Beware! 1Bitcoin Group 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.
1Bitcoin Group claims to provide a fast and lag-free intuitive trading platform for maximum profitability, high leverage, ultra-low transaction fees and guaranteed withdrawals within an hour. However, in its T&Cs, the broker badly contradicts itself, which is a red flag nonetheless. 1Bitcoin Group is a scam, and we are going to prove it in the following review.
1Bitcoin Group REGULATION AND SAFETY OF FUNDS
1Bitcoin Group is allegedly headquartered in Bulgaria, so it needs a license issued by the local regulator FSC to work legally. It has none, so it’s not a legit Bulgarian broker. However, the Terms reveal that it’s operated by XXXXXXXXX, so no further commentary is required. That’s a scam!
Still, while assessing the broker, we found signs that it’s likely a Forex broker originating in Seychelles. The country mentioned regulate its Forex market, but there aren’t many customer protection measures undertaken. The single one worth mentioning is the capital adequacy requirement of $50 000, which doesn’t really change things much. Seychelles licensed brokers are not forced to keep clients accounts segregated, so it’s risky to deal with them.
Well, 1Bitcoin Group isn’t regulated in Seychelles either. Still, as it puts the country in its Terms, that indicates people’s deposits are going offshore where literally no one can track the money down, let alone reclaim it. Seychelles may regulate its Forex market, but it still allows the creation of International Business Companies (IBCs) with hidden ownership, which actually greatly facilitate fraud. Those things considered, we can confirm that your funds will be in danger if you deposit.
That’s why we endorse regulated companies holding licenses issued by trustworthy authorities only. For example, EU licensed companies, including the Bulgarian ones, should store clients accounts segregated, improving transparency, reducing business risks and overall helps prevent fraud. Most importantly, though, if a licensed broker goes under, its clients won’t lose their money as it’s kept segregated in trustworthy solvent banks.
Now, we’d like to offer the high-rated EU brokers and British brokers on both lists instead of 1Bitcoin Group- note that the licensed ones are also covered by deposit insurance funds. Hence, clients of CySEC brokers can get up to €20 000 in compensation, while the British protections are even greater- up to £85 000 per person. The licensed European brokers are safe, so you can go for it if eligible to open accounts there.
1Bitcoin Group TRADING SOFTWARE
The so-called “intuitive platform” is actually a counter-intuitive piece of a substandard Webtrader that’s worse than useless. On top of that, it reveals that the trading costs favour the broker only- the EUR/USD spread is 4 pips, or in other words, clients pay $40 per lot traded (the industry standard is around $10). Well, we can’t recommend 1Bitcoin Group solely due to the expensive trading service provided.
Anyway, as we are reviewing a scam, you’d better see the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists instead. We recommend MT brokers because both terminals are market leaders packed with sophisticated indicators, reliable charting tools and EAs making automated trading possible.
The leverage is 1:200 by default and can be increased to 1:400 if clients deposit more than 45 Bitcoins (almost 2 million USD in today’s prices- insane). However, the leverage itself proves that 1Bitcoin Group is not a legit Bulgarian broker because the country is already compliant with the EU MiFID 2 guidelines and accordingly restricts leverage.
In fact, leverage is restricted by many trustworthy regulators, and that’s solely due to the excessive risks involved. Namely, licensed EU, British, and Australian brokers have to limit clients to 1:30, while the US brokers to 1:50. In contrast, most of the high-leverage brokers are unregulated, so you’d better be careful with their offers.
1Bitcoin Group DEPOSIT/WITHDRAW METHODS AND FEES
1Bitcoin Group mentions nothing about the minimum deposit, but it lies about the funding methods accepted. It says various options are available, including Credit/Debit cards and Wire Transfers, but it actually takes Bitcoins only. See the screenshot at the bottom of this section for more info, and note that cryptocurrency transfers are final and non-refundable.
Anyway, since the broker reviewed is a scam, check the high-rated Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a trusted payment system. The brokers on top are adequately regulated, and you won’t come across fraudsters.
Minimum withdrawals aren’t specified either, but each transaction costs $70– unreasonably expensive! Moreover, clients have to pay another 20% if they haven’t executed 1000 times turnover (1Bitcoin Group fails to specify what 1000 times mean). That’s a scam!
1Bitcoin Group collects inactivity fees, too: $10 per month if no trades have been executed for 30 days– a standard rate in line with the industry standards actually.
HOW DOES THE SCAM WORK
We exposed 1Bitcoin Group as a scam, so make sure to avoid it no matter what. Below, you’ll see how scams usually happen, and the broker reviewed certainly follow the same or very similar tricks to defraud customers.
It all starts when you click on a fraudulent ad or suspicious social media profiles offer you deals that sound too good to be true. Once scammers get your e-mail and phone numbers, they will immediately approach you, and being seasoned manipulators will start insisting that you should deposit as quickly as possible. They will promise bonuses, promotions, risk-free offers, Bitcoin opportunities, and anything else you could possibly imagine to lure you. To make an impression, scammers often pretend to work with reputable firms, banks, governments and so on, and if you are not careful enough, you may get tricked into believing it’s a serious business.
Usually, scammers pretend to manage your account, and soon, they’ll show you fake profits on your name. Thinking that you are in the money, you’ll probably ask for a withdrawal, but they’ll promise even greater gains. If you believe them, you’ll increase the deposit size, and those criminals will ask for even more, again and again. At some point, you’ll insist on getting your funds back, and as soon as the cons realise they have milked you for your savings, they’ll disappear. But before they get lost, they’ll give it a last try, asking you to pay a hefty tax if you want to withdraw all the money in the account.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is safe from scams. If you get defrauded, the first thing you need to do is protect yourself from further risk. Deactivate your card immediately, contact your bank and ask for advice.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police. Seek help actively!
Remember, it’s crucial not to rush blindly to recover your funds because fraudulent fund recovery agencies are trying to double scam the victims. They ask for upfront payment, take the money but don’t do a thing to help you!
Last but not least, share online your experience; it’s important to protect others, as well. Be responsible!