GateBits Review – Terrible Scam Broker Operating Offshore
We know the website looks very attractive but the lack of transparency and details was alarming. Therefore, we decided to do the GateBits Review and expose this shady offshore provider that doesn’t even know how to make a proper introduction. Without further ado, let’s make a trip to the Caribbean Sea where our scammer is located.
|Regulated by:||Unlicensed brokerage|
|Blacklisted as a Scam by:||FCA, CSA, BCSC|
|Minimum Deposit:||250 $|
|Cryptocurrencies:||Yes – BTC, XPR, ETH, LTC…|
|Types of Assets:||Forex, Crypto, Indices, Commodities, Stocks|
|Free Demo Account:||Unavailable|
|Accepts US clients:||No|
GateBits Has No Regulation?
Of course not. If the vagueness on the website wasn’t enough, we found this little detail in the T&C section that made us see the bigger picture. Namely, GateBits operates from Saint Vincent and the Grenadines (SVG), an infamous scam island located in the Caribbean.
We say that because of the lax rules and favorable tax system established on the island. Furthermore, the local regulator – the Financial Services Authority (FSA), does not regulate the Forex market, i. e. does not issue licenses to brokers. Thus, GateBits is unregulated, it’s as clear as day.
Why It Is Better Not to Choose An Unlicensed Broker
Dealing with offshore providers is extremely risky. Mainly because they essentially operate under no jurisdiction. Hence, they do not impose a leverage restriction, which automatically makes trading with them all the more dangerous.
Also, they don’t offer fund segregation, negative balance protection, or indemnification, plus they don’t need to possess high operating capital. These are all the demands that licensed European and Australian brokers have to meet. So, we suggest you search for those regulated by top-notch authorities such as the FCA, ASIC, CySEC, BaFin, etc.
Warnings From Financial Regulators
Speaking of reputable regulators, three of them have issued a warning against GateBits. Most notably, the UK’s Financial Conduct Authority (FCA) claims this broker is a clone of a company authorized to provide services in the UK.
The other two regulators that have blacklisted GateBits are the Canadian Securities Administrators (CSA) and the British Columbia Securities Commission (BCSC).
GateBits Software – Platform Tools
We were promised a cutting-edge platform with advanced features but got the complete opposite. GateBits offers just a basic WebTrader. This browser-based platform is pretty ineffective per se because it lacks tools such as automated trading and branch optimization.
If you want to know what real trading is, then you have to try out Meta Trader platforms. Also, make sure your broker is regulated to avoid getting a rigged platform. Yes, scammers manipulate platforms all the time; you think you’re trading when it’s all just an illusion.
There’s also a mobile trading option. However, mobile versions are generally inferior to their desktop counterparts. In addition, unregulated mobile platforms could be rigged too. While it may be good on the go, we recommend you first master desktop versions.
GateBits Assets – Trading Instruments
When it comes to trading instruments, GateBits included the bread & butter as well as some more exotic options:
- Forex pairs – EUR/USD, NZD/GBP, AUD/JPY…
- Indices – NIKKEI225, DOW30, FRA40…
- Commodities – wheat, sugar, gold, brent oil…
- Stocks – Apple, BMW, L’Oreal…
- Cryptocurrencies – BTC, XPR, ETH, LTC, USDT…
But, let’s not get carried away. The choice of instruments may seem abundant but it’s there to lure you. You should always first check the legal status of your broker before getting losing yourself in the asset offer.
Where Do GateBits Engage In Fraud? – Countries Of Service
It’s also important to stress where this fraudster is finding its victims. After a bit of digging, we discovered that GateBits particularly targets unsuspecting traders from the following countries:
- The UK;
Fortunately, the UK and Canada’s regulators reacted to this threat. We hope those warnings, as well as our review, reach traders in time to prevent fraud.
What Are The Different GateBits Account Types?
GateBits does offer different account types. Here’s the list:
- Self-managed – 250 $, leverage up to 1:100;
- Basic – 5,000 $, 1:200, includes bonus;
- Gold – 10,000 $, 1:320, includes bonus;
- Platinum – 25,000 $, 1:350, includes bonus;
- Diamond – 50,000 $, 1:400, includes bonus.
Sorry, but these prices are simply too high. We don’t recommend you trust such as shady provider with this kind of money. The rest of the information regarding the accounts is pretty ambiguous. It all seems exaggerated.
Offer Demo Or Trial Accounts?
There’s no free demo account. Nor is there a trial option. We were able to access the trading platform but not trade. Therefore, it’s not by the book. GateBits did leave room for a promo code, though.
Referral Program – Bonus Issuance
Since GateBits is an offshore hoax, it can offer bonuses. These little gizmos are simply a pretext the scammer uses to prevent traders from making withdrawals.
There’s always a clause in there that says traders have to reach an insanely high trading volume before being eligible to withdraw. What traders don’t realize is they had agreed to this the moment they registered.
Forget about the referral program. It’s a ruse as well. GateBits simply wants you to find its future victims for it. Don’t draw your friends into this scheme.
How Much Is Leverage, Spreads, and Fees
GateBits says it offers “lucrative spreads”. Why not reveal them then? Leverage caps above legal restrictions. Only offshore phonies can do that. Regulated brokers have to respect the legal limit of 1:30 (UK, Australia, EU) or 1:50 (US, Canada) for retail clients.
As for commissions, we were left in the dark because GateBits decided to be all mysterious and vague. We’d imagine the scammer offers great spreads with high fees. That’s a possible scenario.
What Is The Minimum Deposit and How Do I Withdraw?
We already mentioned our disapproval of the high minimum deposit of 250 $. It’s not worth risking. GateBits also charges a withdrawal fee of 1% with the minimum being 30 $. However, we believe there won’t be any withdrawals. The scammer will simply take the 250 $ and run. As for the payment methods, GateBits accepts the following three:
- Credit or Debit Cards;
- Wire Transfers;
- Bitcoin Payments.
Scammed by GateBits Broker? – Allow Us to Hear Your Story
That’s pretty unfortunate. Tell us more about it, we’re here to listen and help. First, we’ll tell you about how you could get a refund if you’ve been defrauded by GateBits. Depending on the methods of your deposit, there are three ways – a chargeback, a recall, and crypto tracing.
What Is the Chargeback Procedure?
- A chargeback is performed by the issuing bank if requested within 540 days of the transaction. It can reverse credit/debit card transactions.
- If you’ve provided the scammer with copies of your ID card, passport, or driver’s license, you cannot get a chargeback.
- A recall is the same thing for wire transfers. It can only work if the transaction is incomplete.
- Crypto transactions allow the scammer to remain anonymous but they can be traced to their wallet in a crypto exchange. Then, you can request a refund from the exchange.
Here you can book a free consultation and find out what to do for a start.
What Is GateBits?
GateBits is a shady offshore provider based in SVG that allegedly offers Forex, CFD and crypto trading on a web-based platform.
Is GateBits a Scam Broker?
Of course. GateBits is anonymous and unregulated. Plus, it has been blacklisted by the FCA, BCSC & CSA.
Is GateBits Available in the United States or the UK?
Per the scammer’s website, it is available to traders from the UK but not to those from the US. GateBits is blacklisted in the UK.
Does GateBits Offer a Demo Account?
No. There’s no demo or trial account option. Instead, GateBits offers a promo code. You can view the trading platform though.