LinityBase masquerades as a reputable and award-winning broker tailored for novice and seasoned investors. After scouring through its website, we realized that it is a fraudster targeting novice traders of financial products. Scam brokers posing as legit are now common, proving our point against being complacent in this investment space.

To enter this digital investment, you must be sufficiently familiar with its complexities. This involves becoming acquainted with the requirements for legitimate brokers and baits used by dishonest brokers to defraud investors. Granted, you won’t stumble upon a trustworthy crypto broker by accident. You must be intentional with background research, read reviews, check with FINRA, and carefully read all the fine print on the company’s website. Importantly, check who regulates a broker by consulting the relevant agency’s database.

The review below sheds more light on how these markets work and the standards to hold brokers to. Moreover, you will find clues indicating a broker is suspicious. Lastly, you will see why investing with this broker is bad.

Linitybase.com Review

LinityBase Trading Services LLC owns this entity. The broker claims to have several awards, including Best Crypto and Forex broker. We can confidently dispel this as a marketing gimmick since there is no way it can achieve such a fete so quickly. According to I cann lookup, the broker registered its domain on 22 July 2022. The broker doesn’t seem to have intentions of sticking around for long, as the same domain expires in 2024.

Investors on the platform can trade over 70 instruments, including forex, cryptos, stocks, commodities and indices LinityBase also reportedly offers a bitcoin duplicating service. The broker cites benefits, such as advanced trading and tutorials, adequate security, and significant earnings, as reasons to consider its services.

Contact Details

The broker claims to be in St Vincent and the Grenadines(SVG), but there is no corporate address to substantiate that. Also, Marc Schumaker is mentioned as the broker’s CEO, but no further information regarding the broker’s background is available. If the broker cannot be candid about its background and location, you can’t expect it to be honest about its dealings and offers.

Customer support is a peripheral but important factor in determining a broker’s suitability. It’s a bonus when a regulated broker includes telephone and email contacts, which means the broker got your back. As you trade, you will need customer support for technical challenges or account management, meaning you should be able to contact them. As for LinityBase, including the telephone contacts is immaterial, as there is no point in contacting a shady broker. 

Deposit & Withdraw Policy

 While LinityBase’s T&Cs show that it accepts credit cards, UnionPay and bank transfers, its deposit menu only supports wire transfer deposits. This is not good for investors at all. While the method is somewhat transparent due to revealing identity, you cannot reverse wire transactions. Of course, this is convenient for the broker.

On the contrary, reliable brokers offer well-thought-out alternatives. In most cases, they accept traditional channels alongside digital methods such as e-wallets and crypto. Although it is safe to pay via cryptos with authorized brokers, only do it as a last resort.

Although the broker mentions withdrawal and handling fees, the specific amounts are withheld. Dormant accounts attract a deduction of 10 percent of the account balance. This amount is still high and betrays the broker’s real intentions.

LinityBase Investment Plan

LinityBase provides five investment accounts. Classic traders can trade in all asset classes, and the account has no swap charges. Next, silver investors get live strategy sessions, daily market updates and a 10 percent bonus. Gold account holders have personal account managers, webinars and tutorials, news alerts, daily market updates, and a 30% bonus. Platinum account holders access previous benefits and a bonus of up to 50%. Lastly, premium investors access the benefits of the other accounts alongside portfolio management and a 100 % bonus.

However, the broker omits the minimum deposit requirements for the accounts. How are you supposed to know which account budget suits you? For reference, the standard deposit threshold is $25. Any broker asking for a higher amount for a basic account shouldn’t be in your equation. Better still, you can get dependable brokers with micro accounts worth $5.

Regulation

The (SVG) is among the preferred hubs of operations for unethical brokers due to the absence of regulatory standards and scrutiny. Unlike other offshore jurisdictions, this nation has financial authority. However, it does not oversee’ forex and CFD brokers’ activities. The country’s regulatory body’ Financial Services Authority (FSA), has issued numerous advisories regarding this problem.Also, the company constantly refers to itself as Grand Nova and EXM Solution- mishaps  that only happen when a broker clumsily clones another website.

Investing with such a broker sets you up for investment loss and frustration. This is because brokers in this zone can commit any crime without fear of consequences. No reason you should subject yourself to such ordeals.

The precondition for venturing into this market is finding a regulated entity. There are plenty of reputable financial market regulators. They include the UK’s Financial Conduct Authority (FCA), the Commodity Futures Trading Commission (CFTC) in the US, Germany’s Federal Financial Supervisory Authority(BaFin), the Investment Industry Regulatory Organization of Canada(IIROC), the Monetary Authority of Singapore(MAS), the Australian Securities and Exchanges Commission (ASIC), or an EU regulator like the Cyprus Securities and Exchange Commission (CySEC).

Any broker under the purview of the above agencies is considered safe to invest with. You will enjoy zero balance protection and guaranteed compensation, and your funds will also be segregated to avoid misuse. You also can access regulators’ mediation or court action if disputes occur.

LinityBase Trading Conditions

LinityBase has a 1:400 leverage. This level is high, and while it may boost profits, it also amplifies your losses. These losses can be more devastating during volatility. For this reason, most forex overseers impose leverage limits to ensure investors incur only the necessary loss. For instance, IIROC and CFTC cap leverage at 1:50, while CySEC and ASIC limit it to 1:30.

Investors trading in forex can only trade two pairs; EUR and USD. This is a serious limitation considering there are so many major currencies that investors have a right to choose from. You should go for brokers with more freedom and value.

LinityBase also mentions bonuses. It is worth noting that most financial watchdogs outlaw the practice for a good reason. When a broker rewards bonuses, they usually tag predatory clauses to keep you from withdrawing. The most popular one is unrealistic trade turnover.

Trading software

The broker provides a basic web-based application. Although the platform supports fundamental trading operations, it’s not the best there is to offer. Most of its functionalities are limited, as is the number of orders you can place. Perhaps the only advantage to a web trader is that it is not susceptible to malware attacks.  

LinityBase also mentions a copy trading platform. Investors reportedly get 20% of the profits from those who copy their trades. Fair enough, you can mimic more seasoned traders. However, these “experienced traders” can be made up by the broker to entice new clients. The trader performance data on some rogue brokers’ copy trading platforms may be manipulated or falsified.

Due to this, traders may think they are copying a profitable trader when, in fact, their performance is fraudulent. Some fraudulent brokers may also rig the trades made using their copy trading platform to ensure that traders being copied lose money.

The MT4’s user-friendliness makes it appropriate for beginners. Moreover, its extra features and tools also benefit the experienced trader. Using MT4, a trader can select from 9 timeframes, over 30 indicators and automated trading. Traders may also employ professional consultants. 

A broker should provide a trial version. This assists in confirming the accuracy of the firm’s statement about trading conditions and execution. Such a tool benefits new clients who are more frugal with their money. Trading on a trial version allows them to practice without incurring any financial risk while learning about the markets firsthand.

Our Take

Given the hazards involved in online trading, any oversights can be costly. Therefore, investors must be keen on specific areas, such as regulation, trading software and conditions. You shouldn’t wait for more proof that a broker is a fraud if it isn’t regulated. Also, avoid a broker who can’t offer quality trading software. This goes for LinityBase and any other broker with similar characteristics.

There you have it; the ball is in your court. Remember, you need trustworthy crypto brokers for your investment dreams to materialize. Anything less than a regulated broker is not worth your time or money.

 

 

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