itBit Review

Overview:

American crypto broker itBit has two different services for small and big traders. These services are exchange and OTC Trading Desk designed for small and big traders respectively. The main advantage of OTC Trading Desk is that it provides trading for high bitcoin volume. The transactions are charged heavily and broker act as a market maker. This itBit review will give you a complete analysis of this potential scam broker.

About itBit:

The broker itBit was established in the year 2013 and claims to be situated in New York. It serves the USA as well as international traders. The itBit has received a charter from the New York State Department of Financial Services in 2015. However, NYSDFS is not a financial regulator. The broker provides many protection layers like two-factor authentication, cold storage for cryptos, and a highly secured trading platform. However, we haven’t got a chance to test the provided trading platform and we could not confirm anything. Bank Wire Transfer is the only one payment option available at itBit. However, this is inconvenient and bank wire transfers are charged heavily. The broker also applies default withdrawal limits and the trader can only withdraw $2500 per day and $15000 per month. The withdrawal procedure is not quick. The traders have two fill up two pages of withdrawal form and that has to be sent via email to itBit. This makes us think about how scam brokers work; they always refuse withdrawals or delay the process. 

The broker only charges to the taker, not to the maker. The charge is capped at 0.20% per trade. Many brokers charge only 0.10%. There is only one cryptocurrency traded at itBit. That is bitcoin and is traded against USD, EUR and SGD. Nevertheless, what are the initial investments required not shared by itBit. The offered trading platform is not a Meta Trader. Instead, a web based trading platform is provided. The broker itBit does KYC for its customers. It involves many days. The margin trading is not facilitated by itBit. Such trades are not profitable. itBit acts as a market maker and charges heavy fees for this controversial service. 

Is itBit scam or legit?

The broker is New York-based and not regulated by the financial regulator. Heavy charges are applied to its customers. Identification takes many days and MT is not provided. High charges are applied on withdrawals and they are also capped. itBit is a potential scam cryptocurrency broker.