The broker Bitfinex is a cryptocurrency exchange and margin trading provider. The lower leverage level compared to forex trading is available that is due to cryptocurrencies wild and unpredictable characteristics. It also claims to be the largest cryptocurrency exchange by volume. It is operational from the British Virgin Islands and is not regulated. In the past, there was case against it and the broker did pay fine for that particular case. Also, in 2016 more than 72 million dollars were stolen from Bitfinex. It was the second-largest cryptocurrency hack in the world. In short, the broker’s journey has many ups and downs. From 2017 it not accepting traders from the United States of America.
This cryptocurrency trader deals with all the major coins available like Bitcoin, Ethereum, Litecoin, EOS, OmiseGO, IOTA, Ethereum Classic, Zcash, Ripple, Dash and Monero. However, the initial investment required is not specified on the official website. That being said many brokers provide trading at 5 USD. The broker does allow margin trading of 1:3.3. However, it is acceptable. It charges several fees like taker and maker fees. 0.20% for taker and 0.10% for the maker. For short selling, additional borrowing fee is charged.
The broker offers its services on the web-based trading platform. Nevertheless, this platform could not be compared to the MetaTrader trading platform. MetaTrader is one of the best trading platforms that have won millions of trader’s hearts. It comes with features like Expert Advice, Automated Trading, World-Class Chartings, A Grade Market Indicators, so on and so forth. The funding of account at this broker can be performed via cryptocurrencies. It also claims to accept bank wire transfer but currently disabled this service. Unfortunately, the payment methods like Credit Cards, PayPal, Skrill are absent from the offerings. It will definitely limit the traders to trade with this broker. It was accused of several types of scams like withdrawal scam, hack scam and more.
Is Bitfinex scam or legit?
The broker is situated in offshore country and is unregulated. The history of this broker has seen many hacks and scandals. The trading condition is not clear. Also, the minimum deposit is not mentioned. Only one type of payment method is available and the MetaTrader trading platform is not provided to its clients. It has been accused of a scam several times. Therefore, we call it a potential scam cryptocurrency broker.