It is a well-known fact that the financial markets are highly lucrative and profitable and this helps them attract a great deal of traffic. The problem is that it also attracts the wrong kind of attention i.e. that of criminals. With the popularity of online trading, frauds and scams have increased tenfold and you can find thousands of incidents where people had their funds stolen by such people. Therefore, when you decide to invest your money, you have to proceed with caution. Checking out this Bitfxtradex review can pay off in the long run because it can save you from making a major mistake.
It is very tempting to sign up with a platform like Bitfxtradex, particularly when you take a look at the kind of returns they are offering and their simple yet attractive website. However, you have to remember that crafting a decent website is pretty easy for everyone these days and you shouldn’t just take anyone’s word on the internet. Whether Bitfxtradex is a scam or a legitimate platform, you can go through the review below to find out:
No licensing and regulation
The first and biggest problem with Bitfxtradex is that it pretends to be a regular CFD broker that is based in Phoenix, Arizona. Yet, it is not a brokerage at all because it does not provide any of the features that are an essential process of CFD trading. Moreover, it is just not possible for it to be based in the United States. For a broker to operate in the US, they have to meet a very strict criteria and are also required to comply with some tough rules and policies.
They also have to be licensed with the local Commodity Futures Trading Commission (CFTC) and need to be a member of the National Futures Association (NFA). Yet, a look at their online registers indicate that Bitfxtradex is not listed anywhere, which means it is clearly lying about its location, or is operating illegally. The broker itself does not give even a hint of its regulatory or licensing status on its website, which is a major red flag.
Conflict of interest
As mentioned above, Bitfxtradex is only pretending to be a CFD broker and is not really one. Instead, it offers its clients different investment plans, which means people have to deposit money and can get returns. The investment plans and the returns they promise are downright outrageous. They are offering obscene returns that are just not possible. The Starter plan requires a deposit of $300 and is offering a return of $500 on it.
This is more than 100% profit, which is not likely at all and if Bitfxtradex could really offer such returns, why would the people behind the company want to trade for others and not make profits themselves? Furthermore, the financial markets are highly volatile and there is no way anyone can guarantee returns. Even the most professional and expert traders cannot do so and anyone that promises you this is just fooling you.
To make matters worse, brokers are market makers, which means they profit when their clients lose. Hence, Bitfxtradex is only going to lose your money because it would profit them at the end of the day. This is a clear indication of a conflict of interest.
No trading platform or leverage
As Bitfxtradex is lying about being a CFD broker, they do not offer a trading platform and neither do they have any leverage. You will only find a chart available on their website, which doesn’t really do anything.
Only crypto deposits supported
Another big warning sign at Bitfxtradex is the option of making deposits only in the form of crypto. This is a problem because these deposits are permanent and untraceable, which means you cannot file for a chargeback if there is a problem and your money will be lost.
Since it has all the hallmarks of a scam, it is safe to conclude that Bitfxtradex is not a legitimate broker.