DeutscheBit review – 5 things you should know about deutschebit.com

DeutscheBit review – 5 things you should know about deutschebit.com

Rating: 1

Beware! DeutscheBit 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.

 

The DeutscheBit website tries to convince us that it represents a forex and CFD broker that will allow us to “trade with trust”. But DeutscheBit provides no evidence that this is true. In fact, fact-checking shows that this anonymous website has neither the authorisation nor the necessary technological capacity to offer financial services.

DEUTSCHEBIT REGULATION AND SAFETY OF FUNDS

Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.

DeutscheBit conceals which company owns and operates this website. Even the Terms and Conditions do not mention the name of a legal entity, making this document legally null and void. However, the text states that the unnamed company is based in Saint Vincent and the Grenadines (SVG):

Because of the lack of regulatory norms and oversight, this offshore zone is one of the favourite bases of operations for shady brokers. While this country has a financial regulator, unlike other offshore areas, it does not regulate the activities of forex and CFD brokers. Тhe Financial Services Authority (FSA) of St. Vincent and the Grenadines has repeatedly issued warnings on this issue, with the latest such warning dated 3 February 2022:

DeutscheBit  is anonymous and unregulated, which is the opposite of the characteristics you should look for in an investment intermediary. 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.

DEUTSCHEBIT TRADING SOFTWARE

On the homepage of the website we see promises of trading software with “advanced tools and features”.

But after registering an account we only get access to simple interactive charts with current Bitcoin prices, taken for free from the data provider TradingView. DeutscheBit offers no real trading functionality. This shows that we are dealing with a low-effort scam aimed at people without any experience and knowledge about financial trading.

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.

DEUTSCHEBIT TRADING CONDITIONS

The websites of legitimate brokers offer detailed information about the trading conditions they offer. Brokers usually offer different types of accounts tailored to the needs of traders with different experience and capital.

On the DeutscheBit website, we find a list of account types that do not provide information on the baseline trading parameters. Only the minimum deposit of 250 EUR is specified. For a significantly lower amount you could start using the services of a licensed and well-established broker.

DeutscheBit allegedly offers bonuses, a practice that is prohibited to regulated brokers. Fraudsters often use supposedly generous bonuses to tie potential victims to extortionate terms that block the ability to withdraw funds. DeutscheBit is no exception in this regard. In the Terms and Conditions, we find a clause according to which withdrawal of funds from an account is not possible before a minimum traded volume of 40 times the bonus amount has been reached.

DEUTSCHEBIT DEPOSIT/WITHDRAW METHODS AND FEES

On the website we see the credit card, bank transfer and Bitcoin logos. In the deposit menu itself, the options are wire transfer and credit cards. The first option brings up a message that the admins will contact you, and the second one links to an unknown payment processor – fxpaymentservices.com.

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 and Sofort.

Scammers prefer cryptocurrencies because these transactions are not subject to refunds. If you’re interested in legitimate brokers that accept digital currency payments alongside more conventional methods, check out this list.

The account type descriptions state that those with a higher minimum deposit have no withdrawal fee. This implies that the others have such a fee, but its amount is not specified.

The Terms and Conditions specify a fee of 30 USD per month for accounts inactive for more than 12 months.

DeutscheBit will also charge you an outrageously high fee of 150 USD if you try to withdraw all the funds from your account before 30 days have passed and have made less than 25 trades. Legitimate brokers do not charge such fees.

HOW DOES THE SCAM WORK

The idea of passive income is increasingly attractive to more and more people. The Internet gives the impression that making money through investments in the financial markets is more accessible than ever to non-experts. But the online space is full of scammers who lure inexperienced wannabe traders through flashy advertisements and fake testimonials from satisfied clients. However, these fake brokers don’t really invest the money you give them – even though they very confidently assure you that you are generating great profits and should invest even more.

But when you try to withdraw some of your supposed winnings or deposit, it turns out to be impossible. Scammers will tell you that a sudden change in the market has wiped out all your money, or point you to vague clauses in the Terms and Conditions that require a huge minimum volume traded. The victim of such a scam may also be surprised with hidden fees and taxes amounting to tens of percentages of their funds.

Holding fraudsters accountable is difficult because they operate through offshore companies that are uncontrolled and unregulated. In addition, scammers require that you provide them with a copy of your ID and proof of address so that they can claim that all transactions were voluntary and agreed upon by both parties.

WHAT TO DO WHEN SCAMMED

First of all, you should know that there is another kind of scammers who prey on victims of fake brokers. They claim they can refund your money for an upfront fee. The most realistic option to get at least some of your money back is to request a chargeback, but this is only possible if you used a credit or debit card for the transactions. Scammers usually insist on using cryptocurrencies, direct bank transfers or shady online payment platforms where refunds are impossible.

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

Leave a Reply

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