XtreamForex is an online broker that was established in 2015 and is said to have headquarters in London. It operates under Grand Investing Ltd, which is registered in the Marshall Islands.
The broker mostly focuses on Forex though it also offers commodities, stocks, indices, and cryptocurrencies to trade.
The broker processes its price quotes with a liquidity provider consisting on institutional partners. This allows XtreamForex to provide its clients with competitive pricing and tighter spreads. According to the broker, all of its clients’ orders go straight to its liquidity providers, removing any form of dealing desk intervention or conflict of interest in the middle.
However, a number of negative reviews and accusations of fraudulent behavior has questioned the legitimacy of the broker. Therefore, in this review, we will look into the aspects of the broker and investigate whether the claims hold some weigh in them.
XtreamForex: Services and Offerings
• Trading Instruments
XtreamForex offers a wide range of financial assets to trade. This includes over 60 Major, Cross, and Exotic currency pairs. In addition, the broker offers its clients the opportunity to invest in most active indices around the world such as the NAS100, SPX500, and US30 indices.
XtreamForex also offers over 60 stocks listings from large companies in the U.S., the U.K., and the E.U. These companies include Apple, Amazon, Facebook, and other major companies.
Only recently has XtreamForex offered cryptocurrency which includes some of the most popular digital currencies available such as Bitcoin, Litecoin, and Ethereum.
• Account Types and Offers
XtreamForex offers a decent variety of account types needed to suit almost any trading strategy and capital. The broker has 5 account types in total – the Micro, Standard, E.C.N., E.C.N. Pro, and the V.I.P. accounts. XtreamForex also features a swap-free account in accordance to Sharia Law for those residing in Islamic regions.
However, all of XtreamForex’s accounts only has market execution and is only compatible with the U.S. Dollar as the main currency for deposits and withdrawal.
The Micro Account can be opened with a minimum deposit of $5, where traders can magnify their profits with a maximum leverage of 1:1000.
Leverage levels may differ depending on the account type. The Standard and E.C.N. accounts offer a maximum leverage of 1:400, while E.C.N. Pro and the V.I.P. accounts offer a maximum leverage of 1:200.
In terms of spreads, XtreamForex claims that it can start from 0 pips. The average spread for Major currency pairs such as the EUR/USD pair is 0.1 pips. Spreads can also differ depending on the account type such as Micro and Standard accounts starting from 1 pip. In the case of the EUR/USD pair, the lowest spread found was 1.2 pips.
Another account type is the free Demo Account that can be accessed after registering. Here, clients will be able to play around with $100,000 worth of virtual money in a simulated, risk-free trading environment. Demo accounts are a good way to test the capabilities of a broker’s trading platform.
• Trading Platform
Speaking of trading platforms, XtreamForex utilizes the MetaTrader4 (MT4) software for its trading platform. The MT4 platform is one of the most popular trading platforms the industry can offer. Its fully-customizable interface allows for maximum flexibility and ease of use. MT4 is also compatible with third-party plugins that allows traders to make use of advanced charting and technical analysis tools.
XtreamForex also features a Copy Trading Program for its platform that allows traders to have their accounts to automatically copy the transactions of more experienced traders.
• Payment Options and Fees
XtreamForex’s payment options include wire transfer, Visa, Mastercard, Skrill, Neteller, FasaPay, WebMoney, PerfecMoney, Jeton, Qiwi, and Bitcoin.
While XtreaForex’s payment options are extended, it might be confusing for a client depending on the payment option chosen. As an example, if a client opens a Mini Account through Visa, he might have to pay more than the required $5 as Visa’s minimum transaction amount is $10.
Information on withdrawing from XtreamForex can be found in the Frequently-Asked Questions section on its website. However, some may find the details there to be lacking.
Withdrawals can take up to 4 business days to process, which is a considerably long time compared to other brokers. While XtreamForex does not seem to charge any withdrawal fees, additional charges may come from the service provider used.
XtreamForex: Is it safe?
Many offshore brokerages have been able to pull off many scams in the past due to the lack of proper jurisdictions in the area. This can ruin the reputation of many legitimate brokers. In order to guarantee their legitimacy, they obtain licenses from financial authorities. These authoritative bodies investigate the broker’s operations and only give out licenses if it passes industry standards.
In the case of XtreamForex, the broker does not seem to be registered by any regulatory body. Even under Grand Investing Ltd that holds authorization from the Marshall Islands, XtreamForex does not seem to be covered by it. It also does not help that the company is located offshore.
Therefore, this would mean that it would be very risky trading with XtreamForex as its client’s funds and best interest are not protected by any authoritative bodies.
XtreamForex: Conclusion
All in all, despite XtreamForex’s great offerings, it can often be seen as too good to be true. This can be so because of the structure of its account types and its withdrawal and deposit methods.
The accusations of the broker being a scam could be true as well since XtreamForex is not regulated by any reputable financial authority. This means that the broker could break away from industry standards without any intervention due to lax regulations.
From this, we can say that while XtreamForex has some of the most competitive offerings out there, it might not be a safe way to invest your money. It would be much safer signing up for a more reputable broker.