Extick Review – 5 things you should know about extick.com

Extick Review – 5 things you should know about extick.com

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Beware! Extick is an offshore broker! Your investment may be at risk.

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Extick is a unregulated CFD broker, focused on the crypto market, which actually tries to present itself as crypto exchange. They do not mention CFD (Contract for Difference) trade anywhere in their presentation and that may mislead some investors to believe that they are buying actual crypto assets.

And the difference between owning an asset and trading with a CFD is exactly this – with a CFD you basically bet on the price of a underling asset, without actually owning it.

So Extick offers CFD trade with a number of crypto coins, including Bitcoin Gold, Zcash, NEO, Ethereum Classic, NEM, Binance Coin, Dash, IOTA, Monero, Tron, Cardano, Bitcoin SV, Tether, Litecoin, EOS, Bitcoin Cash, Stellar, Ethereum, Ripple, Bitcoin and Qtum.

In addition the broker offers some CFDs on commodities, indices, precious metals and stocks, paired against Bitcoin or USD Tether. All that comes on a web based trading platform with a leverage of 20:1.

We should note as well that the benchmark BTC/USDT spread was about 84 USD, which is way above the levels traders would consider attractive, when trading actual Bitcoins. The normal BTC/USDT spread should not exceed 50 USD.

Extick regulation & safety of funds

Trading conditions put aside, the regulatory status and the safety of any potential investment is our main concern with Extick.

The website is said to be owned and operated by PPSAI GROUP LIMITED, a company with a contact address in the UK. Unfortunately, as it turned out, neither Extick nor PPSAI GROUP LIMITED are licensed and authorized by the Financial Conduct Authority (FCA) in the UK to provide financial services in Britain and for that matter anywhere in the European Union as well.

Have in mind that trading with unregulated brokers is associated with a unreasonably high risk of loosing your money to scammers. Basically, with such brokers the safety of your investment is guaranteed solely by the integrity of the people who run them, so our best advice is to choose only among brokers, regulated by well respected financial institutions such as FCA in the UK, the Cyprus Securities and Exchange Commission (CySEC), or the Australian Securities and Investments Commission (ASIC).

Your investment with soundly regulated brokers will be guaranteed by a very strict set financial and ethical rules.

For example, your investment with a FCA regulated broker is guarantee up to 50 000 GBP by a specially created compensation fund. Similarly, with CySEC brokers you can receive up to 20 000 EUR of your funds in case your broker files for bankruptcy.

Also, regulated brokers are required to maintain at all times a certain minimum capital adequacy ratio, to provide customers with a negative balance protection, to keep their money in a segregated, protected form creditors account, to file regular reports and to allow external audits.

Extick deposit/withdrawal methods and fees

As payment methods Extick accepts major credit cards like VISA and MasterCard, bank wire transfers, and a number of crypto coins, including Bitcoin, Bitcoin Cash, Dash, Ethereum, Litecoin, Ripple and Tether. The broker, however, does not accept payments with popular e-wallets like Neteller and Skrill.

Have in mind that according a new ant-scam policy, adopted by Skrill, all retail forex and CFD brokers using Skrill, have to prove they hold a legit license. As we have noted, Extick does not have a license and possibly that is the reason they are not offering Skrill as a payment method.

Finally, be aware of any trading bonuses offered by the broker, because all such bonuses are linked to a minimum deposit requirement, which unless fulfilled, will prevent you form withdrawing any of your funds.

The minimum deposit requirement with Extick is set at 100 USD.

How does the scam work?

Scammers may use various techniques to get to your money and yet here is one pretty popular scam scenario aimed at investors, interested in forex, crypto and CFD trade.

It will all start with a video add you will happen to watch on one of the so called robo scam websites. Crypto Revolt and Bitcoin Evolution are two recent examples of such sites. There you will be tempted by an offer of easy and risk free money with a minimum investment and no obligations whatsoever.

And if you register, leaving your e-mail and phone, you will be instantly transferred to the web page of a unregulated, offshore broker, where you will be asked to deposit about 250 USD.

And take a note that your first trades will be surprisingly successful. That, however will not be a result of your exceptional trading skills – your account will simply be manipulated so that you will be more easily convinced to invest a much larger sum.

Also, that will be the time you will receive a phone call as well. It will be your “senior account manager”, who will explain, that if you want to make some real cash, you will simply have to invest more – at least 10 000 USD.

And you will not realize that you have been scammed until the moment you try to withdraw some of your funds. It will turn out this is not possible, because of some minimum trade volume requirement, linked to the bonus, you have so carelessly accepted in the first place. Of course, the pretext might be different, but the result will be the same – you will not receive a single penny back.

What to do if scammed?

Unfortunately there are just a few steps you can take, if you have fallen victim to a scam. First, immediately file for a charge back with your credit card company. That is the only way you will be able to retrieve your funds, especially if you have made the deposit with VISA or MasterCard. The two companies have adopted a new anti-scam policy, extending the period in which a customer can file for a charge back to 540 days.

Second, if scammers have tricked you to tell them your credit card number or the password for your online banking service, immediately block your credit card and change the password.

Finally, if scammers have managed to steal money form you, do not seek the services of the so called recovery agencies. You will just be asked for some money in advance and basically that is how the story will end.

Rich Snippet Data
Review Date
Reviewed Broker
Extick
Broker Rating
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