|Country:||Seychelles, St. Vincent and the Grenadines|
|Operating since year:||2018|
|Broker status: Active||Active|
|The Trading platform Time zone:||?|
|Other trading instruments:||Yes|
|Minimum deposit:||0.001 BTC|
PrimeXBT Review 2020
PrimeXBT is a crypto-focused brokerage offering a somewhat specialized set of trading options. The broker lets traders trade on crypto but adds other popular trading methods, such as forex and asset trading. The company was founded in 2018, meaning it has been operating for about two years. It has two offices, both in offshore locations at Saint Vincent and the Grenadines and Seychelles. The exact address of either office, however, is unknown.
The brokerage seems to have sprouted during a time when everyone was trying to capitalize on the new crypto trend. During those years, crypto brokerages were popping up left and right, but very few of them were legitimate operations. Mostly, the new companies were scams hoping to trick investors out of some valuable digital currency. Ever since then, the problem has remained a constant in the online brokerage world. Valid crypto brokers are few and far between, and crypto traders need to prioritize security heavily.
And as much as we like to find a digital currency brokerage that’s actually worth using, PrimeXBT seems to fall into the other category. The initial signs come from the needlessly secretive and vague information on the broker’s website. For example, the broker doesn’t display its address or phone number, making the firm extremely difficult to track down. Secrecy about basic information also serves as an indicator that something isn’t quite right.
Beyond missing even the simplest data, there’s a series of more concrete issues about the brokerage. However, we’ll get into that later; before that, we’ll take a look at what PrimeXBT presents as its primary strengths:
· ASSET NUMBER
One of the first things you see on PrimeXBT’s landing page is their advertisement of the trading instruments they offer. However, we’re quite uncertain why the broker decided to advertise a section of their service that’s quite weak. Other modern brokerages have a much broader selection of assets, with options such as stocks, that are absent from PrimeXBT. Furthermore, the broker’s crypto selection, which should be its strongest suit as a digital currency broker, is heavily lacking. That creates an impression that the broker simply doesn’t have much to show, overall.
The next thing the broker boasts about is its proprietary platform. Above the picture of the software, there are a few possibly false awards, which brokers often use to present a false image of excellence. Below the platform is some meaningless data, some of which is entirely unrelated to the tech. For example, the broker put its trading volume there, which has virtually nothing to do with the platform and more with the users/broker. Additionally, volume numbers are highly debatable and often forged.
Leverage is the selling point for many forex and crypto brokers, as the idea of making a lot of money by investing a little is alluring. We have nothing against brokers advertising their leverage, as it’s what traders want. However, the way PrimeXBT goes about it is highly exploitative and comes off as morally wrong. The broker displays how much leverage increases your earnings, basically nudging users towards opening highly leveraged positions. It fails to mention anything about the dangers and doesn’t even state the exact leverage levels you can achieve.
Funds Trading and Security
In the opening part of our PrimeXBT review, we mentioned the dangers of trading, especially when digital currency is concerned. It seems as if every other broker is out to steal your money, and finding a long-term trading hub is a tall task. Locating a valid brokerage can feel like a gamble, with many cases of seemingly legitimate firms going rogue. However, you can minimize the chances of someone tricking you if you’re quite careful. That includes inspecting firms in detail and spotting some early signs of danger that you can then avoid.
In PrimeXBT’s case, it seems that quite a few of the usual signs of a scammy business are present. They begin from the website itself, or more precisely, the way it does its best to hide meaningful information from you. Any detailed data about the company is absent, and the trading conditions overall are quite vague. The only things you do get to know for certain are the asset list and leverage levels.
Beyond that, the broker is also located in an offshore location and uses highly questionable marketing methods. Both are mad signs that could perhaps be overlooked individually but create a lot of suspicions together. Additionally, the broker prominently displays a referral program, which is quite common with malicious firms.
To top it all off, we have the fact that the broker most likely influenced review sites to twist its reputation. It’s been verified that the broker faked a ton of positive comments, and it doesn’t seem to be slowing down. Most of the nice comments about the broker seem forged, using similar keywords and phrasing. As for its actual reputation, we saw a lot of users complaining about the broker’s malicious practices.
The Trading Accounts
As is usual for crypto brokers, PrimeXBT only has one live account type for all of its users. It also has a demo option users can sign up for. One slightly nice thing we can say about the broker, however, is that funding an account isn’t too expensive. To start a live account, you need an investment of 0.001 BTC, which comes up to about $19 at the time we’re writing this. Still, you’ll need to hand over your phone number, which many will hesitate to do with a less-than-stellar company.
As for the trading conditions themselves, there are two major issues. The first is one we’ve mentioned many times through the PrimeXBT review, which is vagueness. Getting reliable info on what you’re going to get once you invest money is difficult, if not impossible. You can’t test out the platform, and you don’t know how tight the spreads are. The only thing you can say for sure is how high the leverage is, and even that’s way beyond what most experts suggest using.
The second significant concern is that the website imposes heavy fees on its users. For example, there’s a withdrawal fee of 0.0005 BTC. That doesn’t sound extreme, but considering the minimal investment is 0.001 BTC, it’s 5% of what you put in. Additionally, there are charges each step of the way when you trade. That means there’s a trading fee for both long and short positions, as well as costs for maintaining those positions. That can make earning money quite a tall task, as your earnings can get diminished heavily.
We already mentioned that the website uses a proprietary platform. However, custom platforms are often a workaround since the firm didn’t want to bother with setting up a more standard option. Tech like that is often clunky to use, and more importantly, unsafe. When inspecting the broker’s platform, we found that it lacked a lot of core functionality compared to MT4. It also looked much more confusing and less welcoming to newer traders.
The platform also has a turbo version, but the broker doesn’t clarify the exact difference. The firm states that the trading process speeds up without going into any detail. Lastly, the broker’s services also include social trading via the copy trader.
PrimeXBT’s Trading Products
We mentioned the issue with the broker’s trading assets near the beginning of our PrimeXBT review. The variety is simply underwhelming compared to competitors, even in the area that it’s supposed to be the strongest. That makes portfolio diversification, a core trading skill, quite difficult to pull off correctly. It’s likely you’ll need to cut corners and make less-than-optimal choices. Here’s a list of the categories the broker lets you trade on:
- Stock Indices
Customer support is another area where PrimeXBT displays its severe carelessness. In perhaps one of the most straightforward features to get right, the website didn’t secure a phone line or live chat. That means the only way you can get help is via email, which is the least preferred method by far. As such, you might be stuck waiting for days, without any certainty whether the company will respond.
Email: [email protected]
PrimeXBT Review: Conclusion
While PrimeXBT isn’t as horrendous and apparent as other shady brokers, it’s still far from trustworthy. The broker put in some effort to look nice from the outside, but it falls apart with a detailed inspection. It’s apparent that the firm doesn’t shy away from predatory practices to lure in new customers and boost its reputation. Additionally, there are no measures in place to stop it from acting maliciously towards its users. If you look through online trust rating websites, there are multiple customers that have been on the receiving end of the broker’s foul play.
Even if you just look at the trading conditions PrimeXBT provides, it’s apparent that there are better alternatives. As such, we can’t recommend using or trying out this broker’s service.
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