Beware! LDCcrypto 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.
LDCCrypto is a CFD forex brokerage which chooses not to disclose much information about itself. It provides a web-based trading platform and attempts to pass for a crypto exchange. It’s trading conditions are also unclear which corresponds logically to it’s goal to mislead traders about what it’s actually offering. We were only able to discern through a demo account that the spread on BTC/USD is about $20 which is within the industry average.
LDCCrypto regulation & safety of funds
LDCCrypto states that it’s company is registered in the UK by the name Olhagaray ltd and gives no information regarding it’s regulatory status. Furthermore, after checking with the FCA, we came across troubling discoveries. UK’s regulator has issued a warning regarding the company which reads that it is a clone of a FCA-regulated firm and is providing financial services illegally.This immediately raises red flags in regards to this brokerage and we strongly advise potential clients to stay away from it.
Prestigious regulatory agencies, such as the FCA and CySec, require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
LDCCrypto deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw only via VISA and MasterCard, bank and wire trasnfer, as well as Bitcoin. Popular options like Skrill or Neteller are missing. In the terms and conditions of the brokerage we could not find any toubling provisions, however, that is by no means a guarantee that there aren’t any at all.
We must remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Traders may become aware about the ongoing scamming in forex through either falling victim to it themselves, or through reading about it beforehand. We all agree that everyone would rather learn it the latter way. Here is how a typical scam would go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as The Profit Formula or Bitcoin South African System Software where registration will require you to give your email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, 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, the forex hustlers have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have up to six months to file a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
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!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!
