Beware! CCX Crypto is an offshore broker! Your investment may be at risk.
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CCX Crypto is a Forex brokerage registered in the Marshall Islands. It provides the Activ8 platform with a clear-cut focus on crypto trading. The leverage extended to traders is 1:100 which is both generous and balanced but the spread on EUR/USD is fixed at three pips which is excessive and double the industry average.
CCX Crypto regulation & safety of funds
The corporate information shown on the website tells us that the brokerage is owned and operated by two companies, one of which – Bonatech Ltd – is registered in the Marshall Islands, while the other – Mitchell Group EOOD – in Bulgaria.
Bulgaria a member-state of the European Union and online Forex trading is duly integrated within its regulatory framework which is modeled after the ESMA guidelines. However, we find no mention of a license by the Bulgarian authorities – thus we may safely conclude that the brokerage CCX Crypto does not fall under any European regulatory oversight.
The other company does not need checking to state it is not regulated since it is registered offshore in the cozy Marshall Islands. The Marshall Islands has become a top-destination for would-be scammers due to its very liberal laws regarding the registering of companies. The government does not even require for someone to be physically there in order to register a company. Such a loophole has surely been noticed by many ill-minded brokers and utilized. Nonetheless, it’s safe to assume that CCX Crypto, irrespective of its legitimacy, does not fall under any regulatory oversight whatsoever because the government of the Marshall Islands does not include Forex trading within its regulatory framework.
Putting that aside, the brokerage provides the Activ8 trading platform which is a pretty neat choice. Even though we consider the MetaTrader 4 platfom by far the best option for traders, we highlight that the Activ8 platform can be easily synchronized with both MetaQuotes’ platforms (MT4 and MT5). Among the trading products available we see CFDs CFDs on currency pairs, cryptocurrencies, indices, commodities, precious metals and stocks. However, the offshore location of the brokerage and the obvious lack of regulation highly inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
CCX Crypto deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via the standard Visa and MasterCard, as well as the e-wallets SOFORT Banking and Entropay. Popular, online payment gateways such as Skrill and Neteller are sadly missing.
Going through the terms and conditions of the brokerage we did find quite a few troubling provisions. Here is a screenshot:
The brokerage openly states that it charges withdrawal fees which go as follows: $50 for wire transfers, $35 for credit cards and $25 for e-wallets. A further 10 percent will be charged on accounts that have no executed more than 200 in turnover. These fees separately are not that big of a deal but when they add up they become a serious disadvantage for any potential clients of the brokerage. Furthermore, there is minimum withdrawal amount of $250 for wire transfer and $100 for all the rest of the payment methods which is very excessive and should not figure in the terms of a legitimate brokerage. On top of all this we also read that there is a monthly dormant account fee of 10% for accounts that have been inactive for more than three months. In Forex trading it isn’t unusual for brokerages to charge such a fee but the amount stated by CCX Crypto seems a bit over the top for us.
Last but no least – the bonus conditions. Here is a screenshot:
There is a requirement for a minimum trading volume of 25 times the deposit amount in order to withdraw from an account that has taken advantage of the bonus promotion. We urge readers to take notice that almost always a bonus promotion, especially with unregulated brokerages, is tied with extreme trading requirement conditions which make it almost impossible to withdraw your money.
Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. 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?
Unfortunately, the possibility of a scam looms over almost every trade in Forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash 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 motive here is quite straightforward – traders have a limited time window for filing 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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
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!