Beware! BitAndCoins is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
BitAndCoins (make sure to look for it in the URL as bitandcoins.com) generic nature spans both its name and entire quality of services, or actually quality of promises. We can tiptoe around the truth, but unfortunately, sooner or later, users will find themselves in a heap of trouble once BitAndCoins refuses to let them withdraw. We advice you to read the review to until the end.
The broker offers an extremely simple registration process. There is no trader dashboard. Instead, registered users get access to a couple of new table on the navigation bar, one of which was a trading platform. The we found the EUR/USD spread to be 3 pips which is too high to be of any value to traders, while the tradeable assets are forex pairs, commodities, cryptocurrencies, indices, and stocks. For a broker named BitAndCoins, there is sure a plenitude of non-crypto assets. This indiscrepancy can be viewed in light of BitAndCoins’ shady and suspicious nature.
The leverage is capped at 1:400.
The website can be accessed in English, and English alone.
BITANDCOINS REGULATION AND SAFETY OF FUNDS
BitAndCoins falls into the category of brokers with zero regulatory information. Either out of laziness, lack of care, or ignorance, the broker does not include licensing information.
The legal documents keep mentioning that users are bound by the laws of their country of residence, which is a classic illicit broker move. It makes sure that more novice users think that they are protected under their country’s laws. This is untrue!
Thus there is nothing in our way to stop us from stamping this firm UNREGULATED, and a risk to all investments made in it!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
BITANDCOINS TRADING SOFTWARE
Here we have a familiar trading software that we associated with illicit brokers. The reason for this is that we have reviewed previous companies with the exact same trading terminal, all of which turned out to be scams.
The features that keep away this terminal from utter uselessness are stop loss/take profit, one click trading, and price alerts. These are all staples of the industry, and their inclusion should not be celebrated as something unique.
Needless to say, this trading terminal was not at all impressive, which can be applied to the entire BitAndCoins shady experience.
What’s more is that this broker can suspend open financial contracts, without being liable for the resulting damages to the trader.
BITANDCOINS DEPOSIT/WITHDRAW METHODS AND FEES
The deposit section of our dashboard area was unavailable in our region. So, we cannot give you a minimum deposit requirements, nor any actual funding methods. We tried other means of accessing the payment area, all of which were in vain. This made us think that it was not our region that was restricted but rather that we were not the ideal depositor for BitAndCoins. We assume that behind this scammer broker is an individual who checks each new registered user’s eligibility. If the user passes this, he or she will be granted access to the funding methods. This scammer approach is better detailed in the following chapters of the review.
The website tells us that the minimum deposit is $250, and that depositing methods are credit cards, debit cards, Neteller, Skrill, and wire transfer. However, at this point in the review, we have no trust left for BitAndCoins.
According to the legal documents, withdrawal requests are processed in 5 to 7 days. The minimum withdrawal amount is $250. As per the Withdraw Policy there is a service fee of 3.5% with minimum of $30. How much this fee is applicable is not for us to make sure, and neither should you!
Dormant accounts will be charged with an annual maintenance fee of $30. An account is deemed dormant after 12 consecutive months of inactivity.
The broker can impose volume on a customer’s account. What this volume is supposed to limit is left unsaid, however we assume that BitAndCoins might be referring to trade limits, withdrawal limits, the website’s usage, or anything in between.
Renewal fees, or Rollover fees, are nothing new in the world of forex; all broker have them. However, BitAndCoins goes a scammer step further and reveals that it has the right to directly debit a client’s credit card with the commission, which is an absolute illegal move!
This was the Risk Disclosure in its entirety; in essence one big limited liability clause. Here, what the broker tries to tell us is that it will not be held accountable for nay damages it causes to a user, be it financial ort otherwise.
We are not entirely sure what “communication” refer to in this clause, yet we do have a faint idea of it. It might point to all information provided (or communicated) to the broker, which includes personal data
Aside from these two clauses, there a more instances where BitAndCoins makes sure to indemnify itself and its affiliates and officers. No surprises there. Illegitimate brokers will do what ever it takes to scam you out of you money without being legally guilty of it. Be aware that BitAndCoins is a practitioner of this! Do not invest here!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.