Beware! Elcomercio24 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.
We never had high hopes for Elcomercio24 to begin with. This broker, at first sight, seemed to us questionable, and the more time we spent with it the more we were convinced of this. Its interface, for one, is very common, and there are many elements on its website that remind us of previous brokers that we have reviewed, scammer ones. Read the review to find out what Elcomercio24 truly is about.
The account creation process, much like the website, was a painful reminder of hundreds of other unregulated brokers that we have reviewed. Even the leading HUB area, which was centered around a trading software, was familiar in a bad way. But at least we got a trading software.
We were just about to read a EUR/USD cost of trade when the broker kicked us out, without notice. We presume that we were not the definition of a paying user by Elcomercio24, and thus seeing that it would not profit from us it kicked us out.
This leaves us no choice but to take all the trading and payment information from the website, which seemed like a breeze at first, but later we found out that it wasn’t. The only solid thing we can say is that Elcomercio24 presents itself as a crypto broker, but judging by the glimpse we took of the web trader, Elcomercio24 offers other assets. There is no indication of a spread or a leverage.
The website is available exclusively in English.
ELCOMERCIO24 REGULATION AND SAFETY OF FUNDS
Most of the main sources for relevant regulatory information have one thing to say. 8 DOTS LTD, the parent firm of the broker, is registered in Saint Vincent and the Grenadines.
The Caribbean nation does have a financial regulator, yet it does not oversee the FX markets, neither locally nor globally. Thus all brokers in Saint Vincent and the Grenadines al technically unregulated. Over the year, the country has acquired thousands of illicit brokerages, all of them taking advantage of the local restrained laws. If Elcomercio24 really is in fact located in the country, then it is unregulated.
Further down the Terms and Conditions, we find out that all disputes will be handled by the English courts, conveying a tie to the UK. If it were true, then that would mean that Elcomercio24 is licensed by the FCA, which it totally is not!
In fact, Elcomercio24 is NOT REGULATED by anything. It is illegally operating, and is most probably a scam!
We always say that investing in unregulated brokers is a sure way to lose money. The first and foremost thing to do when picking a broker to invest in is to look for a license. Preferably look for FCA or CySEC regulated brokers, or other European watchdogs, or US ones. All legit regulators have long lists of rules and prerequisites that all brokers must abide by. Not doing so, will lead to penalties or foreclosure! Furthermore, many regulators have in-store financial compensation schemes for all users under licensed brokerages. For example, CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
Please note, that users should not use the AnyDesk program, which allows a third party to take over your PC!
ELCOMERCIO24 TRADING SOFTWARE
The trading software is very familiar to us, as we have been presented to it on countless occasions by hundreds if not more, illicit brokers. However, we could not provide you with a snip of it because the broker was quick to shut down our account.
The software itself is not that bad, in the context of platforms used b illegitimate brokers. It has a decent amount of features, but it will get stale after a while.
ELCOMERCIO24 DEPOSIT/WITHDRAW METHODS AND FEES
The payment methods mentioned constantly throughout the legal documents are wire transfer, credit cards, and debit cards. However, we know for a fact that illicit brokers never say what their real payment methods are, not until one accesses the user area.
The minimum deposit according to the Account Types page is €500, while the Terms and Conditions claim the minimum to be €250. According to the T/Cs the minimum withdrawal through wire transfer is €500, and €100 for card payments. The broker will pay the user out in 10 days tops. There is a contradictory clause on fees. On the one hand, it says that there are no payment fees issued by the broker, but then we learn that there might be other fees…
None of the information above is verifiable, but readers should not worry about it, as we are completely against investing in Elcomercio24 in the first place.
How does the scam work?
Online ads are the gateway to most investment scams. Ads that seem extravagant with quite impossible promises are most certainly the entry point into a scam. Gibing into one of these ads is the first step to being scammed.
The second step is to deposit. Once users click on the ad, they will be redirected to a scammer broker site or an intermediary website. What follows is a registration, where users will be asked to provide a phone number or a phone number.
Next, the scammer will directly contact those that have fallen for it. The first calls are made by the first level of fraudsters, the rookies. Their one and only goal is to compel users to deposit for the first time. Once a deposit is made, the user is hooked onto the scam.
The second wave of scammers, the core of the fraud, sometimes called “account managers”, will try to keep you invested in the shame for as long as possible. They might even pay some profits, just to keep you invested. The user will deposit an additional 2-3 times, which is actually the perfect scenario for these criminals. At some point, the user will realize he or she is in the middle of a scam
There are no more steps to the scam. The user has deposited as much as he or she did, and the fraudster have disappeared. The money is gone, and users cannot withdraw.
What to do if scammed?
If money was lost through a credit or debit card, the good news is that most credit card companies have an easy way of recovering money. Furthermore, MasterCard and VISA have a chargeback period of 540 days.
Wire transfer frauds, that is broker/investment scams, are harder to recuperate, but not impossible. The crucial thing to do is to change your bank account username and password! Aside from that, we advise users to contact their banks, because most banking institutions might have a plan on how to deal with money lost to investment scams!
Never invest in unregulated brokers through any sort of cryptocurrency wallet, no matter how good the returns sound! Crypto deposits are untraceable!
The last scam that users might stumble upon is in fact most of the time one that has nothing to do with the investment scam, although a potential relationship between the two is not excluded. We are talking about the so-called recovery agents or agencies. These will claim to be able to recover lost funds in return for a fee. After users pay this charge, they can kiss their money goodbye!