Beware! iCrypTrade 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.
iCrypTrade is a CFD brokerage based in Malta which emphasizes on crypto currency trading. It provides a web-based trading platform and a spread of $50 on BTC/USD. The spread on EUR/USD is 0.9 pips which is quite favorable. Furthermore, clients have at their disposal a staggering leverage of 1:1000 and a wide range of crypto pairs. The required minimum deposit is $250, nothing out of the ordinary.
iCrypTrade regulation & safety of funds
There is a serious lack of information regarding the brokerage. We could not gather neither the company behind the brokerage, nor its country of origin. Such anonymity is typical for scammers who wouldn’t want angry clients having the opportunity of directly contacting the brokers. There is also no mention of a license and we can safely conclude that iCrypTrade does not fall under any regulatory oversight. However, we must highlight that the lay-out of the website is done nicely and the brokerage is very thorough when it comes to information. The brokerage is also very open about its trading condition and a test-drive is available for the platform. Here is a screenshot:
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the 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 swindle traders.
iCrypTrade deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via only Visa, MasterCard. Going through the terms and conditions of the brokerage we came upon a fee for dormant accounts.
However, not all brokerage are so open about their withdrawal terms and conditions and this is why we advise traders 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?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Cashless PayGroup where registration will require you to give your address, 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 con-artists 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 a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case iCryptrade – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half. Visa is expected to do the same in December.
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.
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!