OxBit Review by professional crypto currency trading experts the “ForexSQ” FX trading team, Everything you need to know about the broker is in this OxBit Review.
OxBit is a Russian forex broker that provides a single live trading account with leverage up to 1:500 and the option to use micro lots. It offers trading in forex, spot metals and CFDs on stocks, indices, agricultural products, energies and metals.
MetaQuuotes software available
OxBit claims to offer trading via the most popular forex trading platform, the MetaTrader 4. This easy to use and reliable software is equipped with many advanced features, such as top-notch charting, numerous Expert Advisers, technical analysis indicators, and more. No wonder it is preferred by most traders.
However, when we tried to download OxBit’s MT4 to test it, it turned out to be MT5 instead. While MetaTrader 5 is a great platform that supports most of MT4’s great tools, we find this inconsistency a bit odd.
High leverage levels
The maximum leverage levels provided by OxBit are fairly high, as the standard in the forex industry is around 1:200. A leverage of 1:500 is a nice option, yet a slight move of the market against you will result in serious loss. So, be careful.
The main and potentially disqualifying flaw of OxBit is the fact they are licensed offshore, in Vanuatu. Although a license from the Vanuatu Financial Services Commission (VFSC) is better than none, offshore “regulation” still carries a significant risk for your investment.
Spreads not presented well
As we mentioned in the beginning, OxBit does not present its spreads in a clear manner. A minimum of 0 pips and a maximum of 4.4 pips on EUR/USD is just ridiculous. Not to mention that the trading specifications are based on date from 2016.
By comparison, most forex brokers indicate their minimum or average spread and the difference between the two for the EUR/USD usually is 0.2 – 0.4 pips.
Market Maker model
According to the terms and conditions uploaded on OxBit’s website, it acts as a principal in all trades. This means that the broker is a Market maker, and there is a possibility that it acts against you, making money when you lose.
Says it offers MT4, but only MT5 is downloadable
As we already said, this misinformation does not leave a positive impression. Besides, the MT5 available for download on the broker’s website is provided by MetaQuotes itself, not by the company that operates OxBit.
Founded in 2016, OxBit is a forex brokerage brand that targets mostly Russian traders, as the website is mostly in that language. It claims to offer low variable spreads and high leverage levels on MT4, but in fact neither the spreads, nor the platform it uses are clear. This immediately raises a red flag. Another thing that bothers us with regards to OxBit is the fact that the company behind it, Dominion Markets Limited, is registered offshore, in Vanuatu. The same firm operates DominionFX brokerage brand.
We could not find any user reviews or feedback about those brokerages, but will not get tired of repeating that investing in offshore brokers carries a significant level of risk. Indeed, there are only a few brokers regulated in Russia, but you can choose among those licensed in Cyprus. Forex brokers regulated by the Cyprus Securities and Exchange Commission(CySEC) are quite reliable. They must meet strict requirements regarding capital adequacy, client account segregation, transaction reporting, and more. Besides, there is the Investor Compensation Fund, which may cover a maximum of 20,000 EUR per person in the event of broker insolvency.
OxBit Review Conclusion
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