Beware! iCryptoGM 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.
iCryptoGM is a Cryptocurrency scam broker, and it’s not just our view, but a proven fact. It’s a dangerous scheme taking advantage of the popularity of the digital coins, which might cause you financial troubles if you miss seeing the warning signs. There are plenty, and we are going to expose them in the full iCryptoGM review.
iCryptoGM REGULATION AND SAFETY OF FUNDS
Warning! FCA blacklisted iCryptoGM confirming it’s a fraudulent enterprise the traders should avoid. The official warnings issued by the financial authorities are the final confirmation that a particular broker is a scam. You can see the official publication at the bottom of this section.
The warning aside, iCryptoGM is an offshore broker which is a big problem for the traders itself. It originates in St. Vincent and the Grenadines, an infamous offshore jurisdiction that’s known for the lack of sufficient financial regulation. The local financial authority- SVGFSA do not supervise the brokers on the island or issue FX licenses. They even explicitly announced that the Forex companies would remain unregulated in the foreseeable future. Lack of regulation means lack of security, and if the broker dissolves, the traders will be left with losses that are most probably impossible to recover. It’s important to note though, that they’ve moved their headquarter address from Ireland to St. Vincent and the Grenadines probably trying to evade the warning issued by FCA.
Your funds are in danger if you make a deposit with iCryptoGM because it’s an unlicensed and unregulated scam broker that’s trying to defraud the people.
Avoid iCryptoGM and the rest of the offshore brokers but chose an EU (mostly CySEC regulated) or UK (FCA regulated) Forex broker, because the jurisdictions mentioned are financially safe and predictable. There are a variety of stringent rules and regulations that the brokers have to comply with. Still, most importantly, your funds are guaranteed up to a particular level by the deposit insurance funds that were inaugurated to protect the money of the clients. If your broker is CySEC (Cyprus) regulated you can claim up to 20 000 EUR, while the customers of FCA (Britain) brokers can claim even up to 85 000 GBP. 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.
iCryptoGM TRADING SOFTWARE
Warning! iCryptoGM offers only Crypto CFDs for trading, and it’s a scam sign whatsoever. You can find more about the Cryptocurrency scam later in the review. They provide the traders with a web-based trading platform that’s obviously developed by themselves. That’s a warning sign because software as such is often minded for price manipulation by the brokers.
The BTC/USDT spread is around $150, which is at least 4 times higher, as the industry standard is 30 to 40 on average. But the traders should know that USDT is not the US dollar, but a digital coin that’s a bit controversial though. The spread forms the costs for the traders, especially when dealing with market makers, which don’t charge commissions. In this case, however, the trader has to pay 0.25% commission per trade, which makes iCryptoGM even costlier a broker. The FCA warning aside, you should not trade with iCryptoGM because of the unfavourable trading conditions alone.
The leverage offered is 1:3, which is a level that’s not compliant to the EU regulations- a maximum allowed ratio of 1:2 for digital coins trading. The leverage restrictions imposed by the European financial authorities were dictated by the Cryptos huge volatility, which has the potential to cause significant losses very quickly indeed. The FX majors such as EUR/USD are capped at 1:30, and it’s the highest level among the different instrument classes. You’d better be cautious when trading Cryptos because even a 1:3 leverage poses a significant threat to your funds.
The best choice is to stay safe with the regulated MetaTrader4 and MetaTrader5 brokers. Metatrader is the leading Forex software, which is stable, reliable and beloved by the experienced traders. It also features powerful trading tools such as Expert Advisors, Algo trading, Complex indicators, Strategy tester and even a marketplace where the traders can buy or use for free third-party-developed FX solutions.
iCryptoGM DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit with iCryptoGM is 0.02 BTC, which roughly equals to $400 at the time. It’s 4 times higher compared to the industry standards- $100 on average. The funding methods available are only via Cryptos– direct payments or through exchanges. It’s yet another warning sign because Cryptocurrency chargebacks and refunds are impossible at the moment. You can find more information about the Crypto payments in the section below.
Warning! iCryptoGM doesn’t present comprehensive legal documents such as T&Cs, User Agreement or Client Agreement, which serve as a contract between the parties. It not only makes iCryptoGM an illegal broker but necessary conditions remain unknown, too. In fact, during the registration, there is a link to Terms and Conditions to agree with, but the Page is broken, i.e. the document is non-existent. So there is no information about minimum withdrawal requirements, request processing time, withdrawal fees, inactivity fees, other fees that apply, bonuses etc.
HOW DOES THE SCAM WORK
A group of scammers operates many different scam brokers and scam websites, just like the ones standing behind iCryptoGM. Sometimes they will simply rely on the number; they create many websites and will wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to build one, and it seems a profitable strategy, as they carry on doing it. The scammers will constantly re-brand and create new scam projects, but all of these will inevitably share similar characteristics.
The scammers are crazy about Cryptos because this form of digital money is decentralised, and the payments are peer-to-peer, i.e. anonymous. It’s a powerful scam sign if an alleged Forex broker accepts only Crypto deposits because it’s impossible to make a chargeback or a refund! In most of the cases, you’ll get redirected to a Cryptocurrency exchange where you have to buy Bitcoins and later send them to the scammers. As soon as you do it, you might consider your money lost because the exchange you purchased the coins from is powerless to make a chargeback.
The scammers love Cryptocurrency trading, as well, because the digital coin derivatives are prone to fraud and price manipulation. The Cryptos are incredibly volatile instruments, which has decent profit potential, but the risks are enormous. Especially when combined with improper leverage levels, the Crypto pairs might cause lightning-quick losses. Needless to say, the spreads are massive, which is bad for the traders, but great for the brokers as they are market makers most of the time and pocket the Buy/Sell difference. As a customer protection measure, the UK is going to completely obliterate the digital coins derivatives trading because these instruments are considered inappropriate for the retail traders. The ban will come in effect in the spring of 2021.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and 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!
It’s very important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They will ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!