Beware! BtcgFX is an offshore broker! Your investment may be at risk.
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BtcgFX is yet another shady broker which operates with absolutely zero oversight and keeps important information like its Terms and Conditions hidden from us. The website it operates is partly broken and fully Chinese with no option to change the language. Still, we have uncovered more than enough on the company to know for a fact it is to be avoided. Let’s get right into it:
BtcgFX regulation and safety of funds
BtcgFX is not a regulated company – and its attempts to pass itself as one are equal parts hilarious and sad. The company claims to be regulated by the NFA, as you can see below:
But, the logo on display here belongs to the Australian regulatory body, the ASIC. The NFA is the regulator of the US, and it is among one of the strictest such agencies – brokers with it need to have over $20 million in liquid assets just to obtain a license in the first place. This is done to ensure that the companies have what it takes to survive on the rough Forex markets.
There is no way that BtcgFX can be licensed by the NFA, mind you – not only because of the blunder with the ASIC logo, but also the fact that it offers leverage of upwards of 1:400 – which the NFA has deemed as too much for retail traders.
But could the broker be licensed by the ASIC? Well, no – the Australian regulator also has recently imposed a cap on the leverage that can be offered to retail traders which is much lower than the amount offered by BtcgFX.
Your best bet is to avoid BtcgFX and stick to brokers which are actually licensed by one of these agencies – or any other regulatory body.
BtcgFX trading software
BtcgFX advertises the Metatrader 4 platform on its website – but actually offers its successor, Metatrader 5. Both of these platforms are widely regarded as the industry standard for their intuitive automated trading features and much more. Here is what the platform looks like:
The spreads that BtcgFX has on it are simply too high though – 3 pips on the EURUSD asset, which usually has a spread of no more than 1 pip. As we discussed, the leverage offered is 1:400, far more than what most regulators deem reasonable.
BtcgFX deposit/withdrawal methods and fees
BtcgFX accepts deposits via wire transfers and credit cards – note that while the former is a final method with no chargeback options, cards will allow you to file one within 540 days of any transaction. Considering there is no way to access the broker’s Terms and Conditions, this is quite the benefit – who knows how complicated withdrawals are, or what fees are associated with them?
As for the minimum deposit, it is set to the audacious amount of $7000 – this is much more than what most brokers demand – there are companies that can open you an account for about $5!
How does the scam work?
Unfortunately, it seems that BtcgFX follows a well-established scam pattern – if you have found the company’s website it was probably though an ad that promised a lucrative investment opportunity. Scammers then try and get a hold of your contact information – things like emails or phone numbers. Once they do, you will be under a barrage of calls and emails, trying to con you into depositing money.
The people who call are relentless and very efficient in manipulating their victim to deposit more and more money. Ultimately, the scammers do not care if your trades are successful or fail – as long as the deposits keep coming. Once you request to withdraw your funds or stop depositing, the scammers will leave you and simply never contact you again.
What to do when scammed?
Anyone can fall a victim to such a scheme – the people running them are professionals who follow a well-established scam pattern. Luckily, there are some options you can take to minimize further losses and even perhaps restore some of your deposits:
First off, you will want to uninstall any desktop sharing software that the scammers had you put on your PC – stuff like TeamViewer or AnyDesk. You will then want to change all credit cards and forms of ID you have provided the scammers with – they might try and use it without your knowledge otherwise.
Finally, beware of further scams – if contacted by a recovery agency that demands upfront payment, know that this is simply another part of the scam. Such agencies will not restore your losses – instead, they will only add to them!
Rich Snippet Data