Beware! 28Crypto 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.
The moment you set eyes on 28Crypto a feeling of nostalgia might overcome you due to the broker’s very early 2000’s feel and look. We can immediately notice this company does things in a different way, and in 28Crypto’s case, this is not the best of first impressions. Really our primary thoughts about 28Crypto are negative. There is nothing appealing about this broker, nothing of value, and absolutely nothing worth an investment. Does this preliminary opinion of ours remain the same, or is there something else that 28Crypto has going on? Read on to find out.
The registration process required only 5 details form us, and the entire procedure looks like a fake hub. Upon imputing all the details for signing up, we did not get a confirmation email with the log in credentials, which is not at all a good sign. We assume that the broker contacts users with these passwords and usernames via a phone number that is provided as part of the registration process. If this is the case, this could be the first step in a popular scammer scheme as explained in the last two sections of this review.
Anyway, without registering, we could not get a hold of any trading conditions and payment methods from a user dashboard, so we have to rely on the website for these important values. The site alleges that there are over 50 trading assets as part of 205 digital coins and 15 currency pairs. However, if you were hoping for a leverage or a spread, you will be disappointed.
The official language of the website is English, and we found no way of changing it.
28CRYPTO REGULATION AND SAFETY OF FUNDS
The Terms and Conditions locate the firm in Hungary, however nowhere does it say that 28Crypto is regulated there by the local Magyar Nemzeti Bank, the National Bank. The website of the regulator does not have any trace of 28Crypto in its official database.
There is also no other detail on whether 28Crypto is regulated anywhere, which is the indication that this broker is NOT LICENSED.
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.
28CRYPTO TRADING SOFTWARE
Unfortunately, we cannot confirm the presence of a trading software. The website does not give any true info about this either.
However, what we can say is that there might be a Sirix WebTrader, which is hinted at the login page.
Even if the trading platform turns out to be the Sirix WebTrader, users and readers should not get too excited. This trading platform’s biggest advantage is its looks, of which it takes advantage off perfectly. The visuals are there to basically lure unsuspecting traders into thinking that the Sirix WebTrader is a professional trading platform. In the end this is a broker utilised mostly by illicit firms.
Without a trading software, this broker cannot even be called a broker.
28CRYPTO DEPOSIT/WITHDRAW METHODS AND FEES
According to the website, the user can deposit via one of the following methods credit/Debit Cards, Bank Wires or BTC. The minimum funding requirements are different for every methods used: Credit/Debit is $500, Using a Bank wire is $1000, with Bitcoin it’s 0.01 (around $120 USD)
Withdrawals are processed within 7 days, and there are withdrawal fees present, as confirmed by the Terms and Conditions. These fees are no disclosed of course. The same source of info that we used to get a hold of deposits details, told us that withdrawals are done when the user clicks son the withdrawal button. Needless to say, there is no such button; maybe it appears once a users is able to register?
The limited liability clause is one of the most popular provisions with scammer brokers. Basically, the broker will no be held accountable for any financial damage that a user experiences because of her usage of 28Crypto’s services.
The Terms and Conditions may be amended from time to time, without the notification of the client. This means that at any time the Terms and Conditions can be changed by adding additional fees and taxes, which will be applicable immediately after their introduction.
Do not let the lack of scammer clauses change your mind about this broker. What matters most here is that this firm is illicit, because it does not hold a regulator.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.