StandardBitOptions review – 5 things you should know about Standardbitoptions.com

StandardBitOptions review – 5 things you should know about Standardbitoptions.com

StandardBitOptions is a forex brokerage registered in Saint Vincent and the Grenadines. It provides a web-based terminal, not the MetaTrader4 trading platform and a ridiculously high leverage of 1:2000. However, it requires only $10 minimum deposit to open an account.

StandardBitOptions regulation & safety of funds

On the brokers website we read that the broker brand is owned and operated by a SVG-based company registered under the name Standard Bit Options Ltd Standard Bit Options Ltd. and another with the same name, based in the Seychelles. Saint Vincent and the Grenadines are well-known offshore zone and a preferred location for shady brokerage.

Readers are reminded that the government of SVG has had to publicly state quite a few times in the past that it does not regulate 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. On top of this, we came across the name of the brokerage on the warning list of the British financial watchdog CONSOB which means that the broker has been illegally targeting European traders and has fallen on the radar of relevant authorities. Furthermore, while going through the website of the broker we discover that StandardBitOptions acts as a market maker while simultaneously offering clients “managed accounts” which is a big problem since is constitutes a serious conflict of interest. Market makers only yield a profit when the client losses and if such a broker offers to manage the accounts of the clients, it feels like a definite scam.The lack of legitimate regulation and the official warning puts tremendous risk on any transactions with StandardBitOptions.

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.

Standard Bit Options trading software

Putting this aside, the brokerage does not provide the MetaTrader4 terminal which we always consider a disadvantage. On top of this, the web-based trading terminal does not have an available demo account. We have always said that a test-drive of the trading terminal is the most transparent way of getting acquainted with the trading conditions of the broker and we view it as a must for every brokerage striving for legitimacy. We have no information regarding the potential spread. The leverage extended to traders goes up to 1:2000 which is absurd compared to the allowed leverage of just 1:30 in the regulated European market.

Standard Bit Options deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw via the standard Visa and MasterCard, bank wire, however, e-wallets such as WebMoney and QIWI are missing.

We did find any troubling provisions in the terms and conditions of the brokerage. There is a dire trading requirement in order for the bonus promotion to be eligible for withdrawal. This is why we remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised 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 Bitcoin Evolution or The bitcoin miner 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 achargeback 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 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!u

Rich Snippet Data
Review Date
Reviewed Broker
StandardBitOptions
Broker Rating
1.21star1stargraygraygray

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