Bitmegachain.com Review – 5 things you should know about Bitmegachain

Bitmegachain.com Review – 5 things you should know about Bitmegachain

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

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Bitmegachain.com is a scam broker that is best avoided – every detail of their presentation speaks of that fact. If you invest with these unlicensed, anonymous scammers, you will be surprised to find out how many ways there are to rob somebody – so stay as far away from them as possible.

Bitmegachain.com REGULATION AND SAFETY OF FUNDS

Bitmegachain.com is a broker that has preferred to keep a shroud of mystery around itself – they are as anonymous as they come. There are some clauses in the Terms and Conditions that imply that the broker is governed by the laws of Estonia.

The registered address they provided was in Switzerland – but the broker was nowhere to be found in the register of FINMA – the Swiss financial authority responsible for licensing forex brokers. This is hardly surprising – Swiss brokers need a banking license in order to operate and such a license is not easy to obtain. They have to prove annual financial reports to promote transparency, maintain a minimum capital of 20 million Swiss Francs to prove their financial stability, and participate in the Swiss Banks and Securities Dealers agreement. Because of that agreement, if such a broker goes bankrupt, each of their clients could receive a compensation of up to 100 000 Swiss Francs.

Bitmegachain.com is obviously not licensed – which makes them extremely untrustworthy and dangerous. If you choose to work with such a broker, you would not be protected by the law in the same way (and get access to the same safety nets) as you would be if you turn to a licensed EU or UK broker. These brokers are reliable because they have to answer to strict authorities and conduct business in a fair and transparent manner if they want to keep their licenses and good reputation. UK and EU-licensed brokers have to maintain a capital of at least €730 000. The number could, however, go up to a few million for brokers with many clients. Client funds must be kept in segregated bank accounts  – this proves that the broker would not be able to use your investment for their own financial operations, and speeds up withdrawals. Negative balance protection is mandatory – this prevents you from losing more money than you have in your account, at least as a retail client. Finally, if you choose a UK or EU broker specifically and that broker goes bankrupt, you would receive a compensation of up to £85 000 in the UK and €20 000 in the EU because all such brokers participate in compensation schemes.

Bitmegachain.com TRADING SOFTWARE

Bitmegachain.com promises an amazing trading experience on a platform “custom-built to deliver maximum performance, flexibility, and speed” that offers “sophisticated trading features, professional charting tools, integrated market insights, and more”. However, when we tried to open an account with the broker and test that amazing platform, the following message appeared:

It seems like the broker does not accept new clients at the moment – which means that we were not only not allowed to get familiar with their trading platform but also were not able to see what sort of conditions the broker offers.

Better turn to a broker who offers an advanced trading platform such as MetaTrader 5. This is currently the most popular platform in the industry and it is easy to see why so many traders have fallen in love with it. The platform is accessible and efficient at the same time and offers access to a variety of tools – an extensive charting and analysis package, Expert Advisors that track markets and trade automatically, VPSs, a multi-threaded Strategy Tester, signals, hedging and netting options, a community chat, a built-in economic calendar and countless other features.

Bitmegachain.com TRADING CONDITIONS

Bitmegachain.com did not bother to mention absolutely anything about essential conditions – you will not find any information about minimum deposit amounts, commissions, spreads, or maximum possible leverage on the broker’s website. And since we could not access Bitmegachain.com’s client area, we were also not able to learn absolutely anything.

But even if it offered the most attractive conditions out there, this broker would still not be used the bother – there are many established, reputable brokers who would not only open accounts for as little as $5, but also offer lucrative conditions on those accounts.

Bitmegachain.com DEPOSIT/WITHDRAWAL METHODS AND FEES

The broker did not explicitly mention which deposit and withdrawal methods would be available – however, they mention withdrawal fees on wire transfers, credit card deposits, and ePayments.

These fees are outrageously high – you would have to pay $50 for withdrawal made via wire transfer, $25 plus an additional $10 for credit cards, and $25 for ePayments. Just consider that many brokers cover all or some withdrawal fees, and even if they don’t, you would not be forced to pay more than a few dollars for a withdrawal made via card or e-wallet. Wire transfers are indeed pricier. You would also be forced to pay a 10% fee if you want to withdraw before your account has been verified, or if you have not reached 200 in turnover – which basically means that the broker is blackmailing you. Most legitimate brokers would deny withdrawals if the account has not been verified but would never demand that you reach a certain turnover in order to withdraw.

Bitmegachain.com also charges a huge dormant account fee after 3 months of no trading activity – 10% of the money in your account. Legitimate brokers who charge such fees would, again, usually only charge you a few dollars.

Finally, the broker claims to offer attractive bonuses – but as with most scammers, this was only a pretext Bitmegachain.com used in order to add certain clauses to the Terms and Conditions.

So if you have accepted a bonus from Bitmegachain.com and want to withdraw that bonus or any profits that were the result of it, you would have to reach a crazy turnover – 30 times the deposit plus the bonus. However, scammers often change such clauses – so they might end up including all profits and even your own deposits. No legitimate broker would ever make a distinguishment between profits in such a way – but this is a trick often used by scammers like Bitmegachain.com. Always be extra careful when such a shady broker mentions something about bonuses – there will most certainly be strings attached.

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.

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