Beware! Cryptron 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.
Most of the shady Forex brokers are highly overrating themselves, by claiming to be the best in the industry or by offering unbeatable trading conditions and opportunities for the traders. Cryptron quickly joins this group as they reassure that they provide the best CFD platform for Cryptocurrency trading. They are unmistakably trying to take advantage of the Bitcoin popularity, but fail to deliver what they have promised. We detected many warning signs, which you can find in the full Cryptron review.
Cryptron REGULATION AND SAFETY OF FUNDS
Cryptron is an offshore broker that’s allegedly owned and operated by a company called Miracle Tree Labs LLC. It’s a St. Vincent and the Grenadines entity, which means that Cryptron does not befall under any supervision. SVG is a Caribbean island which does not control the Forex brokers that are operating there, meaning that the funds of the traders are not safe. Cryptron is an unlicensed, unauthorised and unregulated Forex broker and you should avoid it!
If you are looking for a safe and trustworthy Forex broker you should choose a CySEC (EU) or FCA (UK) regulated company, which are not surprisingly the leaders in the retail Forex industry. The customer protection is placed on top of their priority list, not because they want to, but because they have to. In these domains, the Forex brokers have to comply with many austere rules and regulations, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients’ accounts etc. But most importantly, there are money protection schemes in operation, such as ICF in Cyprus and FSCS in the UK, which guarantee the deposits of the traders. Under CySEC(Cyprus) supervision, you can claim up to 20 000 EUR in compensation per client, while in the UK under FCA you are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Cryptron TRADING SOFTWARE
MetaTrader4 and MetaTrader5 accounts are not available for the traders. In fact, we couldn’t find any functional trading platform because we were not allowed to sign-up and create an account. Cryptron obviously keeps the best CFD platform for themselves, but it doesn’t make any sense whatsoever. A gargantuan red flag, which confirms that you should stay away from this company. We suspect that they might be using some unconventional means to attract customers in social media or through cold calls. Report immediately if someone from Cryptron addresses you!
As a result, we have no information about the spreads- a fundamental trading feature which forms part of the trading costs for the customers. You should always look for a broker that offer lower spreads because this gives greater chances to make money. But the broker should be legit and regulated one and that’s the most important thing for the trader.
The leverage is said to be up to 1:40, and it’s relatively high for Crypto trading pairs. EU and UK imposed a leverage cap of 1:2 for Cryptocurrencies, but from the spring 2021 UK will entirely prohibit this type of derivatives. The digital coins are very volatile, also prone to fraud, and you should think twice before entering this market.
Cryptron DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is said to be $250 with their Basic Account. The funding methods are said to be Credit/Debit cards, Wire Transfers and Bitcoin, but we cannot confirm it’s valid, because we were unable to create an account and test their payment system.
The minimum withdrawal is said to be $10 for bank cards and $30 for Wire Transfers. There are various types of withdrawal fees, depending on the size of your account and the amount you want to pull out, but you will not pay less than $25 per withdrawal. It is an unfair condition because most of the legit Forex brokers will not bother you with withdrawal fees- the request processing and the transfer is free of charge with most of the brokers.
The withdrawal request will be processed within 5 days, but the money will be at your disposal not earlier than 10 days after the request, which is a lifetime compared to the legit industry.
An account becomes dormant after 60 days of inactivity and will be subject to a deduction of 10% monthly, which is a scam clause that you can find in the legal documents of many sham Forex brokers. The legit Forex brokers will put your account dormant after a year and will not charge more than $20 per year.
There is a bonus on the deposit starting from 50% with their Basic Account. The reward, however, bounds with many unfair clauses that will eventually worsen the trading performance. You will have to reach a minimum trading volume of 25% the bonus plus the deposit in terms of lots. If you deposit $500, you will receive an additional $250 for trading, and you will have to execute more than 187 lots to become eligible for withdrawal! It’s an unfair requirement! You should know that the bonuses are not free money, but a leverage tool that dramatically increases the risk for the trader. EU and UK banned the trading incentives a few years ago because it was considered an inadequate practice for a financial market!
If you want to withdraw, but you haven’t met the requirements you will have to pay a 20% deductible fee on the amount you want to pull out! That’s yet another scam clause and a red flag, which shows that you should avoid Cryptron!
HOW DOES THE SCAM WORK
The scam is a criminal activity; the scammers are trying to defraud people by making them believe that the markets are easy and it’s no hassle to make huge amounts of money. Mostly, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. There is also little or no FX regulation in the offshore domains such as Vanuatu, Marshall Islands, Commonwealth of Dominica or St. Vincent and the Grenadines- the most popular destinations for shady and illegitimate enterprises. The lack of regulation makes the scammers invincible, as they are not going to bear the consequences of their felonious actions. Regulation and authorisation mean customer protection and safety, no financial regulator such as CySEC or FCA will make it possible for a scam Forex broker to conduct illicit activities.
WHAT TO DO WHEN SCAMMED
No one is immune to scam; anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience; it is essential to protect others, as well. Be responsible!