Beware! BTCLeader 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.
BTCLeader claims to connect its traders to CFD trading on Currency Pairs, Stocks, Commodities, Indices and Cryptocurrencies via cutting-edge technology and a neverending network. It also states that it strives to create the perfect trading environment. Well, the truth is quite the opposite- the broker promises big, but it’s thin in substance, as you’ll see in the full BTCLeader review.
BTCleader REGULATION AND SAFETY OF FUNDS
To cut it short, our research showed that BTCLeader is not associated with licensed companies, so it’s unregulated, meaning that your funds will be at risk if you deposit. However, as we looked more closely at the broker, we found some disturbing facts, so we reasonably put it on the list of scam suspects.
The first thing to note is that BTCLeader is a brand of a company registered in the Marshall Islands– an offshore country with no financial regulator, let alone a strictly monitored market. At the same time, though, according to the Terms, it’s somewhat linked to Estonia, which makes the whole situation hard to comprehend. Why does a company registered in the Marshall Islands have something to do with Estonian courts?. There is certainly something fishy going on, so BTCLeader is worth being avoided.
On the other hand, though, BTCLeader promises to keep customers accounts segregated, which would be great, only if it was a legit broker. There are two problems here. First of all, there is no regulator to monitor the broker and guarantee that it keeps its promises. Secondly, every deposit goes offshore, where the money literally disappears, so it doesn’t matter if there is segregation or not. The offshore registration makes BTCLeader a suspected scam because if it were reliable, it would get a trustworthy license to prove it has business-like intentions only. Now, we don’t know what the broker’s real purpose is!
That’s why we urge people to trust regulated companies holding a license issued by reliable authorities like FCA (Britain), CySEC (Cyprus), ASIC (Australia) and NFA (US), to name but a few. For example, due to regulations, EU licensed brokers store deposits in segregated bank accounts, which improves transparency and guarantees funds won’t be misused or embezzled. Most importantly, though, if a broker goes into trouble, clients’ money won’t be lost because it’s kept by solvent banks instead. On the contrary, BTCLeader’s clients won’t see a penny if it suddenly disappears, which often happens to offshore brokers- they vanish with no traces left behind.
Avoid it and better see the high-rated EU brokers and British brokers we recommend. The licensed companies on top of the lists are stringently regulated and further covered by insurance funds protecting deposits- CySEC brokers’ clients can get up to €20 000 in compensation, while the British guarantees are even up to £85 000. That’s another layer of protection for traders, and you’d better consider it before making any deposits whatsoever.
BTCleader TRADING SOFTWARE
BTCLeader allegedly holds cutting-edge technology, but it actually comes with a scrappy Webtrader offering Crypto/Crypto pairs for trading only- a red flag because the broker promises many other instruments like Forex, too. In fact, even the most popular EUR/USD is not available for trading, and that’s fishy.
That being so, why don’t you see the licensed high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists? We recommend the MTs, as the platforms come with sophisticated features such as complex indicators, reliable charting tools and even EAs making automated trading possible. Any licensed MetaTrader broker can offer better software than BTCLeader.
The trading costs are also unfavourable- 260 points difference in BTC/USDT (around $260 per lot traded), which means that people won’t be able to make any money whatsoever. In contrast, most of the regulated brokers offer BTC/USD for less than $100- a good reason alone to avoid the otherwise very suspicious BTCLeader.
As to leverage, it’s up to 1:200– a suicidal ratio for Crypto/Crypto pairs. By default, it’s 1:5, but this one is also considered unsuitable for most investors (maximum 1:2 in EU). In fact, leverage is very dangerous, so it’s been a subject of regulations for quite some time. Namely, licensed EU, British and Australian brokers have to limit clients to 1:30 leverage for FX majors, while US brokers can’t provide more than 1:50.
BTCleader DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $250 allegedly via plenty of funding methods. However, as we tried the system, it turned out that only Crypto deposits are possible. As you can see on the screenshot below, the deposit goes through the crypto wallet Finanic where people use their bank cards to buy digital money and send it to the broker. That’s misleading, and it’s actually a strategy often deployed by scammers to avoid dealing with chargebacks. You’d better avoid BTCLeader!
Instead, see our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a trusted payment system. The high-rated companies are strictly regulated and safe to trade with.
As for withdrawals, the minimum is $50, and each transaction costs 3.5% (the minimum is $30)– a midday robbery. However, that’s just the beginning. The broker also collects a maintenance fee of $20 each month, charges a commission fee of $1.5-$5 per each trade, charges another $50 for a month of inactivity and also imposes a penalty Verification fee of $50 if clients haven’t uploaded documents. Unacceptable!
Another thing worth noting is that trading incentives worsen withdrawal conditions significantly. Also, the clause is a total mess, as you can see below: clients need to either trade 30 times bonus plus deposit or 40 times to become eligible for withdrawal. What a failure! But that’s not all. BTCLeader also speaks about buying options, which left us bewildered. Does it actually provide Binary Options? If it does, then BTCLeader is 100% fraud because these are no longer considered trading instruments but gambling. Beware!
HOW DOES THE SCAM WORK
At the end of the broker’s assessment, we can only conclude that BTCLeader is highly controversial and totally unreliable. That’s most probably a scam scheme, so make sure to stay away. Below, we’ll quickly relate how scams usually happen, and we won’t be surprised if BTCLeader acts in the same or very similar way.
The Forex scam includes numerous stages, and that’s why it’s so nasty. Think about this: you paid for a pair of shoes, received nothing in exchange for your money, and you were one time scammed with $50. That’s it. However, in a Forex scam, you can get tricked into depositing multiple times and find yourself heavily ripped off in the end.
Usually, as a wary trader, you’ll put a small amount at the beginning- let’s say $250 and scammers will thereon falsify your results or distort market prices in your favour to make you believe you are successful. Indeed, you’ll see your account hugely profitable, and the cons will persuade you to deposit again, tricking you into thinking that you can gain even more. However, sooner or later, you’ll want to take the profits out, but they won’t let you do so and will push you to invest even more money. If you are determined to get your funds back, though, scammers will know you are done and will ask you to pay a tax if you want to withdraw. That’s usually the end of the scam because if you pay, they won’t send any money but will ask you to pay again, and if you refuse to follow their instructions, the fraudsters will simply stop answering your calls.
WHAT TO DO WHEN SCAMMED
Unfortunately, anyone can get defrauded. In the unfortunate case, you should reduce further risks as soon as possible- deactivate your card and call your bank to inform them what happened.
Report to the authorities and call the police. Seek help actively!
Remember, you need to be patient because many fraudulent chargeback agencies and individuals will try to milk you again, pretending that they can get your money back in no time in exchange for an upfront payment. Getting your money back is a time-consuming process.
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