Beware! PhoenixBitFX 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.
PhoenixBitFX is a very generic and common illegitimate broker that we immediately sniffed out. All of the most popular scammer broker reveals are there, if you know where and how to look. For instance, the misshapen texts and images that do not match, the sloppy website with its half filler texts, the empty promises that PhoenixBitFX cannot meet, the suspicious design choices, and more. The result of these flaws is the review that you are about to read.
Signing up was a breeze. In just under 10 seconds we were given full access to the PhoenixBitFX user area. One cannot really put their trust in a broker that lets just about anyone in. It’s a sign of desperation, but it can also be interpreted as a sign that PhoenixBitFX is ready to take money from just about anyone.
What we found in the client portal was basically what we feared. We won’t go into details here, for there is a whole section dedicated to the following, but what users must be aware of is that PhoenixBitFX does not provide a trading software.
So, when users go through the website and read about financial instruments, spreads, and leverages, know that you are reading completely fake and misleading information. None of the trading conditions promoted by PhoenixBitFX are legit!
The website of the broker is available in English only.
PHOENIXBITFX REGULATION AND SAFETY OF FUNDS
We get all the necessary information relevant to this section of the review from the footer of the broker, as the legal documents reveal nothing. The first thing we notice in the footer is the broker claim that PhoenixBitFX is located in the Commonwealth of Dominica.
The Commonwealth of Dominica is much like Saint Vincent and the Grenadines, in that Domica has no FX regulator. Moreover, the country has seen an increase in interest from illicit brokers during the last year or so, because the local authorities allow with open arms illegitimate brokers to enter. Just remember that PhoenixBitFX, if really located there, is operating illegally.
Furthermore, the website has not been updated since 2019, as those who focus on the footer will notice. This means that the people behind PhoenixBitFX have not done anything since then, not even lifted a finger to improve the website or its services. This is more subtle but nevertheless solid proof that this company is illegitimate.
What’s more, is that in the footer we read the following
This is one of the most marks of unregulated brokers. It asserts that the company is not directed to any jurisdiction where its use will be deemed illegal by the local authorities, shifting the entire responsibility of being regulated on the users’ shoulders. It is as if it is expected of investors to check if THEY are eligible to join PhoenixBitFX , and not the other way around – the way that it should be.
PhoenixBitFX is obviously a broker without any sort of a regulation. It is UNLICENSED, and it shows in its many aspects and sides. Users should be aware that investing in illegitimate brokers is a risk not only to their funds but to their identifications.
Investing in unlicensed brokers is basically throwing your money in vain. We urge our readers to always check for a license before doing anything. Usually, if a broker has one, it will proudly showcase it, but it’s always recommended to check with the regulator. Some of the most trustworthy license issuers are the FCA or CySEC, whose authority spans hundreds of brokers, among which are some of the world’s top. What’s more, is that bot the FCA and CySEC offer client reimbursement schemes to users who have not been paid by a regulated broker. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
PHOENIXBITFX TRADING SOFTWARE
Upon entering the user area, the client will be shown three TradignView charts, that PhoenixBitFX wants to make its users believe to be actual trading softwares.
Whereas in reality, TradingView charts are incredibly useless and pointless. Most scammer brokers we know use these in order to create the illusion of a trading software. One cannot execute trades on these charts! They are there to lure and confuse users!
PhoenixBitFX does not have a trading platform, completely taking away its status as an FX broker!
PHOENIXBITFX DEPOSIT/WITHDRAW METHODS AND FEES
The user portal reveals that clients can deposit by means of bitcoin, tether, WesternUnion, and MoneyGram. However, once you click on either of these four payment options, the broker asks you to send a bitcoin investment to some suspicious address. In other words, the broker only accepts deposits in bitcoin. And what’s more, is that there is no guarantee that once you send over an amount in BTC PhoenixBitFX will fill your account with it. We think that users will never see this money back, let alone in their reflected in their trading accounts.
The withdrawal section of the user area is non-existent. When we tried to access it, we were led to a 404 Not Found Error page. What this means is that PhoenixBitFX does not allow users to withdraw. There is a slight chance that the broker the sub-section is under maintenance, but if it were, there would have been a relevant message explaining the situation. As far as we see it, PhoenixBitFX just waits for deposits without doing anything; it’s passively scamming people. This might explain why it has not been updated since 2019.
There is nothing noteworthy to be found in the terms and conditions. No clauses of interest struck our attention, but that does not mean that users should trust PhoenixBitFX with their investments and personal details. This broker is unregulated, and everything we have talked about in the review points to it being a scam. Do not invest here!
How does the scam work?
The first step to this very popular scam is actually one that is taken by most online scams. It has to do with users falling for fake online ads that use a repertoire of alluring elements, including money, beautiful women, expensive cars, and luxurious villas. The only aim of these fake advertisements is to induce the internet user into clicking on them.
Behind these ads is hiding either the scammer broker or an intermediary website whose aim is to introduce the user to the fraudulent broker. On either of these sources, the user will be asked to provide contact information, either a phone number or an email address.
Soon the investor will start receiving calls from a representative of the brokers, whose goal is to stimulate a user into deposit once! If the deposit is successful, then these individuals will let the user go, but sooner they will start getting more calls and emails from the expert scammers, the so-called account managers. The pro fraudsters are here to stay and will induce more deposits from the users, using manipulative tactics, psychological tricks, and pure charm. Those that give in, will sometimes unknowingly deposit huge amounts!
Once the user realizes that he or she has been scammed, it’s usually too late, however, there are some ways of getting your money back, potentially. But before that, the scam artists will try to distract you from withdrawing by either stalling the request or simply advising you against it. Some brokers, however, go the extra mile and are not afraid to shut down the user account and at times the entire website.
What to do if scammed?
The best defensive maneuver is filing for a chargeback through the client’s credit or debit card company. MasterCard and VISA have a chargeback period of 540 days.
If users have lost money by investing it through a bank, then they should change their bank account username and password first! The next step is to call the bank directly and see what they can do.
Investing in any kind of crypto is advised against. Payments made through these are untraceable and as such are lost forever.
Also, never thrust any recovery agents or agencies. These are scammers as well and will take your money. They usually appear once you have been scammed and will offer their monetary retrieval services. But before tracking your lost funds, they will ask for an upfront payment in the form of a service fee. Once this commission is paid, the recovery agent will disappear alongside your money!