Beware! BtcBrokerz is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
BtcBrokerz is one of hundreds of similar brokers that have some many shady elements in common, that at times it might be overwhelming. So many before it have hinted at the crypto possibilities in their titles, so many have inconsistencies throughout, so many have poor trading platforms and user dashboards. You will be getting the idea where this review is headed. We, nevertheless, advice you to read it in order to get a better picture of what BtcBrokerz is, and how to protect yourself against such alleged brokerage firms.
The registration process was easy, and led us to a user dashboard that was actually a trading software. It sees to be a trend for suspicious brokers to use a web based trading terminal as their user area main page.
Anyway, the trading platform revealed that the cost of trade for the EUR/USD currency pair is non existent, because BtcBrokerz does not offer forex pairs as assets. Instead, it has commodities, Crypto vs USDT, Crypto vs CryptoIndices, Stocks vs BTC, and Stocks vs USDT. Quite the odd collection of tradeable assets. But, as you will see BtcBrokerz is not your typical trustworthy firm. The leverage is capped at 1:10
The official language of the website is English, however French, Spanish, German, Russian, and Chinese are all available as language choices.
BTCBROKERZ REGULATION AND SAFETY OF FUNDS
The Terms and Conditions locate the broker in the Czech Republic, however all the principle servers of the firm are located in Bulgaria. However, in no way does the brokerage firm claim to be regulated by any of both country’s regulating agencies. In fact, there is no mention at all that BtcBrokerz is actaully regulated.
This is enough for us to conclude that BtcBrokerz is totally UNLICENSED. In reality, we do not need any other proof for this.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
BTCBROKERZ TRADING SOFTWARE
The trading platform used here is a web based terminal that we immediately associate with previous illegal brokers.
Overall, pending orders, live TV, and live news are the only standout features here. Do not confuse its pleasing visual appeal; this is a common tool used by similar brokers to trick users into thinking that the trading platform is actually more professional that it actually is.
Unfortunately, we cannot give you any other insight, because there is nothing more to say. This is a fitting trading software for a very scammer like broker.
BTCBROKERZ DEPOSIT/WITHDRAW METHODS AND FEES
The depositing gateways are as follows: xChangepro and btc transfer. There is no real minimum to the amount you can deposit.
The minimum withdrawal amount is $50. The broker claims to be processing withdrawals in a maximum of five days. The Withdrawal Policy is indicating that there are fees when withdrawing, but there is no further info on these charges. There is further mention of governmental taxes, levies, and similar charges that, again, have not been detailed. The withdrawal section give the options to withdrawal through bank, credit card, and bitcoin wallet. These payment method (deposit vs withdrawal methods) differences are a subtle proof that this broker is up to no good.
Bonuses have to pass through a (30 * deposit + bonus) trading requirement before being able to be withdrawable.
The dormant account fee of $25 is applied after 12 months of account inactivity.
There is a clause, that we think proves that there is no negative protection fund policy at play here. How we understand this is, is that when the user has to pay some sort of unnecessary fee, the broker will charge the user’s account, no matter the amount in the user’s account.
The company can suspend, modify, or remove content without notifying the user. This means that, in the most extreme of cases, the firm can add fees at any tempo and amount it wishes.
Cash-back are prohibited here. In case a client proceeds with one, he or she must reimburse the broker for it. We remind readers that a cashback is at times the last possible way to get your money back, in case you have been defrauded by a scammer broker.
Where would we be if there was no indemnification clause? The following provision help absolve the broker from any guilt that comes from the broker victimising the users.
Need you more proof that BtcBrokerz is completely illicit, and not trustworthy. We assure you that any invested capital at BtcBrokerz will not be returned in any form, including as withdrawal amount. Usually, unregulated forex brokerages do not allow for a user to withdraw his or her money back. The way it does so is by enforcing the legal documents, or just by completely ignoring the users’ pleas.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.