CryptoWorldTrade Review – 5 things you should know about cryptowordtrade.com

CryptoWorldTrade Review – 5 things you should know about cryptowordtrade.com

Beware! CryptoWorldTrade is an offshore broker! Your investment may be at risk.

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It is not because we are very picky but did you notice that a letter is missing in the name of the website of CryptoWorldTrade? Is this saying something about this broker?

CryptoWorldTrade Regulation and safety of funds

Before deciding on which broker you want to trade with, we advise you to do your homework and check whether the broker is licensed. CryptoWorldTrade makes some bold statements. Firstly, it claims that the address of the broker is in the US and that it is regulated there. However, after checking the register of the National Futures Association (NFA), the self-regulatory organisation for forex trade in the US, the name of the company C.W.T Ltd which owns and operates the website did not appear in it. Secondly, this broker claims that it is regulated by other official regulators from around the world and that broker the company keeps its clients’ funds segregated and provides a compensation scheme. However, all these statements are nothing but lies and a simple search shows that not only this broker is not registered and licensed but on top of that there is a warning issued by Malta Financial Services Authority (MFSA) that it is cloning a licensed company. What can we say – a scammer par excellence!

 

MFSA warning

 

We acknowledge that selecting a reliable forex broker is not an easy task and that is why we can help you by providing some background information about trading conditions in some well-established jurisdictions and links that contain lists of regulated and reputable brokers. Let’s start with the US where this fraudulent broker claims to be regulated. We must tell you immediately that US brokers are among the most heavily regulated ones. This is done by NFA which we already mentioned and the Commodity Futures Trading Commission (CFTC). US brokers must fulfil some stringent requirements in order to get their license and the first of them is to be well-capitalised. We are talking big money here as they must invest at least $20 million initial capital which is very impressive but also serves as a barrier preventing scammers from sneaking in. Some of the restrictions US brokers must face are the limit on leverage which for forex currencies cannot exceed 1:50 and also the ‘first in, first out’ rule which does not allow traders to go long and short on the same pair at the same time. In addition to that, US brokers must comply with recordkeeping and reporting requirements and they must provide their clients with access to certain transaction execution data. The downside of trading with US brokers is that there are no compensation funds or schemes to compensate the clients if the broker goes bankrupt. However, by being well-capitalised US broker can manage to protect their clients in case of unfavourable events.

In the EU and the UK, forex trade conditions are different, although forex brokers in these jurisdictions are also strictly regulated. However, the requirement for the initial capital is only 730,000 EUR which is not so impressive compared to what their US counterparts have to deposit. Nevertheless, the trading conditions are not less attractive as there are set in place compensation funds and schemes to protect clients in case the broker becomes insolvent. UK brokers regulated by FCA and participating in the local Financial Services Compensation Scheme ensure that their clients will be covered with up to 85,000 GBP per client in case of bankruptcy. EU brokers, on the other hand, participate and deduct funds towards a local investor compensation fund from which each client of the insolvent broker will be reimbursed up to 20,000 EUR per client.

CryptoWorldTrade Trading software

CryptoWorldTrade claims to be providing the MetaTrader 5 trading platform and you can even see the information on the company’s interface. However, after registering a trading account you will find out that there is no MT5 available and it cannot be downloaded from anywhere on the broker’s website. The image below shows the dashboard and there is no option for downloading a trading platform. The chart in the middle is developed by the third-party TradingView.

So, if you cannot trade what else do you do? Well, you deposit money. Or at least this is what this broker wants you to do. If you click on the Investment Plans which is on the left-hand side of the screen, you will see 3 investment plans with the amount spent and daily profit. For the Silver Plan, if you spend between 500 and 3,000 EUR your daily profit will be 10%, for the Gold, the amount between 1,500 and 9,500 EUR will bring you a daily profit of 20% and the for the Premium Plan, if you spend between 2,500 and 16,000 EUR the daily profit will be 30%. And before you grab a calculator and start estimating how soon you can buy your dream car or book your dream holiday, we want you to pause and ask yourself how realistic is that. As you know, nothing comes from nothing and you cannot realistically expect that money out of nowhere will start pouring into your account. This looks very much like a high-yield investment program or a Ponzi scheme and we want you to stay away from it for the sake of your hard-earned money.

Besides, the leverage this broker is promising on its website is 1:100 which is very high and is another proof that this broker is a scammer as the limit on leverage in the EU and the UK is 1:30 and in the US, 1:50. Trading with high leverage will increase the risk exposure for your funds. We also noticed in the accounts information that the spreads for the different accounts range between 1.2 pips and 1.9 pips. Spreads that are wider than the industry average of 1.5 pips are not beneficial to the traders as the cost of transactions will be high and they won’t be able to achieve a sustainable profit.

 

CryptoTradeWorld dashboard

 

We suspect that CryptoTradeWorld tried to lure potential traders with the false claim that it offers the MetaTrader 5 trading platform. It is not by chance because this is one of the top-leading platforms that offers a lot of advantages to the traders thanks to its excellent package of trading tools and instruments that include an auto trading option, an app market, a financial calendar, VPS, trading signals, code base with customs scripts, etc. We strongly advise you to select a licensed and reliable broker that offers this platform.

CryptoWorldTrade Deposit/Withdrawal methods and fees

CryptoWorldTrade offers 5 weekly trading accounts and 7 monthly trading accounts. The minimum initial deposit for the Starter account is 500 EUR. However, in the Terms and Conditions, the minimum initial deposit is shown to be $300 or the equivalent in EUR or GBP. The highest initial deposit is for the Gold Luxury Platinum account and it is 1 million EUR.

On the company’s interface, we see the payment methods to be done via Neteller, Skrill, credit card and bank transfer. However, when you open the dashboard and click on the deposit button, you see that the only payment option is in Bitcoin. Please note that payments made in Bitcoin may affect your options for filing for a chargeback, as we discuss in the last section of the review.

While looking at the account information, we noticed that this broker offers bonuses ranging from 10% to 250% depending on the size of the deposit. However, we did not find anywhere what the conditions for accepting a bonus are. You may be aware that bonuses are funds belonging to the broker, not the trader, and usually, they are accompanied by some difficult to meet conditions. We ask you to be cautious and not to accept bonuses as they may create real havoc with your funds and withdrawal options. Also, it is good to know that legit brokers do not offer bonuses or other incentives.

How does scam work?

If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers’ schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for a chargeback.

What to do if scammed ?

If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.

Rich Snippet Data
Review Date
Reviewed Broker
CryptoWorldTrade
Broker Rating
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