CryptoMB review – 5 things you should know about Cryptomb.com

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

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CryptoMB is a Forex brokerage registered in the Marshall Islands. It provides both the web-based trading terminal and the MT4 trading platform. Furthermore, according to the website there is a wide range of trading products from which to choose and a spread on EUR/USD of 0.2 pips which is exceedingly low and probably fake. The required minimum deposit is the standard $250 which is nothing out of the ordinary.

CryptoMB regulation & safety of funds

Among the first things we discover when browsing through the website of the brokerage is that the company behind it is actually registered offshore in the Marshall Islands. This has dire consequences for the safety of the client’s funds and we are further inclined to question the legitimacy of the company since the address given is one we have seen countless other times. Here is a screenshot:

We read that the company behind the brokerage is registered with the name Columbia Capital Group LTD. 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 the company behind the brokerage, irrespective of its legitimacy, does not fall under any regulatory oversight because the government of the Marshall Islands does not include Forex trading within its regulatory framework.

Putting that aside, the brokerage states that it provides the MetaTrader 4 trading platform, including a web version. The MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Beginner traders will find the trading platform easy to use as well, due to its user-friendly lay out. Here is a screenshot of the platform:

However, even though the brokerage offers the MetaTrader 4 platform which we view as an advantage, there are a couple of problem which we would like to point out. First of, the platform is provided by a third party – Gelko Partners – which isn’t something uncommon in Forex trading, however, certainly isn’t something we condone either. It also further casts a shadow of doubt over the legitimacy of the brokerage. Furthermore, we could see a spread of 0.2 which is extremely low and by all likes a fake since no broker could possibly yield a profit with so low a spread.

Above all, while researching the brokerage on the web we came upon an official warning issued by the Spanish authorities regarding CryptoMB. It states that the broker is not authorized to provide such financial services and is most likely a scam. Such a warning is an unambiguous sign that the brokerage means trouble.

All in all, having in mind everything that was outlined above, including the offshore location of the brokerage, we are highly inclined 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. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.

CryptoMB deposit/withdrawal methods and fees

Traders may deposit or withdraw only via the standard Visa, MasterCard and wire transfer, as well as Bitcoin.

In the terms and conditions of the brokerage we did find provisions that are worth noting. As a matter of fact – the brokerage openly states there are withdrawal fees. Here is a screenshot:

We read that the withdrawal fee for credit cards is 0.7 percent or $20 at minimum, the same goes for withdrawals via Bitcoin. The fee for wire transfers is a bit higher at 1 percent or $50 at minimum. Such fees certainly aren’t excessive but should be noted. Furthermore, the brokerage offers a bonus promotion and sure enough – we discover that the bonus promotion is tied with a trading volume requirement which, however, isn’t specified. Readers should take notice that in Forex trading it’s most often the case that such bonus promotions are almost impossible to withdraw due to such restrictions. This is why we always advise traders to 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!