Beware! This 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.
TradeToro is an unregulated company that offers trading in Bitcoin and other cryptocurrencies. It may seem like a real crypto exchange to some inexperienced investors, but in fact it offers trading in derivatives, Contracts-for-Difference (CFDs) on various coins, to be more exact. Unlike other brokerages, however, it does not provide CFDs on currency pairs, commodities, precious metals, indices, nor stocks, which are popular among investors. Another disappointing fact about TradeToro is that it does not use any of MetaQuotes platforms (MT4 or MT5), but some basic web-based solution.
In order to become a client, one must invest at least 500 EUR for the most Basic account. Unfortunately, TradeToro does not specify other important trading conditions, such as the leverage levels provided, commission fees, etc.
Another thing we must mention is the fact TradeToro is not related to eToro – a popular forex and CFDs broker, as well as a social trading platform that also offers cryptocurrency trading.
TradeToro Regulation & Safety of Funds
Allegedly owned by Bravos OU Harju maakond, a company registered in Estonia, TradeToro is not licensed by the local Financial Supervision Authority, nor by any other financial regulator.
We keep reiterating in our reviews that investing with unregulated brokers is very risky and that many of them simply want your money and offer nothing in return. Why sign up with TradeToro or any other unregulated company, when there are a number of reliable and well-regulated brokerages, such as the ones licensed by Cyprus’ CySEC or Australia’a ASIC?
According to the information on its website, the broker is legally consulted by PANAMERA CAPITAL GROUP LTD. (based in St. Vincent and The Grenadines). While most companies in the trading world do not share such information, we found it useful as the same company is also advising another Estonian brokerage – Capital-Traders. We suspect that the two brands are related, as they share other similar features – for example, the trading platform, the minimum initial deposit required.
TradeToro Deposit/Withdrawal Methods and Fees
TradeToro supports popular payment methods such as credit or debit cards, wire transfer, as well as a some e-wallets (Neteller, Skrill and China Union Pay). The broker says that it does not charge any transfer fees or commissions on credit card or e-wallet transactions, but there is a $30 fee for withdrawals made via bank wire transfers.
How does scam work?
There are all kinds of investment scam schemes: signal selling scams, automated trading bot frauds, computer manipulation of bid/ask spread. With the massive popularity of Bitcoin in recent times, new fraud tactics have been created: crypto exchange scams, fake ICOs and crypto CFD scams. Euro-Crypto might as well be one of the latter.
As most investment scams, crypto frauds also usually start off with some fabulously looking internet ad that tells a story of a young man that has become nearly as rich as Warren Buffet by trading Bitcoin on some top-notch platform. After seeing the video, potential victims are asked to fill out a registration form, leaving their e-mails and phone numbers.
Shortly after that cold-calling begins and people are sweet-talked into depositing some relatively small amounts (of around $200). Of course, scammers promise high returns and will tell you that the risk of loss is low. However, those who deposit are soon pushed to invest more in order to hit some really big profits. Many investors will do that, sending some good $10k to the “broker”. Usually everything goes smoothly until the client becomes suspicious or just wishes to cash out.
This is when victims are redirected to the “recovery” department which will do everything in their power to delay withdrawals. The reason for this is that their clients can file a chargeback with the bank within 6 months.
What to do if scammed?
We advise victims of similar investment scams to immediately file for a charge back with their credit card company or bank, provided that the 6-month period has not expired.
Also, those who have provided the scammers with any financial information or have installed Team Viewer, providing the cons with access to their computer should block their card immediately and change all banking passes.
Another thing to be wary of is the so called “Recovery Agencies” offering help to scammed investors. Most of these agencies just take an upfront payment and then disappear with your money.