Profitmaxtrade review – is a scam or safe?

Profitmaxtrade review – is a scam or safe?

Profitmaxtrade Key Facts

🔴 Profitmaxtrade offers questionable investment opportunities – a clear sign of a scam!

🔴 Profitmaxtrade forges its own contact information – beware!

🔴 Profitmaxtrade lacks a license for the provision of its services – a huge red flag!

🔴 Profitmaxtrade’s domain has been registered only recently – another off-putting detail!

Profitmaxtrade products and services

Profitmaxtrade offers investment opportunities – ones that net you returns of upwards of 5% daily. This is not possible for any company to guarantee – Profitmaxtrade knows that, as it is simply trying to pocket as much money as it can get away with. In other words, Profitmaxtrade is certainly a scam

People should always be cautious when dealing with businesses offering enormously high yields because it’s scammers’ trait to promise big and create unrealistic expectations. In reality, regulated financial companies cannot secure more than a few percents annually with their fixed-income products. There is a huge discrepancy between these offers and the regulated companies standards. Judging by the products and services they sell, we suspect it’s a scam, so beware.

Profitmaxtrade company and regulation

Profitmaxtrade claims to be licensed – but it never says by who. We checked with the FCA since the company has provided us with a UK address – but it did not have an entry on Profitmaxtrade.

The US financial services regulation is very complex in the USA. Derivatives markets regulation is a responsibility of CFTC and NFA. Forex brokers and most of the investments companies have to be NFA members and CFTC registered to operate in the USA. On the other hand, securities markets are controlled by the SEC, a government independent agency responsible to maintain the integrity of the financial markets.

While SEC focuses more on the procedure regulation insisting on financial reports and management discussion and analysis, NFA and CFTC impose pretty straightforward requirements. To become authorised the companies have to provide 20 million USD in paid-up capital, which is considered a guarantee that the businesses can survive in turbulent times and pay whenever they have to. 

Other customer protection measures include clients’ accounts segregation and leverage restrictions for forex brokers- 1:50. Also, CFTC brokers’ clients are not allowed hedging, which is one of the very unique US features. Unfortunately, the cryptocurrencies regulation is still inept, so traders and investors should be wary when dealing with crypto offers.

Profitmaxtrade address and contacts

Profitmaxtrade provides us with the following address – Office 1 145 Kilmarnock Road Glasgow Scotland G41 3JA. This is not accurate, of course – Profitmaxtrade does not hold a UK license, and therefore it simply cannot be operating from the country.

Transparency is crucial when talking about brokers and investment companies, and it’s part of the regulatory framework. The regulated companies are open to financial authorities following certain transparency rules, so it’s generally unlikely to conduct fraudulent activities. They are also bound to provide the public with crucial information about themselves, making it easy for traders and investors to confirm the company’s legitimacy.

Profitmaxtrade website info

Profitmaxtrade’s domain went online in November of 2020 – this makes it less than 6 months old at the time of writing. Such recent domains are a huge scam sign -combine that with the low traffic that Profitmaxtrade has, with it not even being listed on SimilarWeb and you get two very compelling reasons to stay away from Profitmaxtrade.

Profitmaxtrade does not show up in DNS probes – we cannot know what IP the domain is hosted on. Similarly its owners cannot be found using a WhoIs lookup both of these are yet more red flags that Profitmaxtrade waves.

Scam warning

We paid utmost attention to the regulation and transparency in the sections above because it’s mandatory for trading and investments. Pretty much each company offering financial services have to be authorised by the local financial authority. 

However, some entities operate unlicensed and intentionally run investment fraud. It would be best if you only dealt with companies authorised by the regulators, so always check to make sure they are. Bear in mind that if you trade with unauthorised businesses, you won’t be protected, so it’s very likely to suffer losses almost impossible to recover if things go wrong.

Online scam is trending nowadays with fraudulent websites popping up literally every day. The financial authorities increase the number of warnings issued year after year, but the dangers are still out there and growing exponentially. You’ll realise the hazards when you consider OneCoin scam- it’s still impossible to calculate the total loss, but it’s regarded as 15 billion worth fraud. Make sure to trade with licensed and regulated companies to avoid off-putting losses.

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