Forex trading is a popular way to make money online. But it is also an easy way to lose it. Scam brokers are always preying on unsuspecting traders. And the worst part is that it’s not only the inexperienced that fall for their traps.
You can protect yourself by staying informed on the methods they use to scam traders. Know how you can recover your money when you fall victim to a scam, and you will be a step ahead in protecting yourself.
A scam is not recognizable at once, as we will see in this XTB review. Statements like “Trade with the Best CFD Broker for 2020 as rated by Brokerchooser” and “Favoured by 170,000 clients worldwide” are the first thing you see on the XTB website.
But we will show you why all this is a charade. We will open your eyes to the lies and manipulations of this broker.
XTB Review: In a Nutshell
XTB was founded in Poland in 2002. This CFD and forex broker is based in London and Warsaw. It operates under XTB International Limited, a company based in Belize and registered under the number 153939.
XTB is the brand name for the XTB Group, which includes X-Trade Brokers DM SA, XTB Limited, and XTB Sucursal. It was previously known as DUB Investments Limited.
XTB offers forex, indices, commodities, CFDs, and cryptocurrencies. It provides two trading platforms – xStation 5 and MetaTrader 4. They are available in web, desktop, smartwatch, and tablet.
There is a demo account as well as three account tiers. The minimum initial deposit is £250, €250, or $250.
It operates in over 13 countries, including Slovakia, Germany, Czech Republic, Hungary, Italy, Romania, Turkey, Chile, Belize, Poland, Portugal, Spain, and France.
XTB gives the impression of a reliable broker, and the awards proudly displayed on the website may push you to trust it blindly. But in this candid XTB review, we see its true colors.
Is XTB Regulated?
XTB International Limited is regulated by the International Financial Services Commission in Belize under the number 000302/46.
XTB Limited is regulated by:
- The UK Financial Conduct Authority under FRN 522157
- CySEC under License Number 169/12
- International Financial Services Commission in Belize under License Number 000302/46
- Polish Financial Supervisions Authority
It is not authorized to offer services in the United States, Australia, Canada, and India.
Do not be carried away by the mention of established regulatory bodies. XTB does not act with the interest of its customers at heart.
Suspicion of XTB Engaging in Asymmetric Price Slippage
Despite the impressive regulation, XTB was under investigation by the Polish regulatory body for practicing asymmetric slippage. The investigations were launched in August 2017.
In the period between when an order is placed and when it is filled, price changes can occur. Apparently, XTB would only execute orders that were favorable to the broker and unfavorable to the client.
According to the Polish Financial Supervision Authority (KNF), XTB was suspected of using this method to cheat its clients an amount between PLN 8 Million to PLN 23.5 Million.
In the investigations launched by KNF on the matter, the regulatory body found 49 more violations carried out by XTB.
The Polish regulatory body slapped XTB with a $2.7 million fine for the irregularity, which XTB tried to appeal.
XTB’s Poor Customer Terms
Despite the numerous awards and impression of a broker who cares about its clients, some of the terms provided by XTB are unfair.
For instance, it uses the market maker business model in its micro-lot trading. This means that XTB can act as the counterparty to its clients’ trades and stands to make money when a trader loses. This causes a conflict of interest.
Although XTB claims to use Straight Through Processing (STP) with the Pro account, there is no proof of this.
With the allegations made by KNF for asymmetric slippage, it suggests that XTB does not shy off from abusing its position as the market maker to the disadvantage of its clients.
In addition, it charges $30 for withdrawals less than $50. This is meant to push clients to keep trading and losing more money.
XTB’s Enticing Rewards
Besides charging high fees for small withdrawals to keep people trading, XTB uses a technique that is common among scam brokers – enticing traders with rewards.
It offers cashback to clients for closed positions and sizeable monthly trading volumes.
What the Market Thinks About XTB
We looked at customer reviews in two of the most reliable review websites – Trustpilot and Forex Peace Army.
1) Complaints About XTB’s Customer Service
Numerous customers complain about XTB’s poor customer support. Emails go unanswered despite the claim to “help clients become better investors” with a 24/5 customer service team.
2) Delayed Withdrawals
XTB claims that processing withdrawals take one business day. But according to this customer, their money was yet to be transferred 12 days after making a withdrawal.
This other customer complained of XTB’s refusal to pay their money with the excuse that the bank account provided by the client could not be used. This is a weak excuse, considering that the client had used the same bank account to deposit funds with XTB.
The same fate befell this other customer. XTB gave lame excuses only to hold the customer’s money.
3) Pushy Account Managers
A pushy account manager is one of the red flags of a scam broker. The account manager will call you countless times trying to get you to deposit more money, which you end up losing as was the fate of this customer.
4) Poor Systems
A fast and reliable trading system is vital in trading. It could be the difference between making a win or loss. XTB’s system is anything but reliable. Cases of the server freezing while trading have been reported by its customers.
What’s fishy is that the servers freeze and slow down during the most important trading hours. It makes it obvious that the ‘slow servers’ are intentional.
XTB Review Conclusion: It is a Scam
XTB may be regulated by numerous major regulatory bodies, but this does not prevent it from scamming unsuspecting traders. It uses sneaky tactics like slow systems and manipulation of the trading conditions to make traders lose.
It then uses flimsy excuses to ensure that the trader cannot withdraw their money. If you have been a victim of XTB or any other forex scam, you can recover your money. Start by scheduling a free consultation with us.