Iron-Bits Review – 5 things you should know about iron-bits.com

Iron-Bits Review – 5 things you should know about iron-bits.com

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Beware! Iron-Bits is an offshore broker! Your investment may be at risk.

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We thought scammers are inventive and creative in the ways they try to fleece people but the ones we wrote about recently must be getting really lazy as the information they put on their websites with the exception of few tweaks looks alike. Iron-Bits is no exception.

Iron-Bits Regulation and safety of funds

Where this company comes from is anybody’s guess. We searched the information on its website but did not find any address or registration. Needless to say, trading with a non-registered broker will put your funds at risk.

We advise you to research our lists of licensed and reliable brokers from some of the well-established jurisdictions of the US, Australia, the EU and the UK. Trading with them is preferable as they are strictly regulated by the financial services authorities which provide many measures for protecting clients’ funds. For example, being well-capitalised in the US and Australia means that the broker will be able to provide some protection to the clients in case of unfavourable events. This is the reason why brokers from the US and Australia must deposit very substantial amounts of money in the form of initial capital. In the US it is $20 million and in Australia, it is 1 million AUD. The downside of trading with brokers from these two jurisdictions is that there are no compensation funds or schemes to reimburse the clients if the broker goes bankrupt.

On the other hand, in the EU and the UK, the amount of the initial capital is far less – only 730,000 EUR. However, forex brokers regulated by FCA in the UK must participate in the local Financial Services Compensation Scheme from which their clients can be repaid up to 85,000 GBP per clients in case of insolvency. If the broker is regulated by CySec and contributes to the local Investor Compensation Fund, its clients will be reimbursed up to 20,000 EUR per client if the broker goes belly up.

In addition to that, licensed brokers from these jurisdictions must keep their clients’ funds segregated with tier-1 bank establishments, provide protection against negative balance and report their transactions regularly for the sake of transparency and avoiding shady deals.

Iron-Bits Trading software

The trading software Iron-Bits offers to its clients consists of a web trader. In the image below you can see what the platform looks like. On the left, you have the menu with trading instruments which include indices, stocks, forex, cryptocurrencies and commodities. Each trading product is displayed with its bid/ask price. In the middle is displayed the chart of one of the forex currency pairs, EUR/USD with the fluctuation in its price in a given time frame. As you can see, the quality of the chart is somewhat dubious. From the bid/ask price of the same currency pair, we find out that the spread is 7.8 pips. This spread is too wide compared to the industry average of 1.5 pips. Such spread will make the cost of transactions too high and the traders won’t be able to make a sustainable profit. On the other hand, the broker who derives its revenue from the spread will get richer at its clients’ expense.

Another worrisome fact as we see it in the last image with the account types information is the high leverage which can reach up to 1:400. High leverage signifies only two things – a big win or a big loss. A big win is not likely to happen given the fact that statistically, 70% of traders lose in transactions. On the other hand, the high leverage will amplify the risk to which clients’ funds are exposed and will make the financial loss staggering.

We do not advise our readers to trade with such high leverage and to remember that licensed brokers in the EU and the UK will offer leverage up to 1:30 and in the US, up to 1:50. Capped leverage is one of the measures of preventing traders from trading recklessly and taking chance with their funds.

 

Iron-Bits trading platform

 

If you are looking for a trading software of good quality, let us tell you that a web trader doesn’t fit the bill. Instead, we advise you to find a licensed broker that will offer a MetaTrader 4 or MetaTrader 5 trading platform for they have a proven record of excellent performance and can satisfy even the pickiest of traders. For example, both platforms are equipped with an amazing package of trading tools and instruments, such as an app market, a financial calendar, VPS, code base with customs scripts, trading signals, auto trading option, etc. The charting options and technical analysis instruments are out of this world and help traders predict the future direction of exchange rates and make a profit.

Iron-Bits Deposit/Withdrawal methods and fees

Iron-Bits offers 4 trading accounts – Silver, Gold, Platinum and VIP. The minimum initial deposit for the Silver account is 250 EUR. The deposit and withdrawal methods are limited to payments via credit card, bank wire or Bitcoin.

The minimum withdrawal amount via Bitcoin is the equivalent of $250. For the other methods, it is 100 EUR/USD/GBP. The withdrawal fees are rather high – 1% with a minimum of 30 EUR/USD/GBP and a maximum of 300 EUR/USD/GBP.

A trading account that has not been used for 30 consecutive days, the company will charge 99 EUR/USD/GBP monthly fee. The fee is rather high and the period of inactivity is rather short. Normally, licensed brokers will allow for a period of 3 to 6 months before they charge any dormant account fees.

 

Iron-Bits trading accounts

 

If you peruse the information on Iron-Bits website, you will notice that this broker offers bonuses. First of all, this is another sign that this broker is not reliable as licensed brokers do not offer bonuses or other incentives. Secondly, you must know that bonuses are funds belonging to the broker and as you can imagine said broker won’t part easily with its precious funds. So, do not be surprised that bonuses come with some hard to fulfil conditions attached to them that can seriously mess up your funds and withdrawal options. In this case, to be eligible to make a withdrawal or withdraw the bonus amount, the trader must execute a trading volume equal to 50,000 times the bonus amount. If you are naive and accept such conditions, we wish you happy trading!

How does scam work?

Actually, it’s quite simple and people often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for a chargeback.

What to do if scammed?

Our advice is to immediately file for a chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.

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3 Comments

  1. IRON BITS IS A BRUTAL CALLOUS SCAM FROM THE DARKNESS OF THE WEB.
    DON’T GO NEAR IRON BITS OR YOU WILL NEVER SEE YOUR MONEY AGAIN. SCAM ALERT!!!!!!!!!!!!!!UPDATE 11 MAY: IRON BITS DOES NOT LIKE MY REVIEWS AND WANTS THEM TAKEN DOWN. WHAT A NERVE!!!!! THEY WANT PROOF OF MY EXPERIENCE WITH THEM…..DAVID SCOTT TOLD ME THAT JOHN BENTLEY THEIR HEAD OF FINANCE HAS BEEN DISCIPLINED,SUSPENDED OR SACKED OVER MY ACCOUNT.
    I am 83 and in poor health suffering chronic pain and whilst taking powerful medications was very vulnerable to the Iron Bits scam and hard sell.
    I made an enquiry on the net about Bitcoin and as quick as a wink I have an account manager, David Scott who bullied me until he had emptied my bank account for all my retirement cash….. USD$400 000, a staggering amount but all when I was medicated and very vulnerable. I was putty in his hands.
    Iron Bits works like this, If you dare make an inquiry you are trapped by their front men “Account Managers” who collect money from unsuspecting victims by very hard sell or bullying.
    Proof that this cruel system is a scam is the way they operate. You may only contact your account manager by email or they give you a couple of phone numbers (mostly unattended)
    where you leave a message. Some calls are returned but you have no chance of contacting anyone above the level of account manager. Their web site has Support or Compliance tabs but you never get a response from either. So that leaves you with no option but to post a bad review.
    When you dare to do this you are fined by Iron Bits and locked out of everything. Your account manager no longer is your account manager but no one else will reach out to you no matter how many complaints you make via their web pages. My account Manager told me that after the first bad review that they had fined me $35000.
    Later I find that Iron Bits is unregistered and all owners or office holders are silent, yes hidden IN THE DARK CORNERS OF THE WEB.
    What does this tell you? If this company was legit, why hide on the dark side and not respond to its clients.
    Iron Bits has a good platform so why do they have to steal instead of trading honestly and with integrity.
    I really found out the hard way.
    In the first few weeks David Scott was showing off about how much profit he had made for me- USD$185000 and we agreed for withdrawals of $300 000.
    His boss John Bentley is the Head of Finance.
    Meanwhile David Scott was away on sick leave and Bentley told me on the phone and then by email that he had processed the withdrawals.
    I have not seen them and wonder if they have been stolen or diverted to someone else’s account. Where are these withdrawals which are mine not theirs?
    Iron Bits objects to unflattering reviews and protests to the sites web managers.
    They have stolen the rest of my life and to make matters worse I have had a heart attack over the stress caused by these thieves. All my health problems already there compounded by the nowhere to be found withdrawals is likely to cause my early death. They are cruel and heartless and once having all my retirement cash they abandoned me. No response from management even though their head of finance confirmed withdrawals. Of course Iron Bits is culpable for actions of the Head of Finance but they refuse to discuss this with me.
    Iron Bits has betrayed me and many others.
    THEY ARE A BRUTAL UNREGISTERED SCAM COMPANY THAT HIDES THEIR INTENTIONS WITH SILENCE AND BETRAY UNSUSPECTING INVESTORS.

    1. hello Micheal my heart breaks reading this! my father too invested 100k into iron – bit and ripped him off shortly he passed away i am devasted to see all his money gone too i have all the statements and receipts and theres nothing i can do. im so sad and empathy for you

  2. Iron bits took my all savings. Any possibility that I can get my money back. And take them to court of law

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