BTCapital is a shady crypto broker. From having unfair terms and conditions to a bug-ridden website, BTCapital has everything a trading scam does. BTCapitalís website (BTcapital.me) would make it appear that they are a reliable broker at first. However, they are the opposite and my BTCapital review will help you understand it better:
BTCapital License and Regulation
The license of a broker can tell you which jurisdiction it falls into and which regulatory authority it falls under. However, BTCapital doesnít provide any address at all. I looked at their websiteís footer, the about page, and everything else I could find, but I didnít find a single mention of their address.
When I went through their terms and conditions, I found that they are governed by the laws of Bulgaria, however they also mention that itís not an exclusive jurisdiction. This means it was only a speculation and I canít verify if this broker actually belongs to Bulgaria. To cross-check things, I looked up this brokerís name in Bulgarian Financial Supervision Commissionís register but I didnít find any information.
Itís clear that the broker has kept its address hidden. Thereís no information on the regulatory status of BTCapital on its website or the terms and conditions.
So, we can safely assume that BTCapital is an unlicensed and unregulated broker. It would be unsafe to trade with them.
You shouldnít trade with unlicensed and unregulated brokers. There are many scams in the crypto industry and so, financial regulators exist in many regions such as the US and Europe. These regulators impose heavy restrictions and laws on crypto brokers (and similar service providers) to ensure that the broker doesnít act against the interests of its client.
However, an unregulated and unlicensed wouldnít have to follow those restrictions. They can act against your interests (such as steal your data) and get away scot-free.
Regulators like FCA offer insurance compensation in case the broker steals the funds of their clients. For example, FCA can give you up to £85,000 if a FCA-regulated broker steals your funds. You donít get such facilities with unregulated brokers. This is a strong reason why I donít recommend trading with an unregulated crypto broker.
The lack of proper regulation is not all.
Check the following clause in their terms and conditions:
According to this, BTCapital can use the funds present in your trading account as collateral and can use it to get more funds. This is not okay! Licensed brokers keep their funds separate from their clients and the financial regulators ensure that they do. This clause is proof that BTCapital is an unregulated and unlicensed broker.
BTCapital Trading Conditions
You should always check the trading conditions of a crypto broker before doing business with them. Letís see what are trading conditions of this broker:
BTCapitalís website is filled with technical glitches and bugs. Because of them, I wasnít able to access the trading platform of this broker. Moreover, the broker doesnít provide any information about the platform on its website. So I couldnít verify which trading platform they use. However, Iím certain that itís not one of the MetaTrader platforms as the broker would have mentioned them somewhere.
To be honest, the best trading platforms available in the industry are Metatrader 4 and 5. Almost all reputed crypto brokers use these platforms because they offer a ton of features. It would best if you traded with a crypto broker that offers a reputed trading platform like Metatrader 4.
BTCapital offers multiple account types to its clients and the minimum deposit requirement of their smallest account is Ä5,000. This is too high by any standards and makes the broker more suspicious.
Many crypto scams keep their initial deposit requirement high which allows them to grab a lot of funds immediately. Such brokers are aware of their pathetic services and so, they donít give you a chance to test out their services beforehand. Instead, they force you to make a big financial commitment. In case you decide to discontinue availing their services, they will steal the huge deposit you had made.
Itís a common strategy among shady crypto brokers and thatís why I donít recommend trading with such brokers.
The broker offers 1:2 leverage for UST pairs and 1:4 for other pairs. Clearly, BTCapitalís offered leverages are too high.
High leverage is usually a sign of a scam. This is why financial regulators restrict their brokers on how much leverage they can offer to their clients. For example, the UK-based regulator FCA doesnít allow its crypto brokers to offer a leverage ratio higher than 1:2.
High leverage ratios can wipe out all of your earnings and even put you in debt quickly. They are very risky, especially if youíre a beginner.
BTCapital offers the following trading accounts. Note that I donít recommend any of them. Youíd be better off with a licensed broker:
The minimum deposit for this account is Ä5,000 and youíll have to pay 6% commissions. BTCapital offers up to 20% company credit according to their terms and conditions with this account.
The minimum deposit for this account is Ä10,000 and offers all the benefits of the previous account. You get up to 50% company credits along with weekly and daily webinars.
This account requires a minimum deposit of Ä50,000 and charges 4% commission. You can get up to 75% company credits along with all the benefits of the previous accounts.
This account requires a minimum deposit of Ä100,000. You get three times the loyalty points, 100% company credits, full academy pro, dedicated analyst and all the previous benefits.
The VIP account requires Ä250,000 minimum deposit and offers tailored commissions. All the benefits remain the same except you get custom credits.
BTCapital Payment Methods and Charges
As the brokerís broken website didnít let me open an account with them, I couldnít verify the available payment methods. This is quite a disappointment as the available payment methods can tell you a lot about a brokerís accessibility.
BTCapital charges plenty of fees. The minimum withdrawal limit with this broker is $100. However, they have a lot of unfair terms and conditions that make withdrawals a nightmare for their clients.
For example, if you didnít execute a minimum trading volume thatís equal to 1% of your deposit and make a withdrawal request, youíll have to pay 4.5% as funding fee. The broker claims that processing a withdrawal request can take up seven business days but the funds might take up to 60 days to appear in your bank account.
They also charge a monthly inactivity fee of Ä100. However, the broker fails to specify the period for which the account must remain inactive.
Instead of using the term bonus, BTCapital uses the term ĎCompany Creditsí. They are a fancy way of saying bonus and they come with very unfair terms and conditions. If you want to withdraw the credits you get from BTCapital, youíll have to execute a trading volume equal to the amount of the credit you receive and multiplied by 50,000. Until you fulfil this demand, you wouldnít be able to withdraw your winnings.
A common strategy among shady crypto brokers is they would offer you a ton of bonuses. Bonuses in the crypto industry are notorious as they allow the broker to complicate the withdrawal process for the user. The funds you receive in a bonus always belong to the broker, not you.
Is BTCapital a Scam? Yes!
The crypto industry attracts a lot of scams and they are of various sorts. Some scammers tend to give an unsolicited call and claim that youíre eligible for a random bonus. Others would run ads on the internet claiming to offer attractive deposit bonuses or easy profits.
Creating a website and filling it with lies is very easy. And these scammers target inexperienced traders too. Usually, these brokers operate from offshore areas such as St. Vincent or the Commonwealth of Dominica. They operate from such areas because these places donít have financial regulators like the US or the UK. So they don’t have to follow any strict laws and can easily steal the funds of their users without facing any legal repercussions.
You should always check a brokerís regulation and T&Cís before trading with them.
BTCapital Review: Conclusion
There are many scams in the crypto industry like BTCapital. And they keep growing. The best way to combat these scams is to spread the truth about them so their schemes would fail before they even start.
If you know someone whoís interested in crypto trading, share this article with them. They should know the truth about such scammers.This review (BTCapital) was originally published at Gripeo. To read the full review, go to – www.gripeo.com/btcapital/