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Extrasum Review - is it scam or safe?

Extrasum review - Is extrasum.com scam or good forex broker?

RATING: 1.1 / 0 REVIEWS Extrasum
Extrasum is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


Extrasum is an offshore forex and CFD broker, offering over 60 forex pairs with a choice of four account types, leverage of up to 1:200 and the MetaTrader5 platform. Unfortunately, the broker is not licensed or authorized to provide financial services on regulated markets like the EU, UK, the US, Canada, Australia or Japan. On top of that they are offering a managed account, which is a highly controversial practice in light that Extrasum is an unregulated forex broker.

 

Account type Min. deposit Max. leverage Spreads
Nano Account $25 1:200 0,8 pips
Micro Account $100 1:200 0,6 pips
Standard Account $500 1:100 0,5 pips
Raw Spread $1000 1:100 $12/Lot (1,2 pips) 
Managed Account $25 000 1:100 n/a
*Commission

 

Extrasum Advantages:

 

63 currency pairs and CFDs on energies and precious metals

 

Extrasum does offer over 60 currency pairs, many of which exotic or minor like USDCNH, USDDKK, USDHKD, USDRUB, USDSGD, USDTHB, USDZAR, USDTRY, USDSEK, USDPLN, USDNOK, USDHUF, USDMXN and USDCZK. And the broker also offers CFDs on silver, gold, oil and natural gas, but no crypto coins, so here you may check our list of brokers, offering bitcoin CFDs:

 

>>Bitcoin Forex Brokers<<

 

Leverage as high as 1:200

 

A leverage as high as 1:200 will surely fit even the most aggressive trading style. Still, higher leverage means higher risk and it was not a surprise that the authorities in Europe, the US, Japan and Canada imposed restrictions on any retail high margin trading, basically leaving Australia the only major regulatory hub, where higher leverage trading is still legal. So, here you may check our list of brokers regulated in Australia:

 

>>Brokers regulated in Australia<<

 

Attractive spreads

 

As tested with a demo account the benchmark EURUSD spread floated about 0,8 pips – 0,9 pips and that looks attractive. Still, as we are not sure which of the four Extrasum account types the demo account mirrors, here you may also check our list of brokers, offering tighter spreads:

 

>> Lowest spread forex brokers<<

 

Various payment methods

 

At Extrasum you can pay with VISA, bank wire, Neteller and Skrill and UpayCard. However, as we do not see the option to pay with crypto coins, here you may check our list of brokers, where you can pay with bitcoins:

 

>>Forex Brokers Accepting Bitcoin<<

 

You can start trading with just 25 USD

 

This is another positive point. With Extrasum you can open a trading account with just 25 USD and that is fine. Still, have in mind that with some big players like FBS and IG you can start trading with just 25 USD or so.

 

MetaTrader5 supported

 

MetaTrader5 is one of the most reliable trading solutions on the market. It has a user friendly interface, excellent charting tools, numerous market indicators and even trading robots, which are customizable and will help you run automated trading sessions. Here you may check our list of brokers supporting the MetaTrader5 as well:

 

>>MT5 Brokers<<

 

Extrasum Disadvantages:

 

No license

 

Extrasum is owned and operated by Extrasum Inc., an offshore company based in  St. Vincent and the Grenadines.

 

But what is more, they claim to be licensed as an “International Forex Broker Company” in St. Vincent and the Grenadines. The problem here is that the local Financial Services Authority of St. Vincent and the Grenadines (FSA) simply does not issue such licenses. The Authority does regulate international and local banks, pension and mutual funds, insurance companies and money transfer businesses like Money Gram and Western Union, but not forex brokers. Besides, recently FSA even came out with a statement warning exactly about this, because of the great number of shady offshore brokers, like Extrasum, claiming to be regulated by it.

 

So basically Extrasum is a low credibility, unregulated broker that intentionally tries to mislead its clients that they hold a legit license.

 

Trading with unregulated, offshore brokers is extremely risky, because such companies are completely unaccountable for the way they handle your money and in practice too often are involved in scam.

 

Bear in mind that your funds will be secure only with brokers regulated by reputable institutions such as the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), or the Financial Conduct Authority in the UK, where among other benefits, your money will be insured for up to 85 000 GBP. Here you may check our list of FCA regulated brokers:

 

>>FCA Regulated Forex Brokers<<

 

Managed accounts

 

Most forex and CFD brokers, even legit ones, which are properly licensed and regulated, act as market makers. That means they make money when traders lose and vise versa. If a market maker offers you to manage your account, it will simply have the incentive to mismanage your money and “to lose them to themselves”. Extrasums offers a managed account, which they call Group Allocation Management Module, and that means they are in a potential conflict of interest. 

 

And besides, they even offer bonuses to people who refer their friends to open such a managed account. Honestly, this sounds to us like an old school financial pyramid.

 

Trading bonuses with  unspecified conditions

 

Extrasum does offer trading bonuses, unfortunately without specifying under what conditions. Bear in mind that the practice of offering trading bonuses is highly controversial and is actually banned throughout Europe and on many other regulated markets. The problem with the trading bonuses is that they always come with additional withdraw conditions, such as minimum trade volume requirements, which too often prove too challenging to be fulfilled.

 

No time frame for withdrawals

 

Speaking about withdrawals Extrasum does not commit to any time frame. Look what we found in their Terms and Conditions. Needless to say this is highly unusual:

 

 

Conclusion:

 

Despite the seemingly attractive trading conditions, do not forget that Extrasum is a low credibility, unregulated, offshore broker, which basically offers managed accounts, while acting as a market maker.  As always in such cases our best advise is to trade only with properly regulated brokers in Europe, Australia, Canada or the US.

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Traders` reviews for Extrasum

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