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ForexBit Review - is it scam or safe?

ForexBit Review - is forexbit.com scam or good forex broker?

RATING: 1 / 5 REVIEWS ForexBit
ForexBit is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


Trading Accounts and Conditions

 

Trading account Min. deposit  Max. leverage Spread
Standard  $250 N/A  1.8 pips

 

As one might guess from this broker’s name, ForexBit offers trading in forex and cryptocurrencies, as well as wide range of other Contracts-for-Difference (CFDs).

 

The broker does not seem to have different account types and has failed to specify key trading specifics on its website. Nonetheless, we have more serious concerns regarding ForexBit, hence the low rating we gave it.

 

 

ForexBit Advantages

 

Wide range of tradeable assets

ForexBit provides trading in both forex and binary options, and its offer is very broad in terms of assets. It includes currencies, cryptocurrencies, indices, commodities, stocks, and futures. The broker’s crypto coins product range is very wide, including Bitcoin, Ethereum, Ripple, Litecoin, Dash, IOTA, ZCash, Ada, NEO, Bitcoin Cash, Stellar Lumens, and more.  

 

However, we would recommend to those of you who are into Bitcoin to check out the below link, instead of risking with ForexBit.

 

 

>> Reliable forex brokers offering Bitcoin trades <<

 

 

Relatively nice platform

Clients of this broker are offered access to two web trading interfaces – Simplex and ForexPro (You can choose which one to use from a drop-down menu). The Simplex platform offers trading in binary options, while the ForexPro is more advanced and intended for forex trades. The latter is also easy to use, but also equipped with a lot of technical analysis indicators and charting powered by TradingView. Here is a preview:

 

 

ForexBit’s web ForexPro platform. Click on the image to view larger.

 

 

ForexBit Disadvantages

 

No financial regulation

According to the broker’s Terms and Conditions, ForexBit is a trading name of Alpha Capital Technology, a company with registered address in Bulgaria that is operating out of London, UK. Yet, the firm is not licensed by the Financial Conduct Authority (FCA) in UK, nor by the financial regulator in Bulgaria, or any other authority.

 

So, ForexBit does not fall under any regulatory oversight, which means that potential clients of this broker have no assurance whatsoever for the security of their funds. This is a major red flag.

 

All forex brokers operating in the European Union and the EEA have to be licensed by a legit financial regulator, otherwise their activities are illegal. As regards binary options trading, it is currently banned across Europe.

 

Withdrawal limits and fees

When we went through ForexBit’s T & C, we also found out that the broker applies some unusual extra fees, and has set requirements, which are very unfavorable to traders. For example, it charges monthly administration fee of $50 for accounts that have been inactive more than three months (Inactivity fee), and also some administrative fee for chargebacks. Also, all withdrawals are subjected to a fee of $20, and you cannot withdraw less than $300 via bank wire.

 

In our opinion, these fees and requirements are quite excessive and unfavourable to investors.

 

No trading specifics whatsoever

Another clear-cut sign of trouble regarding this financial services provider is the lack of any relevant information on trading conditions, other than the initial investment required. Potential clients of ForexBit don’t know what their trading costs would be, as the broker has not specified any payout percentages or reference spreads. 

 

Spreads above the average

The spreads we saw on the broker’s ForexPro platform were not very attractive. The benchmark EUR/USD spread was floating around 1.8 pips, while most brokers offers spread within the range of 1.0 – 1.5 pips for this pair.

 

MT4/MT5 not available

Although ForexBit’s platforms are not bad, they lack many of the advanced features offered by MetaTrader4 and MetaTrader5. For example, the Expert Advisors (EAs) supported by MetaTrader, which are one of the most popular automated trading bots in the world of forex. Also, both the MT4 and MT5 are easily customizable and one can even create indicators and EAs of his own.

 

 

>> Looking for a MT5 broker? <<

 

 

Conclusion

 

Although ForexBit seems to have several advantages, they are definitely outweighed by the disadvantages listed above. This is an unregulated forex and binary options broker with very little credibility that could be one of the many scams on the market.

 

The trading world is full of con-artists, and thousands of investors get swindled out of their money every day. So, no matter that a broker promises or actually offers in terms of spreads or bonuses, the most important thing to look for is proper financial regulation. That being said, one of the most credible institutions worldwide is the UK’s FCA. It applies strict rules to licensed forex brokers and sees to their compliance.

 

 

>> Trade with a FCA-regulated broker <<

 

 

To sum up our review on ForexBit in a few words:

 

Pros Cons
Many CFDs offered Not licensed

Relatively nice web platform

Trading conditions not announced on website
  High spreads on platform
  Withdrawal fees and requirements
  Does not support the MetaTrader

 

Latest news about ForexBit
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Traders` reviews for ForexBit

Spread

Pros

Cons

 

 

Slippage

Pros

Cons

 

 

Requotes

Pros

Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Closed the website

After a gzillion calls from everywhere (incl. South Africa & Switzerland), I decided to remove my money only to discover the website is no longer active

Not sure I can get my money back at all

Elliott 08/19/2019

withdraw money problems

i put £250 in as that was to start trading then as soon as they got they rang asking for £5000??
been asking for a refund and its taken ages to show that they are meant to be paying my refund and surprise surprise nothing and no contact on the lets chat crap !!total liars and scammers !! DO NOT TRUST AT ALL AS THIEVES SCAMMERS!!! DO NOT TRUST AT ALL!!!!!

jason hasler 05/10/2019

Forexbit possible scam

Reps fromforexbit constantly phoned me wanting moremoney to be put in apart from my initial investment of 300 euros. This despite them knowing I am 76yrs of age. Despitebeing assured? my investment would be automatically invested and only small amounts would be invested at any one time to prevent losses. Until now despite written request to return my investment with any profits this has been ignored.!!!

Kenneth Gowdy 04/15/2019

Fraudulent as far as I'm concerned!

I tried a Newspaper link to this site a week ago and instead of asking for the initial down payment as GBP it requested the amount in Euros, immediately I smelled a rat and left the website.

A short while later I received a phone call asking why I'd pulled out of the transaction. The pleasant young man to whom I was speaking assured me it was some internal mistake and that he would rectify the problem. I decided therefore to proceed giving my Master Card details -- this was when the Card Fraud Team became involved! Later that same afternoon I was to find my card declined; which I assumed was now blocked?

Returning home I phoned the bank Fraud Team and asked why my card had been blocked? I was informed that there had been two consecutive hits on my card that day the first was from China but worst still the second was from Nigeria, a place notorious for monetary fraud!

Thankfully the bank closed the account and opened a new one with cards to match? So for those who have had no difficulty opening a Bitcoin account, I after my experience am totally sceptical of using any newspaper link to endeavour opening a Bitcoin account, because instead of the system making money for me, the exact opposite might well have been the case!

Ed Matthews

Mr Edgar Matthews 04/13/2019

Rotten scam

Absolutely a rotten scam

Linda Manley 02/18/2019
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