Beware! This is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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Euro-Crypto offers trading in wide range of cryptocurrency CFDs on its web-based platform with leverage up to 1:50 and seemingly competitive spreads. It also seems to offer some sort of exchange service. As is usually the case with most crypto CFD brokerages, Euro-Crypto is not regulated, and therefore it is not recommended. Many of those brokers simply scam investors out of their money. Below, you can find more details on Euro-Crypto and how investment scams typically work.
Euro-Crypto Regulation & Safety of Funds
Euro-Crypto says it is a trademark of Cryptographiq Ltd, a company registered in the UK. Registration is not equal to regulation, although the words sound similar. CFD providers in the UK have to be regulated by the Financial Conduct Authority (FCA) – one of the most reliable financial authorities worldwide. However, Euro-Crypto is not authorized by FCA, nor by the Cyprus Securities and Exchange Commission (CySEC), as it falsely claims.
What is worse, this broker has been include in the warning list of Autorité des Marchés Financiers (AMF). The French financial watchdog has warned the public of many crypto firms that are not authorized to target local investors and Euro-Crypto is one of them. That being said, you’d better stay away from this broker.
Euro-Crypto Deposit/Withdrawal Methods and Fees
It seems that Euro-Crypto uses bank wire and credit cards as payment methods. The broker has not specified any fees for deposits or withdrawals, but of curse such might be applicable.
How does scam work?
Cryptocurrency scams seem to have blossomed along with the interest in Bitcoin and other altcoins. In fact, fraudsters presenting themselves as crypto exchanges of CFD brokers don’t act differently from forex and binary options scams. Most of these frauds are well-organized and each scam company has several units with different tasks.
First, they usually gather some contact information from professionally-edited videos or ads, then they start cold-calling potential victims. Initially, the latter are contacted by the brokers’ Sales teams whose task is to get investors deposit. Scammers are motivated by the commission of around $50 they get out of each deposit of $250. They promise high returns, low risk trading environment, or claim to have inside information about a certain coin or asset.
Once the clients of such “brokers” deposit, they get into even deeper shit. Although their trades seem successful, they are soon pushed to invest a much larger sum, say $10 000, by the so called Retention representatives.
The next-in-line scammers are the Recovery department, who get in touch with those clients who wish to withdraw. They begin stonewalling the victims in order to prevent them file for a chargeback with their bank within the six-month term.
What to do if scammed?
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.
As we mentioned in the previous point, you should also file for a chargeback with your bank, provided that the six-month term has not expired.
Of course, you can also post in various websites and forums in order to warn other investors against signing up with the scammers that robbed you.