(1) Similarities between Ainvesting and Xtrade: alleged Forex scam?Ainvesting is a trading platform authorized and regulated by the Bulgarian Financial Supervision Commission. As such, it operates under the aegis of MiFID and its use is open to European citizens.
Xtrade is also a trading platform that is operated by two different entities, one registered in Belize (offshore) and one registered in Cyprus, consequently regulated by CySEC.
In the course of our legal practice, we have come across elements that bring Ainvesting closer to Xtrade. Indeed, our legal expertise concerns the rights of traders and the malpractices of Forex brokers. We are therefore able to represent and defend individual investors who find themselves victims of fraudulent schemes.
We know today that:
(1.1) the business model of Xtrade, its associated platforms and the companies operating it focuses on aggressive canvassing of European customers by a third party in Israel, which raises questions regarding the transparency of information provided to investors;
(1.2) some of the partners and shareholders of the company operating Ainvesting have run/run the company that operated the Xtrade brand from xtrade.com, xtrade.eu and xtrade.net, and now operates the offersfx.com platform from Cyprus;
(1.3) the Signal Arnaque website reports that a number of European individuals have been aggressively solicited by representatives of the Ainvesting platform after clicking on a link regarding specific shares of an American company;
In this context, are there other similarities between Ainvesting and Xtrade? A simple internet search of both platforms brings to light one last confusing element that brings ainvesting.eu and xtrade.net together.
When comparing the graphic design of the two platforms, one notices a comparable ergonomic structure: a drop-down menu on the left side of the screen, with first a call to action for the registration of new investors, followed by the exact same redirection options, however in a slightly different order…
All these similarities between Ainvesting and Xtrade, whether they are graphical in their platforms, methodological from a commercial exploitation point of view, or resulting from the involvement of the same individuals, raise many questions. The most important one, in our opinion, is whether the Ainvesting trading platform is reliable, fair and transparent in its practices despite potential indications to the contrary.
(2) Xtrade’s history and opinion
When looking back at the milestones of the Xtrade platform, there is a significant gap between the public announcements and the decisions made behind the scenes. For example, Xtrade significantly expanded its international marketing strategy by recruiting Christiano Ronaldo as an ambassador for the trading platform. At the time, in 2016, the soccer star was playing for one of the most prominent teams in the sport: Real Madrid. Undoubtedly, Ronaldo’s partnership with Xtrade influenced private investors to choose this platform: who wouldn’t trust the recommendations of such a prominent public figure? Yet, at the same time, Xtrade was suspected of being a Forex scam.
(2.1) CySEC suspends Xtrade’s license
According to a decision by the Cypriot regulator dated May 30, 2017, Xtrade’s license was partially suspendeddue to marketing that was deemed misleading. The platform was no longer allowed to perform financial services or enroll new clients.
Less than a month later, this CySEC decision was retracted. Indeed, on June 26, 2017, CySEC announced its satisfaction with the steps taken by Xtrade to recalibrate its business practices, and re-authorized the platform to operate financial services. It is rare to see such hasty resolutions between brokers and regulators.
(2.2) Xtrade users disappointed by their experience
Looking at the reviews of Xtrade users posted on TrustPilot in 2018, barely a year after the platform was partially shut down and then rehabilitated, there is a pronounced sense of mistrust.
It is noticeable that the common thread between these negative reviews concerns aggressive canvassing by Xtrade representatives. Yet this is the type of sales techniques that CySEC had denounced in 2017, and that Xtrade had supposedly resolved. Is this enough to prove Xtrade’s alleged Forex scam?
(3) Ainvesting review: Financial Fraud Lawyer investigates
Is the Forex platform Ainvesting scamming its users by following the same model as Xtrade? One thing is for sure: it is receiving a lot of criticism from European investors who are unhappy with their experience.
It is interesting to note that users of the Ainvesting platform have the same concerns and experiences as people who invested with Xtrade. If Ainvesting can be suspected of scamming its clients, it would be doing so in the same way as Xtrade, whose deceptive practices CySEC has already denounced.
As lawyers specializing in Forex investments, we recommend you to be careful when choosing a trading platform. Especially when it comes to entities that are not regulated by the European financial authorities, about which you have little general information or guarantees regarding your capital. If you need legal advice or legal representation against a broker, do not hesitate to contact us.
The Financial Fraud Lawyers network aims to inform private investors (traders) of potential malpractices by Forex and CFD brokers. Our mission is to assist and protect traders when they encounter brokerage practices that go against their interests.
Our articles are intended to warn, share and inform the public about the legal risks of Forex and its players. Trading financial products and CFDs as well as investing on online platforms carry legal risks.
The article was written in good faith, based on public information and client testimonials valid at the time of publication. Our articles concern the protection of the interests of individuals on online investment platforms and are published in accordance with our right to inform the public about our activity. This article is not to be considered legal advice.