Beware! BlockchainEtrader 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.
BlockchainEtrader presents itself as a forex and CFD broker, focused on the crypto market, offering four account types with leverage as high as 1000:1 and a web based trading platform.
Trading instruments include over 30 crypto currencies, paired either against bitcoin or fiat money.
And even if that sounds attractive, we have some serious issues about the legitimacy of the website as a whole, so if you are thinking about opening an account with BlockchainEtrader be sure to read the following lines.
BlockchainEtrader regulation & safety of funds
BlockchainEtrader website is virtually anonymous. We are not told the name of the company that runs the operation, and although there is some Swiss post address in the contact section, we are highly suspicious that it is real.
In any case the web site is not regulated also, so basically the people running the operation, do not have legal right to target customers in the European Union, the U.S., Australia, Canada, Japan or any other regulated market for that matter.
Our usual advice in such cases is to trade only with brokers licensed and authorized by a well known financial regulator, such as the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) or the Australian Securities and Investments Commission (ASIC).
BlockchainEtrader deposit/withdrawal methods and fees
BlockchainEtrader accepts payments with credit and debit cards like MasterCard and VISA, bank wire and crypto coins, including Bitcoin, Bitcoin Cash, Ethereum and Litecoin. No popular e-wallets like Neteller and Skrill are accepted however, and that is worth mentioning especially having in mind the new anti scam regulations adopted by Skrill, according which only properly licensed brokers can offer Skrill to their clients. As we already noted BlockchainEtrader is not a regulated broker.
Also in BlockchainEtrader Terms and Conditions we came across some pretty disturbing clauses, as for example a 10% levy on all withdraws in case you have not traded your deposit at least 200 times. This is a highly unusual condition, which no legit broker will ever require.
Beware as well of any trading bonuses BlockchainEtrader might offer you, as they are all linked to a certain minimum trade volume requirement, which unless fulfilled will be used as an excuse to cancel your withdraw requests. In practice that is what scammers usually do. They use the additional bonus conditions as a pretext to refuse to pay you back.
Otherwise the minimum deposit requirement with BlockchainEtrader is 500 USD and that also is unacceptably high, as most brokers will ask you for no more than 250 USD with a standard account.
How does the scam work?
Most people fall into the scammers web after visiting one of the so called robo scam websites like Bitcoin Profit and Brexit Trader. Those are basically anonymous websites, designed to hook gullible investors with promises of fast and easy money in exchange of a small and “completely risk free” investment, with some innovative trading app or software. Usually the scam is advertised with a nicely cut video ad, which ends with an invitation to join “the investing community” by leaving your e-mail and phone. And if you do register, without even noticing you will be transferred to the web page of unregulated scam broker, where finally you will be asked to deposit about 250 USD.
Such an amount however is just the beginning, as the scammers goal is to trick you to invest as much as possible. So do not be surprised how profitable your initial trades will be. Your account will simply be manipulated with the sole intention to make you double or triple your deposit. And that is when you will start getting phone calls as well. It will be your senior account manager, trying to convince you exactly this – if you want to make some real cash, he or she will tell you, you should invest at least 10 000 USD.
And most people do invest that kind of money without realizing they have been scammed until the very moment thy file a withdraw request. Than it turns out they are not eligible to withdraw, because they have not met some minimum trade volume requirement, most probably linked to a trading bonus. The excuses might certainly be different, but the end result will always be the same – scammers will cancel all withdraw requests.
What to do if scammed?
Honestly, if you are a victim of a scam the chances to get your money back will not be great. And yet there is one thing that you can do and that is to file for a charge back with your credit card company. And the good news here is that currently both VISA and MasterCard accept charge back requests within 540 days after you have made the deposit.
Obviously that will work only if you have made your deposit with a credit or a debit card and not with a bank wire, crypto coins or e-wallets.
Also, if scammers have tricked you to reveal your credit card number or online banking password, immediately change the password and cancel your credit card.
And do the same if they have tricked you to install a Team Viewer program, because with Team Viewer scammers will have access to your PC and all the banking information saved there.
Finally, do not accept any offers by the so called recovery agencies. Those people will not help you in anyway, but will simply require an upfront payment, basically leaving you even deeper into the red.