Platinex – Can You Trust Them?

Website URL: https://platinex.co

Founded: 2021

Regulations: Not Regulated

Languages: English

Deposit Methods: Visa and MasterCard via Third Party Provider Called Xpayz.net

Minimum Deposit: $250

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Foreign Exchange, Stocks, Shares, Indices, Cryptos

Trading Accounts and Conditions

Platinex claims to offer its clients three different account types, however, there are no details given on what they are. The broker, however, does mention that it offers a leverage of 1:100 and a generous welcome bonus of 20%. The spreads are fixed for the EURUSD pair at 3 pips.

Platinex – Advantages

We could not find anything positive to write about Platinex.

Platinex – Disadvantages

Here is the list of disadvantages we found while investigating Platinex, because of which we would strongly recommend that all traders avoid this broker:

• Unregulated Broker

Platinex is owned and operated by a company called Lithe Group Ltd., an entity that is supposedly based out of the Commonwealth of Dominica. The broker also claims that it is operates in compliance with the MiFID laws of the European Union.

We investigated these claims, and here is what we found. The Commonwealth of Dominica has no regulatory framework in place to oversee forex and CFD brokerages. Furthermore, because this territory is a non-transparent tax haven, there is no way to verify Lithe Group’s identity, which means that it remains anonymous for all practical purposes.

Now, the second claim that this broker makes – that it operates in accordance with MiFID laws – is also a lie. MiFID (Markets in Financial Instruments Directive) is a directive that establishes the regulatory framework for 31 member countries (27 European Union states, Norway, Switzerland, Liechtenstein and Iceland) that are a part of the EEA (European Economic Area). However, we already checked with the online registers to see if this broker or its parent company are registered anywhere in the EU or EEA, and we came up empty-handed. This means that this broker is lying about its claim about being regulated by any governing body in Europe.

It is wise to remember that an unregulated broker – especially one that is clearly lying about its licensing status – is most probably a scammer. And in Platinex’s case, there is even more evidence to prove their scam.

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• Bonuses Promised

Platinex promises its clients a welcome bonus of as much as 20%. This is a clear red flag, since such bonuses come attached with some pretty unfair conditions. Usually, such conditions include ridiculously high turnover targets that are all but impossible to meet, which means that once a trader has availed of that bonus, then they will never be able to withdraw their funds as they will never really be able to meet those turnover targets.

In Platinex’s case, the broker hasn’t even bothered to specify what their terms for availing these bonuses are. Which means that a trader would be blindly accepting any terms that this broker may decide to impose on them. This is a tactic that is typical of scam brokers – they don’t reveal what their terms and conditions are so that traders are finally trapped into losing the money they have invested with them.

Thus, any time you see big bonuses being promised, beware! That broker is in all probability a scammer.

• High Minimum Deposit

Platinex requires its clients to make a $250 minimum deposit to open an account with them. This is a relatively high amount, especially when you consider that the industry average is about $100. In fact, there are many excellent brokers in the industry that allow traders to open accounts with them for minimum deposits as low as $5!

Therefore, when looking for a new broker to invest with, do ensure that they are within industry norms with regard to the minimum deposit requirement.

• High Leverage Ratio

Platinex claims that it offers a leverage ratio of 1:100. This is extremely high and dangerous. Using high leverages to speculate in the forex market can be dangerous as you will be putting too much at risk – especially considering the fact that most people lose rather than gain money on the market.

Secondly, this broker is targeting traders in the European market. Leverage ratios in this market are very strictly controlled. Brokers are not allowed to offer leverage ratios of more than 1:30 to their customers. It’s the same in the UK and Australia. In the US and Canada, brokers are limited to offering a leverage of 1:50. In Japan, it’s 1:20, and in Turkey it is 1:10.

Therefore, the leverage of 1:100 being offered by Platinex is actually illegal. Another clear indication of that scam that this broker is running.

• Poor Trading Platform

Platinex claims to offer its clients the use of the MetaTrader 5 platform – which is yet another lie. We checked. And we found out that what traders are actually being offered is a Webtrader platform, a very poor software that doesn’t even begin to compare to the world’s best MT5 platform.

While the MT5 platform offers you a range of tools to help with efficient and effective trading, this Webtrader is primitive and lacking basic features. Basically, you can pretty much only buy and sell on this trading platform, which is a huge let down.

• Withdrawal Policy Missing

One of the key aspects of the Terms and Conditions any broker presents is its withdrawal policy. It clearly states what the terms of withdrawal are – how much can you withdraw, of frequently you may withdraw your funds, what fees will you be charged, what payment methods are available for withdrawal and so on.

None of this information is available with Platinex – another sign of a scam.

Conclusion

Platinex has made multiple claims about its legitimacy – all of which have been proved to be false. This is not a broker you should ever trust. It is a scam.

Platinex

2.4

User Experience

2.4/10

Payment Options

2.2/10

Security

3.0/10

Support

2.2/10

Reputation

2.2/10

Pros

• None

Cons

• Unregulated Broker
• Bonuses Promised
• High Minimum Deposit
• High Leverage Ratio
• Poor Trading Platform