Bitmegachain – Know What you are Getting Into

Bitmegachain

The biggest trend that has emerged in the last decade is cryptocurrency, as these digital currencies are changing the entire financial landscape. In fact, they have had an impact on numerous industries, which has made them the talk of town. Plus, their volatility...

Bitmegachain

Bitmegachain logo

The biggest trend that has emerged in the last decade is cryptocurrency, as these digital currencies are changing the entire financial landscape. In fact, they have had an impact on numerous industries, which has made them the talk of town. Plus, their volatility has also made them quite profitable, due to which more and more people are looking to trade them. This obviously means that there is a demand for brokerages that are offering access to the crypto market. You will not find any lack of companies that are doing so, but as this Bitmegachain review shows, not every company is up to the mark.

Since the crypto market is still new and quite unregulated, it has also drawn the attention of scammers and shady characters. You will discover that there have been an endless number of crypto scams that have happen in the last few years, since the crypto space exploded in popularity. It is understood that no one wants to become a victim of any such fraudulent schemes when they decide to trade digital currencies. After all, the profitability of cryptocurrencies is what people want to benefit from, but this does not mean that you throw caution to the winds.

Most of the people who have been defrauded are those who were too eager to begin trading cryptocurrencies and did not do their homework when it came to choosing a broker. Most of the impostors out there set up fake brokerages to trap people and it works quite well because of this lack of attention when it comes to selecting a company to use. Rather than throwing away your money and letting these criminals walk away with it, you should be prepared to do some homework in order to choose an appropriate broker.

Bitmegachain website

It is not that hard to do because you just need to look closely to figure out what you are getting to. One of the platforms you will find is Bitmegachain, which seems to be offering CFD trading services to people across various asset classes, but its primary focus is on cryptocurrencies. What do you need to know about Bitmegachain? Let’s find out below:

Licensing and Regulation

In order to know what you are getting into where an online brokerage is concerned, it is best for you to start with their licensing and regulation. Companies that have a license to provide trading services can be relied upon because they comply with a number of rules and laws and have to offer transparent and quality services to their clients. In addition, they can also be held accountable by the regulatory authority that issues their license. The problem with Bitmegachain is that it makes no mention of a license or regulation on its website.

If you look into Bitmegachain’s corporate background, you will find that it claims to be based in Geneva, Switzerland. This is one of the world’s most regulated jurisdictions and the Swiss Financial Market Supervisory Authority (FINMA) is one of the top regulatory authorities in the world. They have very tough requirements when it comes to issuing licenses to brokerages and ensure that the interest of traders are protected.

Unfortunately, when you check FINMA’s online register for Bitmegachain, you will find that the broker is not listed at all. This means that either the broker is lying about being based in Switzerland, or it is offering its services from there illegally. Both these situations don’t help in establishing the credibility of the broker, as it shows that you cannot trust it at all.

Terms and Conditions

After going over the licensing and regulation of an online broker, the next step should always be to check their Terms and Conditions. This legal document is of the utmost importance because every company will ask you to agree with these terms when you are registering with them. Their purpose is to outline the policies you will have to comply with and other important details, such as the fees you will be charged. You need to go over the Terms and Conditions of Bitmegachain as well and doing so reveals their malicious bonus policy.

First off, the fact that Bitmegachain is offering trading bonuses is itself a problem because this practice has been prohibited in most well-regulated jurisdictions around the world. They were banned because they come with strings attached, which are not considered fair at all. The bonus policy that you find here is one of the reasons trading bonuses were banned, as they boast the non-deposited funds clause.

According to this clause, any profits that traders make through the bonus provided by Bitmegachain are not eligible for withdrawal until they are able to achieve a minimum trading volume. There are two problems with this scenario. Firstly, it is not possible to physically separate the profits that traders generate from their own funds and what they generate from the bonus. Essentially, this gives the broker the right to prevent you from withdrawing anything altogether.

Secondly, the minimum trading requirement that Bitmegachain has set is deliberately kept so high that people will not be able to achieve it, thereby not allowing any withdrawals.

Fees

Another important aspect that you need to check when it comes to an online broker is the fees they charge and when you check out Bigmegachain’s charges, you will be blown away. No, this is not because they have really low fees, or are offering a lot of concessions. As a matter of fact, it is the exact opposite because they seem to be charging some outrageous fees, particularly where withdrawals are concerned.

You will find that Bitmegachain not only has a $35 withdrawal processing fee, but they also have a 10% levy applicable unless you achieve the specified turnover, which is downright impossible. To make matters worse, they also seem to have account inactivity fee, which is also significantly higher than what you would expect on other platforms.

Final Thoughts

Put all of these problems together and you will come to see that you do not want to choose Bitmegachain as your broker because it does not seem to be legitimate at all.

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