Trade XN – Legitimate or Scam?

Trade XN

Are you interested in forex or CFD trading? You will find yourself in need of the services of a broker to get access to the financial markets. A quick Google search shows that there is an endless list of online brokerages that are offering their services. This means that you do not need to worry about running short of options, but what you do need to take into account is that not all of these platforms are what they seem. You will come across the phenomenon of fraudulent, shady and scam brokers as well and this Trade XN review can shed more light on their existence.

The unregulated and open nature of the internet has allowed cybercriminals to become rampant and they are targeting people through different tactics. One of these is portraying themselves as genuine brokers and convincing people into depositing their money for online trading. Eventually, these platforms disappear without warning, or simply prevent people from withdrawing their money. Such scams have become commonplace in the financial markets because people are eager to trade due to the opportunities available. Those who do not have proper knowledge often fall into such traps because they do not look beyond the surface.

You should bear in mind that a couple of glances at a broker’s website is not enough for you to distinguish between a scam and legitimate company. These days, even the former have such impressive websites and they make equally impressive claims that are designed to draw your attention and earn your trust. But, in this day and age, it would be foolish for anyone to just believe what they are told without checking things out on their own. This also applies in the case of an online broker because they are only going to promise you good things.

Whether they can deliver on these promises is what you need to figure out. You will be presented with such a challenge when you come across Trade XN that offers access to more than 100 trading instruments. You will be able to choose from forex currency pairs, along with CFDs on stocks, commodities, indices as well as precious metals. It promises no hidden fees, leverage that goes as high as 1:500, low spreads and a state-of-the-art trading platform. Plus, it also portrays itself as a renowned STP broker that caters to traders all over the world.

All of this sounds wonderful, but does this mean Trade XN is legitimate? Just because it has a great website and makes big claims does not make it genuine. In fact, a closer look shows that it is the complete opposite. How? Let’s take a look:

Regulation and Licensing

Checking out the regulatory status and licensing of a broker is a must because it tells you what kind of security you can expect from them. Brokers are licensed and regulated in jurisdictions they operate and depending on the authority, they are required to fulfill a certain criteria to get this status. This usually involves maintaining a high standard of service and ensuring transparency and safety of funds. You will discover that Trade XN claims to have the authority of offering financial services to traders all over the world.

Some of the regions that Trade XN has highlighted include Australia, Singapore, Japan, Malaysia, the United Arab Emirates, Chile and Myanmar. In order to operate from these jurisdictions, the broker would require a license from their respective regulatory authorities. However, if you check the online register of the Monetary Authority of Singapore (MAS), or the Australian Securities and Investment Commission (ASIC), you will not find Trade XN listed anywhere.

This means that Trade XN cannot be operating in any of these regions, at least not legally. Moreover, when you go through their website, you will find that it seems to be completely anonymous. A look at their contact details shows that there is no corporate address or any other background given. They do not even provide a company name. It is either called Trade XN, or a company named Capital Group is also mentioned in the presentation, but there is no information about where it is based.

Trading Conditions

It is essential for you to check the trading conditions of a broker before opening an account with them because these can play a significant role in your experience and the outcome. You will find that Trade XN is promising its clients leverage that can go as high as 1:500. A lot of traders may find such ratios impressive, but you should remember that even though leverage does give you flexibility, it is also very risky.

This is why regulatory authorities in various jurisdictions have imposed a cap on the level of leverage that can be offered. But, it does not seem that Trade XN is following any rules and is offering such high levels that are extremely risky.

Payment Methods

You should also check out what payment methods are supported by a broker because making deposits and withdrawals is an important part of the trading process. You want to be able to make your payments without any hassle and this can only be done when you have convenient and feasible options available. The problem with Trade XN is that it does not provide any clarity regarding the payment methods it offers.

When you go through their offerings, you will come to know that Trade XN claims to allow you to deposit funds however you want. But, they have not given any additional details, which means you have no idea what methods this may include. You obviously want safe options like credit cards available because this gives you the option of filing for a chargeback. Unfortunately, most of these shady and scam platforms only offer you options like crypto or bank wires where you cannot get a refund.

Final Verdict

After you have gone through the offerings of Trade XN, you can come to the conclusion that you are not dealing with a legitimate broker and it has all the hallmarks of a scam.