Beware! Bilaxy EX 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.
Bilaxy EX is an anonymous, poorly designed and un-functional website full of contradictory and incorrect information. Therefore, we have no reason to believe the claims that this is a secure and well-established cryptocurrency trading exchange. Bilaxy EX is obviously one of the many online scams trying to capitalize on the hype around Bitcoin and people’s desire for easy riches. Therefore, it is in your best interest to avoid Bilaxy EX.
BILAXY EX REGULATION AND SAFETY OF FUNDS
When you visit the website of a legitimate financial services provider, you can expect the index page to include detailed information about its legal and regulatory status. The main page of the Bilaxy EX website does not even list a company name or address. It also lacks any contact information – the only way to contact the people behind this website is via live chat.
The “About Us” section states that the unnamed company is registered in Seychelles. Meanwhile, on the same page we see images of multiple purported licenses to operate in Australia, the US, Canada, Singapore and British Columbia. These documents show the names of two different companies – Newport Ex Pty Ltd and Xingang Exchange Limited. These are existing companies, but both have nothing to do with the Bilaxy EX website. Their names are only visible in images uploaded to the website, so their misuse cannot be detected by internet search engines. Also neither these two companies nor the bilaxyex.co domain can be found in the Seychelles Financial Services Authority (FSA) database.
When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.
Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
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, AUD 1000 000 in Australia and at least 20 million USD in the United States.
BILAXY EX TRADING SOFTWARE
Apart from the fact that Bilaxy EX is not authorized to provide brokerage services, the trading that this website claims to offer is completely fictitious. This is evident from the fact that Bilaxy EX has no real trading software.
At the time of writing this review, registering a new account with Bilaxy EX is not possible. But the website allows access to the supposed trading platform without registration. The platform in question consists of a simple chart with current cryptocurrency prices taken for free from the TradingView website. In addition to this, there are non-functional buy/sell buttons, and there are even no features for placing pending orders. The Bilaxy EX is clearly a low-effort scam, relying on fooling people with no knowledge or experience of financial markets.
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.
BILAXY EX TRADING CONDITIONS
One more thing you can expect from a legitimate broker that is missing from the Bilaxy EX website is clear and detailed information about trading conditions. Genuine brokers offer different account types tailored to the needs of traders with different experience, capital and investment intentions. Most licensed brokers allow you to start trading with a very low minimum deposit of 100-200 USD, and often with even lower amounts.
The only specific value that is specified in the Bilaxy EX’s “registration agreement” are fees for opening and liquidating a position when trading cryptocurrency pairs. The amount of these fees is significant – 0.2%. But as we’ve seen, you can’t really trade with the fake Bilaxy EX platform.
BILAXY EX DEPOSIT/WITHDRAW METHODS AND FEES
As one would expect from a scam focused on cryptocurrencies, this is the only payment method used by Bilaxy EX. Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller. If you are interested in licensed brokers that also accept cryptocurrencies as a means of payment, take a look at this list.
The Bilaxy EX’s registration agreement states that “this website has the right to adjust the recharge, withdrawal, transaction and other handling fee rates”. But nowhere is the exact amount of these fees specified.
HOW DOES THE SCAM WORK
While browsing the interwebs there is a significant chance you will come across comments, videos, social media pages that promise easy ways to passively make money. If you follow the links you will be taken to websites claiming to be legitimate brokers or investment firms. And if you take the next step and make contact with the people behind these websites, you will be contacted by slick and experienced scammers who will lure you in with promises of easy profits. For a while they will convince you that your investment is generating impressive returns and you need to pour in even more money to make sure you don’t miss out on this once in a lifetime opportunity.
However, the attitude towards you will be changed if you want to withdraw your money. Suddenly, it will turn out that your investment makes losses and you even owe money to the fake broker for unexpected fees and expenses. They will show you clauses hidden in the Terms and Conditions, according to which you can only withdraw money after you have traded an impossible minimum volume, or that you will have to pay withdrawal fees of 20%, 30% or even more. When you try to hold them accountable you will find they are using fake names and shell companies in shady offshore jurisdictions without any regulatory oversight.
WHAT TO DO WHEN SCAMMED
Your options to recover your money are limited. If credit/debit cards were used for the transactions, you have the possibility to request a chargeback. But most scammers insist that you send them proof of identity and address with which they can dispute that the transactions were legitimate. Fraudsters also predominantly use cryptocurrencies, where refunds are impossible.
You should also be aware that there are many scammers who offer to recover your money for an upfront fee. You should not trust such offers. It is better to contact the relevant authorities in your country and warn them about the activities of the scammers.