FxBTC review – 5 things you should know about Fxbtc.io

FxBTC review – 5 things you should know about Fxbtc.io

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

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FxBTC is a CFD brokerage which does not disclose relevant corporate information. It provides a web-based terminal, not the MetaTrader 4 trading platform with a required minimum deposit of $250 which is just about the industry average. However, further trading conditions remain undisclosed.

FxBTC regulation & safety of funds

We could not find even one relevant piece of corporate information which basically renders the website anonymous and quite assuredly – a scam. Furthermore, there is no mention of a license which leads us to conclude that FxBTC is operating outside the law. While researching the brokerage on the web we do come upon a regulatory warnng issued by the UK’s Financial Conduct authority which reads that the broker has been targeting traders without proper authorization and furthermore claims that the brokerage is owned by a Bulgarian company Alpha Capital Technology. We highlight the fact that Bulgaria is a member-state of the EU and Forex trading is dully integrated within its regulatory framework, however, FxBTC does not have a license by the local Financial Supervision Commission. All in all, the anonymity and  the lack of regulation  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.

FxBTC 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 the standard $250, however, we advise interested customers to steer clear of such dubious offers.

FxBTC deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw only via the standard payment methods such as Visa and MasterCard, as well as bank wire are missing. Popular e-wallets such as Skrill, Neteller are also not available.

In the terms and conditions of the brokerage we do come across a provisions that strikes us as quite objectionable. It appears the broker reserves the right to reject or delay withdrawal request whenever he sees fit which is an absurd provision and should not be in the client agreement of a legitimate firm. We read nothing concerning withdrawal fees, however, 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
FxBTC
Broker Rating
1.11star1stargraygraygray

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