Plexytrade Review: Legit Broker or Just Another Scam?

Sometimes it’s difficult to determine whether the creators of yet another Forex/CFD broker are offering a scam or a legitimate platform. Promises of zero spreads, modern copy trading technologies, and high-speed execution of client orders can attract not only beginners but also experienced traders. However, even users with minimal experience in financial markets wonder how transparent and honest the company is and whether trading with it is safe. Our Plexytrade review aims to answer these questions.

Does Plexytrade Show Any Risk Factors?

In terms of legality and regulation, the broker took a rather unusual approach. In the footer of its website, it included a warning that the materials posted therein are not intended for any jurisdiction and cannot be used if they violate local laws or regulations. At the same time, it offers users access to the MetaTrader 4 and MetaTrader 5 terminals, which can only be purchased from MetaQuotes by an officially registered company. It displays registration number 2023-00662 and an address in Saint Lucia.

The company’s registration in this Caribbean country has been fully confirmed. Plexy Trade Ltd has the status of an International Business Company (IBC).

However, we know that the Saint Lucia financial regulator does not issue licenses to brokerage firms registered as IBCs. Accordingly, registration in this country allowed for the legal acquisition of a sofa, but the platform is not authorized to provide licensed brokerage services.

The footer also lists the company’s office address in Montenegro. However, there is no information about registration in this European country, nor is there information about a license from the local financial services regulator, the Capital Market Commission of Montenegro. The latter is a mandatory document for Forex/CFD brokers operating in the country. Accordingly, the platform’s brokerage/dealer activities here also do not comply with legal requirements.

Therefore, the company is officially registered, but does not have a single license, even from offshore regulators. This means that it is providing brokerage services illegally. However, it can legally receive quote feeds from electronic trading system owners and use corporate accounts and cards. In fact, it has no problems organizing trading. It is ready to accept traders from anywhere in the world. However, we would like to remind Plexytrade clients that they open and fund accounts here, as well as trade, at their own risk, and their rights and interests are not protected by any official organization.

The broker’s official website does not mention the company’s founding date, or indeed its history at all. Explaining this choice is quite difficult, as we can see the legal entity’s official registration date, and it’s easy to determine the company’s online operations using third-party crawlers. Furthermore, attempts to conceal any information do not enhance the broker’s reputation.

According to the WHOIS service, the registration date of the working domain plexytrade.com is June 9, 2016. However, based on the date of the last significant update, it can be concluded that the broker’s website was launched much later — in the second half of January 2024. Incidentally, this is consistent with the data on the official registration of IBC Plexy Trade Ltd on December 20, 2023.

Our findings were confirmed by web archive snapshots. They showed that the domain previously belonged to a company engaged in web design and software development for brokers. The company acquired it only after its registration in 2023 and launched its website in early 2024.

It is completely unclear why Plexytrade chose not to publish this information. Its availability would have contributed to a positive opinion of the broker, especially since confirming the facts requires no more than five minutes and a minimum of web-searching skills.

So, the company has been in operation for just over two years. During this time, numerous comments about its activities have appeared online. For example, there are 85 reviews on Trustpilot, and the first plexytrade.com review appeared on May 11, 2024. It’s worth noting that initially, users rated the company highly, and with good reason, even sharing their account numbers.

The picture has changed significantly recently; today, 16% of posts are extremely negative. Their authors complain about withdrawals, accusing the broker of refusing payments for fictitious reasons. Some even share their correspondence with customer support. The nature of positive reviews has also changed‌ — ‌they increasingly appear to be paid for.

The picture on industry portals is also bleak. Experts objectively assess the company’s state of affairs, giving it rather low ratings. For example, the platform’s rating on WikiFX is only 2.02 out of 10. Regardless of how long it has been operating or how attractive its terms are, a project without a license will not receive a high rating. This is natural, as there can be no guarantee of the integrity of a company providing brokerage services without a license, and therefore illegally.

Let’s Break Down the Jurisdiction

Brokerage firms can register in Saint Lucia as either IBCs (International Business Companies) or domestic companies. This is important because they operate under different conditions.

Domestic brokerage/dealer firms are authorized to provide services within the country and region. Local legislation requires them to have a license. This license is issued by Saint Lucia’s Financial Services Regulatory Authority (FSRA) jointly with the Eastern Caribbean Central Bank (ECCB). The latter approves the firm’s operations in the Eastern Caribbean region.

To obtain a license, the following is required:

• Sufficient equity capital (calculated based on client positions that may require coverage).
• Physical (ground) office in Saint Lucia.
• ​​Senior management or majority shareholders are residents of the country.
• Relevant professional training and appropriate level of employee qualifications.

In fact, serious attention is paid to protecting the rights and interests of local traders. These measures include strict oversight of brokerage operations, audits by the regulator, and, necessarily, independent audits by the company itself.

For IBCs, the situation is much simpler — there are virtually no requirements for their activities. The only exception is timely registration renewal, which costs a purely symbolic sum of approximately 500 euros.

The FSRA does not regulate international companies. The only restriction they face is that providing services in the country or region is prohibited. Therefore, IBCs are effectively officially registered legal entities that do not require brokerage licenses.

This makes their operations legal only in countries where local legislation does not prohibit them. In countries where the market is overseen by local regulators, IBCs with Saint Lucia documents are illegal.

What Does the Plexytrade.com Website Reveal?

Well, we’ve come to the conclusion that the company’s official website is better designed than hundreds of modern brokers, both regulated and scammy. The only drawback, in our opinion, is the rather poor choice of font colors in text fragments. Also worth mentioning is the different content of the main menu and the footer menu (more on the latter), which complicates navigation somewhat. Overall, we have no serious complaints, at least regarding the website’s appearance.

The content is a bit worse. Judge for yourself:

• Market description pages offer only minimal information, providing little insight into the specifics of trading. For example, on the Forex page, the broker provided only brief information on the major currency pairs, crosses, and exotics. This is arguably insufficient for potential clients to appreciate the advantages and risks of these markets.
• On the Security and Safety page, the broker limited itself to a brief list of measures and methods it claims to use to ensure the security of trading and non-trading operations. Moreover, all of its claims are completely unfounded; Plexytrade failed to provide any documentary evidence.
• In the Tools menu on the Technical Views page, we saw several descriptions of the technical analysis tools the broker offers to clients. Of course, we would have liked to see the results of their use presented here, rather than promises to provide them upon registration. However, the company knows better; perhaps it uses its own developments, which generate billions of dollars in profit and are not subject to public disclosure.

However, the registration process at Plexytrade is organized like that of a reputable broker, operating under the supervision of the most reputable regulator. Traders will have to provide all their personal information (at least they don’t collect information about their immediate family members… just kidding). What’s most interesting is that we didn’t quite understand the purpose of all this:

• The broker operates without a license, and there’s no one to enforce KYC and AML policies.
• It accepts deposits and pays out funds exclusively in cryptocurrencies. The company itself even discloses this on the Deposit & Withdrawals page of its official website, which provides information on two available non-trading options: direct transactions from crypto wallets or through Confirmo, an intermediary that works exclusively with stablecoins. Consequently, the sender and recipient of transfers remain anonymous, and the value of collecting personal data becomes zero.

In short, after visiting Plexytrade’s website, any visitor will only have more questions instead of answers. Perhaps the broker believes this is a good way to attract new clients. In our opinion, such behavior is irrational for a company intending to operate honestly, but it’s perfect for scammers.

Is the Broker Offering Fair or Risky Terms for Traders?

We were quite surprised by the broker’s approach to disclosing trading conditions. They are even detailed in the account type descriptions.

Plexytrade offers 4 types of trading accounts:

• Micro, for which the minimum deposit is only $50. It offers a maximum leverage of 1:2000 and no trading commissions.
• Silver, with a minimum deposit of $300 and significantly lower leverage of 1:500.
• Gold Raw. The minimum deposit is also $300, leverage is 1:500, but spreads start from 0, and the full trading commission is $4 per standard lot on Forex.
• Platinum. The starting amount is $10,000, leverage up to 1:400, spreads from 0.0 pips, and the full commission is $2 per lot.

Other information common to all accounts is also published here:

• StopOut level: 20%.
• Minimum distance for placing pending orders: 0 pips.
• Minimum trade size: 0.01 standard lot.
• Execution type: Market Execution.
• Swap-Free trading is available for 7 days on all accounts except Micro.

Additionally, the Markets menu on the Spreads page provides nearly complete contract specifications. These tables list typical spreads for each trading instrument and each tariff, swap amounts, standard deposit amounts, and maximum leverage.

There are essentially no complaints about the full disclosure of trading information. However, there are complaints about some trade characteristics. This primarily concerns the enormous leverage.

With leverage of 1:2000, a trader who opens a trade with the entire deposit amount can double their balance or lose everything with a price movement of just 5 pips. Considering that this range is smaller than the amplitude of market noise, it’s easy to see that even professionals with excellent risk management skills who apply them in their trading systems are 100% likely to lose their entire investment in their first trades.

Leverage of 1:500 or 1:400 is somewhat safer, but even in this case, traders’ risks exceed acceptable limits. It’s also worth noting that Plexytrade offers these terms to everyone, without even checking whether the client is a retail or professional trader. We see that the company isn’t technically breaking any laws, yet it’s masterfully misappropriating the money of most registered users.

Technical Support Analysis of Plexytrade

The Contact page on the broker’s official website was frankly disappointing. The company, which is officially registered and pretends to be in compliance with all laws, suggests contacting customer support using:

• Feedback form.
• Multiple email addresses (for support for clients, partners, PAMM account users, etc.).
• Phone number with Montenegro area code.

Of course, the company also lists a postal address in Montenegro, but the veracity of this information is questionable. It’s hard to imagine an office without landline telephone lines. Plexytrade, however, has exactly that‌ — ‌an office, but a mobile phone number.

We understand that there’s no question of renting an office. The broker purchased a post office box and got by without renting any space. It remains unclear whether, while so eloquently describing their advantages, the project owners couldn’t afford a landline.

Another interesting question that arises when examining contact information is about social media. The official website doesn’t contain a single link to the company’s profiles. Does the broker not need social media as a source of client acquisition? Or is the platform’s staff so extensive that there’s simply no one to manage social media?

Project representatives will likely find no answers to these questions. In fact, those who don’t intend to work honestly don’t need multiple communication channels, so that persistent customers don’t bother support staff with uncomfortable questions.