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Finbitex Review - is it scam or safe?

Finbitex Review - Is finbitex.com scam or good crypto broker?

RATING: 1 / 2 REVIEWS Finbitex
Finbitex is an offshore broker. Your money is not safe.

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 Trading Accounts & Conditions

  

Account type Minimum deposit  Maximum leverage Spread
Basic $250 Unspecified $75 (1.16%) for BTC/USDT + 1% clearance fee
Silver $5000 Unspecified Unspecified
Gold $25,000 Unspecified Unspecified
Platinum $75,000 Unspecified Unspecified

 

Finbitex may sound like a cryptocurrency exchange, but is actually a CFD broker offering access to derivative products based on the major coins. Their offer isn’t competitive with the current state of the industry, but at least they fully specify the nature of the service.

 

Finbitex Advantages

 

Nice charting, web-based platform

Trading at Finbitex is done via a web-based interface, which puts a great emphasis on the charts. This is probably due to the fact, they are one of the best in the business – the TradingView package. This company offers integration to a lot of brokers and crypto-exchanges and the analytical potential of the platform is basically unrivaled. Here is a preview:

 

The platform at Finbitex

 

Over 40 trading pairs

Finbitex covers some of the major cryptocurrencies like BTC, ETH, XRP, DASH, XMR and more. Trading is done in various pairings between the digital assets. Additionally USDT and EUR are supported.

 

Various payment options

As a CFD broker, Finbitex accepts fiat currency payments. This is done via Bank Transfer, Credit Card, Skrill, Netteler and Western Union. While blockchian transfers aren’t accepted, traders versed in traditional markets will enjoy these options.

 

Clear these are CFD

Before we get to the negatives, we feel the need to mention this as a positive. With the cryptocurrency boom, shady brokerages, who only offer crypto CFDs have started mushrooming left and right. Some of them don’t specify what they are offering is only speculative trading and not access to actual cryptocurrencies. Check the link below to see our detailed guide, featuring all the differences.

 

>>Crypto CFDs vs real crypto<<

 

Finbitex Disadvantages

 

Not a regulated broker

The legal entity behind Finbitex is called RedSunrise LTD. They are based in Sofia, Bulgaria, but aren’t registered with the local Financial Supervision Commission (FSC). 

 

Even if you think this isn’t a big deal, as cryptocurrencies shouldn’t be regulated, EU lawmakers have a different opinion. The ESMA (European Securities and Markets Authority) holds the position, that while cryptocurrencies aren’t securities, the derivative assets based on them are and companies offering such services should be regulated. 

 

>>Our list of regulated Bitcoin brokers<<

 

Some trading conditions unclear

Finbitex doesn’t reveal a target spreads and leverage ratios offered. This may not be a major issue, but is still indicative of a lack of care.

 

Spreads aren’t attractive

While the costs of trading with this broker aren’t disclosed on the website, one can easily access the trading interface itself. There we saw a BTC/USDT spread of $75 (which was around 1.16% of the value of a Bitcoin, at the time of writing). By itself, this may not seem that bad (although other crypto-CFD brokers offer even better conditions, in the  $30-$50 range), but Finbitex also charges + 1% clearance fee on all trades. The truly disappointing part is this fee is buried deep within the Terms and Conditions.

 

High deposit levels

The minimum deposit requirement with this broker is rather high, when compared to the requirements, which most forex brokers have. The “standard” level nowadays is probably $100, with a lot of companies having even lower entry levels. The rest of the levels offered only target very wealthy individuals (keep in mind, you should only trade with the so called “risk capital”, funds which you are willing to loose).

 

Focus on bonus offers

Instead of specifying the trading conditions, Finbitex puts a lot of emphasis on other benefits, such as deposit bonuses and consultations with a personal account manager. These services are often provided by brokers, who aren’t that trustworthy.

 

Extra (hidden) fees

The fact a lot of the fees charged by Finbitex are only mentioned in the Terms and Conditions can be seen as slightly shady by itself. What is even more troubling is the fact they are rather unusual, like the maintenance fee. Here is a preview of all the details:

 

The plethora of fees charged by this broker(click to zoom-in)

 

Conclusion

 

Finbitex is an unregulated crypto-CFD broker (basically a forex broker, which doesn’t offer anything other than the cryptocurrencies). We appreciate the fact they have very specifically stated the fact they aren’t an exchange, which some other companies don’t do. That being said, their offer isn’t impressive by any means – the costs of trading are rather high and the small print can actually turn out to be very impactful for some. 

 

Even If the conditions were better, this is still an unregulated company. Such trading partners always carry a level of counterparty risk. This is why most countries have dedicated agencies to monitor the financial services sector. On of the most reputable such watchdogs is the United Kingdom’s Financial Conduct Authority (FCA).

 

>>Brokers regulated by the FCA<<

 

All of the brokers registered with them are obliged to follow a lot of rules. The two ones which allow traders to feel safe for their investment are the segregation of client accounts and participation in the Financial Services Compensation Scheme (FSCS). The former simply means your money will not be mixed up with the company’s, in a way stopping direct fraud. The FSCS is mechanism which protects traders, in case their broker goes bankrupt (up to £50,000, per person).

 

A recap of our review of Finbitex:
 

Pros Cons
Nice charting, web-based platform Not a regulated broker
Over 40 trading pairs Some trading conditions unclear
Various payment options Spreads aren’t attractive
Clear these are CFD High deposit levels
 
Focus on bonus offers
 
Extra (hidden) fees

 

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Traders` reviews for Finbitex

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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duped

This finbitex company took me for a ride to the tune of 150,0000 USD. They have no intention of returning any of your money back. One stock broker by the name of Adam Foster is a sweet taking crook in this company. This is a cheat company who was doing business under the name of cryptoeu.

Kindly do not invest in this company.

Nafisa Deepu Raj 03/14/2019

Worst and criminal platform

I had the stupidity to register to this damned FINBITEX platform, after seeing attractive advertisement on Telegram. One brocker call me then immediately, and convince me to start at least with 0.05BTC (320 $), but no better advises, and then when I wanted later on withdraw my fund, impossible... up to now!!! (2 weeks). Apparently you need to have the approval of one broker!!!! Then they apparently charge also 0.01 BTC??!! But anyway it's even not working so for me it's a fucking big SCAM, nothing is clear in their site after a mote detailed verification :-( I hope and wish no one will fall again in their trap!!!
Bad, very Bad experiences...

Arnaud HAVET 09/30/2018
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