In this review we explain why you should not trade cryptocurrencies on the FXBinance exchange.
What is FXBinance
Its official website says that FXBinance is a cryptocurrency exchange that will allow you to buy and sell bitcoins.
The exchange will allegedly allow you to make money on differences of ratios of cryptocurrencies, make money with auto trading algorithms and learn from professional traders.
The minimum deposit to open an account is 250 USD.
The question is, can it be trusted, is FXBinance legit?
Stay away from FXBinance
There are several reasons why you should not use FXBinance to trade anything. In this review we explain some of them.
Illegal clone of Binance
Maybe you have already heard of Binance, it is one of the biggest, if not the biggest cryptocurrency exchange in the world. It has a solid reputation and its own cryptocurrency called BNB that is among the world’s biggest. It also runs the Coinmarketcap.com website.
It would be only logical to assume that FXBinance is somehow tied to Binance, but it is not true. You see, FXBinance has nothing to do with Binance, and that is a problem.
Because it clearly shows that FXBinance is trying to piggyback on the success and reputation of Binance, while it has nothing to do with it.
In our eyes, anybody who deliberately choses a name very similar to a famous brand, is just not honest and trustworthy. This is not something that legit businesses do. FXBinance is abusing the identity of a legit exchange and that is not right.
While cryptocurrency trading is not regulated, there are signs that FXBinance is doing some things that are subject to regulation.
Because it offers leveraged trading. Which means that you borrow money from the exchange to trade bigger volumes than you could afford with your own money. And leveraged trading is often regulated even if it involves cryptocurrencies.
Also, FXBinance offers deposit bonuses up to 100%, which is something that is not permitted in a lot of jurisdictions.
The same applies to automatic trading. If you offer automatic trading algorithms to your clients that will trade with their money, most countries require you to have a license for that. But again, FXBinance is not authorized to provide investment services.
We also have to mention the four asset classes that FXBinance will let you trade. Because there clearly must be other assets beside cryptocurrencies, like currencies or commodities, which require an authorization from financial regulators. Do we have to repeat that FXBinance does not have any?
In our opinion FXBinance is on the edge when it comes to regulation, and since it has no license whatsoever, it is likely that it is illegal in some countries, maybe even in the United Kingdom where it supposedly is based.
If you are considering trading with FXBinance, we strongly encourage you to consult your decision with your national financial regulator.
We need to address FXBinance’s deposit bonuses one more time. Because you allegedly can get up to a 100% bonus, which means that the exchange will effectively double your deposit amount.
And that looks very suspicious. Where would that money come from? How can an exchange give away so much free money? There are no legit crypto exchanges giving 100% deposit bonuses.
For us, this is another red flag and one more reason not to trade with FXBinance.
Reviews and testimonials
We searched for FXBinance reviews and testimonials from real users. We found one complaint on Trustpilot that says that FXBinance is a scam that is not paying back anything, that deposits get lost there.
While we could not verify that testimonial, we believe that it is something that you should be aware of.
FXBinance claims that funds on your trading account will be insured up to 75%, depending on your type of account. This is a very substantial claim that requires evidence.
But FXBinance does not provide any, heck, it does not even show terms and conditions for its services on its website. Therefore we believe that funds in the trading account are not insured.
FXBinance review – Conclusion
FXBinance clearly abuses the identity of the Binance exchange that it has nothing in common with. FXBinance also lacks authorization to provide leveraged trading and other assets trading besides cryptocurrencies. This exchange raises several red flags and we recommend staying away from it.
For crypto trading we recommend using reputable and regulated companies.
When investing in cryptocurrencies, please be sure to understand the risks.