Bgt-Xchange Review – Uncovering the Truth about this Broker

Bgt-Xchange Review

Before the IT boom, people used to engage in trading in the financial markets as a full-time career. It required you to go out to consult a broker and then decide on your trades. It was a long and time consuming process and people had to have a lot of capital to participate, but it offered excellent returns.

Thanks to the internet, people can trade from anywhere nowadays, not have to have extensive knowledge or thousands of dollars and not have to trade full-time either. Online brokers are now available to assist you, but this Bgt-Xchange review sheds light on one category of these companies.

While you will find a plethora of online brokers offering their services, they do not belong to the same category. The first category comprises of reputable and professional companies that know what they are doing and can offer you the best services for your trading journey.

The second category brings you a step down to mediocre platforms and then there is a third one that comprises of shady and scam brokers that are only established to steal your money.

These are the ones you have to be wary of and you should note that they do not come with any warnings that will help you avoid them. In fact, these will appear as regular brokerages, or may even come off as professional ones because they purposely design their websites to seem that way.

Moreover, they also make the effort of adding offerings that can be difficult for traders to resist. But, this is where you have to proceed with caution, lest you fall into their trap.

Before you decide to go ahead with a specific brokerage, it is a good idea to do some research into their offerings to ensure they are what they advertise.

The same approach will work wonders in the case of Bgt-Xchange, a brokerage that claims to be licensed almost everywhere in the European Union like Denmark, France, Spain, Malta, Italy and Germany, as well as the UK and the US.

 

It makes the brokerage sound fantastic, considering that Bgt-Xchange also promises seamless trading with forex currency pairs, crypto, oil and indices.

But, is it really? You can find the truth about Bgt-Xchange when you do your research. Let’s begin:

Regulation and licensing

A licensed and regulated brokerage should always be given preference over an unlicensed and unregulated one because they are unlikely to be fraudsters and can offer you better services and features. As mentioned earlier, Bgt-Xchange has made some big claims about being licensed in a number of jurisdictions.

To begin with, it claims to have a license in the United States and the licensing authority that Bgt-Xchange has named is the ‘US Financial Services Authority’.

Other regulatory authorities that have been mentioned by the broker include the Financial Conduct Authority (FCA) in the UK, the National Securities Market Commission (CNMV) in Spain, BaFIN in Germany, CONSOB in Italy, as well as the regulatory bodies in France, Malta and Denmark amongst others.

But, the problem is that when you check the online registers of these entities, you will not find the name of P240 Ltd, which is the company behind Bgt-Xchange, and the brokerage itself. This makes it apparent that the broker is lying about its regulatory status.

In addition, when it comes to its US regulation, there is no ‘US Financial Services Authority’. The regulatory bodies in the US are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC).

Since Bgt-Xchange did not even get the names of the authorities’ right, it is unlikely that it is licensed by them.

Trading platform

The trading platform that you will be given by an online broker is of the utmost importance because you have to use it for executing your trades.

This is where Bgt-Xchange really impresses because it claims to be offering the MT5 trading platform, which is recognized as the top one in the industry with excellent technology and state-of-the-art trading tools.

But, when you actually check the Bgt-Xchange website, you will find that it is not really offering a trading platform at all.

Once you complete your registration, all you will find on its website is a funny looking dashboard that does not give you the option of executing trades. The only option it does have is of making a deposit, which highlights the intentions of the brokerage.

Trading conditions

Your next area of focus should be the trading conditions because these are directly related to your profits. You should know what kind of costs you will incur and the flexibility you will have during trading.

This is another area where Bgt-Xchange is going to disappoint because it has spreads that are as high as 3 pips. These are extremely poor, as even mediocre brokerages will offer you spreads of around 1 to 1.5 pips.

Furthermore, when you check out the leverage ratios that Bgt-Xchange is offering, you will find that they go as high as 1:200.

This further confirms that you are not dealing with a licensed broker because regulatory authorities in the UK and Europe have imposed a cap on the maximum leverage that can be offered to retail traders and it is below 1:50. Such high leverage ratios are extremely dangerous.

Payment methods

The payment methods of a broker are also a must-see because they indicate what kind of security and flexibility you will have.

Even though Bgt-Xchange advertises a variety of payment methods like bank wire transfers, Skrill, Neteller, Bitcoins, VISA, MasterCard and several e-wallets like Web Money, Yandex Money, PayPal and QIWI Wallet, it does not offer them.

The only two methods you have available are bitcoins and credit cards. The latter may be a good option, but the problem is that Bgt-Xchange supports this payment method via some obscure third party website called Stripe. This does not help with the broker’s credibility at all.

The Answer

The truth that you will uncover about Bgt-Xchange is that it is not what it claims to be and is a fraudulent platform that is misleading people.