Xtradebank is just one of the numerous fraudulent businesses preying on people's interest in cryptocurrency and their need for a passive income. In this XTradeBank Review, we'll take a close look at how you can tell that the company is not what it claims to be—a "user-friendly platform intended for everyone."
XTradeBank Review - Can You Trust XtradeBank.Com?
Xtrade Bank, which advertises itself as "the world's largest cryptocurrency exchange" and "the next generation trading platform," is actually just an anonymous website that has neither a valid forex license nor any other kind of legitimacy, and which also exhibits all the telltale signs of being a scam.
XTradeBank Regulation and Safety of Funds
A reputable financial services provider will have clear and extensive information about the firm that owns and operates it, its location, and the licenses it holds displayed prominently on its website. All the necessary legal paperwork is made available to you by a genuine broker.
Although such data may be easily accessible, its lack of authenticity or accuracy is no guarantee it will be used correctly. Yet, without these features, it's quite likely that you're dealing with scam artists.
There is no firm name or contact information displayed on the homepage. As stated in the Terms and Conditions, the website is operated by a corporation with the questionable name Xtradebank.com Finance LLP, which is located in the United States.
Remember that getting a foreign exchange license in the US is no joke. The broker must hold valid licenses from the Commodity Futures Trading Commission (CFTC) as a futures commission merchant (FCM) and a foreign exchange dealer (FED), in addition to being recognized as a member of the National Futures Association (NFA).
This license is also pretty expensive because every American forex broker is required to maintain at least $20,000,000. This is a huge sum that only a handful of brokers can afford.
When dealing with unlicensed or offshore brokers, you have a nearly one hundred percent chance of falling victim to a scam. Having said that, the following are a few examples of offshore brokers that you should never do business with.
SagaTrade: As an unregulated broker, SagaTrade cannot guarantee the security of your money.
TriumphFX: Avoid this unlicensed broker if you can; they are not to be trusted.
Kiplar: Since Kiplar is an unregistered brokerage, your money is not secure with them.
Most of the time, the major goal of offshore brokers that do business is to defraud their customers. Given that businesses like this one are not subject to any regulations, they are free to take your money and then use it to commit fraud, frequently stealing as much as they can get away with.
This makes it easy for them to pull off such a scheme. Even if there is no indication of fraud, a client's investment is nevertheless in danger when working with an offshore broker due to a lack of financial and managerial resources.
Trading Software
The fact that trading software is not even mentioned on the Xtradebank website is highly indicative that it's a scam. Following the creation of an account, you will be granted access to a trading platform that was more like a counterfeit than a legitimate trading software. Simple features, including the ability to make pending orders, are missing from the platform in question.
Clients of reputable brokers with reviews have access to a diverse range of trading tools, including web-based platforms, mobile apps, and desktop applications. MetaTrader 4, often known as MT4, and MetaTrader 5, sometimes known as MT5, are the platforms that see the greatest action in the industry (MT5).
Due to their extensive feature sets, which include multiple account usage, custom script design and implementation for automated trading, and backtesting trade algorithms, these platforms have become the standard in the industry.
Deposit and Withdraw Process
For obvious reasons, a cryptocurrency-themed scam would only accept Bitcoin as payment.
Fraudsters favor cryptocurrencies because of the impossibility of issuing refunds for cryptocurrency transactions. Some reputable brokers do take Bitcoin and similar cryptocurrencies, but they always require additional, verifiable payment options like a credit card, debit card, bank transfer, or e-wallet services like Sofort, Neteller, or QiWI.
Xtradebank charges a variety of fees, as detailed in the Client Agreement. These range from 1% to 2.5% of every deposit, plus an extra 3.5% for "tax payments" and 2.5% for "insurance premium." Brokers who are legit won't charge you a fee like that. These ridiculously high costs scream "bait and switch."
XTradeBank Offers Welcome Bonus
Additionally, Xtradebank will award you with a welcome bonus and a referral commission if you are successful in luring other people to join the program. It is against the law for regulated brokers to actively solicit clients by offering bonuses and other incentives. Be careful in joining promotions like these. Or you should avoid dealing with this type of broker.
How Does the Scam Work?
Even for seasoned investors who utilize the services of reputable brokers, trading in financial products is a risky career path. There are a lot of fraudulent websites out there that pretend to be brokerages, and beginners run the risk of falling for one of those scams.
Sophisticated and deceitful scam artists run these websites, and they will try to dupe you by making false promises of quick and easy money.
Typically, these scam artists will assure you that they would handle every aspect of the investing process on your behalf; moreover, many of them will even use genuine trading platforms to give you the impression that your money is actually being invested.
After you have made a modest initial investment, they will try to persuade you that you're currently reaping enormous rewards and will pressure you to make additional investments.
However, your funds are not being invested, and as a result, you will never receive the profits that were promised to you. When you request the withdrawal of even a little fraction of your cash, you will be confronted with minimum trade volume criteria that are difficult to fulfill and hidden charges that equate to several fractions of your total funds.
Scammers use fictitious names and offshore corporations that are difficult to track down and regulate, making it challenging to hold them responsible for their actions.
