Beware! Bitrend 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.
Bitrend is a forex broker trading in forex, spot metals, futures and shares.
Bitrend Regulation and safety of funds
Bitrend’s address is in UK. When we searched the Financial Conduct Authority (FCA) that regulated forex brokers in UK, the company did not appear in the register which means that this broker is probably scam (screenshot below). There are many shady forex brokers out there pretending to be legitimate companies in UK. However, if they do not appear in the register of regulated companies, the best way to deal with them is to avoid them. That will save you a lot of headache in the future.
If you are looking for a genuine and legitimate forex brokers, they should be regulated by either FCA in UK of CySEC in EU. Only such licensed brokers will provide you with a guarantee for the safety of your funds as there are a lot of preventive measures set in place to insure that no scammers can sneak in. For example, in EU and UK, licensed brokers must have an initial capital of no less than 730,000 EUR and they must contribute to a compensation scheme. From this scheme, in case of disaster, the clients could be compensated by up to 20,000 EUR per person if the broker is regulated by CySEC or 85,000 GBP per person if the broker is regulated by FCA. In addition to that, brokers must report their transactions on a daily basis to prevent shady deals. These measures help to screen off scammers and provide a peace of mind to the traders that there funds are safe.
Licensed brokers in US and Australia are also reliable as the initial capital for US is $20 million and in Australia 1 million AUD which in itself is a guarantee that scammers will stay out. However, there are no compensation funds set in place, so your best bet is to trade via EU and UK licensed forex companies.
Bitrend Trading software
To its clients, Bitrend offers a webtrader trading platform (screenshot below). What you see on the left hand side is the menu for the forex currency pairs with their bid and ask value. In the middle of the screen, you see displayed the chart of a chosen currency pair, in this case EUR/USD, with the price fluctuation in a given time frame. From the bid/ask price of the EUR/USD currency pair, we can calculate that the spread is 0.6 pips which is tight. If you look in the account information which is given in the last screenshot, you will notice that for the different accounts the spreads vary between 0.3 and 1.5 pips which are in the normal boundaries. However, we are alarmed to see that the leverage for the different accounts varies between 1:5 and 1:999. Except for the leverage for the Standard account (1:5) and the Silver account (1:25) which is low, the leverage for the other 4 accounts is very high – form 1:100 to 1:999. You must be aware that high leverage means only 2 things – big win or big loss and in the forex world chances are that the latter prevails. For your information, licensed brokers normally offer low leverage as there is a cap on leverage in EU which is 1:30 and in US, 1:50, to prevent traders from taking risks with their funds. So, if you see a broker offering high leverage, it is a sure sign that you are dealing with scammers (except for Australia where licensed brokers do not have cap on leverage).
You may have noticed that the webtrader offered by Bitrend is a rather basic platform that does not offer many trading tools and instruments. We want to recommend to you some of the best platforms in the forex world – MetaTrader 4 and MetaTrader 5 which have the best reputation among forex brokers (80% of brokers are using these platforms) for their excellent trading tools and instruments. For example, we want to mention the auto trading option, the trading signals, the code base with customs scripts, the many charting options, the VPS, the financial calendar and the app market, to name but a few.
So, let us reiterate – when selecting a forex broker, first of all check whether it is licensed, and second, check if it offers the MT4 or MT5 which will make your trading experience easier.
Bitrend Deposit/Withdrawal methods and fees
Six trading accounts are on offer via this broker – Standard, Silver, Gold, Platinum, VIP Club and Fortune Savings. The minimum initial deposit for the Standard account is S1,000. We find this amount for an initial deposit rather high. Licensed brokers usually do not ask for so much money! The other accounts start at $5,000, $20,000, $50,000, $100,000 and $500,000 respectively.
We must say that this broker does not offer much choice in payment methods. In fact they are only two – credit card or bank transfer, which is very limiting to the client. The withdrawal methods are the same. In the Terms and Conditions document we noticed that the company claims to be entitled to receive fees from the client but it is not specified how much. There is no information about the processing time for deposits and withdrawals either.
Interestingly enough, in the account information we found the average estimated monthly ROI which varies between 15-20% for the Silver account and reaches 100 %+ for the Fortune SAvings account. We would laugh but for the fact that Bitrеnd is trying to entrap traders in order to fleece them from their funds. Imagine that you can afford to invest $500,000 in the Fortune Savings account and you use the leverage 1:999 with the hope that the ROI is 100%. What will happen if your transaction falls through – you lose big! But at the end this is what scammers are trying to do. So, do not be naive and do not throw your hard-earned money down the drain!
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or the social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.