Beware! BitPrime Fx 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 always wise to be suspicious when an unknown and cheap-looking website tries to convince you that it represents a regulated forex broker offering excellent conditions for entering financial trading. BitPrime Fx is just such a case. Checking this claim yields the expected result – it is not a licensed broker, but a low-effort scam. Let’s see why it is in your best interest to stay away from BitPrime Fx.
BITPRIME FX REGULATION AND SAFETY OF FUNDS
The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.
BitPrime Fx claims that a company called BitPrime Fx LTD, regulated by the US Security and Exchange Commission (SEC), is behind this website. There is no such company in this institution’s database, but that is not even the main problem. The SEC is not the regulator that licences and supervises forex brokers in the US as BitPrime Fx portrays itself to be.
To operate as a forex broker in the United States, a company must be registered with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA). And there is no BitPrime Fx LTD among NFA’s members.
The next red flag is that the BitPrime Fx provides a contact address not in the US but in the UK.
This is also a highly regulated jurisdiction. In order to operate as a forex broker there, a company must hold a licence from the FCA. But searching for an authorised broker with such a name again yields a negative result.
If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the CFTC, 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.
BITPRIME FX TRADING SOFTWARE
We find no indication on the website what trading software we should expect from BitPrime Fx. After registering an account we only get access to a demo version of the MetaTrader web platform. But BitPrime Fx does not provide any credentials for logging into its own trading server. The obvious fact is that BitPrime Fx does not have functioning trading software.
But even if BitPrime Fx had a more convincing platform, that would not make this website credible. Fake brokers use trading software to mislead their victims that their money is really being invested. But this trade is entirely sham.
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.
BITPRIME FX TRADING CONDITIONS
When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc.
This is completely missing from the BitPrime Fx website. BitPrime Fx also does not provide access to Terms and Conditions, Client Agreement or other legal documentation. It can’t be wise to put your money on the line if you have no idea what the terms of the deal are.
The FAQ section states that the minimum deposit is 300 USD. Legitimate brokers allow you to start trading with significantly lower amounts. Some leading brands even offer Micro and Cent accounts with a symbolic minimum deposit of just 1-5 USD.
BITPRIME FX DEPOSIT/WITHDRAW METHODS AND FEES
BitPrime Fx only allows deposits and withdrawals via cryptocurrencies. This is common for financial fraudsters because crypto transactions do not allow the defrauded to request a refund.
The minimum amount for withdrawal is 500 USD, which is ridiculously high. This is a clear fraudulent trap designed to block withdrawal requests. Legitimate brokers have no such restrictions. They also rarely charge transaction fees. It is understood from the BitPrime Fx website that there are withdrawal fees, but the amount is not specified.
Since BitPrime Fx does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.
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.