Beware! Bithandel is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Bithandel is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides a web-based terminal, not the MT4 trading platform but the leverage is not disclosed. The required minimum deposit is twice the industry average at $500 but the spread is quite favorable at 1 pip on EUR/USD.
Bithandel regulation and safety
On the brokers website we discover that it is owned and operated by a SVG-based company with the name CHP Holdings Ltd. We further read it is supposedly “regulated” by the Financial Markets Authority, however, this is misleading. We remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that not only is the brokerage not regulated. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients.
Overall, the lack of regulation and the regulatory warning inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
Bithandel trading software
Putting all this aside, there is another big disadvantage in trading with this broker since it does not provide the MetaTrader 4 trading platform which is the foremost trading terminal at the moment equipped with features such as almost a 100 market indicators, as well as customizable trading robots. Instead, we are presented with a web-based platform. We further were able to get a look at it through a demo account.
Through it we saw a spread of 0.9-1 pips on EUR/USD, as well as a wide range of trading options which include CFDS on currency pairs, metals, stocks, indices, as well as the popular crypto CFDs. We do point out that the leverage is not disclosed and the required minimum deposit is excessively high, albeit the lack of regulation inclines us to suspect that the chance of utilization of the supposedly low spread is quite slim.
Bithandel deposit/withdrawal methods and fees
In the terms and conditions we found one of the most striking provisions we have come across while reviewing brokerages. The brokerage flat out states that all clients who have taken advantage of the bonus promotion will be unable to withdraw, irrespective of trading volume, for a certain period of time. Those who have taken advantage of a 100 percent bonus will not be eligible for withdrawal up to an year. This is absurd and should not figure in the terms and conditions of a legitimate broker. We did not discover other troublesome provisions, however, this is no guarantee that the broker won’t charge some unexpected fees once the initial deposit has been made. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Even though the Forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Traderia – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!