Beware! XTradeMarkets is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
XTradeMarkets is a highly suspicious broker, and we are going to review it. While we were doing the assessment, we encountered a great number of issues that are going to be discussed in this article. Otherwise, they claim to offer nothing short of revolutionary, but all of the broker’s statements are seemingly fraudulent. Find out why we consider this entity a suspected scam in the full XTradeMarkets review.
XTradeMarkets REGULATION AND SAFETY OF FUNDS
XTradeMarkets provides an address in Panama, claims to be a brand name of AMI Trade LTD and the agreement between both parties is said to be governed by English laws. Well, first of all, we found pretty controversial information about the company mentioned. Only a British business is bearing the same name, but it has nothing to do with XTradeMarkets, so we believe the broker might as well be a clone firm. Nevertheless, we researched but found no other regulated companies having something in common with this broker, so your funds are not safe if you deposit with XTradeMarkets.
About the firm clones: those are scam schemes typically using authentic companies’ names, addresses, company numbers or license numbers without authorisation. The scammers pretend to work for legit businesses, and by doing so, they aim to take investors’ guard off and make the scheme look legit. It’s a common type of fraud but a really dangerous one, and apparently pretty effective because clones are popping out literally every day.
Avoid XTradeMarkets and see the high-rated EU brokers and British brokers instead. The European markets offer high-grade security, and there are even deposit insurance funds protecting traders’ money in case of insolvency or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. Europe regulated brokers are safe, so don’t hesitate if you are interested in trading and eligible to open an account.
XTradeMarkets TRADING SOFTWARE
XTradeMarkets’s software is web-based and known to us- we’ve seen it many times before. The platform is challenging to use, lacks many standard features one can find in MetaTrader, it’s slow, and the charting tools are terrible. The EUR/USD spread is almost 4 pips, which is a highly unfavourable Buy/Sell difference. The spread is the price to execute a trade, so naturally, the lowest ones benefit traders. Follow the links provided throughout the review to see many brokers offering a difference of 1 pip or below and put XTradeMarkets aside.
While talking about platforms, we can offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists, which can deliver upper-class platforms and much better trading conditions than XTradeMarkets. Both MTs feature advanced trading features such as Expert Advisors, Algo Trading, complex indicators and advanced charting tools. Traders can also access a marketplace with more than 10 000 apps that can be successfully fit into for better results.
The maximum leverage is 1:200, a ratio that’s no longer considered adequate for retail traders. In fact, leverage is the most dangerous aspect of trading, so many financial authorities imposed regulations to reduce leverage-related risks. As a result, EU, British and Australian brokers limit their clients to 1:30, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
XTradeMarkets DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with XTradeMarkets is $250, which is actually in line with the offshore brokers’ requirements, but twice higher than the regulated industry standards- $100 on average. The funding methods are said to be Credit/Debit cards, Wire Transfers, Skrill, Neteller, Sofort, QiwiWallet and WebMoney, but we can’t confirm that all of these are actually available. Out of those, bank card deposits are considered safer because people are allowed to chargeback within a considerable time after the transfer and eventually get a refund.
While discussing deposit methods, see some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated brokers on the lists are strictly regulated, so you won’t face scammers.
The minimum withdrawals are as follows- $500 for Wire Transfers and $100 for Credit/Debit cards, both of which being insane requirements. XTradeMarkets claims to process the requests within 7-10 days free of charge, which is a lifetime compared to the regulated brokers’ standards- 48 hours on average.
XTradeMarkets reserves the right to collect inactivity fees “from time to time” but doesn’t provide any further details. That’s a scam clause because, at any moment, they may decide it’s time to charge your account for inactivity.
The broker also reserves the right to launch bonus campaigns, but the additional provisions present yet another scam clause. According to the T&Cs, when traders accept bonuses, they won’t be able to withdraw any funds whatsoever unless they reach the minimum trading volume requirement- 25 times the bonus plus the deposit.
Overall, XTradeMarkets is a shady unregulated broker that’s bearing all the hallmarks of a scam, so stay safe and avoid it.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s effectively a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; that’s the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the trading results to show victims massive profits and ask for more money, promising to generate a fortune in no time. However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!
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