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Overbit.com Review 2020 – Pros and Cons of Trading on OVERBIT
- Fee Mode or Spread Mode selectable
- Demo Mode
- Easy & Clear Interface
- High Leverage
- Isolated or Cross Margin
- Top Security
- US traders not allowed
- Too few order setting for some traders
About the Company
One of our most interesting discoveries in terms of new bitcoin brokers in 2019 was Overbit. We have kept an eye on it because the platform has some very interesting features as we think. These include a relatively high leverage on Bitcoin trades of up to 100:1 as well as a demo mode (with 8 BTC play money) 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.
Can US Traders trade on Overbit?
Unfortunately no, US Americans are not allowed at Overbit, as usual. The legal situation in the US makes it too difficult for most cryptocurrency brokers to offer their services to US citizens, especially when it comes to margin trading. Since KYC is mandatory with this broker, there is also no possibility to trick here.
The trading platform accepts users from all around the world excluding residents of the USA, 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.
Mobile Trading on Overbit.com
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.
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 Bitcoin 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?
They also have an own chart view, linked as the “Original” one above the chart window, but we somehow don’t get how to adjust this chart view and move the candlesticks. But this is not a big deal since the Tradingview chart works well. The only downside is that Overbit’s version of the Tradingview chart allows less timeframes than some traders might be used to use.
Here you can analyze the a 1 minute, 15 minutes, 1 hour, 4 hours and 1 day view. But probably this again doesn’t matter as most traders use other charting tools like Tradingview or Coinigy parallel to the broker platform anyway.
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.
Cryptocurrency CFDs on Overbit:
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.
The available Forex CFDs are:
These are the Precious Metal trading pairs:
Overbit offers a simple order entry field where you can choose between Market Order and Limit Order. Here you can set stops and take profit limits. Also you can choose whether you want to trade in Fee Mode or in Spread Mode. Spread Mode means zero fees but a certain spread between bid and ask price has to be taken into account.
Traders who are used to trade with fees can choose the respective mode. Here is an article that explains the difference in detail: https://help.overbit.com/en/articles/3767983-fees-vs-spreads
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 Cryptocurrency as well as Forex pairs and Metals (all as CFDs ). For the latter, you can trade up to 500:1, for cryptocurrencies it is 100:1. 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.
Overbit supports the distinction between Isolated and Cross Margin, so traders can select the mode that fits them better.
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 be reached via support tickets, the team is helpful and answers quickly within the same day. Additionally there is now a live chat window on the site that is available 24/7. This was introduced in early 2020 to improve customer service. A live chat is an important feature since most serious companies now have one on their website, so it shouldn’t be missing.
Overbit Review Conclusion
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.
Our overall impression of the broker is quite positive, especially due to several factors: The team behind the platform seems to be very ambitious and seems to seriously pursue the goal of establishing the broker as a serious serious broker in the cryptocurrency sector. The offered leverage is kept below a reasonable limit of 1:100 for cryptocurrency trading and behind the platform is a lot of thought and effort.
Also the fact that Overbit does not offer anonymous accounts, so that every trader has to identify himself before he can start trading, can be seen as a trust-building factor. Even if anonymity in the crypto area is an important aspect that should be enabled, we sometimes get the impression that companies use the aspect of anonymity to their own advantage, not necessarily to the customer’s. This point has to be considered in a differentiated way, but with regard to yet another crypto margin broker we are even inclined to evaluate it positively.