Beware! Bit Fx Arena 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.
The most important thing to know about Bit Fx Arena is that this website is not the legitimate forex broker it claims to be. This is actually yet another online scam trying to capitalise on the hype surrounding cryptocurrencies and the lack of knowledge about financial markets among the general public. In this review, we will show you how to tell the difference between such scams and credible investment intermediaries.
Bit Fx Arena Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|Bit Fx Arena||❌||❌||❌|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
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.
Bit Fx Arena claims to be based in the US, one of the most tightly regulated jurisdictions in the world.
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). But we find no broker with that name in the NFA registry.
Another financial regulator, the Spanish CNMV, has issued a warning to investors that Bit Fx Arena is not authorised to offer financial services and products.
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 Commodity Futures Trading Commission (CFTC) in the 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.
Bit Fx Arena Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|Bit Fx Arena platform||❌||❌||❌||❌|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
Another obvious clue that Bit Fx Arena is a scam is that this supposed broker has no trading software. In the dashboard we only see a gif animation of a tutorial on how to use a trading platform, but not a real one.
But even if Bit Fx Arena had a more convincing platform, that would not make this website credible. Fake brokers use rigged 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.
Bit Fx Arena Trading instruments
|Bit Fx Arena||❌||❌||❌||❌||❌|
Bit Fx Arena advertises trading in forex, bonds, indices, commodities, and binary options trading. The latter is a type of simplistic trading that involves a lot of fraud, which is why it is banned by most financial regulators. But as we have seen, Bit Fx Arena has neither the licence nor the technical capacity to offer any type of trading.
Bit Fx Arena Spreads and cost of trading
|Bit Fx Arena||XM||FBS||FXTM|
When registering, you can choose between several types of accounts, but Bit Fx Arena does not provide information on the conditions associated with them.
When you visit the website of a legitimate broker you will find detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc.
Bit Fx Arena Maximum leverage
|Bit Fx Arena||❌||❌||❌||❌||❌|
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.
Higher levels of leverage are only offered to professional clients who trade entirely at their own risk.
If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
Bit Fx Arena Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Crypto||24 hours||24 hours||Fee depends on crypto|
Quite expectedly, Bit Fx Arena only allows deposits via cryptocurrencies.
This is typical of financial scammers. Cryptocurrencies are their payment method of choice because on the one hand they allow the scammer a degree of anonymity, and on the other hand they do not allow the scammed to ask for a refund.
If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.
Bit Fx Arena Minimum deposit
|Bit Fx Arena||XM||FBS||FXTM|
The leading brands in the industry offer beginner investors Micro and Cent accounts with a very low entry threshold. There is no good reason to take chances with fishy websites like Bit Fx Arena.
Bit Fx Arena Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|Bit Fx Arena||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
Since Bit Fx Arena 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.