Beware! MarketsBits 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.
MarketsBits is an anonymous website claiming to be a brokerage firm offering trading with currencies, commodities, cryptocurrencies and stocks. In fact, this is another poorly disguised scam operation designed to defraud you out of your money.
MARKETSBITS REGULATION AND SAFETY OF FUNDS
Nowhere on the MarketsBits’s website can one find any indication of the legal entity behind this operation, which is unusual even for most fake brokers. This, along with the missing functionality on the website, suggests that at least at the time of writing this review, this scam is still a work in progress.
Among the numerous disclaimers in the terms and conditions can be found few passing references to “laws in Estonia and Grenadines”. This suggests a popular scheme among fraudsters – a correspondence address in Estonia and registration in an offshore zone. Thus, scammers exploit Estonia’s image as a country open to modern opportunities such as cryptocurrencies, while taking advantage of the lack of regulation in the St. Vincent and the Grenadines. Тhe Financial Services Authority (FSA) of St. Vincent and the Grenadines has repeatedly issued warnings that it does not regulate the activities of forex and CFD brokers. The latest such warning dated 23 June 2021.
Also, any broker genuinely operating in a European Union member state like Estonia would have to abide by thorough and strict regulations in line with ESMA guidelines. These include negative balance protection and segregation of the client’s funds from the broker’s funds, as well as participation in Investment Compensation Fund which guarantee up to EUR 20,000 of client investment. This guarantee is even higher in the UK – 85,000 GBP. So we strongly recommend that you approach brokers working under the supervision of regulatory institutions such as the Financial Conduct Authority (FCA) or the Cyprus Securities and Exchange Commission (CySEC).
MARKETSBITS TRADING SOFTWARE
The incompleteness of the MarketsBits’s website is evident from the lack of trading software. The website mentions that an unspecified webtrader is used, but the link to it leads to a blank page. There is also no option to open or download a trading platform after logging into the client system. Credible brokers offer clients multiple trading software options, which typically include the industry’s most popular platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
MARKETSBITS DEPOSIT/WITHDRAW METHODS AND FEES
While logos of payment services such as Visa, Mastercard, OKPay and Wire Transfer can be seen on the website, there are actually no active deposit and withdrawal options. As is common for fraudulent operations, numerous fees and withdrawal conditions are mixed into the terms and conditions. First there is a 50 USD/EUR/GBP withdrawal/refund fee for wire transfer and 25 USD/EUR/GBP for credit card transfer, plus additional processing fee 10 USD or the equivalent amount in other currencies. In addition there is a levy of 10% of the withdrawal/refund amount, which will be charged from accounts that “have not executed more than 200 in turnover”. If the client did not log in and trade from his account within three months, the account will be subject to a deduction of 10% each month.
Like many other scammers, MarketsBits promises unspecified bonuses – though bonuses and promotions are no longer allowed by regulators in the EU, UK and US. The withdrawal of these bonuses is subject to a minimum trading volume. In one place in the documents this volume is listed as “30 times the deposit amount plus the bonus issued”, but in other places it is 25 times.
The terms and conditions also state that any funds in the client account that are not directly deposited by the client, including bonuses and profit, are not actually the client’s money. They are not available for immediate withdrawal and MarketBits “have full right to reclaim any and all such funds”.
The different account types are also incomplete and their names and terms are repeated. However, from the available information, it is understood that the minimum deposit is 250 EUR and the promised spread is 1.3-1.5 Pips. This is comparable to the average levels at legitimate brokers, but MarketsBits is not a legitimate broker. This is also evident from the leverage promised, which is up to 1:300 – ten times higher than the levels allowed by EU and UK regulators.
HOW DOES THE SCAM WORK
Unfortunately, for every licensed broker, there are dozens, if not hundreds of offshore registered and unregulated firms whose sole purpose is to scam gullible people. They recruit through attractive online ads, promising easy money for minimal effort. Once you have provided your details and they contact you, you fall into the hands of experienced scam artists, who confidently charm you until they con you out of real money in exchange for empty promises. Any attempts to recoup your initial deposit or additional investment will be blocked by confusing explanations and the catches written into the terms and conditions of the contract, such as hefty additional taxes and fees, amounting to 10% or 20% of your funds.
WHAT TO DO WHEN SCAMMED
The best chance to get at least some of your money back is to contact the bank or card company where the payment was made and ask for cashback. But there is no guarantee that your application will be approved, especially if you have provided your personal details like a copy of ID or proof of address to the scammers. It is important not to pay attention to offers from online companies to return your money in exchange for an upfront payment, because it is almost certain that they are also scammers.