Current Top Broker Deals:
Overbit.com Review 2019 – Pros and Cons of Trading on OVERBIT
- No Trading Fees
- Demo Mode
- Simple trading interface
- High leverage
- Top security
- US traders not allowed
- Too few order setting for some traders
Our latest discovery on the crypto trading market is the margin broker Overbit. We have kept an eye on it because the platform has some very interesting features for us. These include a relatively high leverage on Bitcoin trades of up to 50:1 as well as a demo mode in which the platform can first be tested extensively.
Overbit was founded in 2018 by CEO Chieh Liu, a financial expert in FX trading and derivative products who has a US degree in computer science. The company behind the broker is Abberton Trading Limited which is incorporated in the Seychelles.
Overbit is available in 4 world languages. English, Japanese, Korean, and Chinese.
The trading platform accepts users from all around the world exclusing residents of the US, Cuba, Quebec (Canadian province), Syria, Iraq, Iran, North Korea and Sudan.
Overbit can provide high liquidity as the broker relies on large trading platforms that provide the margin broker with ample liquidity.
To the best of our knowledge, the Broker has no limits whatsoever on position sizes or payouts.
Using The Overbit.com Margin Trading Platform
What we like about this broker is the unrestricted demo mode in which you can practice using the platform. This feature is not only for trading beginners but also for experienced traders who don’t know the platform characteristics yet and want to test their trading strategies here.
Unfortunately anonymous accounts aren’t possible on Overbit, since users have to make ID verification before withdrawals are enabled. So you have to click on KYC in your Overbit account and provide your ID and proof of address in order to be able to trade on Overbit.com for real money.
US Traders on Overbit?
Unfortunately no US Americans are allowed at Overbit, as usual. The legal situation in the US makes it too difficult for crypto margin brokers to offer their services to US citizens. Since KYC is mandatory with this broker, there is also no possibility to trick here.
Overbit does not charge any trading fees, but they charge funding fees for open positions that are held over certain time intervals. The funding fees occur every eight hours at 01:00, 09:00 and 17:00 UTC. Positions held beyond these dates are subject to a funding fee based on the following formula:
Long Funding = Notional Position Value * Long Funding Rate
Short Funding = Notional Position Value * Short Funding Rate
Apart from the funding fee for open positions the Bitcoin broker earns on the spread, meaning on the price difference between the bid and ask price.
Withdrawals cost nothing. Only the Bitcoin network fee is due, but it has nothing to do with the broker and is due with every Bitcoin transaction to compensate the miners.
The margin broker offers an excellent charting tool, with which the technical analysis can be carried out directly on the broker platform without having to use an external tool in parallel. Like many competitors they have embedded the comprehensive chart from Tradingview.com, which makes sense – why reinvent the wheel when Tradingview offer their chart for partners? The only downside is that Overbit’s version of the Tradingview chart only allows a 1 minute, 1 hour and 1 day view, which might be too little for many traders.
The Overbit.com Cryptocurrency Trading Products
Overbit.com offers a range of crypto derivatives. Bitcoin can be traded against the US Dollar. The offered old coins are traded against the Bitcoin, all in the form of derivatives. So Overbit does not buy Altcoin in that sense. One cannot pay out Altcoins. Profits are paid out exclusively in Bitcoin.
The Altcoins tradable on Overbit are Cardano (ADA), EOS, Ethereum (ETH), Litecoin (LTC), NEO, Ripple (XRP) and Bitcoin Cash (BCH).
The contracts are basically perpetual, i.e. they have no fixed expiry date.
What we don’t like about broker is that the chart doesn’t visually show the open orders as dotted lines which is the case at some other brokers. But that’s rather a matter of personal taste. In the order widget there are those 2 fields in the bottom half – the stop and limit settings.
The stop field is for your stop loss, of course. When you move your mouse over it there comes an explanation for the minimum value you have to put in as stop. So you can’t set stops that are too tight. In the limit field you can set your target, which is your take profit order. This field also tells you the minimum values at mouse over.
On Overbit you can trade Cryptocurrencies as well as Forex pairs. For the latter, you can trade up to 500:1, for Cryptocurrencies it is 50:1. This is relatively high in the industry if we compare it with other margin trading platforms. Many crypto brokers also offer no leverage at all.
Just like any serious cryptocurrency broker Overbit offers 2FA to make sure nobody else but you can login to your account. The best 2FA measure is to use an authenticator app on your mobile, such as Google Authenticator or Authy. To secure their users’ cryptocurrency deposits, the broker keeps the Bitcoins in cold storage where they are safe from hacker attacks. All customers’ Bitcoin is always segregated.
Overbit.com Customer Support
The support can only be reached via support tickets, but the team is helpful and answers quickly within the same day.
Conclusion on Overbit.com
What we like about Overbit.com is the simplicity of the trading platform. The site isn’t overloaded with information, it rather only shows what you need to know. But you should definitely make use of the demo mode in order to get used to the possible stop and limit settings.