Beware! Xtradings 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.
Xtradings is quite the shady offshore broker – and we can sincerely advise you to avoid it at all costs. Here is why:
Xtradings regulation and safety of funds
Xtradings is not regulated – and finding where the broker operates from was quite difficult – ultimately, the information is available at the very bottom of its Terms and Conditions:
The Marshall Islands are quite infamous – brokers from them are often scammers. This is because the country does not regulate the Forex market whatsoever and this has made it quite attractive to people that wish to defraud others.
If you want to trade safely and profitably, your best bet would be doing so with a licensed broker – for example, ones in the EU have to abide a Negative Balance Protection policy, which ensures that noone can lose more money than they have invested. There are many more reasons to pick an European broker – and you can read more about them here if you are interested.
Xtradings trading software
Xtradings provides access to two platforms – the first one is a distribution of revered Metatrader 4, the industry standard trading platform, which has claimed that distinction with its powerful automated trading features and sleek interface. The other is a simpler web-based version of MT4, which lacks the automated trading, but does keep the more basic features of the platform. Here is what the platforms look like, in that order:
There are two problems with the spreads – they are too wide on the web platform, moving over the generally accepted 1 pip difference for FX majors like the EURUSD, but they are ever worse on the desktop one, sitting at 3 pips! This disparity is quite shady indeed.
There is also the matter of the broker offering leverage of 1:200 to just about anyone – while most regulatory bodies have banned such amounts as too risky for retail traders. But Xtradings and brokers like it don’t care about their clients’ safety of funds – as long as the deposits are coming in, the broker is content.
Xtradings deposit and withdrawal methods and fees
Xtradings’ accepted deposit methods range from common ones like credit cards, to more obscure ones like Bitcoin. If you wish to deposit with the broker, stick to cards – they allow a 540 day timeframe, in which a chargeback can be filed.
Withdrawal conditions with Xtradings, are an absolute nightmare, however – first off, there are fees:
How big these fees are is not really clear – and what’s more, the broker does not have the obligation to keep you up to date on them and their changes, being able to change them on a whim and simply post that on its website. Worth noting that there is not a single word about fees on the domain at the time of writing.
Furthermore, we have no reason to believe these fees are light – just check out what Xtradings charges to inactive accounts:
While dormant account fees are common in the industry, they are never as high as this!
How does the scam work?
Given the plethora of shady details about Xtradings, it seems there is only one conclusion that can be reached about the broker – that it is running a scam – and what’s more, it is running a scheme we have seen hundreds of times before. Here is how it plays out:
The broker’s victims stumble upon its website by following ads on social media, which promise them profitable trading opportunities. On the website, they are prompted to leave their phone numbers within the account creation process. Once the scammers have these numbers, a barrage of calls ensues. These calls come with demands for more and more money – and once the scammers have it, they will keep demanding more and more until their victim is bled dry. Should that victim demand a withdrawal, the scammers will cut them off and move on to other targets.
What to do when scammed?
So, you have been scammed by Xtradings, or a broker like it – do not despair! Here is what you can do to limit further losses:
First off, restore your privacy by getting new credit cards, forms of ID and so on issued – any document the scammers had access to needs to be renewed ASAP. Secondly, remove any desktop sharing software the scammers had you install from your PC.
Once that is done, contact your bank, walk them through what happened to you and have them explain what chargeback options you are eligible for – you might be able to restore some of your losses. However, know that any recovery agency that might contact you, promising to restore your money at the cost of an upfront payment is another scam!
Finally, do not hesitate to leave us a comment below – by sharing your experience with Xtradings, you will be helping us raise awareness of the scam, and, hopefully, protect others from falling for it!