When you sign up with an online broker, you are putting your trust in it. You know that the broker will take care of your account, money, and information while you busy yourself in learning how to trade. However, if the broker you are signing up with does not sound, look, and feel professional, you might not be at peace while signing up with it at all. And if you make the mistake of opening an account with such a broker, you will only regret for life. There are some brokers on the internet that showcase a lot of non-professionalism. They might have some great strengths as well, but their non-professionalism mars that image badly.
BitXTrade is one of those brokers. This broker does a lot of things in a way they should not be done. The overall lack of professionalism on the website and in its offerings makes it one of the weakest online brokers on the internet. Let’s know about it more.
Why BitXTrade Is a Weak Broker
The Website Is Appalling
The first thing you expect from your online broker is commitment to its work. If the broker is not serious with what it is doing, how can it provide you with serious and professional trading services? When you land on the website of this broker, you notice a lot of issues. First of all, you can see that the broker has a strong connection with China. There is no problem with that. However, the website has been translated in English and most of the features of the broker are directed towards traders from other parts of the world. So, when you have these sudden spots on the website where you can take glimpses of Chinese, you can’t wrap your head around the whole thing.
The website should be either completely in Chinese or English. A lot Chinese on the website has been used in images, so there is no way for you to translate it either. In addition to that, you will find a lot of basic spelling errors in the content written on the website. Can you trust a broker that has stepped into the world of trading with such a lose grip on its own content and website?
The Account Disparities
At times, when you look at the account types on the website, you feel as though you are looking at different account types from different brokers on the internet. Why is that so? Well, that’s because there is such a huge difference between what you get with those accounts. In some cases, things seem in the favor of the trader. At other times, you feel as though the broker is trying to rip off the trader. Let’s take a look at the standard and MAM account. If you go with the standard account, you do not pay any commission and your spreads can be as low as 1pip (that’s not low by the way).
You have to deal with the same spreads when you sign up with the MAM account. But you know what’s shocking here? It’s the fact that you will have to give 50% of whatever profits you make on your account back to the broker. Yes, there is no denying that the broker will be trading on your behalf in this particular account. But why does the broker have to take money from you in two different forms? Why can’t is just have a profit sharing model? Why do you have to give money to the broker in the form of spreads as well? These differences in accounts types from the broker can be startling for some.
That’s a problem you will find with many online brokers. If you look at the websites of the best brokers in the world, you will notice that they do not go too heavy on leverages. Yes, they do offer you some good leverages on your trades, but you hardly ever find them going overboard with the whole thing. On the other hand, with small and new brokers, you usually see them offering extraordinarily huge leverages. Such leverage sounds unbelievable. Not to mention, it puts the trader in a lot of danger as well.
If you are a new trader, you might not be aware of the consequences of losing a trade with a huge leverage. Well, in simple words, if you incur a loss on your trade with a leverage, you can multiply that loss with the leverage that you had gotten from the broker at the time of entering the trade. In some cases, the broker can come down to levels that might sound funny to you. So, you have many assets that when you trade them with the broker, you will get leverages of just 1:1. That can be shocking.
No Web Based Trading Platform
More and more new brokers are realizing that a web trader solves a lot of their and traders’ problems. For example, you do not have to offer six different trading platforms to your traders when you have a web trader. At the same time, your trader can use the same trading platform on just about any device and from anywhere in the world when he/she has access to a web based trading platform. In addition to that, based on how big the broker claims to be, you would expect it to offer its own trading platform.
However, creating a trading platform is not an easy affair. The broker has to spend hundreds of thousands of dollars to get the perfect trading platform that suits its target audience. However, it seems that BitXTrade has not done anything special in this department so far.
BitXTrade might be doing a lot of things right in other areas, but the aspects that we have stated above show its weaknesses. The broker needs a lot of improvement to become an international-level broker. At the same time, it has to realize what trader experience really means and then design its trading platform and website based on that data.