Beware! This is an offshore broker! Your investment may be at risk.
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Cryptop Market is a forex and CFD broker, which also claims to be offering real crypto coins. Our research, however, shows that this statement is misleading as the broker offers merely crypto CFDs on a number of coins like Dash, Ripple, Bitcoin Cash, Ethereum, Bitcoin, Litecoin and Monero. Beware, that since late 2017 there is a growing trend unregulated CFD brokers to pose as crypto exchanges, in order to take advantage of the huge interest towards all crypto assets.
Cryptop Market also offers over 30 currency pairs and CFDs on spot metals, agricultural and energy commodities, indices, stocks and even an instrument called Simplified Fx, which turned out to be a sort of a binary options bet. The maximum leverage with CryptopMarket is caped at 1:200, while the minimum deposit requirement is 250 USD. As tested with a Demo account the EURUSD spread was fixed at 3 pips, which is two times higher than what traders usually expect. CryptopMarket offers a web based trading platform, similar version of which we have seen being used for binary options trading.
Cryptop Market regulation & safety of funds
Cryptop Market says it is operated by Melgreg services OU with an address in Tallinn, Estonia. However, in the Contact section of their web site we came across an address of a completely different company – „САМДАР“ in Moscow, Russia.
As Cryptop Market says nothing about their regulatory status we decided to check the registers of the Estonian Financial Supervision Authority – Finantsinspektsioon and neither CryptopMarket nor Melgreg services OU showed up.
So basically Cryptop Market appears to be an unregulated broker and this significantly decreases its credibility. Regulation is crucial for the safety of any investment on the forex market as unfortunately most brokers, operating without a license, turn out to be scammers.
Traders can rely only on brokers with licenses form well established institutions such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC).
Besides, with FCA and CySEC brokers you have additional protection for your trading capital with client compensation schemes.
With the FCA insurance scheme you can receive back up to 50 000 GBP of your money, in the unlikely case your broker goes insolvent. Similar scheme with all CySEC brokers covers up to 20 000 EUR of the trading capital.
Cryptop Market deposit/withdrawal methods and fees
You can deposit and withdraw funds with CryptopMarket using all major credit or debit cards like VISA and MasterCard, bank wire, as well as e-wallets including Neteller, Skrill, WebMoney, QIWI, Yandex, AstroPay and PaySafe.
However, beware that CryptopMarket has a series of unusual fees and commissions, including a Maintenance Fee, Profit Clearance Fee and a Withdrawal Fee. So, be sure to check their Terms and Conditions first.
How does the scam work?
Scammers have many strategies to steal your money. However one of the most popular and straight forward goes like this:
You watch a high-profile video on the internet, telling you the story of common people like you, who have won big by investing on the forex or the crypto market. The story will be rather convincing and if you get interested you will have to fill a simple registration form, leaving your phone and e-mail address. Than you will receive a call by a professionally sounding “adviser”, speaking on behalf of a cutting edge-financial company, who will invite you to invest with them – just 200 USD and you can start making money as we speak.
After you open your trading account with them your first couple of trades will go smoothly and in no time your money will more than double. We should note here that most probably your account and trading platform will be manipulated, and your trading results will not be real.
Than you will receive a new call, this time form “a senior account manager”, impressed by your trading performance, who will suggest it is time for you to start making real money by investing lets say 10 000 USD. Even if you decline the offer initially, you will receive another call, and another, until you cave in.
Than everything will seem fine until you ask to withdraw some of your profit. The reasons to decline your request will be numerous – some trading volume requirement in their Terms and Conditions, which can be arbitrarily increased on their discretion. In any case you will not see your money back and what is more, they will surely try to make you refund your account once more.
Some scammers may also try to steal money form you directly. They will offer you to install Team Viewer to assist you with the installation of some trading software or with the funding of your account. If you agree they will get all your banking information and will steal money form your credit card as well.
What to do if scammed?
First thing in the unfortunate event you have fallen victim to scammers is to file for a charge back with your credit card provider. Unfortunately that may be done within a 6 month period only and also, if you have provided scammers with a copy of your ID and a proof of address (an electricity bill for example) (they will ask for those details with the pretext of some money laundering regulations) they will have a much stronger case, when you file for a charge back.
If you have given the scammers your bank details, credit card number or online banking password, block your credit card immediately and change the password for your online banking.
In the end, if you have lost money to scammers, do not rely on the so called “Recover Agencies”. They will simply take an upfront payment and will leave you with even less cash.