Beware! Pxbitcointrade 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.
Pxbitcointrade is a cryptocurrency broker that also advertises Forex trading on its website. They offer four account types depending on the minimum deposit required and the bonus percentage.
Registering on their website proved to be an exercise in futility. The form asked us to supply Name, Email and Phone number, but also Username and some kind of Reference ID that was unclear what format required – whatever we tried we always got the same message: “Please match the format requested.”
Checking their website for any guide on registering or the format of this Register ID also proved fruitless.
Pxbitcointrade regulation & safety of funds
The Contact page has an Address, Phone number and an email address, as well as an email form. The address looked fake from the beginning: the name of the city is misspelled and the Zip code is not in US format. The phone number is with a Cleveland, Ohio area code.
Below the contact details there is a map that looks broken or unfinished. Overall, the impression is one of sloppiness and incompetence.
The website is full of boastful claims about being “Safe and Secure”, providing “world class financial stability”, having “highest standards of legal compliance” and how your investment returns is 100% guaranteed. These are nothing but empty claims, however, since there is no regulatory authority to guarantee them.
Top watchdog agencies, such as the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC), impose strict rules to the companies they license. Among these are Minimum Capital Requirements (€730 000) to guarantee good financial standing, Client Account Segregation (clients’ money is kept separate from the broker’s operating funds), Negative Balance Protection for traders (one may not lose more than the initially invested funds) and Compensation Schemes providing additional guarantee to clients’ funds up to a certain amount (85,000 GBP in the UK and 20,000 EUR in the EU).
In the absence of any regulatory oversight we must conclude that Pxbitcointrade is a scam broker and your funds are not safe with them.
Pxbitcointrade Trading Software
There is no mention of any trading software on the broker’s website. The Platform page, where one would expect to find such information, has no download or any other links, but again only declarations of how many transactions their ”fast and reliable bitcoin investment platform” processes and how traders’ investments are protected by their insurance policy. Of course, we could not find any information about such insurance policy.
Respected brokers usually offer the MetaTrader4 (MT4) or the MetaTrader5 (MT5) trading platform. MT4 is considered to be the leading platform worldwide, preferred by more than 80% of users. It features an intuitive, user-friendly interface, advanced charting and analysis tools, as well as copy- and auto-trading options. It can be further customized to create different trading strategies using its proprietary MQL4 programming language. Its successor, MT5, has certain advantages over the MT4. It enables traders to execute trades on different financial markets (including exchange-traded stocks) through a single account and has more trading instruments and more indicators than the older version.
Pxbitcointrade Trading Conditions
Similar to the case with the platform, there is no information about the trading conditions the broker offers to its clients. As we saw above, the accounts advertised also do not provide specific data regarding spreads or leverage for the traders.
Regulated brokers usually offer spreads between one and two pips for the most traded currency pairs. Pxbitcointrade claims to provide negative balance protection and lower leverage set-up, but without being able to register there is no way to confirm that. Brokers licensed in the US have a leverage cap of 1:50 for non-professional traders, and the one in the UK and EU is even lower – 1:30. High leverage is not something negative in itself, and there are actually regulated markets, such as Australia, which do not impose leverage caps. It can be quite risky, however, because although one can make profits with leveraged trading, he/she can also lose quite a lot, sometimes even more than initially invested.
Pxbitcointrade Deposit/Withdrawal Methods And Fees
Apart from the clear statement that you can use Bitcoin as a payment method, there is no other payment method mentioned on the website. There are no credit card logos and popular methods, such as PayPal and other preferred by traders e-wallets, eg. Skrill and Neteller are not advertised.
Withdrawal conditions are not excessive. Processing time of 24 hours is standard, and a fee of 1% is not that high. Depending on the withdrawal amount, however, it can become quite a hefty sum. That is why, respectable brokers usually charge a flat fee of about $20-$25, not a percentage.
Considering the botched registration process and the lack of information regarding trading platform or important financial conditions, we have enough reasons to be suspicious that the website is involved in foul play and we recommend to readers not to risk it and steer clear from such offers.
How does the scam work?
The most common scams are quite simple and straightforward and involve a multi-level scheme that usually goes by the following scenario. Internet users are lured by the numerous ads promising quick and easy fortunes by trading in the Forex world. When they click on such an ad they are redirected to a website tailored to the continuation of these false pledges, which asks them to register with their personal information. This data is then used by the scam brokers who immediately start to work on getting them to make an initial deposit of $200 – $300 by making even greater promises of big profits.
Once the users make their first deposit, the scam brokers get a fat commission on it. Now the senior scammers enter the scene. They are smooth talkers who will not stop at anything to convince traders that they are on their way to become very rich, if only they follow their advice and deposit more money to trade with.
Sooner or later the users will start suspecting something is not right and will want to withdraw their funds. This will not prove very easy, however. The scammer will do everything to delay their requests, by persuading them now is not the right time, asking for additional documents, or referring to specific withdrawal clauses. This is also part of the scam since the con-artists are trying to delay the users from filing for chargeback with their financial institution, and they miss the time frame for such chargeback, traders will lose their money without a chance of getting it back.
What to do if scammed?
If you’re scammed you should immediately file for a chargeback with your credit card provider. Good news is that VISA and MasterCard recently extended the chargeback period to a year and a half in an effort to combat online fraud. If you deposited with bitcoin or bank wire there is not much chance.
If you provided the scammers with any bank account or credit card details, such as security codes or passwords, make sure to cancel the card and talk to your bank. Also, if you are being approached by any “recovery agencies” promising to get your money back for a fee, do not fall for that. This is a piggyback scam, using the vulnerability of recently defrauded people and their hope the fraud may be reversed, and it will not recover your funds. These so-called agents will collect their fee and you will never hear from them again.