Swaplitex Review – The Flaws in the Broker

Swaplitex Review

There is no such thing as the perfect online broker. This is because it is just not possible to use the one-size-fits-all approach when it comes to online trading. Every individual who decides to engage in online trading has different goals and risk appetite and their priorities can also be different. Therefore, their requirements in a broker are never the same. This means there cannot be any definition of a perfect definition. Yet, it is still necessary to check out this Swaplitex review. Why?

This is because even if the right broker is different for everyone, there are certain characteristics that every company should have in order to provide a good trading experience to their clients. If they are lacking in these areas, you should avoid them completely. But, what are these characteristics? Most people do not know and are unable to make the best choice. It can lead to poor trading experiences that you would rather avoid.

Most importantly, it can also lead to losses, particularly in the crypto market, which is highly volatile. You should bear in mind that the crypto space has become a fertile ground for fraudsters, primarily because of the decentralized nature of crypto assets. They are unregulated and are generating a lot of interest and this is all the leverage that scammers need to exploit people. The easiest approach for them is to masquerade as a decent crypto broker and con people out of their money.

If you do not want to fall in their trap, you need to know their flaws because they will not have all the right characteristics that a genuine broker does. This is exactly what you will discover in the case of Swaplitex when you check it out. It might appear to be a good crypto broker on the surface, but it is not so. Some of the flaws that you will find in Swaplitex are highlighted here.

License and regulation

If there is one characteristic that can make or break a broker, it is their license and regulation. A brokerage that is not licensed or regulated is not one that should be trusted. Yes, there are some platforms that do not have a license and re unregulated and are still legitimate. But, you have to remember that their number is almost negligible when you compare it with the number of unlicensed and unregulated companies that are downright fraudulent.

So, you should always start with this aspect because it gives you a sign right away and Swaplitex does not pass the test. Sure, when you go through its website, you will find that it claims to be regulated in the United States. That sounds great because the US is one of the well-regulated jurisdictions in the world. But, if you follow up, you will realize that this is just a claim.

To be regulated and licensed in the US, Swaplitex needs to be in the registers of the regulatory authorities in the US. These are the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Yet, you can check both and not find Swaplitex listed, making it a liar. Most importantly, it is also eerily similar to two other scam websites called Dotxscrew and Diomanbit, which means it is part of a serial scam.

Offerings

An important thing to bear in mind when checking brokers is that there is no such thing as a free lunch. Therefore, when you come across the generous trading bonuses that Swaplitex is offering on its platform, you should immediately be suspicious. There are two reasons for you to react this way. First off, most regions have banned bonuses because they are considered unfair for traders.

Thus, the fact that Swaplitex is offering them is a big concern. Secondly, these bonuses come with conditions and requirements to be fulfilled, which are the reason they are unfair. But, you will come to know that none of these have been mentioned by Swaplitex outright, which means they are going to give you a surprise and it is unlikely to be a good one. After all, a good broker is always transparent about their intentions.

Trading platform

Another aspect of an online broker that can make the difference between its failure and success is its trading platform. If the software is lacking in any way, then it can affect your performance because your trades may not be executed quickly enough, or you may not be able to make good decisions due to lack of tools. Hence, you need to take a look at the trading platform that Swaplitex offers to ensure it is capable enough.

Unfortunately, you will come to know that they do not have anything special to offer. The trading platform that you will find at Swaplitex is a web-based one, which is very basic and does not have any advanced trading tools or cutting-edge technology that can be found in some of the top trading platforms in the market.

Deposit methods

You should not forget to take a look at the deposit methods of a broker because you want to be able to make payments quickly, not to mention safely. Since it poses as a crypto broker, you will find that Swaplitex offers you crypto assets as a deposit method. While there is no harm in doing so, it should also offer you more options.

But, you will not find any and this is a problem because crypto assets are not exactly safe. These payments tend to be final and there is no possibility of you getting a refund in case of a problem, as in the case of credit cards. The fact that Swaplitex has not added other payment options like cards should be a cause for concern.

Final thoughts

Along with these flaws in the broker, you will also discover that the trading conditions that Swaplitex offers are not competitive either. Its spreads are too high and leverage ratios are also excessive, which makes it a dangerous option for any trader.