Recently, the spike in complaints about Digibits has caught the attention of BrokersView. Investors have accused it of engaging in dubious practices, including profiting from client losses, not processing withdrawal requests, and trading against clients' best interests. Shockingly, in one particular case, a victim suffered an alarming loss of $35,000.
On Digibits website, it marks itself as a trusted and reliable broker, but is that really the case? BrokersView has undertaken a thorough investigation that reveals a different story.
Overview of Digibits
Digibits (https://digibitsfx.com/) claims to be a global trading platform for online forex trading, offering a wide range of forex trading instruments through their internet trading platform, mobile application, and the popular third-party platform, MetaTrader 5. Investors are provided with three account types with zero or low commissions and several ways for customer service communication.
Legit or Scam?
Several red flags indicate potential irregularities with Digibits' operations. It is important for traders to be aware of these warning signs:
1. Lack of Legitimate Registration with the Mauritius FSC: Digibits claims to be operated by Digibits Network Limited registered in The Republic of Mauritius under license number 186940. However, our search for this company in the registry of Mauritius Financial Services Commission (Mauritius FSC) found no record of its existence. According to Mauritius law, brokers operating within the country must be authorized and regulated by the Mauritius FSC. The absence of such authorization and regulation casts doubt on the legitimacy of Digibits.
2. Merely Registered with the SVG FSA: Digibits Network Limited is registered in St. Vincent and the Grenadines, as indicated by the MetaTrader 5 software downloaded from their website.
While we did find records matching this company in the Financial Services Authority of St. Vincent and the Grenadines (SVG FSA), investors must bear in mind that the SVG FSA has explicitly announced that it "does not issue any licenses to carry on the business of FOREX Trading or Brokerage or Binary Options Trading nor does the FSA 'Regulate, Monitor, Supervise or License' International Business Companies (IBCs) which engage in such activities." Consequently, Digibits' offering of financial services remains unsupervised by the relevant regulatory authority, further undermining its credibility.
3. Absence of Live Chat and Customer Hotline: Customers have reported that Digibits does not provide a live chat feature or display a phone number for investors to contact them. This lack of direct communication puts all the power in the hands of the trading platform, allowing them to refuse responses at any time, leaving traders feeling helpless and vulnerable.
Based on our comprehensive investigation, Digibits is identified as an investment scam, and investors are strongly advised against dealing with this broker. Despite holding an SVG FSA license, it doesn't operate under any valid regulation, posing a huge risk to traders' funds. Once your money is in Digibits' system, there are no rules in place to protect it.
Forex trading carries inherent risks, and it is crucial for investors to exercise caution and stay vigilant against scams and fraudulent practices. Before making any investment decisions, traders should thoroughly research and verify a broker's accreditation, licenses, and customer reviews to mitigate potential risks. BrokersView offers over 3,000 broker reviews to aid traders in making informed choices. For the latest information on brokers, please visit our platform.