The Washington State Department of Financial Institutions (“DFI”), Securities Division has received a complaint from a Washington resident regarding Monaxa Ltd (“Monaxa”). Monaxa operates a web platform at monaxa.com that appears to offer off-exchange or over-the-counter (“OTC”) trading. The web platform at monaxa.com is no longer accessible in the United States.
The investor was introduced to Monaxa by acquaintances. Those acquaintances invited the investor to an online Zoom call hosted by Monaxa around the fall of 2024. Dozens of other prospective investors from around the world were also on the call. Monaxa represented that the software on their platform would pair an investor up with a trader of the investor’s choice. The investor’s trades would then copy the trader’s—an investment method called “copy trading.”
According to Monaxa’s website, investors can engage in the following kinds of trading on their platform: foreign exchange (“forex”) and contract for difference (“CFD”). The CFD assets include stocks, indices, commodities, and futures.
The Washington resident invested $2,900 with Monaxa to do copy trading around mid-October 2024. Within a few days, the investor lost approximately $500. The investor was able to withdraw their remaining funds from the Monaxa web platform. Two other Washington investors jointly invested $1,000 with Monaxa to do copy trading around the end of October 2024. Within a few days, those investors lost approximately $700.
These allegations have not been verified by DFI.
Several other red flags regarding Monaxa (which have also not been verified by DFI) include:
- Monaxa Ltd is subject to an investor alert in Japan for soliciting OTC derivatives transactions on the internet without registration in Japan.
- Monaxa Ltd is subject to an investor alert in Malaysia for carrying on unlicensed capital market activities of dealing in securities.
- Monaxa lists a registered address on their website that is associated with multiple other trading web platforms, including tradersway.com, which is on the CFTC’s RED list for soliciting and/or accepting funds from U.S. customers for OTC foreign exchange trading and precious metals offerings without being registered with the CFTC.
Monaxa does not appear to be registered with the CFTC or SEC.
Investment Tips
DFI urges consumers to exercise extreme caution before responding to any solicitation offering investment advice or financial services. Investment professionals need to be licensed with DFI to offer investments to Washington residents. To check the licensing status and to find out if there are any complaints against an investment professional, please visit FINRA Brokercheck. In addition, all investment products sold need to be registered or meet an exemption from registration. To check to see if the investment product is registered or has filed a notice of exemption in Washington State, contact the Washington State Department of Financial Institutions, Securities Division at (360) 902-8760. If you live outside of Washington State, contact your state securities regulator.
Impersonation
DFI cautions consumers to beware of persons previously unknown to them offering investment advice, even if they purport to be legitimately licensed investment professionals. Scammers can impersonate investment professionals and offer advice that benefits scammers and is harmful to consumers.
To check the licensing status of an investment professional, please visit FINRA Brokercheck. After confirming that the investment professional is appropriately licensed, attempt to independently verify that you are indeed speaking with the real person. Try contacting the licensed individual using online resources such as Brokercheck or the firm website, rather than through the communication channels they provided to you directly. If you have any doubt about the authenticity of the person soliciting you, contact the Washington State Department of Financial Institutions, Securities Division at (360) 902-8760. If you live outside of Washington State, contact your state securities regulator.
Additional Resources
Virtual Currency, Cryptocurrency, and Digital Assets Information for Consumers
What You Can Do to Avoid Investment Fraud
Informed Investor Advisory: Contracts for Difference
Customer Advisory: Eight Things You Should Know Before Trading Forex