Itcoinex – Reasons to Avoid this Broker

Itcoinex

The cryptocurrency market has become the center of attention amongst the financial markets these days, particularly because of its volatility. Last year, a number of cryptocurrencies reached all-time high values and even though the crypto winter may have hit this year, a rebound is expected.

Therefore, many people are jumping onto the bandwagon by taking advantage of the lower prices and this has pushed up the demand for online brokers catering to the crypto space. But, the problem is that the crypto space has become a fertile ground for scammers and this Itcoinex review sheds light on one.

The fact that cryptocurrencies are a new asset, the market is not centralized and a great number of retail clients are taking an interest in the market has attracted the criminal element. They want to take advantage of these facts to scam people due to which your priority should be to ensure that you are choose a legitimate company when you want to trade crypto CFDs. Bear in mind that every single one you come across will claim to be legitimate, but their claim does not matter.

You have to do your due diligence because no scammer is ever going to tell you the truth. After all, their intention is to exploit you, which means they will do their best to convince you that they are authentic and can provide you the services you require.

It can be very tempting to believe their claims, especially if they are offering an attractive package. But, when something sounds too good to be true, it usually is. You will learn the same in the case of Itcoinex that presents itself as an online broker offering crypto assets to its clients.

It claims to offer you high leverage, deep liquidity and a user-friendly platform, along with 24/7 support, top-notch security and safe storage for your assets. What more could you ask for? But, when you do your diligence, you will find that Itcoinex gives you a lot of reasons to avoid their services. It is not on the up-and-up as it pretends to be and is only out to steal your funds. Why should you avoid Itcoinex? Check out the reasons here:

Lack of license

Your first priority should be to find a brokerage that is licensed because this ensures that you are not dealing with a scam. Regulated companies have their activities monitored by a third-party and they are also required to be compliant with high standards of service, offer transparency and ensure safety of funds. You cannot expect all of this from an unlicensed brokerage and their information cannot be verified either. Therefore, it is not surprising to discover that fraudulent brokerages are typically unregulated and unlicensed.

When it comes to Itcoinex, you will find on its website that it claims to be owned and operated by a company named Itcoinex.com Finance LLP. This is a strange name for a company, but things get more interesting when you discover that it claims to be based in the United States. It adds that it is compliant with the laws of the US, which would mean that it should have a license from the Commodity Futures Trading Commission (CFTC) and have membership of the National Futures Association (NFA).

But, when you check these authorities for Itcoinex, you will not see it in their online registers, neither its parent company, which shows that it is lying about its address. This is common amongst scammers that will tell you lies about their regulation to earn your trust. Their lack of license is also evident from the leverage ratios that they are offering, which are against the rules of the CFTC.

No powerful trading platform

When you are dealing with a market as volatile as that of crypto, it is understood that you want a powerful and advanced trading platform that enables you to enjoy superior trade execution. Likewise, you also want to have access to the top trading tools that can help you make timely decisions by taking advantage of indicators and analyzing tools. But, this is not something that Itcoinex can offer you.

A look at their trading platform shows that it is a rather basic and rudimentary platform that is severely lacking in terms of tools. You will not find any indictors or even timeframes available, which is something every platform should have. This goes to show that Itcoinex does not really have your best interests at heart because most genuine brokerages would give access to the MT4, or MT5 trading platforms.

Poor trading conditions

Since the trading conditions will impact your profits, you need to ensure they are competitive before you sign up with any broker. This is another reason for you to avoid Itcoinex because they offer poor trading conditions. When you check out their spreads, you will find that they ask about 1.6% of the value of the asset being used, which is just too high.

Even in terms of leverage, you should not be fooled by Itcoinex offering of high ratios. Sure, a 1:100 level of leverage might be impressive in terms of assets like forex and stocks, but it is considered suicidal in terms of crypto. The maximum leverage allowed by most regulatory bodies for the crypto space is 1:2 because of their volatility. Furthermore, as mentioned above, there is a 1:50 cap on leverage that the CFTC has imposed for retail traders and Itcoinex is breaking this rule, confirming its lack of licensing.

No chargebacks

The only way you can deposit your funds in your Itcoinex account is through crypto assets. This is another scam indictor because these deposits do not qualify for a chargeback. Hence, the brokerage can keep your money and you will not be able to get a refund if you are scammed. Also, since crypto transactions offer anonymity, it offers dual benefits to fraudsters because they can easily hide your money.

Final Word

There are just too many reasons for you to avoid trading with Itcoinex and it is better for you to look for a more suitable broker.