Exobit – Are They Safe?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Exobit - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$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://exobit.io
Founded:2021
Regulations: Not Regulated
Languages: English, Arabic
Deposit Methods:Credit Cards, Debit Cards
Minimum Deposit:$250
Free Demo Account:No
Number of Assets:Unknown
Types of Assets:Foreign Currency Pairs, CFDs on Shares, Indices, Commodities, and Cryptocurrencies
Trading Accounts and Conditions
Exobit offers its clients the following account types:
- Green Account: The leverage offered for UST pairs is 1:2, while the maximum leverage for other pairs is 1:100.
- Premium Account: The leverage offered for UST pairs is 1:2, while the maximum leverage for other pairs is 1:200.
- Platinum Account:The leverage offered for UST pairs is 1:2, while the maximum leverage for other pairs is 1:300.
- Executive Account:The leverage offered for UST pairs is 1:2, while the maximum leverage for other pairs is 1:400.
- Presidential Account:Traders are offered tailored leverage for this account type.
The broker has not mentioned what the minimum deposit requirement for each of the trading accounts is. All we are told is that the minimum deposit starts at 250 Euros, but you are required to deposit at least 1,000 Euros. There is also no information about the spreads offered by this broker. However, when we logged into their web-based trading platform, we found out that the spread was at 0.1 pips for the EURUSD pair.
Exobit– Advantages
There are no advantages to trading with Exobit.
Exobit – Disadvantages
Given below are the disadvantages of trading with Exobit:
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Unregulated Broker
Exobit claims that its parent company is SwellTech LLC which is based in the capital city of Latvia, Riga. So, we checked the online register of the Latvian financial regulator, the FCMC (Financial and Capital Market Commission). We did not find any company by this name listed there.
Now, Latvia is a member of the European Union, which means that a broker has the freedom to be regulated by any other EU member nation. This broker is not regulated by any other EU member nation either.
What this means is that Exobit is operating without a legal license. This is a red flag that indicates that this broker could be 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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Lies About Offering MT4 Trading Platform
Exobit claims to offer its clients the MetaTrader 4 trading platform. However, we found out that this was just a lie. What this broker really offers is a simplistic web-based trading platform that does not compare to the MT4 software.
The MT4 software has a range of charting tools, market indicators, trading bots for automated trading, financial calendars, and a marketplace with more than 10,000 trading-related apps to choose from. And that’s just the tip of the iceberg. Its user interface is so easy that even novice traders don’t have a problem using this software.
With Exobit’s web-based trading platform, you get none of these benefits. All you get is a simplified trading platform with no supporting tools.
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High Leverage Ratio
Exobit offers a maximum leverage of 1:400 (as well as tailored leverage ratios for its Presidential Account holders). Latvia is a part of the EU, where the leverage has been capped at 1:30. Therefore, the leverage being offered by this broker is basically illegal; no regulated broker is allowed to offer such high leverage ratios in the EU.
Leverage is a tool that traders can use to make bigger investments. If the investment is right, then the trader stands to make a lot of money. However, statistics show that 75% to 85% of the time, traders lose money on the market, which means that taking high leverages is a dangerous thing. Traders using high leverage ratios have been bankrupt, which is why – to protect consumers – the financial authorities in many jurisdictions across the world have placed a limit on how much leverage they can get from their brokers.
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Limited Payment Options
The only way that you can make deposits and withdrawals with Exobit is via bank cards – credit and debit cards. However, while this broker accepts both Visa and MasterCard, it does so through a third-party vendor called Ipaytotal.solutions.This is highly suspicious and definitely not something we should trust.
While the broker only talks about bank cards, we found out that they also offer a wire transfer option.
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Charges are Determined in Cryptocurrency (UST)
It is interesting to note that all charges are determined in UST, which is a cryptocurrency. So, if you wish to withdraw money, the minimum amount you are allowed to withdraw is 50 UST for bank cards and 100 UST for wire transfers. The fees you are charged are also in this digital currency and not in fiat currency.
Scammers are known to prefer cryptos as a method of payment since transactions in digital currency are permanent and untraceable. So, this is another red flag for us.
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Unfair Terms and Conditions
Every time you submit a request to withdraw your funds, you will be charged a 5% fee – even if your request is cancelled. And if you accept the bonus – called Credit Tokens – then you are required to meet a certain trading volume target which is not specified. And if you don’t meet that target, then you will be charged another 10% for withdrawal requests. You also have to pay a 100 UST monthly handling fee if your account is dormant for 60 days or more. To top it all, you will also be charged an annual handling fee of greater than 10%.
These terms are just plain unfair and just money-making schemes for this broker.
Conclusion
Exobit is not a broker that you should trust. It has lied about its regulation status, its trading software, and its terms and conditions. This is not a broker that anyone should do business with. We will not recommend this broker to anyone.
Exobit
Pros
- None
Cons
- Unregulated Broker
- Lies About Offering MT4 Trading Platform
- High Leverage Ratio
- Limited Payment Options
- Charges are Determined in Cryptocurrency (UST)
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.