Bitmas-Trade review – 5 things you should know about bitmas-trade.com

Bitmas-Trade review – 5 things you should know about bitmas-trade.com

Rating: 1

Beware! Bitmas-Trade is an offshore broker! Your investment may be at risk.

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Bitmas-Trade claims to be a broker offering forex, stock and cryptocurrency trading. But even a cursory glance at the low-quality, bare-bones website tells us this can’t be true. Fact-checking confirms that this is no broker, but a scam designed to cash in on the hype around cryptocurrencies. Under no circumstances should you trust your money to Bitmas-Trade.

BITMAS-TRADE REGULATION AND SAFETY OF FUNDS

Brokerage firms are required to provide detailed information about their legal status, the licenses they hold and the regulatory institutions that supervise their activities. The Bitmas-Trade’s website does not even mention the name of the legal entity that runs this alleged broker. The obligatory warning about the risks of trading in financial instruments is also missing.

The listed contact address is in a small town in the United States. There is a link on the website to supposed ‘company documents’, but it leads to a profile of a dissolved company in the UK. The company in question has quite an unusual name for a broker – Quality Mining Parts Ltd.

This lazy attempt to fake legitimacy is enough to rule that Bitmas-Trade is not a real broker. For the purpose of this review, though, we checked the databases of financial regulators in the US and the UK. In both cases, we found no licensed brokers with the name “Quality Mining Parts” or “Bitmas-Trade”.

We found these names on the website of another regulator, the Spanish National Securities Market Commission (CNMV). But it is not a case of proof of legitimacy, but a warning that the Bitmas-Trade offers financial services without authorisation:

If you have decided to start trading with financial instruments you should be very careful not to fall into the clutches of the many such scammers. You should always certify that the broker you choose is actually licensed by a reputable regulatory institution such as UK’s Financial Conduct Authority (FCA), some EU regulator like Cyprus Securities and Exchange Commission (CySEC) or Commodity Futures Trading Commission (CFTC) in the US. Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.

In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus and at least 20 million USD in the United States.

BITMAS-TRADE TRADING SOFTWARE

The most important trading tool in the financial markets is trading software. However, Bitmas-Trade does not have one. If you need further proof that Bitmas-Trade is not a genuine broker, this is it.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

BITMAS-TRADE TRADING CONDITIONS

Although Bitmas-Trade presents itself as a “true ECN broker”, the website lacks information on the basic parameters associated with this type of trading. Instead of different types of trading accounts that brokers usually offer, the Bitmas-Trade  website describes some kind of deposit plans promising incredible returns.

The minimum deposit is 500 USD. By comparison, many legitimate brokers make it possible to start real trading with a deposit of 100 USD  or even less.

No spread or commission information is listed anywhere. The only trading parameter mentioned on the website is leverage – up to 1:500. This in itself is also evidence that Bitmas-Trade could not be a licensed broker operating in the US or UK. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.In the US, the maximum limit is slightly higher at 1:50.

The Terms and Conditions of the Bitmas-Trade consist of only a few paragraphs of generic wording, so do not provide any specific information.

BITMAS-TRADE DEPOSIT/WITHDRAW METHODS AND FEES

Bitmas-Trade’s payment method of choice is Bitcoin. The only way to deposit funds is to send them to the specified Bitcoin wallet.

Fraudsters predominantly use cryptocurrencies because these transactions are difficult to trace and non-refundable. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.

Bitmas-Trade does not provide information about fees and terms associated with deposit and withdrawal. However, the lack of information on the website doesn’t mean you won’t be unpleasantly surprised with hefty fees or impossible to meet requirements if you ask to withdraw your money.

HOW DOES THE SCAM WORK

Trading in financial instruments is a risky business even for experienced investors using the services of reliable brokers. For newcomers, there is also the risk of being deceived by the many scam websites posing as brokerages. These websites are operated by skilled and cunning scammers who lure you with promises of easy profits. Usually these scammers promise to take care of all the bits and pieces of investment for you, but many even use real trading platforms to fool you that your money is really being invested. After investing an initial low amount, they will convince you that you are already making incredible profits and urge you to invest more.

But your money is not invested and you will never see the promised returns. When you ask to withdraw even a portion of your money, you will be surprised by impossible to meet minimum trading volume requirements and hidden fees that amount to tens of percentages of your funds. Scammers hide behind fake names and offshore companies that are uncontrolled and unregulated, so it will be impossible to hold them accountable.

WHAT TO DO WHEN SCAMMED

If you find yourself in a similar situation, you can request a chargeback. However, this option is only possible if you have used a credit or debit card for the transactions. Visa and MasterCard allow this to be done within 540 days. But if you have provided the scammers with proof of identity, such as an ID or proof of address, these claims can be disputed. Bank wire transfer or cryptocurrency transactions are non-refundable.

In any case, you should inform the relevant authorities in your country about the activities of the scammers and warn other potential victims online. You should not trust offers to return your money for an upfront fee. This is also a known scam and all testimonials from satisfied customers are fake.

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