Beware! Crux24 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.
Reliable, simple and innovative, this is how Crux24 introduces itself to potential traders. Whether it is so, or not, we are about to find out by looking at some key features. The first thing that strikes us as odd is that the logo on its website does not match the name of the broker. We already smell a rat!
Crux24 Regulation and safety of funds
First, we find out that Crux24 is not so reliable. There is warning done by the Financial Conduct Authority, the body that regulates forex brokers in the UK, that this broker is, in fact, a clone of FCA authorised firm (screenshot below). This company’s address is in St. Vincent and the Grenadines (SVG) which is an offshore zone. The Financial Sevices Authority of St. Vincent and the Grenadines has issued a warning that they do not regulate forex brokers. Coming from two sources, we now have sufficient proof that this broker is not legit and is possibly a scammer. Therefore, trading with it will put your funds at risk.
What criteria should you apply when looking for a reliable and licensed broker? First of all, we recommend that you look at brokers from the well-established jurisdictions which are the only ones that can provide a guarantee that you won’t be dealing with scammers and that your funds will not be at risk. How so? First of all, legit forex brokers must invest a huge amount as initial capital. The US is on top of the list by requiring brokers to invest $20 million in the form of initial capital, followed by Australia, where the initial capital is 1 million AUD. By being well capitalised, these brokers can protect their clients if unfavourable events occur. In the EU and the UK, the amount of the initial capital is lower – 730,000 EUR. However, the brokers there are required to contribute to a local compensation fund or scheme from which traders will be compensated if the broker goes bankrupt. If the broker is regulated by CySec, then the clients will be compensated by up to 20,000 EUR per person. In the UK, if the broker is regulated by FCA, then the clients will be compensated by up to 85,000 GBP per person. You will do well to research these brokers using the links that we provide and select the one that best suits your trading needs.
Crux24 Trading software
Crux24 trades in forex, indices, commodities, shares, CFD, binary options and cryptocurrencies. From the company’s interface, we find out that the trading platform is MT4. However, when we tried to register in order to open a trading account, we found out that the links are broken. Yet on its website, this broker claims to be a global leader in online trading!
The only thing we can say is that MetaTrader 4 is an excellent trading platform that is still preferred by 80% of the brokers despite its ‘old’ age. It was launched 15 years ago and is still number one thanks to the excellent package of trading tools, instruments and charting option. The platform comes with a demo account which newbies can use to practice and get experience. It also got an auto trading option, an app market, code base with scripts, VPS, trading signals, etc. Its charting options are one of the reasons why this platform is still so popular. Traders have a choice of different chart types, time frames, colours or can create their own templates. The many technical analysis indicators, such as Bollinger Bands, Fibonacci retracement, moving averages and others help traders predict the future directions of exchange rates and make a profit.
We strongly recommend to potential traders when selecting a forex broker to look for one that is licensed and offers MetaTrader 4 or MetaTrader 5 trading platforms for enhanced trading experience.
Crux24 Deposit/Withdrawal methods and fees
Crux24 does not provide information about what types of accounts it offers. The information about the minimum initial deposit is not available either.
The only information we were able to find out in its Terms and Conditions document is that it takes 2 to 5 business days to process a withdrawal request and that there is a fee on withdrawals but how much the fee is, nobody knows!
According to the company’s policy, accounts that stay inactive for 3 months are considered dormant and are charged 10% monthly fee. For your information, a percentage fee can result in a really big chunk of money taken from your funds. Please compare with legit brokers that charge a fixed fee for a dormant account!
We are not surprised to find out that this broker offers bonuses. Please remember that licensed brokers never offer bonuses or other incentives. Bonuses may look like free gifts but they are actually fund belonging to the broker, not the trader, and if you accept one, you’ll have to fulfil some stringent requirements if you want to withdraw the bonus amount. This broke has the requirement that a minimum of a trading volume is executed which amounts 30 times the deposit amount plus the bonus. If you think this is easy to achieve, think again!
How does scam work?
Scam works in different ways. It could be either that you receive an unsolicited telephone call or you see one of these flashy ads on the Internet or the social media promising you a quick and easy profit. Scammers will promise you the sky and the earth until you give way to temptation and deposit money. Once you give them money you get caught in the scammers’ mousetrap and the cheese in the shape of a big fat money fall is gone! It may take some time before you realise that you are being scammed. Scammers are smooth talkers and they are masters of deception. They will give you some excuses as to why the big profit hasn’t come yet and will try to lure you to make even a bigger investment because according to them, the more you invest, the more you profit. After you have been waiting for awhile and you finally come to your senses, you realise that you are being scammed. All you want now is to get your money back and get out of there. However, the scammers won’t make it easy for you! They will try to delay you so that you miss the deadline for applying for a chargeback.
What to do if scammed?
There are a few things that you must do immediately – file for a chargeback if you have paid using a VISA or MasterCard. Those two payment providers allow you 540 days time frame within which you may file for a chargeback.
However, the chances are grim if you have used bank transfer or Bitcoin as a payment method. There is no chance you’ll be able to recover your money.
In such a desperate situation, some so-called ‘recovery agents’ may approach you with offers to recover your money for a fee. Be cautious as you may be dealing with another type of scammers. Always check the information about the recovery agency – make sure it is legitimate and transparent in the public eye. Also, some scammers publish personal comments after our review about how they have been scammed and how they found a recovery agent who helped them get their money back. Do not trust such comments and do not use the published contact info in them as it will lead you to another scammer!
And lastly, a reminder to cancel your credit card if you have given your CVV code to the scammers and erase any software from you PC that gives the scammer access to your personal data.