Bitfx Holdings review – 5 things you should know about bitfxholding.com

Beware! Bitfx Holdings is an offshore broker! Your investment may be at risk.

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Bitfx Holdings attempts to present itself as a regulated, reliable and transparent forex broker that offers a simple and fast way to get into online trading of financial instruments. But before you put your money on the line you should always do careful fact checking. In the case of Bitfx Holdings, the verification shows that everything on this website is a lie.

Let’s take a detailed look at why Bitfx Holdings is a scam and how to tell the fake brokers from the real ones.

Bitfx Holdings Regulation and safety of funds

If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has. Genuine brokers also provide access to a comprehensive set of legal documentation. The availability of such information does not guarantee that it is not false or misleading. But the absence of these elements is very indicative that in all likelihood you are dealing with scammers.

The website claims that the company that runs it is called Bitfx Holdings Ltd, but we found no evidence that such a legal entity actually exists.

A UK address is given:

But it is claimed that Bitfx Holdings is licensed in other jurisdictions, Germany and Cyprus:

On checking the records of the relevant financial regulators we find no licensed company by that name. Obviously, Bitfx Holdings is lying.

When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.

If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority (FCA).

They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.

Bitfx Holdings Trading software

After registering an account we get access to very poor imitation trading software, lacking basic functionality. Furthermore, the web platform on the Bitfx Holdings dashboard is not for forex trading, but for binary options trading. This type of trading is prohibited in all jurisdictions in which Bitfx Holdings claims to operate.

But even if Bitfx Holdings 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.

Bitfx Holdings Trading instruments

Bitfx Holdings claims to offer trading in forex, commodities and cryptocurrencies. The latter also indicates that it is not a U.K.-based broker because the FCA prohibits trading in crypto derivatives.

Bitfx Holdings Spreads and cost of trading

Bitfx Holdings offers several types of accounts, but in their descriptions there is no information about the trading parameters – spread, commissions, leverage, etc.

Bitfx Holdings Maximum leverage

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. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

If you are willing to take the risk of trading with high leverage and benefit from bonuses and promotions, the best option is to invest through an offshore division of an established brand.

Bitfx Holdings Deposit and withdrawal methods

On the home page of the website we see the logos of popular conventional payment methods:

But in the deposit menu itself, the choice is limited to cryptocurrencies:

Cryptocurrencies are the payment method of choice for most financial scammers. The reason for this is that on the one hand cryptocurrencies provide a degree of anonymity and on the other hand they do not allow the defrauded person to ask for a refund.

While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.

Bitfx Holdings Minimum deposit

Bitfx Holdings requires a minimum investment of 1,000 USD. With as little as 10 USD you could open a starter trading account with many of the established global brokers.

Bitfx Holdings Withdrawal requirements

Since Bitfx Holdings 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.