Xtrade Review - Is it scam or safe?

Xtrade Review - Is it scam or safe?
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Trading Accounts

 

Account type Minimum deposit  Minimum trade size Maximum leverage Spreads Trading platform
Standard  $100 0.01 1:400  Fixed, 2 pips on EUR/USD  Xtrader Pro

 

Xtrade offers its clients a single universal account type with fixed spreads and leverage of up to 1:400 on its proprietary web-based platform Xtrader Pro.


At present, the broker does not offer the most popular MetaTrader 4 (MT4) platform. Account management services are not available either.


Meanwhile, Xtrade offers exceptional training options via its Education Center and Xtrade Academy, where you may find tutorial videos, e-books and other resources suitable for both beginner and professional traders.


The Company


Xtrade offers trading in forex, commodities, indices, shares and CFDs on its in-house platform. The brokerage’s head office is located in Cyprus.


Xtrade is a brand operated by Xtrade.Europe Ltd., which is authorised and regulated by the by the Cyprus Securities and Exchange Commission (CySEC).


Xtrade Group complies with international regulatory standards and also operates via units regulated in Australia (by ASIC), Belize (by IFSC) and South Africa (by FSB). What is more, In July the broker joined Russia’s self-regulatory organization NAFD (former CRFIN) and said it will apply for a Russian license.


In addition, XTrade is one of the forex brokers that advertise through sport, namely has a contract with the famous footballer Cristiano Ronaldo.


Security of Funds


CySEC applies certain rules and requirements to Cyprus Investment Firms. For instance, they must maintain net tangible assets amounting to at least €730,000 in order to prove their good financial standing. Furthermore, the Cypriot watchdog requires forex brokers to keep customer funds in segregated accounts, separated from the company’s operating funds.


As a further guarantee to clients’ funds, all CySEC-regulated companies are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, If the company becomes insolvent or discontinues operations.


Additionally, every CySEC-regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services within the EU under the MiFID regulations. Despite this, it is registered with the Italian Financial regulator, CONSOB.


Earlier this year Xtrade got in the trouble with the ASIC over suspicions of improper handling of client money. What is more, earlier in October angry XTrade customers commenced media campaign and strike In Limassol (Cyprus), alleging manipulation and theft of funds (according to online media FinanceFeeds). A number of forex forums are also flooded with complains about this broker and allegations that it is a scam. In light of the above said, there may be concerns about XTrade’s reliability.


Trading Conditions


Minimum Initial Deposit
In order to open an account with Xtrade, traders have to invest a minimum of $100. Such minimum initial amount is average, yet some renown Cyprus-based brokers require less. For instance, XM demands just $5 from its clients as a start.


Spreads & Commissions
As most fixed-spread brokers, Xtrade provides commission-free trading. The spread for the EUR/USD pair amounts to 2 pips, which is average for the forex market.


For purposes of comparison, another EU broker (holding a FCA license), HYCM, provides fixed spreads of 1.5 pips on EUR/USD and also charges no commission. For more information, you may look up real-time spreads of 15 leading brokers here.


Leverage

The maximum leverage level offered by Xtrade is 1:400, which is common for the FX market, yet it is considered a high ratio, because the higher the leverage, the greater the risk.


Nonetheless, many Cyprus-based brokers offer even higher leverage rates - for example, XM provides leverage up to 1:888. And HYCM – up to 1:500. You may check out a list of brokers, providing leverage equal to or exceeding 1:500 here.


Trading Platform


If you are looking for the standard forex market trading platform MetaTrader4 (MT4), you will not find it with this broker. Xtrade offers its clients solely its proprietary platform Xtrader Pro, which is entirely web-based. Mobile versions are also available.
Xtrader Pro has a simple user-friendly interface and is equipped with the common trading tools and features, such as charts, technical analysis indicators, etc.

 

Xtrade's in-house web platform Xtrader Pro. Click to enlarge.

When placing orders, users are able to set a few other variables to capture profits and limit losses. They include the “Close at profit”, “Close at loss” and “Buy when Rate is” features.


Promotions
This broker offers a lot of bonuses and other attractive promotions. At the time of writing of this review, Xtrade supports a Welcome Package of 4 types of bonuses for newcomers:


• First Deposit Bonus from 20% to over 60% (Up to $6000), which expires after 30 days and can be withdrawn after certain volumes are traded;


• $20 Cash bonus, which can be acquired following Phone Verification.To redeem it, you are required to reach 300 XPoints within 30 days;


• First Trade on us (Up to $120 Cash bonus);


• $30 Cash bonus, Account Verification Account Verification. To redeem it, you are required to reach 300 XPoints within 30 days.


Methods of Payment


As opposed to the narrow range options it offers in terms of trading accounts and platforms, Xtrade supports a number of payment methods: credit/debit cards, bank wire transfer, PayPal, AliPay, Abaqoos, DineroMail, Boleto, CashU eKonto, ePay bg, EPS, EUTeller, Giropay, Halcash, iDEAL, Lobanet, Mister Cash, Moneta RU, Multibanco, Neosurf, Neteller, POLi, QIWI, Przelewy24, Skrill, Sofort, Sporopay, Teleingreso, Ticketsurf, Todito Cash, Webmoney and YandexMoney.


Xtrade does not charge any fees for deposits and according to the information on its website, withdrawal requests take up to five business days to process. Delays beyond the company’s control might occur due to third party withdrawal payment methods.


Conclusion


Xtrade is a well-regulated FX and CFD broker that offers trading in a variety of instruments on its in-house web platform. However, Xtrade services are quite limited in terms of trading accounts and platforms and some concerns are raised with regards to this broker being a scam. To sum up the above, here are the advantages and drawbacks with regards to this broker:

 

Pros  Cons
Well-regulated No choice of trading platforms & account types
Commission-free trading MT4 not available
High leverage levels offered  Only fixed spreads offered
Bonuses available Market Maker model
Useful training package for CFD trading  
Multiple payment methods supported  

 

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