Beware! Bitorex 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.
Warning! Bitorex is a Forex broker claiming to be fully regulated, while in reality it is an obscure anonymous entity, allegedly registered offshore. In fact, the guys behind this shady entity has recently become very active, many positive reviews have emerged all over the Internet, claiming that Bitorex is the best Forex broker, incomparable, great service, automated trading blah blah! All of these are fake, guaranteed, Bitorex does not even provide the clients with Metatrader trading platform, let alone automated trading. There is plenty of scam evidence about this Forex broker to refer, find out everything you definitely need to know in the full Bitorex review.
Bitorex REGULATION AND SAFETY OF FUNDS
Bitorex is one of those truly mysterious, so-called Forex brokers, which will neither list their address, nor their contact number. Bitorex is allegedly owned and operated by Capital Consulting Group Limited, but no further information is given about this company. In fact, the word mix in the name makes it a mission impossible to find anything about such a company. There are companies bearing the same name, that are registered all over the world, in many jurisdictions and under different regulations and legal regimes.
In their T&Cs, however, they claim to be Marshall Islands regulated broker, which is actually nonsense, as the FX activities taking place on the territory are not supervised and unregulated. On the other side, they obviously misspelled the address, making it look even worse on them.
They also dare to claim that Bitorex is 100% regulated Forex broker. Well, a 50% regulated Forex broker should be some very weird entity, unfortunately we haven’t seen one! FX brokers are either regulated or unregulated, there aren’t 50 shades of regulation!
Your funds are not safe if you deposit with Bitorex, it is an unlicensed, unauthorized and unregulated offshore Forex broker, trying deliberately to delude the customers. Avoid Bitorex and report immediately if a representative of theirs approach you!
Our strong advice is to choose between the EU(CySEC) and UK(FCA) Forex brokers, as these intermediaries are the global leaders in the retail FX and CFDs market, and will assuredly treat your funds with an utmost care. There are many customer protection measures agreed and implemented throughout Europe, in fact, all the EU members have to provide similar in size and scope levels of security to the traders. For example, if a broker wants to obtain CySEC or FCA license it has to meet the capital adequacy requirements. A Forex broker is required to have a minimum initial capital of 730 000 EUR, safeguarding the ongoing financial soundness of the entity.
Most importantly there are money protection schemes at place, such as ICF in Cyprus and FSCS in UK, which guarantee the deposits of the clients. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate such a fund, which is regarded as a last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Bitorex TRADING SOFTWARE
Bitorex doesn’t offer Metatrader4 or Metatrader5 accounts to the customers, instead they provide the traders with a basic web based trading platform, which is really primitive and very difficult to use.
The next red flag was discovered upon registration, Bitorex claims to offer more than 300 instruments, including Forex, Indices and Commodities, but in reality these instruments are not available. Only crypto pairs are available such as BTC/EUR, BTC/USD, ETH/EUR, ETH/USD and so on.
BTC/USD spread is more than 50 pips! A massacre, you will never be able to make any profits with such a difference between bid and ask! The leverage offered is up to 1:500, which is an insane ratio, especially given the fact that the only assets available to trade are Cryptos.
A spread of 50 pips, leverage of 1:500 and Bitcoins are the ingredients of a lightning fast Margin Call. Once you open a trade, the huge spread will have already eaten up much of the margin available. The stop loss level will be dangerously close to the opening price and a very tiny move of the very volatile Bitcoin in the wrong direction will be enough to drain out your account. A leverage cap of 1:2 for Crypto currency trading was agreed and implemented exactly because of the huge spreads and the massive volatility of these underlying assets.
Stay away, the trading conditions offered by Bitorex are extremely risky for the deposits, as the minimum leverage available is 1:100!
Bitorex DEPOSIT/WITHDRAW METHODS AND FEES
No minimum initial deposit requirements determined. The funding methods available are Bitcoin, Credit/Debit cards and Flutterware, wire transfers are not possible.
No minimum withdrawal amount requirements, also no withdrawal fees specified in size and scope. The withdrawal request is said to be processed within 2-5 days.
An account become dormant, well, after 3 or 6 months of inactivity. The exact specification is as follows: …”within six (3) months”…!!! No true Forex broker is going to treat such an important matter so carelessly! It is a red flag and an evidence of scam! However, the monthly deduction of 20% is even worse, stay away from Bitorex, it isn’t a true Forex broker, but a scam!
As an offshore unregulated Forex broker, Bitorex will not bother to provide with negative balance protection, of course. An indebted account is allowed!
HOW DOES THE SCAM WORK
Scammers introduce financial or investment opportunities which are too good to be true. Lucrative returns (we’ve seen 800% per day) with low or no risk at all, unbeatable trading conditions, trading robots and bots that always execute the winning trades are only a fraction of all the pledges the scammers are going to make, trying to persuade you to invest in their scam schemes!
The scammer will promise you the moon and the stars only to gain your confidence, will persuade you to get involved and sooner or later will take advantage of you. Once you submit your personal details including ID, credit or debit cards, bank accounts or national insurance number the risk becomes long-term. The scammers might not only refuse to make a withdrawal, but might as well use your personal details to conduct criminal activities. They might dry up your bank account, might make deals on your behalf or you might even end-up being an owner of a hugely indebted company. Beware!
Remember, always trust Forex brokers that are legitimate and regulated by a strict financial authority such as CySEC or FCA.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!