Investment Scam: An Investor Lost €30,000 in Tradelax

Many unscrupulous people try to scam individuals through Forex trading scams. Sometimes it can be difficult to know for sure they are problematic until you have already entrusted them with your money. A common problem is when they refuse to allow clients to withdraw their money. This is what is known as a forex withdrawal scam.

Brokersview recently learned that an investor named Zahir has been trapped by a designed withdrawal scam conducted by the forex broker Tradelax and lost a lot of money.

Delayed withdrawal

According to Zahir, he invested €50,000 initially and had a balance of €210,000 in his account after making profits so he wanted to do a withdrawal. But then the company assigned him a new financial advisor Frank Castle who took very large risky trading positions in his account even though he clearly said not to do so.

Frank lost €160,000 from Zahir’s account by taking very aggressive trades inspite of Zahir sending him multiple emails asking him not to trade anything in the account. Zahir said that he also changed his account’s password so that Frank cannot login, however, his password was changed again.

When all the positions in his accounts are closed finally, Zahir’s account balance is €41,000. He immediately placed a withdrawal request of these money but it is still not processed.

“I had also asked the support person to change my Financial Advisor so that I can atleast withdraw my money. But till now no one has got back to me,” Zahir said.

Tradelax was alerted by the FCA

Tradelax claims to offer clients all the necessary tools for expert trading and access to some state of the art platform. Other than these vague promises, the broker doesn’t provide much meaningful information about itself, which immediately raises suspicions about their business’s legitimacy.

Further, we found that on 4 June 2021, the UK’s Financial Conduct Authority (FCA) has added the broker to its alert list, warning that the firm is not authorised by them and is targeting people in the UK. Therefore, we strongly advice you to avoid the company.

(Screenshot from the FCA)

Forex is a hugely popular form of trading. Like many other trends involving money, there are many scam versions that are seeking to exploit people. In the case of fraudulent forex brokers, sometimes it can be difficult to know for sure they are problematic until you have already entrusted them with your money. Brokersview suggests investors to keep vigilant when choosing forex brokers. we urge investors to avoid offshore brokers altogether and always check for a license through regulatory agencies before opening an online trading account.