BitAurox – The Troubling Aspects of the Broker

BitAurox

There was a time when people could not even fathom being able to trade in the financial markets from anywhere in the world. Yet, this is the reality today because you can engage in online trading, regardless of where you are, or what time it is. Likewise, you do not need to have copious amounts of money to invest and neither do you need extensive knowledge to dive it. These days, you just need to look for a good and dependable broker, have the minimum deposit they require ready and get started. But, finding a broker comes with its own challenges and this BitAurox review sheds light on some.

Sure, a simple search tells you that there is an endless list of online brokers to be found, but this does not mean that you can choose one randomly and get started. As much convenience as the internet offers you, it also comes with its fair share of risks. One of these is the widespread number of con artists and scammers looking to exploit you at every turn. Posing as an online broker is a very common tactic and many have fallen victim to it.

Unless you want to be just another statistic, you have to proceed with caution. This means keeping your eagerness to start trading in check and go through your options carefully. The reason these fraudulent brokers are able to attract victims is because they present a good front. They know exactly what boxes to check for drawing people in, so you have to be careful to not fall for their appearance alone. These days, anyone can design a decent website and claim whatever they want.

This appears to be the case with BitAurox, which is advertised as an award-winning, trusted broker that offers its services to more than 10 million traders spread across 170 countries around the world. Its list of offerings include super-fast order execution and very competitive spreads, not to mention that it also claims to be regulated. To put it simply, it sounds like quite the package that you would definitely want to choose. But, once you take a closer look, you will find some troubling aspects that show it is not what it appears to be.

What are they? You can check them here.

False regulation claims

If there is one aspect of an online broker that can make, or break your trust, it is their regulatory status. A professional brokerage will have a license to provide its services in the jurisdiction it operates and this is issued by the regulatory authority of that region. Any company worth their salt will have no issues in going through the regulation process, regardless of how complex, or time consuming it may be.

Dealing with a regulated brokerage is reassuring for traders because they know they are dealing with a legitimate entity that can offer them services of the highest standards and can offer them safety of funds and other protections. Plus, they can also be held accountable in case of a problem. You will find that BitAurox boasts about being regulated and its address shows that it is based in the UK.

According to the brokerage, it is regulated by the Financial Conduct Authority (FCA), which is the UK’s regulatory body and one of the most renowned ones in the world. A license from the FCA is immensely valuable, but when you search their online register for BitAurox, you will find that the regulation claim is false. The brokerage is certainly not listed, which means it is lying about its regulation.

As for the address it has mentioned on its website, either BitAurox has posted a fake one, or it is operating illegally from the UK. You do not want to do business with a company that is lying to you, or is engaged in illegal activities.

The high leverage

Even if you do not check the online register of the Financial Conduct Authority (FCA) for BitAurox, you can still tell that the brokerage is not being honest about its regulation. How? This is obvious from the amount of leverage that it claims to be offering to you. When you take a look, you will find that the ratios are as high as 1:1000.

Sure, it does sound exciting when you realize just how big trades you can make with that kind of flexibility, but you have to remember that leverage is a double-edged sword. Yes, you can make profits, but it can also lead to equally high losses. Therefore, regulatory authorities often impose caps on the amount of leverage that can be offered in order to ensure that people do not suffer from too much losses.

This also applies to the FCA, which has imposed a cap of 1:30 on the amount of leverage that brokers can offer to retail traders, yet BitAurox is offering way higher levels. This is further proof that you are dealing with an unreliable and scam company for the most part.

Only crypto payments accepted

It is a given that when you are trading online, you have to make deposits and withdrawals. How you do so will depend on the payment methods that are supported by a brokerage. Of course, the choices can vary, given that there are different types of methods that can be used for this purpose. But, what you find at BitAurox is alarming because it turns out that they only allow you to make payments in cryptocurrencies like Bitcoin and Ethereum.

Why is this a problem? While crypto payments are indeed a modern option, the issue is that they are a favorite of scammers because they are final and irreversible. There can be no chargebacks with these payments as in the case of VISA and MasterCard, which means your money will be gone. Also, they tend to be anonymous as well, so this is yet another reason that fraudulent platforms offer crypto payments.

Final Thoughts

Given these troubling aspects of BitAurox, it is not difficult to see that it is not the kind of brokerage you need.