Beware! BitsEU is an offshore broker! Your investment may be at risk.
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If the claims on the BitsEU website are to be believed, this is one of the best forex brokers in Europe through which you could invest in the financial markets. But even a basic fact check shows that it would be a big mistake to believe this. BitsEU is actually a scam, targeting people who lack experience and knowledge about financial trading. Let’s take a detailed look at why you shouldn’t trust BitsEU and how to choose a truly trustworthy broker.
BitsEU Regulation and safety of funds
Guaranteed Funds | Segregated Accounts | Negative balance protection | |
BitsEU | ❌ | ❌ | ❌ |
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 |
When you visit the website of a legitimate broker you can expect to find clear and detailed information about the company that owns and operates it, where it is based and what regulatory regimes it is subject to. Licensed financial services providers are also required to provide a comprehensive set of legal documentation.
The BitsEU website lacks any information regarding company and regulatory license. There are no Terms and Conditions, Customer Agreement or other mandatory documentation. No office address is listed either. The only means of communication is email and phone with area code from Tanzania.
The website is only available in the German language. This prompted us to check the database of the German financial regulator BaFin. There we found a warning that BitsEU is a scam, including an explanation of how the fraudulent scheme works.
If you have decided to invest in financial instruments you have a choice of much more trustworthy options. There are many benefits for retail traders to trade through a licensed broker in the EU. These brokers must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. When clients deposit money in their trading accounts, they are kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.
All brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency.
BitsEU Trading software
Analytical tools | Auto trading | Custom indicators | Mobile apps | |
BitsEU platform | ✅ | ❌ | ✅ | ❌ |
MT4 | 30+ indicators | ✅ | ✅ | Android and iOS |
MT5 | 50+ indicators | ✅ | ✅ | Android and iOS |
cTrader | 40+ indicators | ✅ | ✅ | Android and iOS |
After registering an account we get access to a very rudimentary trading platform that lacks basic features required for such software.
But even if BitsEU 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.
If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading 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.
BitsEU Trading instruments
Currency | Stocks | Indices | Crypto | Commodities | |
BitsEU | ✅ | ✅ | ✅ | ✅ | ✅ |
XM | Yes | Yes | Yes | No | Yes |
FBS | Yes | Yes | Yes | Yes | Yes |
FXTM | Yes | Yes | Yes | Yes | Yes |
BitsEU advertises trading in all major asset classes, but does not provide clear and detailed information on trading conditions. Legitimate forex brokers offer a variety of trading account types tailored to the needs of clients with different capital and investment intentions. These brokers also provide clear and detailed information on trading parameters – leverage, spread, commissions, order execution method, etc.
BitsEU Spreads and cost of trading
BitsEU | XM | FBS | FXTM | |
Spread EURUSD | 3 | 0.6 | 1 | 1.1 |
Spread GBPUSD | 3 | 1.3 | 1.2 | 1.4 |
Spread USDJPY | 3 | 1.3 | 1.2 | 1.4 |
In the trading platform, we see a spread of 3 pips, which is about double the industry average. This level is very unprofitable for the trader. On top of that, we don’t know if BitsEU charges additional commissions.
BitsEU Maximum leverage
Forex | Stocks | Crypto | Gold | Indices | |
BitsEU | ❌ | ❌ | ❌ | ❌ | ❌ |
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.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
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.
BitsEU Deposit and withdrawal methods
Deposit time | Withdrawal time | Price | |
Bank wire | 2-5 business days | 2-5 business days | $25+ |
Credit card | Instant | 24 hours | Free |
PayPal | 1 hour | 24 hours | 2% |
Skrill | 1 hour | 24 hours | 2% |
Neteller | 1 hour | 24 hours | 2% |
Crypto | 24 hours | 24 hours | Fee depends on crypto |
BitsEU’s deposit menu transfers to a completely different website, educationlessons.co.uk, which claims to sell financial literacy courses. We’ve seen this strange scheme with other fake brokers we’ve reviewed, such as Roborando.
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 or Neteller. Scammers prefer cryptocurrencies because these transactions are not subject to refunds.
BitsEU Minimum deposit
BitsEU | XM | FBS | FXTM | |
Minimum deposit | €250 | $5 | $10 | $5 |
BitsEU specifies a minimum deposit of 250 EUR, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker.
Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.
BitsEU Withdrawal requirements
Trading volume | Fee/Tax on withdrawal | Minimum withdrawal | |
BitsEU | 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 |
The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet withdrawal terms.