Xtradebank Review – The Red Flags to Know

Xtradebank Review

When you decide to engage in online trading, you obviously want to make money with the opportunities that the financial markets are known to offer. Many people have made their fortunes in these markets and you wish to do the same.

With online trading, access has become easier and simpler because most barriers to trading have been eliminated. But, there are different kinds of risks that you need to be aware of, one of which is evident in this Xtradebank review.

You have to open an account with a broker to trade online and this is where you will come to know that not all platforms are authentic and reliable. The quality of services varies from broker to broker, but the biggest issue is that some of these companies are downright fraudulent.

They are set up with the primary purpose of exploiting people and pocketing their money, which means that you need to be cautious when you are looking for one.

There are countless stories of people who were not thorough enough in their search for a dependable and professional broker and ended up paying the price for it by losing their hard-earned money to a scam.

Do you want to be a scam victim? Of course, you don’t and the only way to ensure it does not happen is to check a broker out thoroughly. While scam platforms do not come with any obvious warning signs, they have red flags that can help you identify their true nature.

It is the red flags that you need to watch out for in order to ensure that you are not being lured by a fraudulent brokerage. Advertised as a trading platform and also a crypto exchange, Xtradebank may appear to be a legitimate option on the surface.

After all, it claims to be based in the US and seems to offer all the right services. But, a closer look can help you identify the red flags. What are they? You can find them highlighted as follows.

False regulation claims

When you are checking out a brokerage, it is best to begin with their regulatory status because you want to choose an authorized and licensed company.

There are several reasons why this is a good idea. First off, these companies are unlikely to be fraudulent, given that their operations are monitored by a regulatory authority. Secondly, they maintain good standards of service and can offer you safety of funds.

Most importantly, you can hold these brokers accountable in case of a problem because they are answerable to the regulatory authority that governs them.

You will find that Xtradebank claims to be owned and operated by Xtradebank.com Finance LLP, which is registered in the United States. The fact that it has a US license is quite impressive, given that the region is one of the well-regulated ones in the world.

But, when you check the online registers of the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), which are the regulatory bodies of the United States, you will not find Xtradebank, or its parent company mentioned.

This means that it does not have a US license as it claims. Furthermore, another issue is that the Xtradebank website appears to be lacking in information.

You will discover that the Xtradebank website is actually anonymous because it does not have any contact information, or corporate background detailed in any aspect of its presentation. There is no mention of any authorization, or license either. This is a major red flag because it shows that you are not dealing with a genuine company.

Lack of a trading platform

The primary feature that an online broker offers to people for trading is its platform, or software, which connects to the markets and allows you to execute your trades.

How else would you be able to buy and sell in the financial markets? The fact that Xtradebank promises an advanced trading platform attracts attention because you want a cutting-edge solution for your trading needs that offers quick execution and top-notch tools.

Unfortunately, you will eventually discover that this is nothing more than a claim because Xtradebank has a funny-looking web based application in lieu of a trading platform that does not really do anything. This means that there is no functional trading platform available, which is a huge red flag.

Why? It is because Xtradebank does not offer the one feature that you need an online broker for. Why would you open an account with it, then?

Excessive leverage ratios

As the trading conditions directly affect your bottom line, you need to check them out before opting for a brokerage and Xtradebank attempts to lure people to its platform with leverage ratios as high as 1:100. No matter how tempting this may be, you should remember that leverage is a double-edged sword.

Yes, you can increase your profits with high leverage, but it can also increase your losses. Therefore, lots of regulatory bodies have capped the leverage ratios that can be offered to retail traders and Xtradebank is offering significantly higher ratios than those.

No refund possible

The payment options that an online broker provides can also help you identify a red flag. This is because they should offer you a variety of options, including those that allow you to get a refund, should you want to. Scam brokers would never give you that choice and this is exactly what Xtradebank does because it only offers you one payment option; cryptocurrencies.

You can only make deposits in bitcoin and other cryptocurrencies at Xtradebank and while they are undoubtedly becoming a new means of payment, it should be noted that they do not come with a refund option.

You cannot file for a chargeback, as in the case of credit cards, as crypto payments are mostly anonymous and irreversible. Most fraudulent platforms only offer this platform, while legitimate ones would always give you other options as well, so you can choose as per your convenience.

Final Thoughts

The red flags that you discover at Xtradebank can help you conclude that this is likely a scam broker and you should look for a different one.