Beware! Bgtxchange 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.
Bgtxchange claims to be ” a Maltese-directed investment services supplier that works under European and Maltese guidelines ” oriented to the English, French, German, Italian, and Arabic markets”. If this sentence sounds familiar it is because the broker’s website looks exactly like the websites of multiple other scam brokers we have reviewed before – check out our reviews of LitCryptoFx.com, TradeStarsFx.com, Cryptoopttrade, etc. The template is not the only common thing between all of these brokers – all of them falsely claim to be licensed by multiple authorities and offer no actual trading opportunities.
There is no doubt about the fact that this is a dangerous scam scheme – avoid trading with Bgtxchange and any similar broker unless you want to end up losing everything you invest.
Bgtxchange REGULATION AND SAFETY OF FUNDS
The company behind Bgtxchange is P24O ltd – the same company is behind dozens of fraudulent websites. The broker claims that it is based and regulated in Malta by the local financial authority MFSA (the broker falsely stated that this is a US regulator) and endorsed by some of the most respected regulators in the world – the FCA of the UK, the German BaFin, the French ACP, the Spanish CNMV, and the Danish Finanstilsynet. None of this was true – the broker was nowhere to be found in any regulatory database.
The dangers of trading with an unlicensed broker are countless – especially if they dare claim that they are actually regulated since this certainly means that the broker is running a scam. This anonymous enterprise is only after your money and will rob you the moment it gets its hands on it.
Choose a broker regulated in the UK, the EU, or Australia – such brokers are everything but anonymous. They are not only obligated to release regular financial reports and allow external audits, but they also have to keep client money in segregated accounts to ensure that they are not using your investment for their own purposes and to increase transparency. Such brokers have to prove that they are well-capitalized by maintaining a minimum capital of a certain size – €730 000 in the UK and the EU, and A$1 million in Australia. Additionally, negative balance protection prevents you from losing more money than you have in your account – at least if you are a retail client. Trading with such a broker is much safer because there would always be an authority holding the broker accountable for their actions.
Bgtxchange TRADING SOFTWARE
Bgtxchange promises access to MetaTrader 5 – one of the most popular, if not THE most popular trading platform. This is another false promise – this broker does not offer any sort of trading software. They rely on a completely different business model which we will explore in the following paragraph. For now, we will say this – since you would not be able to trade with this broker, opening an account with them is definitely not worth it.
There is no point in opening an account with such a fraudulent broker when there are a ton of legitimate ones who can offer efficient and dynamic trading platforms like MetaTrader 4 and MetaTrader 5 – these are currently the two most popular options among traders. When you consider how many features both versions of the software offer, it is easy to see why. You would be able to use over 30 technical indicators to conduct advanced analysis, trade automatically with the help of preprogrammed Expert Advisors or create your own trading bots and indicators with the software’s coding languages, use Strategy Testers, set signals, or subscribe to those set by others, and much more.
Bgtxchange TRADING CONDITIONS
Bgtxchange asks for a minimum deposit of $500 which is far too much considering the number of great brokers who would open a trading account for much less.
Since the broker does not offer a functional trading platform talking about the spreads and leverage they promised is pointless. Instead, Bgtxchange seems to be running an investment scam – they will ask you to invest a small amount of money and then wait and see your investment grow tremendously. The broker would be handling everything, you would not have to take risks and do anything since profits are guaranteed. If you invest just $300, you could get $2000 in just 24 hours – which is simply impossible.
No broker could guarantee your returns since the financial markets are too volatile for that – that is why legitimate brokers never promise certain returns. Moreover, as a retail investor, you should be happy to see a 15% annual return on your portfolio, not more than 600% in one day since that is simply not in the realm of possibility.
If a broker promises things too good to be true, it is because they are not true – investing takes time but if you choose a reliable broker you might actually be able to turn a profit.
Bgtxchange DEPOSIT AND WITHDRAWAL METHODS AND FEES
The deposit methods Bgtxchange mentioned on the website were the following – wire transfer, Visa or MasterCard card, Neteller, Skrill, QiWi, WebMoney, Yandex Money, and Bitcoin. When we tried to actually deposit, however, we faced a different situation – the broker would only accept Bitcoin, Tether, and supposedly Stripe. PayPal and Paystack were also mentioned but when we tried to transfer money, the broker informed us that these payment solutions are unavailable at the moment.
If you are wondering why so many scammers would urge you to deposit in crypto specifically, consider this – such payments are anonymous and irreversible. Once you have deposited, you would not be able to get a chargeback – so be extra careful and only use this payment method if you are 100% sure you can trust the recipient.
One final thing – this broker offers bonuses that are banned in the UK and the EU (basically all the jurisdictions where Bgtxchange is supposedly licensed). Scam brokers often use bonuses as a way of preventing you from withdrawing your money – they will make up all sorts of turnover requirements and additional fees in order to do that. If such a broker offers “free money” there would usually be strings attached so be extra careful.
HOW DOES THE SCAM WORK?
This type of scam is really not that complicated – but it has proven to be quite effective and has managed to trick quite a few people. Given such schemes’ growing popularity, it is important to know how to avoid them – so reading the following paragraphs carefully is vital.
The scam starts with you seeing an ad on the Internet for a certain broker’s website. Such websites usually promise amazing conditions and extremely fast profits – but offer very little in terms of license and company information. However, sometimes scammers can be very elaborate in their promise – so you fall for it and provide them with a phone number or an email. There is another option – they might have stumbled upon your contact details somewhere and are the first to make contact. After that, a game of cat and mouse begins – you will be asked to open an account and make a deposit. Keep in mind that these are professional scammers who convince people to transfer money for a living – they will sweet-talk you into depositing by talking about profits and opportunities.
After that, you might indeed see profits and deposit even more money – but all of this is smoke and mirrors, scammers often manipulate results to make you transfer bigger amounts.
At some point, of course, you would want to withdraw your money – and the problems will start. Additional fees or unfulfilled clauses in the Terms and Conditions will appear, and you will be denied access to your money. At this point, you will probably discover something is wrong – and this is when the scammers will drop out of sight.
WHAT TO DO WHEN SCAMMED?
There are a few things you could do if you discover you have been scammed. Chargebacks are possible in some cases depending on the payment method you have used to deposit. Both Visa and MasterCard allow such chargebacks within 540 days while bank transfers and cryptocurrency transactions are irreversible.
Make sure to change all banking passwords. If you have installed any remote access software, remove it immediately – scammers ask their victims to install such software under different pretexts but their endgame is to just get access to your banking accounts and steal even more money.
Notify authorities and share your story with as many people as possible – the more people know about such scams, the less they will fall victim to fraudulent schemes.
Last but not least – don’t trust any so-called “recovery agents” that offer to retrieve your money for a fee – this is just another type of scam, sometimes even conducted by the same people that stole your money in the first place.
