Beware! CM CryptoFX is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
CM CryptoFX is an alleged US broker that offers both binary options and CFD trading. With a minimum deposit of $300 users can open an account. Unfortnatelly, we cannot confirm the trading conditions that the website reveals for we were unable to register. Read the review to see if you should trade with this one.
CM CRYPTOFX REGULATION AND SAFETY OF FUNDS
The Terms and Conditions reveal that the broker is located in California, making this the boldest claim that CM CryptoFX has made. The United States is the most demanding and austere environment for forex brokers in the world. For a broker to operate in the US it must be a member of the National Futures Association (NFA), and Commodity Futures Trading Commission (CFTC). Furthermore there is a minimum capital requirement for any broker to be licensed in the US of $20 000 000.
For this reason there are only a handful of brokerage firms that have monopolized the forex industry in the US. We assure readers that CM CryptoFX is definately not one of them.
And seeing as this wrongful claim is the only disclosed detail of a regulation, we can safely conclude that CM CryptoFX is UNREGULATED, making it a risk for any investment made with it.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
CM CRYPTOFX TRADING SOFTWARE
As we already mentioned in the intro of the review, the broker wouldn’t allow us to register an account, so any confirmation of a functioning trading platform is unavailable. The Platform button on the website does not function, insted redirecting users to the account page. From this point we can assume that there is no trading platform, and even if there is the probability it’s efficacious is very low. Readers shouldn’t worry that there are no trading conditions; by know you have the bigger picture.
CM CRYPTOFX DEPOSIT/WITHDRAWAL METHODS AND FEES
Because of the failed registration there is no way to confirm that the payment methods presented on the website are the same on the client dashboard. Nevertheless, the company gives us Vload, Neteller, Crypto, Credit/Debit cards, Skril, and PerfectMoney as payment methods. For international withdrawals using bank transfer; in this case there is a $50 charge. Furthermore, users have to do 1x turnover in order to withdrawal; if not, they are charged with 20% of every withdrawal that has not completed this condition.
Visa and Mastercard deposits are charged with a 5% levy.
Clients who fail to trade at least once per month will be chared with $10.
We strongly advice traders to only deposit the minimum deposit, or better yet – not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard wil be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.