BitXTrade review – 5 things you should know about Bitxtrade.online

BitXTrade review – 5 things you should know about Bitxtrade.online

Beware! BitXTrade is an offshore broker! Your investment may be at risk.

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BitXTrade is a CFD brokerage based presumably in the US. It provides a web-based terminal, not the MetaTrader 4 trading platform with a required minimum deposit of $1000 which is excessively high. However, further trading conditions remain undisclosed.

BitXTrade regulation & safety of funds

The only relevant piece of corporate information we come across on the website of the broker is a British business certificate from the the UK’s official register of all firms, Companies house, with a registration number 11445991. However, we remind readers that brokerages operating on the territory of the UK have to be regulated by the Financial Conduct Authority and are subject to strict rules. Upon running a check through the online registry of the UK we did not find any mention of the broker brand among the licensees of the American financial watchdog. This leads us to conclude that BitXTrade is operating outside the law. However, we did follow up on the registration number and it turns out it belongs to a real company registered with the name BIT ELTUM LTD which apparently was dissolved back in January. This all is simply a sign of a sloppy scam set-up. On top of this, we discovered two other websites – TradeQuickFX and FXTradeProfit – which have identical lay outs and lead us to conclude that we are dealing with a serial scam. All we have uncovered put tremendous risk on any transactions interested traders may conclude with the brokerage and we deeply recommend they look elsewhere for viable trading options.

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.

BitXTrade trading software

 The brokerage does not provide the MetaTrader 4 trading platform which is something we always consider a disadvantage since the MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). However, there apparently isn’t even an available trading platform. A test-drive of the so-called software does not present to us any discernible trading conditions. We only read that the required minimum deposit is ridiculously high and definitely not in favor for traders, however, we advise interested customers to steer clear of such dubious offers.

BitXTrade deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw only via Bitcoin which isn’t surprising for an unregulated brokerages. Usually in Forex trading the standard payment methods such as Visa and MasterCard, as well as bank wire and Popular e-wallets such as Skrill and Neteller.

We did not find any stated withdrawal fees, as a matter of fact – the terms and conditions of the brokerage is missing which as clear a sign of trouble as is possible in Forex trading. We do remind traders that when dealing with unregulated brokerage we may never be sure whether they wont charge unexpected fees once the clients have deposited their funds.

Such website are also the reason 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 Bitcoin Evolution or Cashless PayGroup 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 Btcoinpro – 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!

 

Rich Snippet Data
Review Date
Reviewed Broker
BitXTrade
Broker Rating
1.11star1stargraygraygray

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