BTC Markets – Are They a Scam?

Website URL: www.btc-markets.com

Founded: 2020

Regulations: Not Licensed

Languages: English, German, Spanish

Deposit Methods: Crypto Wallet, Xpate, Vload Voucher

Minimum Deposit: $250

Free Demo Account: No

Number of Assets: 200+

Types of Assets: Crypto-Based Trading on Stocks, Commodities, Indices, Currencies

Trading Accounts and Conditions

BTC Markets offers its clients the following trading accounts:

• Micro Account: The broker states that the deposit range for this account type is up to 5,000 USDT.
• Bronze Account: The deposit range for this type of account is between 5,000 USDT and 25,000 USDT.
• Silver Account: The deposit range of this account goes up to 75,000 USDT.
• Gold Account: The deposit range of this account goes up to 150,000 USDT.
• Platinum Account: The deposit range of this account starts from 150,000 USDT.

There is no information provided on the tradition conditions. However, when we accessed their web-based trading platform, we found out that the leverage ratio was maxed at 1:20.

BTC Markets – Advantages

There are so many issues with this broker that we cannot say that you would get any advantages to trading with BTC Markets.

BTC Markets – Disadvantages

Here is the list of reasons why it would be disadvantageous to trade with BTC Markets:

• Unlicensed Broker

BTC Markets is owned by Sunstar Holdings Ltd, a company that has been incorporated St. Vincent and the Grenadines. This makes this company and brokerage an offshore entity. Brokerages that operate from this location are unfortunately known to be on the shadier side, and this broker is no exception.

First, SVG does not have a regulatory framework in place for forex and CFD brokers, which means that if a broker is registered in this country, it will still need authorization to operate from a valid financial authority.

Despite going through BTC Markets’ website in great detail, we have been unable to find any mention of it being licensed by such an authority. And based on the language options available on their website, BTC Markets should be regulated by either the UK’s Financial Conduct Authority (FCA), Germany’s Federal Financial Supervision Authority (BaFin) or Spain’s Comisión Nacional Del Mercado De Valores (CNMV). This broker is not regulated by any one of these authorities.

This leads us to the conclusion that this brokerage is operating without proper authorization.

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• MetaTrader 4 Not Supported

BTC Markets does not offer its clients the use of the MetaTrader 4 software. The MT4 software is the world’s top trading platform, offering its users features such as charting and market analysis tools, automatic trading options, pending orders and much more.

What this broker does offer is a web-based trading platform that doubles up as the client dashboard. This software does have a couple of trading tools such as pending orders, price alerts and live news, but this would only satisfy the most novice of traders.

• Lack of Clarity on Trading Conditions

This broker does not clearly state what the trading conditions are. On its website, the broker states that its Micro account has a deposit range of up to 5,000 USDT.

Now this is where the confusion starts. When we checked the trading platform the minimum deposit seems to be at $250. But USDT and USD are two different denominations. USD is the currency, but USDT is a Cryptocurrency symbol for Tether. So we are not clear which currency applies to minimum deposit amounts.

Furthermore, as we already have stated, this broker has not provided any information on the trading conditions. We were only able to find out about the spreads after we registered for an account with BTC Markets.

• Suspicious Payment Gateways

Not only are the minimum deposit information and trading conditions vague, but the payment gateways offered by BTC Markets are also suspect. This broker offers its clients the following payment options: Xpate, Vload Voucher and an unknown Cryptocurrency wallet.

These payment options are suspect because we have seen them being used most by scam brokers. In fact, many of the scam companies use Vload as their main – or only – payment gateway.

• Unfair Bonus Withdrawal Requirements

Since this broker targets European customers, the fact that it offers trading bonuses makes it clear that it is a scammer. This is because brokers are banned from offering trading bonuses since they come attached with very unfair conditions.

And sure enough, BTC Markets too offers bonuses with unfair trading conditions. You will not be allowed to withdraw your funds until you have reached a trading turnover of 30 times your original deposit plus the bonus given by the broker.

This kind a target is almost impossible to meet, which means that you will end up not being able to withdraw your funds at all.

• Bitcoin Only Trading Option

Despite the broker’s claims of offering trading in multiple assets through crypto-exchange, the only thing you can trading on this broker’s platform is Bitcoin.

• Indemnification Clauses to Protect Broker

BTC Markets also has indemnification clauses put in place. These are clauses that protect the broker from legal consequences in case their clients suffer losses when using their trading platform.

Regulated brokers are required to offer compensation to their clients in case they suffer losses due to services or products offered by the brokers. These brokers also have to protect their clients’ funds through account segregation.

Conclusion 

Everything about BTC Markets indicates that this broker is a scammer. It is unregulated and its trading conditions are unclear, as is the minimum deposit requirement. The payment gateways are highly suspect and the only asset you can trade is Bitcoin. And lastly, this broker protects itself by adding numerous indemnification clauses.

We would recommend to all traders that they not have any dealings with BTC Markets.

BTC Markets

2.4

User Experience

3.2/10

Payment Options

2.2/10

Security

2.1/10

Support

2.4/10

Reputation

2.3/10

Pros

• None

Cons

• Unlicensed Broker
• MetaTrader 4 Not Supported
• Lack of Clarity on Trading Conditions
• Suspicious Payment Gateways
• Bitcoin Only Trading Option