BitnexLTD – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
BitnexLTD - DO NOT TRADE WITH THIS PROVIDER
2.3/10
$100
Minimum Depositupdated 2022
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://bitnextltd.com
Founded: 2021
Regulations: Not Regulated
Languages: English
Deposit Methods: Bitcoin
Minimum Deposit: €250
Free Demo Account: N/A
Number of Assets: 5
Types of Assets: Currency Pairs, Global Indices, Global Stocks, Precious Metals, Energies
Trading Accounts and Conditions
Given below are the details of the account types offered by BitnexLTD:
- Start: The minimum required deposit is 250 Euros. There is an unspecified Welcome Bonus.
- Basic (Bronze): The minimum required deposit is 500 Euros. There is a bonus of up to 40%.
- Silver: The minimum required deposit is 10,000 Euros. There is a bonus of up to 50%.
- Gold: The minimum required deposit is 20,000 Euros. There is a bonus of up to 60%.
- Platinum: The minimum required deposit is 50,000 Euros. There is a bonus of up to 80%.
- Exclusive: The minimum required deposit is 100,000 Euros. There is a bonus of up to 100%.
The broker has not specified the trading conditions in their Account Types page, but they have advertised that they offer leverages that range from 1:200 to 1:500. The broker also claims to have tight spreads that start at 0.0 pips.
BitnexLTD – Advantages
We could not find any advantages in trading with BitnexLTD.
BitnexLTD – Disadvantages
Here are all the reasons why BitnexLTD is a bad investment:
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Issues with Regulation Status
On their website, BitnexLTD provides an address in England, UK. They have also have provided a UK contact number and an email address. There is, however, no company name mentioned anywhere on their website.
The issue here is that to operate in the United Kingdom, a brokerage needs to be regulated by the FCA (Financial Conduct Authority), which is the country’s financial regulator. We checked the regulator’s online register to see if this broker was, in fact, authorized by the FCA. We did not find any company or broker by that name.
This means that this broker is offering services without legal authorization. And considering the fact that BitnexLTD hasn’t provide complete corporate information, we are actually dealing with an anonymous and illegal entity. And this means that we are dealing with a scammer.
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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Poor Trading Software
BitnexLTD claims to offer their clients a unique platform. According to them, this platform has 21 different time frames, analysis tools, the ability to view as many as 100 charts at the same time, a built-in economic calendar and more than 80 technical indicators.
However, when we checked their trading platform, none of these claims are really true. What we saw was a very basic, web-based trading platform. There are some functions available – a option to place orders, customize a few charts and a few technical indicators. But nothing to the level that this broker claims to have. In fact, we have seen this type of trading platform many times – with other scam brokers. Thus, here is another sign of this broker’s dishonesty.
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Issues with Trading Conditions
BitnexLTD does not give details about the trading conditions they offer their clients. This is, of course, yet another sign of their scam. Legitimate brokers ensure that they specify every singly aspect of their trading conditions since this is what will land them the customers they need.
With BitnexLTD, we know that the minimum deposit is 250 Euros, which is on the higher side. There are so many brokers now that are legitimate and regulated with whom you can open accounts for as little as $5. So, a 250-Euro opening deposit seems rather too much.
Next, the broker’s leverage ratios are too high – and not very legal. If a broker is based out of the UK, then according to the FCA regulations, they cannot offer leverage ratios that exceed 1:30. In fact most of the strongly regulated markets have similar limits on leverage ratios. The EU and Australia also allow a maximum leverage of only 1:30. The US and Canada allow for 1:50 as a maximum leverage and Japan allows only 1:20.
Therefore, the 1:200 or even the 1:500 leverage offered by this broker is not only too high, but, as we stated earlier, illegal.
As for the spreads, they are also unrealistically tight. A spread of 0 pips means that the broker would need to add on some rather hefty commissions and fees to make that kind of a spread affordable for them. And since this broker has not specified what kinds of commissions and fees they charge, we can assume that they are pretty hefty. Or, this broker has lied about their spreads in an effort to attract more clients. Either way, the spreads this broker offers are unrealistic.
All in all, these trading conditions clearly indicate to us that we are dealing with a scammer.
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Bonuses Offered
BitnexLTD also clearly offers their clients bonuses. We would like to point out these bonuses are extremely controversial and are pretty much banned in countries like the UK. This is because these bonuses come with very unfair withdrawal clauses. Traders are usually expected to meet some impossible trading volume turnover target. And if they don’t meet that target, they are not allowed to withdraw their funds. Furthermore, these brokers also have clauses that allow them to change their policies without notice. This way, if some traders do manage to meet their impossible conditions, they simply change their policies so that the traders never get to withdraw their funds. This is a typical scam tactic.
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Single Payment Option
On their homepage, BitnexLTD does not bother mentioning what types of payment options they have. We found out through their Terms and Conditions that they offer wire transfers, credit/debit cards and cryptocurrency payment options. However, when we checked their payment portal, we found out that the only way to actually carry out transactions was via Bitcoin.
Scam brokers such as BitnexLTD prefer to use such payment options because they are untraceable and permanent – the perfect way to get away with their clients’ money.
Conclusion
BitnexLTD is a scam and best avoided by all traders.
BitnexLTD
Pros
- None
Cons
- Issues with Regulation Status
- Poor Trading Software
- Issues with Trading Conditions
- Bonuses Offered
- Single Payment Option
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.
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