Bitmax4U – Is This a Broker You Can Trust?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Bitmax4U - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2021
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://bitmax4u.com/
Founded: 2010
Regulations: Unregulated
Languages: English
Deposit Methods: Credit/Debit cards and Bitcoin
Minimum Deposit: $300
Free Demo Account: None
Number of Assets: N/A
Types of Assets: Stocks, Indices, Crypto, Forex
Trading Accounts and Conditions
If you want to open an account with Bitmax4U, there are four options available for you. We’ve compared below what each account signifies.
- Basic account: The capital requirement is between $300 and $3,500. Both the leverage and spreads are not indicated.
- Silver account: The capital requirement is between $3500 and $8,500. The indicated leverage is 1-2, but the spreads are not stated.
- Gold account: The capital requirement is between $11,500 and$20,000. The indicated leverage is 1-3, and spreads are also not stated.
- VIP account: The capital requirement is between $25000 and $75000. The leverage is 1-10, while the spreads remain unstated.
Bitmax4U – Advantages
There are no advantages in investing with this broker as we’ve found several warning signs signifying their illegitimacy as a broker.
Bitmax4U – Disadvantages
We’ve spotted several red flags with this broker that led us to listing down the following disadvantages if you decide to trade with them.
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Unregulated and unlicensed broker
Bitmax4U claims to be a regulated entity of one of the world’s most renowned regulators, CySEC in Cyprus. By the looks of their website, this claim is implausible. Upon further investigation, we found out that they’re owned by a company called MyCryptoWallet Ltd. This parent company is registered in the offshore zone of St. Vincent and the Grenadines. SVG is popular among scammer brokers since this country doesn’t have any regulator that supervises the financial sector.
Moreover, MyCryptoWallet Ltd. has been blacklisted by the CNMV and FMA, the financial regulators of Spain and Austria, respectively. This is clear proof that they are unauthorised and unlicensed to provide financial services to the public. This means that you can’t trust them with your money as they are a confirmed SCAM.
Our best advice to ensure your money is safe is to always choose a legit company that is regulated and licensed to provide financial services to the public. Today, the strongest regulators in the world are the FCA in the UK and CySEC in the EU. Both jurisdictions have successfully created the safest environment for traders’ investments.
In addition, if you trade with FCA and CySEC regulated brokers, your investment is safe because of their deposit insurance funds policy. FCA has worked jointly with the Financial Services Compensation Scheme that allows you to claim up to 85 000 GBP. In addition, EU regulated brokers have participated in Cyprus’ Investor Compensation Fund that allows you to claim up to 20 000 EUR. These insurance funds are intended in case a licensed broker fails to meet its financial obligations due to bankruptcy, for instance.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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Unavailable trading platform
Bitmax4U fails to provide a trading platform for traders to test. They don’t even share any information on what type of trading software they have. Moreover, we also failed to register an account and had to contact an agent if we wanted to successfully create one.
Speaking of trading platforms, we highly recommend using MetaTrader4 or MetaTrader5. These platforms are trusted by a majority of traders in the world because of their exceptional package instruments and tools.
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Very high levels and missing information on spreads
Knowing the trading conditions of a trading platform is very important because these conditions will greatly affect the outcome of your performance as a trader. Unfortunately, Bitmax4U offers very high leverages as indicated on the account types.
Offering extremely high leverages is an indication that a broker may be a scammer because these levels have been banned in many countries. We don’t have any information about the spreads because this wasn’t stipulated on the trading conditions. Moreover, we also couldn’t check because we weren’t successful in registering an account with this broker.
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High withdrawal and administrative fees
The minimum capital requirement if you want to invest with this broker is $300, and the payment methods include credit and debit cards as well as Bitcoin. Unfortunately, we couldn’t verify these information since their system isn’t allowing us to complete our registration.
The minimum withdrawal amount is $50, but this broker charges a flat rate of $30 per transaction. This fee is considered as high since most regulated brokers don’t charge a withdrawal fee.
Another thing that we noticed is that they are charging their clients with an administrative fee amounting to $100, once every three months. Moreover, the broker also stated that they may change this amount any time without notice.
Another important detail to consider is that there are no fees for dormant accounts. Inactive accounts are usually charged a certain fee to ensure that there is movement in the trader’s account. Not imposing any fee is a red flag because there are no set of rules applicable for these types of accounts. If the broker decides to freeze your account, then there isn’t much that you can do especially if they aren’t a regulated entity. No one’s going to back you up.
Conclusion
Bitmax4U is definitely not a broker that you can trust. They are an unregulated entity that uses false information to invite people whom they can steal money from. Their parent company, MyCryptoWallet Ltd., has also been blacklisted by two regulators in the world, CNMV and FMA. Moreover, their trading conditions and the clauses that are stipulated in their Terms and Conditions are not trader friendly. Most of these clauses are only advantageous to them as a broker.
Hence, we strongly advise our readers NOT to invest with this broker. Your capital is at risk with them given all the red flags we presented above. If you’re searching for brokers that you can trust, choose brokers that have been regulated in the UK or the EU as these countries have the strictest rules when it comes to providing regulations to forex brokers.
Bitmax4U
Pros
- None
Cons
- Unregulated and unlicensed broker
- Unavailable trading platform
- Very high levels and missing information on spreads
- High withdrawal and administrative fees
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.