Beware! FX Crypto Trade 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.
FX Crypto Trade attempts to pass for a CFD brokerage with a focus on crypto trading. However, it turns out it’s simply a clone website of a legitimate Cysec-regulated forex brokerage – Xtrade.
FX Crypto Trade regulation & safety of funds
There is substantial amount of problems regarding the brokerage. Perhaps the biggest one is that it is not in fact a brokerage – it does not provide financial services. Its website – which is all there is to FX Crypto Trade – is flagrantly copied from the legitimate forex brokerage XTrader, which means there is no company behind the brokerage, nor are there any trading conditions. It is simply a scam done in a lazy manner and we suggest traders stay away from such clone websites.
They may minimize the risk by investing only in brokerages overseen by prestigious regulatory agencies, such as the UK’s FCA and CySec, which 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 scam traders.
FX Crypto Trade deposit/withdrawal methods and fees
Having in mind all that was pointed out above, we gather from the website that traders may deposit or withdraw via Visa, Neteller, Skrill and Astropay. Even though we safely concluded that we’re dealing with a clone website, we still remind readers of all the ways a trader may test the brokerage’s intentions. Traders are always advised instead of risking a bigger amount with no certainty to always invest only the minimum deposit initially. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays unmask the scammers. Furthermore, a legitimate brokerage should have no such fees or withdrawal conditions, since traders should access freely their funds as they wish.
How does the scam work?
Unfortunately, forex trading goes hand in hand with a substantial amount of risk. Scammers are scattered all over the trading world and you might as well be prepared, because they’ll make an move on you regardless of how informed you are.
Here is how a typical scam would unfold: In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Bitcoin Millionaire Pro or CryptoCFDTrader where registration will require your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.
The scam, however, continues and what follows is called the “retention”. Senior scammers will now begin addressing you on the phone and explaining all the advantages in further investing with them. After you decide to go for it, you may even win on a few trades and go up by, say, a couple thousand. Naturally, you will begin wanting to close the account and take away your profits.
What comes next is the so-called “recovery department” will take you and 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 if scammed?
A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain your reaction will be adequate and on spot.
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 change 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!