Beware! Cryptenix 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.
Cryptenix is advertised as the number one bitcoin based trading platform out there. They all want a piece of the pie, but this pie is huge and the risk for both users and firms is even bigger. Any crypto based broker can claim that its services will bring user one step closer to crypto riches, yet what matter is not what you say but your actions. We have our doubts about Cryptenix, and that is why we have presented the following review. Read on to find out if this firm is what is says to be.
We registered very easily, and were presented with a client dashboard that looked rather fresh. We opened a very unique trading terminal which gave us a floating EUR/USD spread of 0.4 pips to 0.7 pips. The leverage was said to be capped at 1:30. The trader office revealed the following financial instruments: forex pairs, crypto, commodities, and shares.
And here we were being mislead by Cryptenix into thinking that it only offered crypto based assets.
English, Arabic, and German are the languages made available.
CRYPTENIX REGULATION AND SAFETY OF FUNDS
There are a couple of elements worth discussing here.
The top of the Terms and Conditions put this company in Cypriot territory, which by all rules should make this broker licensed by CySEC. Not only did we not find the name of the firm in the watchdog’s registry, but there is also no claim that Cryptenix is actually regulated there.
Next, we are presented with a provision in the T/C that reveals a lot more than one might think. Here the aim is to reduce the user into thinking that Cryptenix is regulated without saying it directly. To achieve this, the client is led to believe that he or she must check with the local regulators for he or his eligibility with Cryptenix.
Finally, somewhere towards the end of the Terms and Conditions, the broker drops the bomb, and claims to be governed by the laws of Saint Vincent and the Grenadines, a country that does not possess a FX regulator.
All this info is very conflicting, and confirms our initial suspicions that Cryptenix is UNLICENSED, and a risk to all invested funds.
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.
Furthermore, we stumble upon further proof of this irregularity. The clause you are about to see states that the broker does not guarantee the accuracy, security and timeliness of the content on the website. What kind of a company would say such a thing?
CRYPTENIX TRADING SOFTWARE
We had the opportunity to open two types of trading software. One webtrader and one desktop trading software. Both versions gave the same spread value.
The desktop based trading office was an unexpected treat. This terminal was very reminiscent of the MT4, by ways of visuals, and not is much in terms of content. Even so, we had to be impressed. We assume that this is a proprietary software,
The main features that we were able to dig out were pending orders, charts options, multiple indicators, the ability to keep open multiple chart windows, and others more mundane.
The web trader looks nothing like its desktop counterpart. In fact. it is very limited in both quality and quantity of trading options.
CRYPTENIX DEPOSIT/WITHDRAW METHODS AND FEES
Users can deposit through credit cards, wire transfer, and some undisclosed number of e-payment methods. The minimum deposit is $250.
Credit card withdrawals will be charged a 3.5% fee. They are achieved only through wire transfer, and credit card.
Withdrawal requests that are received before 1 pm GMT will be processed during the same day; those received afterwards will be handles within 24 hours. We took this info from the T/Cs. Further down the same paragraph that contained the aforementioned info, a completely different processing time was indicated: 5 to 7 days.
Clearly this is proof that Cryptenix has not reviewed it legal document, and does not care for withdrawals.
The dormant account fee is applied every month after a user has not been active in her account for more than 45 days. The commission is $100.
All users must trade at least 20 times prior to withdrawing or closing an account if they wish to avoid a $100 penalty fee.
The limited liability clause, or indemnification, is the best protection a broker has against legal claims issued by victimized users. The provision absolves the broker out of all the guilt that may be attributed to it.
The legal documents are on the short side, and for this reason we had no way to find any scammer provisions. Yet, this is no cause for celebration, because, after all, Cryptenix is not licensed. And this is disappointing, because there is some hidden potential in this broker. It need a lot of work, however some pillars have already been built. At this stage, we do not recommend it, not one bit, but in the future Cryptenix might just surprise us.
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.