Although Axion Trade claims to be registered and regulated in multiple countries, there are numerous doubts regarding its actual operations and regulatory status. Investors should approach this broker with caution.
Company Overview
Axion Trade, founded in 2016, is a forex and Contract for Difference (CFD) broker, offering trading services for forex, commodities, indices, and stocks. Its headquarters is in Saint Vincent and the Grenadines, with branches in the United States, Australia, Cambodia, and other regions. The Axion Trade website supports multiple languages, including English, Simplified Chinese, Indonesian, Hindi, and Malay, aiming to provide a convenient trading experience for clients from various countries and regions.
However, despite its global presence, Axion Trade does not offer services to residents of Japan, Hong Kong, Singapore, the UK, the United States, and other countries, indicating potential issues with legality or compliance in these markets.
Registration Information
UK Registration: AXION TRADING LIMITED
Axion Trade initially registered in the UK as AXION TRADING LIMITED, with company number 10516617. UK Companies House records show the company incorporated in December 2016 and dissolved on November 17, 2020, after operating for less than four years. This dissolution may be one of the reasons why Axion Trade relocated its headquarters to Saint Vincent and the Grenadines.
Saint Vincent and the Grenadines Registration: Axion Trade Limited
Axion Trade registers its main operational entity in Saint Vincent and the Grenadines under the name Axion Trade Limited, with company number 25846. The Financial Services Authority (SVGFSA) of Saint Vincent and the Grenadines shows the company was established in April 2020 and serves as one of its primary operating entities. However, the ease of company registration and lax financial regulation in Saint Vincent and the Grenadines raise questions about Axion Trade’s actual operational status.
Cambodia Registration: AXIONTRADE (CAMBODIA) CO., LTD
Axion Trade registered in Cambodia as AXIONTRADE (CAMBODIA) CO., LTD, with company number 1000179787. The company incorporated in August 2022 under the Cambodian business registry, reflecting Axion Trade’s efforts to expand into emerging markets, particularly in Asia.
Australia Registration: AXION TRADE PTY LTD
In Australia, Axion Trade operates through its registered entity, AXION TRADE PTY LTD, with company number 654 881 606, incorporated in New South Wales in October 2021. Although Axion Trade claims to be regulated in Australia, its actual regulatory status raises significant concerns (as discussed below). The Australian Securities and Investments Commission (ASIC) online services confirm the company’s registration information.
Domain Registration Information and Risks
A Whois search shows that Axion Trade registered its global website (https://axiontrade.net/) on May 5, 2020, giving the platform less than four years of online presence. Although a short domain registration period and limited operational history don’t automatically signal unreliability, longevity often serves as an important credibility marker in the financial industry.
Compared to long-standing brokers, Axion Trade’s shorter operational history may lead potential investors to question its stability and long-term reliability. Although the website offers multiple language versions to cater to various regions, the company’s short domain registration history and mismatched information raise concerns about its credibility, especially in a financial environment involving large sums of money.
Questionable Regulatory Information
Cambodian Regulation: SERC
Axion Trade claims to be regulated by the Securities and Exchange Regulator of Cambodia (SERC). This claim can be verified on the official SERC website, aligning with the company’s stated information. While this regulatory oversight is a positive sign, Cambodia’s financial regulatory framework remains relatively lenient compared to stricter regulations in countries like the UK or Australia, potentially increasing risks for investors.
Fictitious US Regulation: NFA
Axion Trade claims on its website to be regulated by the US National Futures Association (NFA). However, a search on the NFA’s official website shows that the company neither holds registration nor a license from the NFA. This false regulatory claim raises serious doubts about Axion Trade’s legitimacy, especially considering the NFA’s strict standards and high level of regulatory oversight in global financial markets. The lack of NFA registration suggests that Axion Trade may face compliance issues in the US market.
Australian Regulation: ASIC
Axion Trade also claims to be regulated by the Australian Securities and Investments Commission (ASIC). Upon verification, Axion Trade obtained ASIC authorization in November 2021 by purchasing an authorized representative (AR) license from HLK GROUP PTY LTD. However, this license was canceled in December 2022. It is noteworthy that HLK GROUP PTY LTD sold AR licenses to over 20 similar companies, despite having no actual business relationships with them. This indicates that Axion Trade might be using AR licenses for self-promotion, raising significant concerns about potential fraudulent practices.
The use of AR licenses is typically intended for companies to share regulatory qualifications. However, when companies have no real connection, this practice could be an illegal way to mislead investors about their actual regulatory status. Axion Trade’s claim of being regulated in Australia is based on exploiting another company’s license, indicating deceptive marketing practices.
What’s the Reality?
A closer analysis of Axion Trade’s multiple registrations and regulatory claims reveals several critical issues. First, the company is registered in several countries, but these registrations alone do not prove compliance or transparency. The fictitious NFA regulation and misuse of another company’s license for ASIC regulation highlight Axion Trade’s efforts to mislead investors through deceptive claims.
Second, despite having registered its domain four years ago, Axion Trade’s relatively short operational history and involvement in false regulatory claims cast doubt on the company’s credibility. In the financial industry, transparency, compliance, and long-term operational history are key indicators of a broker’s trustworthiness. Axion Trade’s shortcomings in these areas make it a potentially high-risk platform.
FAQ
- In which countries is Axion Trade registered?
Axion Trade is registered in the UK, Saint Vincent and the Grenadines, Cambodia, and Australia. However, its UK entity has been dissolved. - Which regulators oversee Axion Trade?
Axion Trade is regulated by the Securities and Exchange Regulator of Cambodia (SERC), but its claims of being regulated by the US NFA and Australian ASIC are misleading or false. - When was Axion Trade’s domain registered?
Axion Trade’s global website domain was registered on May 5, 2020, giving it less than four years of operational history. - Is Axion Trade regulated by the US NFA?
No, Axion Trade is not regulated by the NFA. This claim is false. - Is Axion Trade truly regulated by ASIC in Australia?
Axion Trade previously held an authorized representative (AR) license through HLK GROUP PTY LTD, but this license expired in December 2022, and there is no real regulatory relationship with ASIC. - Is Axion Trade legitimate?
While Axion Trade is registered in several countries, its false regulatory claims and use of purchased licenses cast serious doubt on its legitimacy and credibility. Investors should be cautious when dealing with this broker.