Beware! Bitmoon24 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.
It is clear as day that Bitmoon24 is an awful choice for a broker – despite all its bold claims, this is just an unlicensed, anonymous company that prefers to choose its clients itself and could not offer you any security or transparency. You will surely lose money if you deposit with Bitmoon24 – turn to a legitimate broker to trade safely.
Bitmoon24 REGULATION AND SAFETY OF FUNDS
Bitmoon24 is a broker who chose to be completely anonymous – the only contact information you will find on the website is an email. No phone number or address were provided, and the broker did not disclose anything about itself – just the same old bold promises of “building a community of users with varying levels of experience, utilizing digital tools, and navigating diverse digital assets on a secure, user-friendly platform”. That is all you will learn about the broker.
If you take a look at the Terms and Conditions, you will learn that Bitmoon24 is run by a company called Saletina ltd which is based in the Marshall Islands.
And while we could not find out anything about the company, the fact that they are based at that specific location speaks for itself. The Marshall Islands are quite popular among scammers these days – the country does not have a financial authority, and setting up a company there is more than easy. All you need is access to the Internet – you would not actually have to visit the Marshall Islands in order to register a company. This means that pretty much anyone who has the desire to start offering complex financial services would be able to do so – without having to take into account procedures, and requirements, or falling under the supervision of a strict financial authority. Such offshore locations are also popular for another reason – offshore companies are not obligated to report transactions which makes money transferred to such countries quite untraceable.
Compare that to the situation brokers licensed in the UK, the EU, and Australia have to face. These are all strict jurisdictions where brokers are expected to follow many laws and maintain a high standard and report regularly to reputable authorities. Licensed companies have to show that they are financially stable by maintaining the minimum capital of €730 000 in the UK, and the EU, and A$1 million in Australia – the number could be much higher for brokers with many clients though. Negative balance protection is provided to all retail clients – you could never suffer losses exceeding the amount of money you have in your account at the time. Client funds are kept in separate bank accounts – this ensures transparency, speeds up withdrawals, and proves the broker would not be able to reinvest your money elsewhere. EU and UK brokers also participate in compensation schemes – if a licensed broker becomes insolvent, the capital of each of their clients would be ensured up to £85 000 in the UK and €20 000 in the EU.
Bitmoon24 TRADING SOFTWARE
Supposedly, Bitmoon24 offers some sort of innovative web-based trading solution. However, we were not able to access this broker’s platform, or Client Area – Bitmoon24 would simply not allow us to open an account. Some scam brokers pull off such tricks – they prefer to choose their victims themselves and would not allow just anyone to open an account. In contrast to that, legitimate brokers are usually eager to show you what they are capable of with demo accounts – and would never discriminate against clients in such a way.
Whatever the case might be, we are sure that the platform Bitmoon24 could offer us would be inferior to industry leaders MetaTrader 4 and MetaTrader 5. It is easy to see why the software has remained popular since its introduction more than 15 years ago – both versions of MetaTrader are user-friendly and intuitive but not at the expanse of functionality. The platforms provide access to useful features such as Expert Advisors that trade automatically in accordance with an algorithm, VPSs you could purchase to keep your trading bots open even when your computer is off, Strategy Testers, the opportunity to set signals or to subscribe to those set by others for a small monthly fee, the chance to create custom indicators and trading bots, a market for add-ons, and much more. Enough legitimate brokers can offer one or both platforms – trade with one of them instead.
Bitmoon24 TRADING CONDITIONS
Bitmoon24 did not bother to say anything about the trading conditions it offers on the website and as we were unable to set up an account, we could not check what the broker had in store for us ourselves. However, it is obvious that this is a scam – it would be a shame to invest with a broker like this one when many legitimate brokers offer great conditions of affordable trading accounts – sometimes for a minimum deposit as low as $5.
Bitmoon24 DEPOSIT/WITHDRAWAL METHODS AND FEES
In the Terms and Conditions, Bitmoon24 stated that it accepts deposits made via wire transfer, credit or debit card, or in cryptocurrencies. We could not open an account and verify the truth of those claims – we would not, however, advise you to deposit any sort of money with such scammers. If you have and have managed to use a Visa or MasterCard card, that is good news – both card providers allow chargebacks within 540 days of the transaction. Contact your card issuer immediately to ask for assistance in retrieving your money. The situation is different when it comes to wire transfers and cryptocurrency transactions – such payments are more or less irreversible.
HOW DOES THE SCAM WORK?
In this day and age, such scams are far more frequent than you would think. With the rising number of people willing to invest in the forex market, the number of scam brokers has increased drastically. It is important to learn how such scams work in order to spot them and avoid them. Scammers are rarely very imaginative so you would not find a lot of deviations from the following scheme.
In your search for a broker to start trading with, you stumble upon one who promises particularly great conditions. Or maybe you were not even looking for a broker but have heard stories about people getting rich by trading and are tempted to see what all the fuss is about. This particular broker promises fast effortless profits, enormous promotions, and an all-around great trading environment. So you fall for it and provide the scammers with your email and phone number.
The moment you do that, you will start getting calls from the broker asking you to invest – the scammers will be persistent and promise you all sorts of tempting profits. If you give in and deposit, you will be asked for increasingly bigger amounts – and you will gladly deposit because, at this point, you would probably be seeing profits.
The problems will start once you try to withdraw those amazing profits – all sorts of additional fees and clauses in the Terms and Conditions will prevent you from doing so, or result in huge losses of capital. At some point, you will understand that you are being scammed – but the scammers will be long-gone by then.
WHAT TO DO WHEN SCAMMED?
Prevention is key in such situations. Make sure that you choose a reliable brokerage with a solid reputation, and always check the registers of the responsible authorities to make sure that all of the broker’s regulatory claims are true. Do not trust offers that are too good to be true.
If you have, however, already deposited with a scam broker, make sure to look up chargeback options as soon as possible. Both Visa and MasterCard, for example, allow chargebacks within 540 days of the transaction. Getting your money back if you have deposited via cryptocurrency or bank transfer, would not be possible. You should make sure to change all banking passwords, and remove any software the scammers had you install from your computer. They might have you believe that you should install some sort of remote access software to help you trading, or with technical issues but that is a lie – they just want access to your banking accounts.
Make sure to notify authorities about the scam and share your story with as many people as possible – this would prevent such scams from spreading.
Finally, do not trust anyone – usually calling themselves a “recovery agent” – who offers to retrieve your money for a fee. This is just another type of scam.