Beware! Bit-Forex.ltd 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.
Bit-Forex.ltd presents itself as a legit UK broker, but it’s neither a broker nor a legit UK business. In fact, to end all speculations a European financial authority put this fraudulent website on their warning list, exposing this scheme as a scam.
We claim it’s not a broker at all, because there aren’t any Forex products offered, but only investment plans with unrealistically high returns. There isn’t even a chart presented to the traders upon sign-up, but only ways to deposit money and start investing. Find out the rest of the details about this scam in the full Bit-Forex.ltd review.
Bit-Forex.ltd REGULATION AND SAFETY OF FUNDS
Bit-Forex.ltd claims to be a legit UK business, but that’s not true. The company numbers they present on their website belong to FXBIT TRADING LIMITED, a UK business with a confirmation statement overdue. Furthermore, the company has no license to operate as a Forex broker. But while we were searching for a licensed company associated with this website, we ended up with a warning issued by the Luxembourg financial authority CSSF. Your funds are in danger if you deposit with Bit-Forex.ltd because it’s an exposed scam.
Concisely, Luxembourg is regarded as a tax haven, but the country significantly differs compared to shady tax haven jurisdictions such as the Marshall Islands or St. Vincent and the Grenadines. Despite the status, Luxembourg is one of the most secure financial jurisdictions in the world. The small country adopted most of the MiFID 2 guidelines, so the Luxembourg brokers have to provide 730 000 EUR to get a license. Other customer protection measures brokers have to comply with include accounts segregation, negative balance protection, 1:30 leverage restriction etc. Also, there is a compensation fund so traders and investors can claim up to 20 000 EUR in compensation in case of fraud or insolvency.
Avoid Bit-Forex.ltd and have a look at the legit European brokers and British brokers. Europe is stable, and the financial authorities supervising the FX markets place customer protection on top of the priority list. There are many rigorous rules brokers have to follow to get a license, but crucially EU and UK designed money protection schemes protecting the clients’ money. If you trade with Cyprus regulated brokers you can claim up to 20 000 EUR in compensation, while in the UK the guarantees are up to 85 000 GBP per client. Each EU member state has to run a similar deposit insurance fund, considered the last resort for traders if a broker goes insolvent.
Bit-Forex.ltd TRADING SOFTWARE
As already mentioned in the Intro, Bit-Forex.ltd doesn’t offer any platform whatsoever. It’s a fraudulent investment scheme, which scammers deploy to steal as much as possible from traders and investors.
As a result, there is no information about spreads or leverage levels, but we have to elaborate a bit on the two most important elements when it comes to trading. The spread forms part of the trading costs, so lower rates benefit traders significantly enhancing profit potential. The industry standard is 1 pip or below in the EUR/USD pair, and the market is bustling with trustworthy brokers offering even as low as 0.1 pips difference with their micro-accounts. Follow the links throughout the review to have a look at the companies mentioned.
The leverage is a high-risk tool, so EU, UK and Australia (from 2021) decreed a leverage cap on the market- 1:30 as a customer protection measure. On the other side of the Atlantic, Canadian brokers and the US brokers cannot offer more than 1:50 to their clients. So, brokers offering higher ratios are not recommended due to the absence of adequate regulation, the risks aside. The Swiss brokers are not leverage restricted, but Switzerland’s capital adequacy keeps scam away- more than 22 mln USD to get an FX license.
So, see the regulated MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular retail Forex trading platform, which experienced traders prefer for its reliability. It features sophisticated trading tools such as Expert Advisors, Algo Trading, Complex Indicators, Strategy testers and even a marketplace with more than 10 000 trading apps.
Bit-Forex.ltd DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Bit-Forex.ltd is 50$, which actually is within the industry standards- $100 on average. It applies for their Daily Accrual Investment plan advertised to bring a 10% guaranteed profit daily. Such an investment plan is ridiculous because similar fixed-income products yield far less than 10% per year. It’s a scam sign whatsoever, the warning issued aside.
The funding methods are PerfectMoney, Payeer and Bitcoin, all of which are final and non-refundable. We recommend only Credit/Debit card payments only because it allows to chargeback within 540 days from the deposit and by far it’s considered the safest payment method. You can also see the trustworthy brokers accepting the mentioned money transfers providers by following the links above.
As an entirely obscure broker Bit-Forex.ltd doesn’t present legal documents on its website, such as comprehensive Terms and Conditions, User Agreements etc. The absence of such docs is an argument enough to dismiss this website as a scam. Traders should never deposit money or commence trading without being presented with a document serving as a contract between the parties. It’s mandatory to sign an agreement!
As a result, there is also no information about other critical conditions regarding withdrawal requirements, withdrawal fees, inactivity fees, bonuses etc.
Overall, Bit-Forex.ltd is an exposed scam, so stay safe and avoid this fraudulent business.
HOW DOES THE SCAM WORK
New types of investment scams pop-up literally every day. However, most of the new schemes represent a modification of common scams. These are not typical for the local markets, but very similar from country to country.
Scammers usually find their victims through ads in social media or other websites, and that’s the newest trend. The offers look legit and present exciting opportunities to invest money on the Forex market. Traders are reassured that the people behind the broker have an excellent track record, promising high returns or seamless trading. They claim that there are no risks when trading with them, concealing that the FX market is utterly risky.
What usually happens is that scammers just pocket traders and investors money letting them believe they trade in a real environment. Sooner or later clients would ask for a withdrawal, but scammers would delay or straightaway refuse by making up excuses to keep the money. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or send little money back. Either way, traders are likely to lose some or all of the capital invested. At some point, when the fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to fraud. In case you got scammed, you need first to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary 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, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!