Diomanbit Review – Does it Have any Red Flags?

Diomanbit Review

The lucrative nature of the financial markets has drawn a lot of interest from people all over the globe who are interested in making money. There is no doubt that you can make substantial profits through trading and the best part is that with online trading, you do not have to worry about any such hassle. But, it is also vital to note that you do need to make some effort to have a smooth and seamless trading journey. This mostly rests on the brokerage you choose and this Diomanbit review can make a difference in this aspect.

It is because not every online broker can provide services that are up to the mark. Some are professional services, while others are just mediocre. There are also low quality trading services providers that exist and also those that are outright frauds and scams. No one wants to end up with such companies, but avoiding them is not that simple. This is because none of them come with warning signs. You have to make the distinction yourself and this requires research.

Instead of just trusting the company, you need to ensure there are no red flags in their services. If you find any, it is best to look for a different option altogether. It is best to not risk your money when there are hundreds of other companies to choose from. It is better to be safe than sorry and this applies here as well. What red flags should you look for? You can find out in this Diomanbit review.

Diomanbit is a brokerage that advertises itself as a legitimate crypto provider, but you will quickly learn that it is not what it claims to be. The red flags that you will come across on this platform are mentioned here.

Looks like a serial scam

The first and most prominent red flag that you will discover about Diomanbit is that it appears eerily similar to some other brokerages as well, such as Dotxscrew. If you compare both the websites, you will come to know that they offer the exact same services and have the same websites and other details.

This is certainly not a coincidence because you will find a couple of other companies that have the same details as Diomanbit. It is how serial scams operate, as scammers often create a bunch of similar websites to target more people and if one website shuts down, they can just use another.

It appears that Diomanbit is also part of the same scheme and when you go through their Terms and Conditions, you will find that they are poorly edited and written. This is yet another common indicator of a scam, as professional companies would never make such errors.

Lies about regulation

What is the most important thing about an online broker? It is their license and regulation that is extremely valuable because it shows that you can trust the company and they can provide you with quality services and good security. Isn’t that what you need when you are trading online? After all, online trading already comes with a lot of risks, so you want to have peace of mind and that can only happen when you choose a licensed and regulated brokerage.

Thus, you need to check whether Diomanbit has a license and is regulated by an authority. When you check their website, you will find that it claims to be regulated in the United States. This means that it should be licensed and authorized by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), which oversee the trading industry in the US.

But, when you check the online registers of both these entities to look for Diomanbit, you will not find the broker listed at all. In addition, when you look closer at the services offered by this brokerage, you will discover that it is actually breaking the rules of the CFTC and NFA, which means it cannot be licensed in the US and is lying about it, making it a big red flag.

Extremely generous bonuses

Another red flag that you will discover about Diomanbit is that the company is offering you extremely generous bonuses. That does not sound right because bonuses are supposed to be a good thing. While they are, the problem is that trading bonuses usually come with strings attached that are designed to exploit traders.

It was due to this problem that a number of regulatory authorities in the world decided to impose a ban on these bonuses, such as the UK and Europe. Brokerages are not permitted to offer trading bonuses to their clients. Scammers like Diomanbit add them to their offerings in order to lure people into signing up on their platform.

These are just a guise to take your money because they are usually linked with high turnover requirements, which prevent you from withdrawing your funds until you have fulfilled them. As these requirements are too high, most people are unable to achieve them and their funds are locked away.

Unfavorable trading conditions

The red flags are not done yet, as you will find that Diomanbit also offers the most terrible trading conditions. You decide to engage in online trading to make profits, but it does not appear as if the brokerage wants you to do that because their trading conditions are not designed to do so.

They offer spreads that go as high as $40, which makes them too wide. Most reputable brokers offer very tight spreads to make it profitable to trade. Furthermore, you will find that Diomanbit offers leverage as high as 1:100, which is excessive.

The leverage ratio is capped at 1:50 in the US, which further proves that Diomanbit is lying about being regulated there because it is offering leverage as high as 1:100 and that too for crypto CFDs, which makes it extremely risky.

Bottom Line

These red flags make it apparent that Diomanbit is not the broker that can offer you the seamless trading experience you are looking for.