Beware! Live Bit 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.
Despite the formal and smooth interface of Live Bit, we cannot shake off the feeling that something is not quite right with the broker. We have reviewed so many unregulated brokers that it doesn’t take us more than 10 seconds to get an approximation of a company’s nature, no matter how many layers it puts to conceal it. Unfortunately, the matter of fact is that Live Bit has applies some very tight layers, and there is certainly something hiding under them. The following review will attempt to uncover what is hidden, and give an objective view of this broker. We urge you to read on.
Live Bit does not allow us to register. The reason for this is because there was no obvious registration button or form, or anything. This is a technique that is commonly used by shady brokers. In fact, “technique” is not the right word for it. It is a tactic utilized by fraudulent brokers to make sure they gather only users they want; they handpick their clientele based on how susceptible they are to deposits. This is one of the most popular schemes used by scammer firms and is explained in more detail in the last two sections of the review.
Because we could not create an account, we have no choice but to quote the broker on the trading conditions and payment methods. And here we have the chance to disclose that the website is extremely limited, and most of it feels as if though were added just to fill the gaps. The majority of the information doesn’t seem to be truthful.
However, as it turns out, the broker has made a trading software available, to all users, even to non-registered ones. Yet, there is no way to actually buy and sell assets. Anyway, there we found cryptocurrency as the sole asset category. There were no forex pairs, no commodities, no shares. This explains the advertised leverage of 1:5; yet the trading software gives us a 1:1 leverage which in fact a significant drop.
The website is available exclusively in English.
LIVE BIT REGULATION AND SAFETY OF FUNDS
The site is clear on one thing: the parent company of the broker G.S. SERVICES LTD is located in Estonia. However, it is not indicated whether the broker is actually regulated there. The Estonian answer to a regulator, the Finantsinspektsioon, is actually devoid of any mention of both G.S. SERVICES LTD and Live Bit. So, if Live Bit is indeed located in Estonia, it would be offering trading services illegally.
The Terms and Conditions also disclose that the company relations with the user will be governed according to the laws of the Czech Republic, but nowhere does not say that it is regulated there as a legit FX broker.
All in all, there is no indication that Live Bit is actually regulated anywhere. The firm can claim to be located here or there, but the facts are solid, and this broker is certainly NOT HOLDING A LICENSE, and is, therefore, a risk to all investments.
Unregulated brokers should never be invested in. Not only are you losing your money, but you are funding a scam that will continue victimizing traders. Please, always check for a license, preferably from the FCA and/or CySEC. These two authorities are the best of the best when it comes down to enforcing rules and regulating the FX market. There is a reason why most brokers strive for regulation from either one of these. Not only are there very strict rules to be followed, but either of these licenses will bring on more users, because of the safe space the broker will be provided under the oversight of the FCA and CySEC. Furthermore, all the brokers under the FCA and CySEC are a part of compensation schemes, which covers all their users, financially, in case the broker becomes insolvent or cannot pay back its clients. CySEC provides up to €20 000 per person, while the FCA guarantees up to £85 000.
LIVE BIT TRADING SOFTWARE
The trading software that is literally opened to everyone is what you would expect from an unregulated broker. It has just enough to lure in novice users, but nothing to retain them after a while. As for those professional ones, there is nothing for them here.
There is a decent amount of chart customization options, as well as stop loss/take profit, multiple time frames, and that is basically it. We assure you that users will get bored pretty quickly with this one.
LIVE BIT DEPOSIT/WITHDRAW METHODS AND FEES
Most of the following information is taken from the Deposit & Withdraw Policy. As we had no way to register, we cannot be sure that the following is accurate.
The payment methods, both used for deposits and withdrawals seem to be credit card, bank transfer, debit card, and some undisclosed alternative payment methods. If we know our illicit brokers, and we certainly do, most of these payment methods are not available to registered clients. Believe it or not, there is no indication of a minimum deposit.
Withdrawal requests may take up to 10 days to process. There are fees, as is common, yet their numerical values have not been disclosed, again a common move on the part of an unregulated broker.
The culmination of all things wrong with this broker is best expressed in the Non-Deposited Funds clause, which literally prohibits clients from withdrawing their profit!
Live Bit is a full-on risk to all investments that are made in it. Do not deposit here, for what will follow is a plethora of problems that will impact your finances.
How does the scam work?
Scams are crafted in such ways that when you start feeling suspicious, then it is too late. The fraudsters anticipate this and adapt to this in smart ways.
The most popular scam is also the simplest but most effective because it is very casual. Illicit brokers from all around utilize it, with some putting in their own small twists to it, so as to seem more efficient and unique.
Usually, the scam goes like this: the user is attracted by an ad that promises a rich and stress-free lifestyle, usually accommodated by a picture of a happy man and woman in a picturesque setting. If the user clicks on it, she will be redirected to a website where the user will be required to input her contact details, like email and phone number. By giving these away the fraudster are given the perfect means of solicitation. She will start receiving calls or emails that will attempt to convince her to deposit. She will be redirected to the website of the broker and will see all the “amazing” opportunities. The client will either give in or become increasingly suspicious and leave.
If the user deposits, then she has fallen victim to the scam. After the initial deposit, she will start receiving calls from the so-called account manager, a pro scammer that will charm his way to more deposits, as many as possible until the user starts seeing the bigger picture. These shady individuals are very manipulative and many of them are sweet talkers, capable of convincing you of anything.
The scam continues for as long as the client allows it. Suspicion will overcome the user at some point, and once she starts looking for her money, the fraudsters will be long gone. Her account will be deleted, the withdrawal request will be forever stalled, or the website of the “broker” will be unavailable.
What to do if scammed?
The first step that you should take is filing for a chargeback. The good news is that MasterCard and VISA have a 540 day chargeback period.
If the deposit was made by means of a bank, then the user is encouraged to change all of her bank detail ASAP! We are referring to the user name and password. An alternative to this is to contact the bank and see how they can help from thereon.
A crucial piece of advice is to never deposit in an unregulated broker through bitcoin or any other form of cryptocurrency. The crypto situation is still to be stabilized, and many BTC options, for example, are still untraceable. Once a payment goes through, the money is sure to be lost forever.
Moreover, stay away from recovery agents. During the period of looking fo a way to get your money back, the user may have the opportunity to contact a recovery agent (or called otherwise). These will offer the client a return of all deposits in exchange for a hefty fee. Once the user agrees to pay the commission, these will disappear leaving you at a bigger loss!