XtraderFX cryptocurrency CFDs review
Why you should think twice before trading with this unregulated broker.
Alternative options to an unregulated broker
- This review outlines red flags and risks associated with this broker.
Find alternatives and learn more about cryptocurrency CFDs in our guides:
|Product Name||XtraderFX Cryptocurrency CFDs|
|Fiat Currencies||GBP, EUR|
|Cryptocurrencies||BTC, LTC, ETH, DASH, GNT|
Bank transfer (ACH)
|Trading Fee||Fees vary|
|Deposit Fees||Fees vary|
|Withdrawal Fees||Fees vary|
XtraderFX, formerly known as CryptoPoint, is a UK-based platform that supports CFD trading on bitcoin, Ether and a few other popular cryptocurrencies. However, XtraderFX is not authorised by its local Financial Conduct Authority, which means platform users are exposed to the risk of theft and fraud. XtraderFX also charges high withdrawal fees, offers slow withdrawal processing times, and has received a raft of negative reviews from previous users.
As a result of all these red flags, the safest option for anyone wanting to trade cryptocurrency CFDs is to consider other, properly regulated platforms which have an established reputation for security and reliability.
What is XtraderFX?
Established in October 2017, XtraderFX is owned and operated by GPAY Ltd, which is headquartered in the United Kingdom. Rather than buying and selling cryptocurrencies, it allows users to trade crypto CFDs using Tradologic CFD crypto trading software.
XtraderFX offers CFDs on 5 cryptocurrencies and 24-hour customer service. However, it's worth pointing out that XtraderFX is not registered with the Australian Securities and Investments Commission (ASIC), nor is it regulated by the UK's Financial Conduct Authority. Trading with an unregulated broker involves a high level of risk, and potentially exposes you to scams and theft. Make sure you thoroughly research your options and that you're fully aware of the substantial risk involved before deciding whether you'd like to trade crypto CFDs on this platform.
Which cryptocurrencies can I buy/sell?
XtraderFX provides access to the following crypto coins and tokens:
- Bitcoin (BTC)
- Litecoin (LTC)
- Dash (DASH)
- Ethereum (ETH)
- Golem (GNT)
The platform offers both fiat/crypto and crypto/crypto pairs.
XtraderFX offers its cryptocurrency trading services to users in countries around the world, including Australia. However, people in the following countries and areas are unable to use the platform:
- United States and US territories
Which payment methods are accepted?
You can deposit funds into your XtraderFX account using the following payment methods:
- Credit and debit cards
- Phone deposits
- UPayCard Wallet
- Bank wire transfers
How much will it cost me to use XtraderFX?
XtraderFX’s trading fees aren’t clearly stated anywhere on its website. This is a red flag that all potential users should be aware of before using the platform, as a transparent fee structure is an important feature of any trading website.
XtraderFX charges quite substantial fees on account withdrawals:
- Credit/debit card withdrawals: £20
- Bank account withdrawals: £20 + 1% of the withdrawal amount
It’s also essential to be aware that if you haven’t logged into your XtraderFX account for two months or more, that account is considered to be dormant. The provider then charges an a monthly administration fee of 100 units of your chosen currency. This fee is deducted from your available balance.
Finally, make sure you're aware that XtraderFX offers five account levels - Basic, Silver, Gold, Platinum and Diamond - with each tier based on the amount of funds you deposit. However, if you open a £300 Basic account you won't get access to several core features, including a financial market introduction, daily market reviews or even a crucial risk management explanation. If you want access to these and other features, you'll need to deposit a larger amount - which should be another red flag for anyone considering using the platform.
Is it safe to use XtraderFX?
Companies that offer CFD products in Australia are required to be registered with ASIC, but a search of the ASIC register doesn't turn up any listings for XtraderFX.
Financial services providers operating in the UK (where XtraderFX is based) must be registered with the Financial Conduct Authority (FCA). However, at time of writing (July 2018) a search of the FCA Register for XtraderFX revealed that the firm is unauthorised, and also generated the following warning from the FCA:
"This is a firm that we have been told is either operating regulated activities without the correct authorisation, or is running a scam. We strongly suggest you avoid dealing with unauthorised firms like this."
A quick Google search for XtraderFX also turns up a host of negative reviews and sites alleging that XtraderFX is a scam. While it's not possible to verify all the claims made in those reviews, they certainly indicate that this is a trading platform best avoided.
Pros and cons
- 24/7 customer support
- Unregulated broker
- Large number of negative reviews online
- High withdrawal fees
- No information on trading fees
- Withdrawals take 5-7 business days to be initiated
- Substantial inactive account fee charged monthly if you haven’t logged in for two months
If you're considering signing up for an account with XtraderFX, be aware that there are some serious question marks surrounding the legitimacy and reliability of the platform. Its lack of regulation, combined with a large number of negative user reviews to be found online and a lack of transparency surrounding fees, suggest that this is a platform you're better off avoiding altogether.
If you're looking to trade cryptocurrency CFDs, the safest thing you can do is make sure you choose a broker that is properly registered and regulated by the relevant financial authorities. Check out our cryptocurrency CFDs guide for more information on how CFDs work and how to choose a CFD trading platform.
At the time of writing the author holds ADA, ICX, IOTA and XLM.