Xtream Forex Review
Among the many choices you have available when it comes to joining a broker for trading, you have Xtream Forex. Xtream Forex is considered one of the best online brokers by many traders from around the world. Perhaps these traders are having a time of their life while trading with this broker. However, there are certain things that don’t really add up when you look into the details. Despite offering some of the best trading conditions, welcome bonuses, and spread values, Xtream Forex fails to convince a wise trader to join its platform. What’s wrong with this broker? Let’s find out.
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Somethings Sound Deceptive
When you look at the website of this broker, you will notice that some things don’t sound very pure and clear. You will notice some level of deception in how the broker tries to present certain things. Take the example of the trading platform information. What trading platform you will have available with the broker is an important piece of information. However, this is not something where a broker will feel the need to deceive its traders. After all, it is just a trading platform that the traders can use to enter trades. It has nothing much to do with the broker or its policies. However, things are not quite clear here.
When you are on the platform page of the website, you notice that the broker is talking about trading platform for different types of devices. You have a trading platform for desktop computers. You also have a trading platform for those using Android. Last but not least, if you use an iPhone or an iPad, you have a trading platform available for those platforms as well. It seems as though the broker has done a great job of designing its own trading platform for all of these platforms. That’s not the case at all. When you look at the details of this page, you realize that the broker only has one platform.
This platform is MetaTrader 4. The MT4 platform does not really belong to the broker. It is a third party trading platform that brokers from around the world use. Most of the brokers have this trading platform for their traders and they love it. It is the best trading platform for forex traders in the world. However, it has not be developed by Xtream Forex. Not to mention, the broker has not created any platform separately for the different devices and operating systems as it seems on its web page. The only software you will be getting access to is MT4 and this is what you will be using on your Android, desktop computer, and iPhones.
One thing that might bother you here is that there is no mentioning of the web trader platform. Web trader is a platform that runs on the website and can be opened on any device and operating system. This is the type of platform that is suited to people who travel a lot and are often on different devices. When you have a trading platform accessible through the browser, you don’t have to worry about the computability issues anymore. However, when you browse on the Xtream Forex website, you don’t find any information about this type of trading platform. You will be using the MetaTrader 4 platform on all of your devices.
The Account Comparison
You have five different account types available to choose from when you are ready to join the Xtream Forex platform. These accounts have been designed for different types of traders from around the world. You will notice that the Islamic account feature is also there in most of these account types. However, the broker says that it can revoke the status of Islamic account from you at any point without any prior notice. One really can’t understand why this would happen. There has to be a reason for the broker to do it. Things are not clearly mentioned on the website about this particular statement. Yes, the broker does say that this account is only available for those who belong to the Muslim faith.
The micro account from this broker is the most basic account type and you can open it with just $5. This amount does not seem to be true but if the broker says you can open an account with that much money then you should be able to. What’s even more interesting is the fact that there are no commissions for you to pay when you open the micro account. So, all you are doing is paying the broker $5 to open the account and not giving any commission to enter trades. The broker does say that you will be dealing with spreads when you trade with this account type and the other one called the standard account.
Things seem quite too good to be true here. The spread of just 1pip does not seem believable here because there are no commissions involved. We also know that these accounts are more suitable for new traders and they will not be able to conduct any big trades. In short, the broker is not going to make any money from these traders. How is that possible? There is something that makes up for this lack of earning from the broker. There is a leverage of 1:1000 available from the broker for these new traders. Yes, you read that right. It is not 1:100 but it is 1:1000.
This type of leverage is not available usually from the online brokers. Yes, they are willing to offer up to 1:200 leverage but anything more than that is very rare. The biggest and the most renowned brokers put a limit on the leverage at 1:500. If you look at this leverage from the broker, it could be a trap for new traders to enter huge trades. These are the trades that they might not even be able to execute. However, the broker does promise that it will not let the trader end up with a negative balance. There are quite a few things that seem to be conflicting with each other when you sign up with Xtream Forex.
The Regulation Talk Is Doubtful
When a broker is regulated, you usually find that information in the footer of the website. The website usually tells you the real company name that operates the website of the broker, the registration number of the business, and the regulation information. However, you don’t see any regulation information on the website in this particular section. There is no separate section on the website to talk about the regulation of the company. There is one page though where the broker says that it is regulated. However, that’s where things get even worse.
When you say you are regulated, you have to instantly provide the readers with the information about the regulating authority. In the case of Xtream Forex, there is no information shared about the regulating authority. You can’t really be satisfied with the words of the broker where it claims to be regulated. It has to tell you which regulating body regulates it. Announcing the regulating authority is important because then it is the regulating authority that jumps into the picture. There have been many cases in the past wherein the website announced that it was regulated by a certain regulating authority when it was actually not.
What happened next was expected. The regulating authority took notice of the wrong and deceptive announcement from the broker and got it sealed. Many broker websites have closed down in the past because they lied about their regulation. However, things are quite difficult to judge in the case of Xtream Forex. The broker says it is regulated but never tells you the name of the regulating authority. Which regulating authority is going to take action against the broker? There is a lesson for the traders in it thought. If you can’t find out the regulating authority, you should consider the broker unregulated right away.
The 100% Credit Bonus
It is good news when the broker tells you that you can qualify for a 100% credit bonus right when you open an account on its website. Yes, you deposit the money in your account and get all the money back into account. In short, the money in your account will double. However, things don’t look so pleasing when you look at the terms and conditions of this bonus. There is an entire page filled with terms and conditions associated with the 100% credit bonus. One of the terms says that the broker can refuse to give you the bonus if it wants without furnishing any kind of reason or justification for doing that.
The best online brokers do not put information on their website that can confuse people. They don’t talk about bonuses to give false hopes first and then kill all the hopes with pages filled with terms and conditions. They don’t tell you they are offering you a bonus that they can refuse to offer when they want without telling you why. When you agree to this term, you are simply agreeing to not receive the bonus at all. Last but not least, the broker is not clear about its regulation information, which is the biggest red flag. If you can find other brokers, you are highly recommended to continue to do so.