Beware! Ethusdtbtc 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.
Nothing sets apart this broker from the sea of other online forex brokers except perhaps for its name. If you try to say Ethusdtbtc it sounds like a real tongue-twister. This is a joke but actually, there is nothing to joke about Ethusdtbtc as this broker is seriously dangerous to trade with. Here are our arguments.
Ethusdtbtc Regulation and safety of funds
From the information available on the website, we can see that Ethusdt International Limited that operates Ethusdtbtc is registered by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Our search did confirm that such a company exists in the FINTRAC register. However, we must point out that this is Canada’s financial intelligence unit which mandate is to facilitate the detection, prevention and deterrence of fraudulent financial activities. It is not one of the official regulators for forex brokers in Canada and its register does not show the websites of the companies that are there. Another reason that makes us suspicious regarding the legitimacy of this broker is the fact that the name of the company is missing from the register of the Investment Industry Regulatory Organisation of Canada (IIROC) which is the self-regulatory body that oversees all forex brokers.
Our opinion is trading with Ethusdtbtc is not safe for clients’ money and advise you against it.
IIROC has set some strict rules that forex brokers in this jurisdiction must comply with in order to get their license. They must have a minimum capital of $250,000 and must be members of the Canadian Investor Protection Fund which can provide up to $1 million in compensation if the broker becomes insolvent. Canadian brokers are not banned from hedging and they do not have a cap on leverage.
Ethusdtbtc Trading software
Ethusdtbtc trades in forex, metals, BTC and indices and the trading software consists of the MetaTrader 5 trading platforms which is one of the leading platforms in forex trade. Below is an image of MT5. On the left of the screen are shown the trading products with their bid/ask price and the navigator for the accounts, indicators, expert advisors, scripts and services. The middle of the screen displayed 4 charts of 4 currency pairs with the fluctuation in price in a given time frame. If we look at the top-left chart, we’ll see that it displays the EUR/USD currency pair. From the bid/ask price we can calculate that the spread is 0.8 pips which is tight. When the spread is tight the cost of transactions is not too high and traders will be able to achieve sustainable profit. From the company’s interface, we find out that the default leverage is 1:100. Such leverage is considered to be high which means that it increases the risk exposure for clients’ funds. Please remember that high leverage will amplify the scope of financial loss in case of unsuccessful transactions which happen to 70% of the forex traders. It is not by chance that the regulators in the EU, the UK and the US have imposed a cap on leverage for forex currencies which cannot exceed 1:30 in the EU and the UK and for the US, it is 1:50. These are measures to prevent traders from entering risky and reckless transactions where they can suffer a significant financial loss.
We must say that by offering the MT5 platform, Ethusdtbtc has made a good choice. The platform is equipped with an algo trading option, VPS, an app market, trading signal, code base with customs scripts, a financial calendar, etc. which give a lot of advantages to the traders. We must also mention the variety of charting options and technical analysis indicators that help traders predict the future direction of exchange rates and make a profit.
However, a good quality trading platform won’t cut it if the broker is fraudulent.
Ethusdtbtc Deposit/Withdrawal methods and fees
There is a lot of essential and crucial information that is missing from the Ethusdtbtc website that includes the Terms and Conditions document and the deposit and withdrawal methods and any related fees. Also, it is not possible to find out what trading accounts are offered and what the minimum initial deposit is.
Without such information clients of this broker won’t be able to make informed choices regarding what their rights and obligations are when joining this broker.
Needless to say, joining this broker without being fully informed will be a dangerous mistake.
How does scam work?
Scam works in different ways. It could be either that you receive an unsolicited telephone call or you see one of these flashy ads on the Internet or the social media promising you a quick and easy profit. Scammers will promise you the sky and the earth until you give way to temptation and deposit money. Once you give them money you get caught in the scammers’ mousetrap and the cheese in the shape of a big fat money fall is gone! It may take some time before you realise that you are being scammed. Scammers are smooth talkers and they are masters of deception. They will give you some excuses as to why the big profit hasn’t come yet and will try to lure you to make even a bigger investment because according to them, the more you invest, the more you profit. After you have been waiting for a while and you finally come to your senses, you realise that you are being scammed. All you want now is to get your money back and get out of there. However, the scammers won’t make it easy for you! They will try to delay you so that you miss the deadline for applying for a chargeback.
What to do if scammed?
There are a few things that you must do immediately – file for a chargeback if you have paid using a VISA or MasterCard. Those two payment providers allow you 540 days time frame within which you may file for a chargeback.
However, the chances are grim if you have used bank transfer or Bitcoin as a payment method. There is no chance you’ll be able to recover your money.
In such a desperate situation, some so-called ‘recovery agents’ may approach you with offers to recover your money for a fee. Be cautious as you may be dealing with another type of scammers. Always check the information about the recovery agency – make sure it is legitimate and transparent in the public eye. Also, some scammers publish personal comments after our review about how they have been scammed and how they found a recovery agent who helped them get their money back. Do not trust such comments and do not use the published contact info in them as it will lead you to another scammer!
And lastly, a reminder to cancel your credit card if you have given your CVV code to the scammers and erase any software from you PC that gives the scammer access to your personal data.