Beware! QuantBitex 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.
On its interface, QuantBitex boasts to be offering a high variety of assets with low spreads and next to no fees. Let’s find out if this broker is as attractive as it sounds. Here are the facts.
QuantBitex Regulation and safety of funds
We find on QuantBitex website that the address of the company is in Switzerland. We checked the register of the Swiss Financial Market Supervisory Authority (FINMA), the official body that regulates forex brokers but the name of the company did not appear to be in it. This fact tells us that QuantBitex is non-registered and therefore non-legit broker.
Moreover, the Belgian Financial Services Markets Authority (FSMA), has issued a warning not to join this broker as its services are fraudulent (image below). This should be sufficient proof that engaging in any trading activities with QuantBitex will not be safe for your precious money.
Swiss brokers are strictly regulated by FINMA and as per its requirements, they are obliged to maintain an operational capital of at least 20 million CHF at all times which is a very serious amount of money. In addition to that, clients funds are guaranteed against bankruptcy up to 100,000 CHF.
If you are looking for a legit and reliable broker to trade with, you might also want to explore the trading conditions in the EU and the UK which are also very favourable. In both jurisdictions, brokers must deposit an initial capital of 730,000 EUR, keep clients’ funds segregated, provide negative balance protection and keep low leverage. The major difference is shown in the compensation amount which clients can obtain if the broker becomes insolvent. UK brokers participate in the local Financial Services Compensation Scheme that will provide up to 85,000 GBP per client if the broker goes bankrupt. On the other hand, EU brokers participate and deduct funds towards a local investor compensation fund from which clients can be repaid up to 20,000 EUR per client if the broker becomes insolvent.
QuantBitex Trading software
QuantBitex trades in cryptocurrencies, commodities, forex, indices and stocks and. The trading software it offers is a web trader, however, the link for registering a trading account is broken. From the information available on the website we understand that the trading software offered to the clients is supposedly web trader.
From the information regarding the different account types (image below), we can get an idea how the platform is set up by the parameters for the leverage. If you look attentively, you will notice that the leverage offered for the different accounts is different. For example, for the Basic account it is 1:50, for the Silver, 1:100, the Gold, 1:200 and for the Platinum account, 1:400. For your information, EU and UK brokers must not exceed leverage that is higher than 1:30 which is one of the measures to protect clients from exposing to risk their precious funds. High leverage may look tempting as it looks like it increases the chances of making a big win. However, given the fact that around 70% of traders lose in transactions, chances are that traders are more likely to lose and their financial loss will be amplified by the high leverage.
If you are not very familiar with trading software, let us tell you that a web trader is a rather cheap trading platform with limited functionalities which is often preferred by dodgy brokers. On the other hand, legit brokers would offer good quality trading platforms which in 80% of the cases consist of the MetaTrader 4 or MetaTrader 5 trading platforms. These platforms are considered to be the Rolls-Royces of the forex trade thanks to the excellent package of trading tools and instruments they offer. We can mention here the auto trading option, VPS, code base with customs scripts, trading signals, an app market, a financial calendar, etc. Worth mentioning is also the charting options that contain many charts, time frames, colours and even the option of creating customised templates. Combined with the array of technical analysis indicators, such as Fibonacci retracement, Bollinger Bands, moving averages, etc., help traders predict the future direction of exchange rates and make a profit.
QuantBitex Deposit/Withdrawal methods and fees
QuantBitex offers 4 trading accounts – Basic, Silver, Gold and Platinum. The minimum initial deposit for the Basic account is 250 EUR. The other accounts start at 5,000 EUR, 25,000 EUR and 100,000 EUR.
To feed their account or make a withdrawal, clients can choose between payments made via credit card, bank transfer and Bitcoin.
There is no information what the minimum withdrawal amount is or what fees are applicable.
Trading accounts that stay inactive for a period of 12 months are considered dormant and an annual fee of $30 is applied.
Similarly to other dodgy brokers, this one too offers bonuses. Bonuses may look attractive as it seems like they add mode trading power. However, it is good to remember that they are funds belonging to the broker and usually are accompanied by some very hard to fulfil requirements. In this case, to be able to withdraw the bonus amount, the client must execute a trading volume that equals 30 times the sum of the deposit and bonus amounts. As you can see, this is not something easily achievable. Legit broker would never offer bonuses or other incentives and this is a good way to differentiate them from the dodgy ones.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.