Beware! Ecbstox 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.
Ecbstox is an anonymous Forex broker listing an address in Nicosia, Cyprus. They claim to serve more than 2.5 million customers, which we consider a number exaggerated, judging by the broken website we came across. The absence of legal documents is striking, given the lavish promises they make. Find out if it’s a global broker or not in the full Ecbstox review.
Ecbstox REGULATION AND SAFETY OF FUNDS
Purportedly, Ecbstox headquarters in Cyprus, meaning it needs a CySEC license to operate as a Forex broker. We researched the Cyprus financial authority register looking for them but in vain. Ecbstox holds no license, so it’s an illegal broker offering Forex products and services on regulated markets without the proper authorisation, which is a financial crime.
Furthermore, they didn’t even utter a word about the company standing behind them, meaning they withhold critical information about themselves to the public. It’s positive evidence of fraud, or maybe there isn’t even a company, and it’s a pure scam. Ecbstox.com might be merely a fraudulent website, but it doesn’t really change anything for the traders. It’s a risky broker to trade with. Your funds are in danger if you deposit with Ecbstox because it’s an unlicensed and unregulated broker, operating illegally, and that’s the perfect reason to make you avoid them.
Regulation means security so see the best EU (mostly CySEC regulated) and British (FCA regulated) brokers we’ve selected, by following the links provided. Europe is a safe place for traders’ funds, as there are many demands a broker has to fulfil to get a license, and all of these are set out as customer protection measures. The list includes minimum capital requirements of 730 000 EUR; clients’ account segregation; personnel qualification standards and daily trading report that the brokers have to provide. But what’s most important for the traders is that there are deposit insurance funds the brokers are part of, which guarantees the clients’ money. If you trade with CySEC brokers, you can claim up to 20 000 EUR in compensation, while the FCA brokers’ clients are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to operate similar insurance fund considered the last resort for the traders if a Forex broker fails to meet its financial obligations.
Ecbstox TRADING SOFTWARE
Ecbstox offers MetaTrader4 accounts to the traders; MetaTrader5 is not available for trading. They rely on the most popular Forex retail trading software worldwide, which experienced traders prefer for its stability and ease of use. Metatrader integrates sophisticated trading tools and features such as Expert Advisors, Algo Trading, Complex Indicators and Strategy Tester, to name a few. There is even a marketplace with more than 10 000 trading apps at the moment.
The EUR/USD spread is not favourable- 3 pips most of the time. That’s 3 times worse than regulated brokers’ offers- 1 pip and below. The Buy/Sell difference forms the trading costs, so lower rates benefit the traders and significantly improve profit potential. It also indicates whether a broker is worthy of trading with, or not.
Warning! Ecbstox offers maximum leverage of 1:500, another demonstration this broker has nothing to do with European regulations. CySEC brokers are not allowed to offer such an extensive level, and that undeniable confirms our views. It’s a broker to avoid!
It’s true that 1:500 hugely improve profit potential, but it also immensely boosts the risk. The dangers involved made the EU, UK and Australia (from 2021) restrict the leverage to a maximum of 1:30. Canada and the US agreed on 1:50, so brokers offering higher levels are not recommended due to insufficient regulations enforced. The Swiss brokers are not leverage restricted, but Switzerland keeps scammers away differently- a license there cost 20 mln Swiss Francs (roughly 22.6 mln USD at the time).
Ecbstox DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit with Ecbstox is $5, which might as well be a misleading claim because we saw that they also mention $200 as the least they would accept. The funding methods are Wire Transfers, Credit/Debit cards, Skrill, UnionPay and Bitcoin, but we cannot confirm that all of these are available. We recommend that traders fund their accounts via bank cards because it allows a chargeback 540 days after the money transfer. Payments with Wires or Bitcoin are final and non-refundable!
Warning! There aren’t legal documents available! The links on their website are broken, and that’s a major red flag to raise, notwithstanding it might have been some temporary issue. As a result, there is no information about necessary conditions such as minimum withdrawal requirements, request processing time, withdrawal fees, inactivity fees, other fees, bonuses etc. It’s yet another proof Ecbstox is an unreliable broker.
Overall, Ecbstox is an anonymous broker pretending to be Cyprus based, but lacking the mandatory licenses to operate on financial markets. That’s an argument enough to keep your money safe and avoid Ecbstox.
HOW DOES THE SCAM WORK
A group of scammers usually operates many scam brokers, scam websites and call centres. They rely on the quantity and create as many brokers and fraudulent websites as possible. Then scammers would be waiting for traders and investors with little or no experience to bite. Nowadays, it’s cheap to create a swindling website, and it looks like a profitable strategy, as the scammers carry on doing it.
Internet and social media are bustling with scammers. They approach people on Facebook, Instagram, Telegram; you name it. Pages showing lush lifestyle, cars, yachts, celebrities etc. lure people all over the Internet. Often the scammers give free advice or a tryout, and before you know it, they will be asking for a deposit. They’ll show you pictures of their trading accounts displaying huge profits and Bitcoin earnings, and if you have no FX experience, you might easily believe in your eyes. The scammers also post tons of positive comments and reviews about their phony brokers all over the Internet, so you should remain wary. Always look for more information before sending any money to a broker.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. 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, call the police if you feel necessary. Seek help actively!
It’s crucial 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 ask for an advanced payment, but do nothing to help you recover your losses and pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!