Review of exential group – Forex managed Account
So here is another of my reviews on forex managed account providers, this time of exential group, and as always I have a list of questions I want answering before they move onto my shortlist and I get to the stage of contacting them. I like to know if they show there address on the website and the details of who they are licensed or authorised under. I also want to know if I can see how my account is going as originally I wasn’t sure whether I had direct access to the results or whether I just got a report either monthly or annually. This is important to me as my first time as an investor and these are the things I was hoping to determine directly from the websites first rather than actually contact them.
But lo and behold, not the first time that I have known straight away that I would not be choosing a particular company, but the first time I have found something so damning. Instead of clicking on the exential group link first, I had to read the scam link, and client reviews.
Oh my goodness, I hate to read the news on this company. How awful for the investors, especially people who invested everything or borrowed money to invest. This is a story of greed and naivety, but none the less a very painful lesson. IF IT SOUNDS TOO GOOD TO BE TRUE, IT USUALLY IS!
“Dubai Watchdog Shuts Down Suspected Ponzi Scheme Exential Group” in July 2016, and, “Dubai regulator shuts down retail forex broker Exential Group suspecting managed accounts fraud”.
This is a prime example of the website looking very professional but as I delved deeper there is no real substance. The contact us page gives an address and a map for exential group, a telephone number and an email contact, which is important to me. Average 40-50 trades per month, an annual fee and 30% performance fee. Actually that is the first time I have seen mention of an annual fee.
Is it real?
Honestly to read the FAQ’s, I would be convinced they seem very professional. I wonder though why the question is asked about the returns because I haven’t seen how much they say to expect yet on the website. Third party auditing is mentioned but not by who. One page says minimum 25k another page says minimum 20k. There are big profits showing every month of every year from January 2011 until June 2016.
On the exential group website they say “Remember, forex managed accounts can generate returns well above anything the mainstream investment firms offer you.” And now I see “Average annual returns in excess of 100%” I suppose there are some warning bells starting to go off!
They say “Because of very strict money laundering laws, your money has to go back into an account with the same name. So it physically cannot be sent to anyone else’s account” and “simply call or email your Relationship Manager and ask them to revoke your LPOA (Limited Power of Attorney). As soon as they have done this then you’re disconnected from the master account. You can withdraw your profits at any time from your account in part or full. You have total control.”
They also say that they never risk more than 0.1-0.5% of your account on each trade. I am not sure how to interpret this as they say they make 40-50 trades per month, could this equate to losing 0.5% on every trade? I also wonder about this next statement as I do not think they can ensure a profit payout monthly “to target 7-8% per month there is an element of risk which is then leveraged against the profit on a daily basis, thus, not effecting the principal and ensuring a maximum profit payout monthly.”
The director of exential group put a letter to their clients on Myfxbook regards an application to re-open their doors and lodging an appeal and so forth, so for now, having read other reviews I will go with a 1 out of 5 and wish all their investors good luck.
I am more and more convinced that I need expert advice and I can get that from Acorn 2 Oak. They have been around the industry for a long time and they are far more knowledgeable than me concerning all these managed forex account providers. Enter your details above and use the Acorn 2 Oak free service to make a comparison and find the best forex managed account provider for you.