Beware! Cryptonix Team is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Cryptonix is a London-based CFD forex brokerage attempting to pass as a crypto-exchange. It has its own web-based trading platform, offers a spread of $100 on Bitcoin and requires a $250 minimum deposit. These are not favorable conditions at all since the spread is twice the industry average and the minimum deposit is way too high for an unregulated brokerage.
Cryptonix Team regulation & safety of funds
Cryptonix does not state any sort of regulatory status on its website and regulation is just one of the many pieces of essential information which are nowhere to be found. This is mostly in line with the brokers attempt to imitate the lay-out of a crypto-exchange. Furthermore, a lack of regulation seriously hurts the brokers legitimacy and opens up potential clients to a number of risks.
Both the FCA and Cysec, the two top regulatory agencies, require compliance with a number of strict rules that lower the risk of fraud and give assurance for the safety of the clients funds.
One such rule is the segregation of accounts which forces the brokerage to handle the finances of the clients separately from their own and greatly lowers the risk of commingling. Another is a requirement for a starting capital of € 730 000 which weeds out scammers, since they do not have such liquidity.
Cryptonix deposit/withdrawal methods and fees
Having in mind its regulatory status, Cryptonix’s withdrawal and procession fees should come as no surprise. Potential clients of the brokerage will be charged $50, if they wish to withdraw, and there is also a further $10 procession fee. Such things should not figure among the trading conditions of a credible broker.
How does the scam work?
Although there are many ways you can get scammed in the trading world, it will usually be as follows:
Through an ad tempting you with easy and quick money you will end up looking at a website with a high-budget trailer video. The video will tell you that you need only register and give away your address, phone number and email. However, no money comes you way, only phone calls from brokers who have just been sent your personal data. After a few minutes on the phone you decide to deposit $200-250. You may not realize it straight away – but through your deposit the broker on the phone gets a fat commission of $50.
After the initial deposit, “retention” follows, and senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, closing the account won’t turn out to be as simple as you would like, or as easy. You’ll most probably be redirected to the “recovery department” where yet another representative will have some other trading opportunities to share with you. His game is pretty simple – he has to mislead you into waiting six months or more so that you may not file a chargeback with your bank and get your money back. That possibility forever closes when six months pass after the initial deposit with the broker.
What to do when scammed?
Unfortunately, there is no panacea for scamming and it is something which will always cast a shadow over forex trading. However, in case you are scammed, there are still some available options out there.
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!