Bot4x Review – 5 things you should know about bot4x.com

Bot4x Review – 5 things you should know about bot4x.com

Rating: 1

Beware! Bot4x is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

Forex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

Bot4x is by no means a broker you should consider investing with – this is one of the most obvious scams we have seen recently. Not only is the broker not licensed but they have the audacity to claim that they are – only by a reputable organization. The lack of legal documentation and the fact that the broker is using another broker’s trading terminal only sealed our conviction that Bot4x is best avoided.

Bot4x REGULATION AND SAFETY OF FUNDS

Bot4x claims to be based and registered as a company in the UK:

However, the broker is definitely not regulated by the UK financial authority the FCA – a quick registry check confirmed that:

If a broker wants to legally offer services in the UK, it should be licensed by the FCA – which just so happens to be one of the most reputable financial authorities in the world – and meet many requirements. All UK brokers have to prove their financial stability before they can obtain a license – that is done by them maintaining a minimum capital of €730 000. Regulated brokers are supposed to report to authorities on a regular basis to ensure transparency. Client funds are kept in segregated bank accounts which proves that the broker would not be able to use your investment for their own financial operations, speeds up withdrawals, and keeps your money safe in cases of broker insolvency. Negative balance protection is a must – this prevents you from losing more money than you have in your account. Finally, in case your broker becomes insolvent, you could receive a compensation of up to  £85 000 – because all UK brokers participate in the Financial Services Compensation Scheme (FSCS).

Bot4x claims to be regulated by a different authority altogether – a non-commercial organization called International Financial Market Relations Regulation Center (IFMRRC).

We have encountered this organization before – it is one of these organizations created with the very purpose of licensing and providing cover for scam brokers. Not one of the brokers regulated by IFMRRC has ever turned out to be legitimate – this is another reason why you should think twice before trusting Bot4x with your money.

Bot4x TRADING SOFTWARE

Bot4x claims that it offers access to the leading trading platform MetaTrader 5. We were indeed able to download the software from the broker’s website but we were not surprised to learn that this MT5 terminal actually belonged to a different company – Bull Capital Trading Inc Ltd. That broker is supposedly based in the UK but was also not regulated and did not seem any more reliable than Bot4x.

Take a look at their MT5 terminal below:

MT5 is one of the best platforms out there and we would definitely recommend that you try it – just make sure that the broker is licensed first. The software is intuitive, robust, and efficient and offers a wide variety of tools and features. You would be getting access to a full charting and analysis package, features such as Expert Advisors that track markets and trade automatically, VPSs you could purchase to keep EAs operating even when your computer is off, multi-threaded, multi-currency Strategy Testers, the chance to set signals for prices going up or down, well as the possibility to create your own trading bots and indicators, a community chat where you could exchange strategies with others, a built-in economic calendar, hedging and netting options and much more.

Bot4x TRADING CONDITIONS

It is not quite clear what condition Bot4x offers exactly since the broker provides contradictory information. The broker mentioned on multiple occasions that it asks for a minimum deposit of $1000 – but then claimed that you could open a Standard account for as little as $10. $10 is a decent price, $1000 is not – however, many great brokers would open a trading account for $10 or less, and provide the safety of a solid license.

The spreads we got on MT5 were extremely attractive – 0.5 pips on EURUSD. It is even more impressive that the spread is so low since Bot4x does not charge a commission. However, this is not the broker’s own terminal – so we have our doubts that trading on it would actually be as lucrative as it promises to be.

The maximum leverage we were promised was 1:500 on forex majors – which proves with absolute certainty the broker could not be licensed in the UK, Australia, or anywhere in the EU. Trading with such high leverage could turn out to be quite dangerous and lead to much bigger losses of capital than you would suffer if you were trading with lower rates. That is why the maximum leverage retail clients could get access to is restricted in many jurisdictions. In the UK, the EU, and Australia, the number is 1:30 – as you can see, much lower than 1:500.

Bot4x DEPOSIT/WITHDRAWAL METHODS AND FEES

You would not be able to deposit with this broker before verifying your account – in fact, you would not even be able to see which deposit methods are available. According to the information on the website, Bot4x accepts deposits made via a “Visa or MasterCard, Paypal, WebMoney, Neteller, and over 20 e-wallets” – however, we cannot confirm that information. Our advice is to not deposit with this broker at all since you will most probably end up scammed.

Bot4x has not provided any sort of legal documentation which means you can never be sure what sorts of crazy fees might appear in the future. Always read the Terms and Conditions carefully and always know exactly what you are agreeing to.

HOW DOES THE SCAM WORK?

Scam brokers are becoming more and more of a constant feature in the world of financial frauds – which means that more and more people are losing their hard-earned money by depositing it with such unreliable companies. We advise readers to always turn to licensed enterprises and thoroughly check registers. Let’s take a look at how such scams usually work and how you can protect yourself from them.

You stumble upon a broker who seems to offer fast, effortless, sometimes guaranteed profits – and decide that there is no harm in opening an account with it to see what it has to offer. After all, you have heard stories of people earning a decent income by trading – why not be one of them. You would not have to deposit, not immediately. But the moment you provide the broker with your phone or email, they would not leave you alone before you do so. You will be promised all sorts of great things – after all, these are people who scam people for a living and who are well-accustomed to convincing. The initial deposit might not be big – but you would be asked for more and more money with time. In some cases, you might even see that money grow – but that is nothing more than a trick that usually involves some sort of platform manipulation.

A time will come though when you will want to withdraw money – and you would not be allowed to do so. The broker will claim that you have not fulfilled a clause in the Terms and Conditions, that there are additional taxes, and that you are obligated to wait a certain time before withdrawing. At this point, you will understand that you are being scammed – but the broker will disappear as soon as they discover they can no longer milk you.

WHAT TO DO WHEN SCAMMED?

The first thing you should do is change all your banking passwords, and uninstall any remote access software (if you have installed any). After all, you would not want the scammers to have any sort of access to your bank account so they could drain it.

Do not trust any so-called “recovery agencies” who ask you to pay a fee so they could track down the broker and retrieve your money – this is a whole other type of scam targeting desperate people. What you should do instead is inform the actual financial authorities, and look into chargeback options – both Visa and MasterCard, for example, battle scams by allowing chargebacks within 540 days of the transaction.

One final thing – it is important to share your story with as many people as possible. The more people know about this sort of scam, the fewer people will fall victim to it. Unfortunately, such stories rarely get a happy ending – which is why prevention is key.

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US4.99/5$50 Click for a special offerWebsite
UK, Cyprus, Belize4.94/5$5 Click for a special offerWebsite
Australia, Cyprus4.93/5$100 Click for a special offerWebsite
Cyprus, SVG4.8/5$100 Click for a special offerWebsite
Cyprus4.75/5$100 Click for a special offerWebsite
New Zealand4.65/5$1 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *