Chainxbt – What Makes it a Scam?

Chainxbt

The number of brokers in the financial markets has increased exponentially in the last few years and this is because of the heavy traffic they have seen. More and more people are taking advantage of the convenience and ease that online trading has to offer and this has resulted in an explosion of companies to cater to them. But, the one disadvantage is that a lot of these companies are also fraudulent in nature and this has seen many people lose their hard-earned money. The following Chainxbt review shows how these scams operate and what you need to keep in mind.

The real problem is that most people are unaware of how these fraudulent brokers operate because of which they end up getting hoodwinked. Do you want that to happen? This is a scenario you want to avoid and the only way to accomplish it is by checking a brokerage for signs of a scam. It means that you should take everything a brokerage claims with a grain of salt and not believe everything they say.

You should do your own research in order to ensure that you are opting for a good brokerage that can fulfill your trading needs in the long run. Yes, this might take a bit longer than you expect, but since it saves you from disaster, it is worth it. You will be able to find an appropriate broker for your trading journey and this can help you achieve your goals.

One of the brokers that you will come across in your search is called Chainxbt, which claims to be an authentic and professional broker. But, you should not fall for its promises because it is definitely not a legitimate broker. There are a number of problems that indicate that Chainxbt is a scam. What are they? Let’s find out.

False licensing and regulation claims

A licensed and regulated brokerage is not likely to be a scam because its operations are monitored by a regulatory authority and it can be held accountable in case of a problem. It is expected to offer a certain standard of service and has to be fair and transparent. This gives peace of mind to traders because they know that they will not be exploited.

Scam brokers do not have a license to provide their services and are not regulated at all. But, they claim to be so in order to fool their clients. The same applies in the case of Chainxbt because the broker is fully unlicensed, but claims to be regulated.

According to the Chainxbt website, it is regulated in the United Kingdom. The broker claims that it is owned and operated by a company named Monecor, which operates on the London Stock Exchange and is monitored by the Financial Conduct Authority (FCA). If you check the FCA’s online register, you can definitely find the company listed.

However, the problem is that Chainxbt has nothing to do with Monecor at all. The latter is a legitimate company operating in the UK and Chainxbt is claiming to be its subsidiary, but it has nothing to do with it. This is because there is no mention of Chainxbt or its domain, which means that the brokerage is a clone firm and not one to be relied upon.

Lack of appropriate trading platform

The trading platform offered by a broker is one of its most crucial features because it is used for executing trades. It also provides tools and charts that can be used for making decisions. Every broker claims to offer a quality trading platform because it affects your performance and Chainxbt does the same.

But, what you will find is a basic web trading platform that does not really have any such tools or features to offer. The Chainxbt platform consists of a chart and some basic tools for analysis. It does not even come close to the MT4 or the MT5, which are recognized as the top trading platforms in the market.

Lack of legal documentation

Another clear indication that Chainxbt is nothing but a scam is the fact that the broker’s website does not have any legal documentation. This is something no professional broker would ever do because these documents outline the relationship between traders and the broker. It mentions the costs that will be charged during the trading process as well as the policies that will be applicable.

As you have to agree to these Terms and Conditions before signing up, you should always check them to know what you are getting into. But, there is no such legal documentation that you can find on the Chainxbt website. There is no Client Agreement, or Terms and Conditions to be found and this means it can demand anything later on to exploit you.

Unclear trading conditions

The trading conditions of a brokerage are also worth checking out because they affect your bottom line and this is another area where Chainxbt disappoints. It is vague about its trading conditions and this is certainly something to worry about. The spreads are advertised as under 1 pip, but there is no clarity about leverage and this is a big problem.

Only crypto payments

The payment methods of a brokerage are also something to be taken into account because you want to be able to make your deposits and withdrawals securely. The problem with Chainxbt is that it only offers support for crypto payments and this is another indication of a scam. Why? While there is nothing wrong with cryptocurrencies, the fact that they are the only option offered is a red flag.

This is because crypto payments tend to be final and cannot be reversed. This means that once you have deposited funds with Chainxbt, you cannot file for a chargeback and get your money back. Furthermore, it is also difficult to trace your money because crypto payments offer anonymity.

Final Answer

All of these indicators establish the fact that Chainxbt is a scam broker and not one you can trust for trading.