GateBits has not revealed its location. However, its contact page suggests that it is in Australia. Investors can contact the broker via telephone or email for customer service support or inquiries.
GateBits is a crypto broker claiming to be legitimate. The broker also purports to provide an efficient trading platform to allow investors to accomplish their financial goals. GateBits has a way with words to make you believe that your interests and needs are its priority.
However, from our knowledge, brokers’ words should never be taken as absolute facts. Some of them make irresistible offers to trick you into their malicious schemes. If you take their bait, they will further pester you to deposit more money for “higher” returns. What follows is that they make it hard to access your funds, and eventually, they rip you off your money.
This article exposes some discoveries we made about the broker. Also, we share some bare minimum standards that a viable crypto broker must meet. Thus, you will find the review resourceful if you are pondering venturing into the field.
Details about the owner or operator of this broker are missing. This implies that if something were to go wrong, you would not know who to turn to. Crypto trading with genuine brokers is risky, much less trading with a rogue broker.
GateBits also purport to avail of different tools, unique trading experiences, and robust technology to facilitate trading. However, we are skeptical about such claims since the broker is relatively new. According to the whois database, this broker is only 130 days old, meaning its credibility is not solid. The scanty details regarding tradeable instruments on this platform give an impression of a broker with nothing to offer but a sham.
When genuine, a broker’s location speaks volumes about its credibility in regards to compliance with the law. Most legit brokers are in heavily-regulated jurisdictions, as abiding by prevalent regulations is not an issue. Not so with con brokers; they will either fabricate locations, conceal their corporate address, or base their operations on jurisdictions that tolerate scam brokers. Such jurisdictions include the Marshall Islands, Cayman Islands, and SVG.
Like a typical scam, GateBits has not revealed its location. However, its contact page suggests that it is in Australia. Investors can contact the broker via telephone or email for customer service support or inquiries.
Deposit and Withdrawal
GateBits supposedly accepts deposits via credit cards, wire transfers, and e-wallets. However, when you request to deposit, the broker prompts you to contact them for further guidance. The “guidance” might trick you through absurd directives, such as depositing funds to an anonymous e-wallet.
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Engage brokers whose deposit options are clear-cut as a norm. A majority of trustworthy brokers provide simple and flexible deposit alternatives. It’s a good idea to ensure you can submit a chargeback request if necessary.
The step above won’t be required in the broker’s instance, though. This is due to the broker’s explicit statement that deposits will never be refunded. Another absurd condition the broker wants you to accept is that you won’t try to reverse any deposits you make. Red flags are so obvious! The boldness of the broker in making such demands when it’s your money at stake is beyond comprehension.
The broker also specifies that the minimum withdrawable amount is 100 USD/GBP/EUR for withdrawals. Additionally, the broker deducts 1% of each withdrawal you make from your amount.
GateBits Investment Plan
GateBits presents six investment packages for investors. The packages are supposedly tailored to suit the ambitions, budget, and trading strategy of traders aboard. An investor requires at least $250 to open a self-managed package. Next, a basic account has a funding threshold of $5000. The account holders enjoy parks such as trade bonuses and dedicated account management.
The third package is the gold plan, with a minimum deposit requirement of $10000. Likewise, the Platinum package has a funding requirement of $25000, while the Diamond plan requires at least $50000. The last plan is the Libra plan which is invitation only. The Gold, Platinum, and Diamond plans afford risk management, financial planning, trading signals, prioritized withdrawals, and personalized analyst sessions.
We noticed that the broker’s trading volumes are relatively high. These betray the broker’s intention to make you part with as much money as possible. As a precautionary measure, only engage with legit brokers with relatively affordable accounts, such as $10 for a basic plan.
GateBits has attached several legal documents, allowing us to disapprove of its story further. One of the alarming statements we found is that the T&Cs are subject to St. Vincent and the Grenadines-which is weird because SVG has no forex regulations. The broker also claims that its bonus policy is subject to the Republic of Estonia. This is a flat lie. Since when does the Republic of Estonia come into the affairs of Australian-based brokers?
The broker offers bonuses to traders. However, to withdraw such bonuses and associated profits, you must reach a trading volume of 50,000. This standard is almost unattainable, and its only goal is to prevent you from accessing your money.
The fee addressed in the trading conditions applies to dormant accounts. According to the broker, such accounts inactive for 30 days will attract a maintenance fee of $99. This is a prohibitive amount considering that the account would not be generating any income. The broker is aware of the fact but could not care less- it has to force you to trade.
GateBits leverage is 1:400. This leverage is not ideal for you as it exposes you to unnecessary risks. Likewise, a spread of 2 is pretty wide. Given the impact spreads have on profits, it is prudent to go for brokers with tighter spreads. This ensures that the broker does not earn much commission at your expense. Since legit brokers offer spreads below 1, there is no compelling reason to stick around GateBits.
Since the broker’s contact page suggests it is in Australia, we checked with ASIC. As expected, the broker’s credentials were missing from the register. It is also unclear why a broker in Australia would be subjected to SVG and the Republic of Estonia’s laws if it was in the supposed country. We can conclude that it is not in the Republic of Estonia (EU laws) or Australia.
Should it be in SVG, you can be sure it is a rogue broker. So, either way, we are dealing with an unregulated broker. Several risks come with such a broker. First, your funds are not secure, as this broker intends to keep them from you. Succinctly put, this broker will waste you. Moreover, when this broker vanishes, you will not get compensated. Your woes won’t end there; pursuing legal action against the broker will also be pointless. This is because brokers in offshore countries are immune from international prosecutions.
GateBits Trading Software
The broker’s platform is fairly simple and has a decent charting and analytical package. New traders will not struggle with this platform. However, given that this broker appears to be a scam, it does not seem worth this risk.
The essence of a trading platform in realizing your investment goals cannot be insisted on enough; therefore, only go for optimal platforms. Consider legit brokers offering a reliable trading platform, such as the MT4 or MT5 software. With such software, you are not short-changed, as you can access limitless trading opportunities and functionalities.
We cannot have any conversation about online investment without mentioning regulations. This Is because regulation is an area that affects your returns prospects. You are better off with a credible broker to be entrusted with your funds. As for GateBits, it is everything but a viable crypto broker.
Since online investment is a big deal, you cannot settle for anything less than credible. Subsequently, we recommend you ignore the broker and look for those with your interests at the core. These brokers ensure you are at ease regarding funds safety, legal guarantees, and transparency.