.
Traders have fallen victim to scams after “brokers” on the platform have been convinced to trade on poor investment opportunities, or have been encouraged or intimidated into taking out loans or investing more funds into seemingly lucrative investments on the advice of their broker. These investments then don’t generate the promised returns, and the acting brokers then get away with the trader’s money, ceasing all contact.
Many users of NuxTrade have taken to social media platforms and online forums to give feedback on their experience, warning other traders to steer well clear. As a result, the platform has gained a negative reputation amongst investors, particularly and unsurprisingly from those who have fallen victim to investing.
What To Do If You Are A Victim
If you have found that you are a victim of fraud, then we are available to help. Our team of award-winning UK-based lawyers have recovered millions for clients who have lost funds making online trades and can help recover your lost funds. Following an initial consultation, we can find the best recovery option for you and begin the process of tracing and recovering your lost funds.
It is important to get in touch with us as soon as you have noticed the possibility of being a victim so that we can get started on your recovery quickly.
