XP Trade Review
Are you ready to start your trading journey? Thanks to the internet, it is very easy for just anyone to become a trader without much hassle. You don’t even need to leave the comfort of your home in order to make money via trading. In their eagerness to get started, many people just open an account with the first broker that seems reasonable to them. However, it is vital to remember that this decision shouldn’t be taken in a hurry because you will be trusting the broker with your money and your personal information. If they turn out to be a scam, you can lose your money and also become a victim of identity theft. Is that what you want?
No one wants to have a bad experience in the trading market and to ensure it doesn’t happen to you, it is best to avoid XP Trade and not fall for the tall claims they have made. This is an offshore forex broker, which operates from St. Vincent and the Grenadines, but the problem is that the broker doesn’t share much information about itself. It offers trading on a web-based platform and boasts four account types, but other details like spreads are undisclosed.
Yet, people end up falling for the broker’s claims because there are some advantages that XP Trade is offering. Let’s take a look at them:
- Some very impressive leverage ratios
If you go through the broker’s website, you will discover that XP Trade is offering its clients with quite generous levels of leverage, which even reach 1:500. This level of high leverage ratios is definitely impressive because it can work for all types of traders due to which they are deemed as an advantage.
- Excellent collection of CFDs
Another impressive claim that XP Trade has made on their website is the variety of assets they are offering for trading purposes. The broker has a very rich portfolio, which include numerous forex currency pairs and also various CFDs on commodities, stocks, indices and cryptocurrencies. This allows traders to diversify their portfolio, which can keep risks under control.
Due to these claims, many traders have made the error of signing up with XP Trade and had to deal with a lot of trouble later on. Why did that happen? This is because they ignored a number of problems associated with the broker. Some of these are:
- There is no address or name and no license either
The biggest concern about XP Trade is the fact that there is no clear information about who stands behind the broker and how it is offering its financial services. The only thing that you will find on the website is a phone number and the country code belongs to Czech Republic. There is no other relevant company information, such as the name of the company operating the broker, the location of their headquarters, their registration number and more.
As there is no information available, it means that XP Trade is a completely anonymous broker, which automatically increases suspicion. Put simply, the people who are operating this broker are not bound by any law and they are neither subjected to any monitoring by a reputable government organization.
This means that when you sign up with XP Trade, your interests will not be protected. Your funds will not be safe with the broker and you will have no one to reach out to for assistance if you have any legitimate claims against the broker. What is interesting to note about the broker is that it claims to be working in the market since 2012. However, the domain name of the broker’s website was registered in 2019, which means it is a false claim.
- There is no information about trading conditions
Another issue with XP Trade is that the broker doesn’t provide any information about its trading conditions. There is no detail pertaining to the trading products offered. The only thing that you can find on the website is the maximum leverage levels that they offer and the minimum deposit requirements that have to be fulfilled for each account type. This lack of clarity clearly indicates that the broker is not transparent about its practices or conditions, which makes it a big red flag.
- No support for MetaTrader and no demo account available
There is no demo account offered by XP Trade, which means there is no way for you to find out information about the conditions without creating a live account. Creating a live account means making a deposit, which is risky. As for the trading platform offered by the broker, you will not find MetaTrader available, which is a major disadvantage. There is some unproven web interface that’s offered by XP Trade, which is easy to use, but doesn’t boast the same features and offerings as MT4. The analytics and charting tools provided by the MT4 allow for easier and more effective trading.
- High investment required initially
It seems that there are a lot of problems associated with XP Trade and one of them is the high investment required initially for opening an account. If you take a look at most of the brokers in the market, you will find that they don’t ask for a deposit hire than $250. In contrast, XP Trade requires you to deposit a minimum of $500 for opening their Basic account. This is twice the amount that’s considered standard. Other than that, the broker also has some very hefty fees. They have a monthly inactivity fee of $100 and they also charge $100 for providing an auto-trading software. This can increase your cost of trading and reduce profits.
The above mentioned facts indicate that XP Trade has more disadvantages than advantages. They are not a registered entity and don’t follow transparent practices, which means you will be taking a big risk by handing your money over to them. There are much better brokers out there that you can use for starting your trading career.