Choosing a broker is the only prerequisite that you need to fulfill to begin your online trading journey. This doesn’t sound too complicated because you can find anything online these days. There are a ton of brokerages offering their services, so it shouldn’t be a problem. Yet, it becomes one because most of these companies are offering similar services and this can make it difficult to distinguish between good and unreliable options. Indeed, some brokers are fraudulent and you need to steer clear of them. This is where you can benefit from this FXBinance review.
The best way for you to figure out if a broker is a scam or not is by checking its review. After all, doing your homework ensures that you know exactly what you are getting. Doing the same with FXBinance can help you in determining if it is a scam or not. You will get to see the glaring red flags and save yourself from falling into a trap. Ready to begin? Take a look below:
No licensing and regulation
It is understood that a legitimate brokerage would be properly licensed and regulated. Keeping this in mind, scam brokers also claim to be the same, but it is easy to refute this if you know where to look. According to FXBinance, they have their headquarters located in the United Kingdom. If this was the case, it would mean that they are regulated by the Financial Conduct Authority (FCA), which is the regulator in the country. As they maintain an online register, it is easy enough to verify this claim.
When you do so, you will not be able to find the name of FXBinance anywhere. This means that they are making false claims and are not to be trusted. But, in their case, you don’t even need to check the register of the FCA. A look at their offerings show that they are breaking a number of rules that are imposed by the regulator on the companies it authorizes and regulates. It wouldn’t be able to do so if it was licensed.
For instance, you will notice that FXBinance offers crypto CFDs, which is not permitted in all of Britain. Moreover, you will also find that the broker is offering bonuses on all of its account options. This is another thing that has been banned by the FCA because companies had begun to offer predatory bonuses and associated trading volume requirements that made it impossible for people to withdraw money. Yet, FXBinance is offering all of it and more on their platform.
Misleading claims about instruments
One thing you should note about FXBinance is that it not offer any trading; the broker is advertised as a CFD broker and it boasts a number of account options that provide increasing leverage and other features. But, you will come to know that the broker is just trying to mislead you and nothing else. The reality is that they only allow their clients to buy and sell different quantities of cryptocurrencies, which makes the broker quite like a crypto exchange. Nonetheless, it is still not a good exchange because it is not regulated.
One of the rules of the FCA is that brokers are not permitted to offer high leverage, yet FXBinance offers its clients leverage as high as 1:100. This is another rule that the broker has broken and is an indication that it is not a legitimate broker at all.
Another major red flag that you will come to spot at FXBinance is that the broker does not have a trading platform at all. A legitimate broker would obviously provide a trading platform, but here you will only find a chart available and nothing else. This cannot be used for trading, which shows that it is a scam.
Considering these major red flags, it becomes apparent that FXBinance is a scam and shouldn’t be trusted.