Beware! Cryptec 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.
Cryptec is an offshore brkerage firm offering a leverage that varis from account to account, with the highest one capped at 1:40. The broker deals exclusively in cryptcurrencies, so in many wasy it limits its targeted audiences. Read on to see our to cents on the broker.
CRYPTEC REGULATION AND SAFETY OF FUNDS
The website claims the parent company of the broker, Point Place Ltd, is regitered under the laws of the Commonwealth of Dominica. The Commonwealth of Dominica is certainly not a destination that is associated with license issuers for brokers, or any other financial institutions. Furthermore, the country, even though regulating the banking sector and some non-banking institutions, does not do the same for forex and CFD brokers. So, the broker may be registered there and bound by the local laws, but it needs a regulation a proper one, in order to function as a legitimate forex broker. Furthermore, the website offer no other info on any other location, and most importantly, there is no actual mention that the broker is regulated. We have to conclude that Cryptec is UNREGULATED, and as such is an unsafe environment for investments. And even though the broker shows some potential here and there, the lack of a regulation speaks for itself.
With that out of the way, 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.
CRYPTEC TRADING SOFTWARE
What surpised us moostly was that Cryptec did not require a registration of us in order to acces the trading software, which, by the way, is actually good for a web-browser. It has all the expected features that one has come to expect, yet it does not overdo things which might be a bummer for some more demanding traders. Nevertheless, a solid terminal.
CRYPTEC DEPOSIT/WITHDRAWA METHODS AND FEES
Users can deposit via Credit/Debit cards, or Wire Transfer, and the minimum deposit is $250. This is what the client dashboard gave us after we registered. The withdrawal methods are limited only to credit cards.
According to the Risk Discalaimer document, the broker may charge undisclosed fees at any time.
As for any withdrawals fees, the broker has included one two many clauses in the Terms and Conditions that are only there to confuse. Our advice is to never deposit here! If you actualy do prefer to fund an account with this broker, then we advice you to go through the Termsn and Conditions to see the hefty and unnecessary fees and charges.
How does the scam work?
The most common type of scamming is in fact a very simple scheme that involves multiple level of commitment from both the victim and the fraudulent broker. In the following section we will dive into the individual elements that make up this scenario.
Users of the net will be lured or intrigued by the countless ads that float around the internet, mostly on popular websites such as social media hubs. These ads promise fast money, and are accompanied either by images of luxury or made up testimonials. Clicking on them redirects users to a so called robo-scam website such as Profit Revolution or Bitcoin Revival, where a simple registration process will require from you a telephone number and email address. We assure traders, that once these details have been shared, they will shortly get a call from the broker or brokers, on whose ad you just “stumbled”; this is when the game begins. The voice on the other end of the line will urge you to deposit in their broker some $250 (approximately), by reassuring you of the possibilities of profit, and the like.
Should you deposit, the initial scammer has just earned a hefty commission from this deposit. Now it’s time for the senior scammer to talk you into depositing more, by claiming that the only way to increase profits is to deposit more and larger sums. These second level frauds are great talkers, charismatic and influential, twisting their lies to sound like the absolute truth.
At some point or another, the trader will inevitably start suspecting something, and will want to withdrawal his/her funds. At this point, the con artists will delay the withdrawal process by persuading you to wait, or by referring to their legal documents that cover specific withdrawal clauses- excuses vary from broker to broker. This delaying process is crucial to them, for trader have a limited time to file for a chargeback with their respective bank. Once the chargeback time frame runs out, traders will have lost their money for ever.
What to do if scammed?
VISA and MasterCard users will be happy to know that have extended their charge back request period to 540 days for when online scams occur. In case a chargeback is unavailable for some reason, the next immediate route is to cancel your credit card ASAP.
Those of you who deposited using VISA and MasterCard will 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.
If any bank details have been shared, like banking pass or security code, traders should be aware that scammer will most certainly attempt to drain your account. In such a case, immediately block the account or change the password.
We also urge users to be very careful with the so called “recovery agents” that promise to recover lost money from unlicensed broker. They charge a fee for their alleged services, and will unquestionably not recover any previous deposit, basically scamming you a second time.