Beware! CryptoTradeCorp 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.
It doesn’t take too much time to realize that that CryptoTradeCorp is not at all what it wishes to convey it is. This is dues to a plethora of signs that turn into facts about the broker, many of which we shall explore in the following review. The first one that made an impression on us was the website itself, which utilized one of the most popular scammer broker templates ever, while also being filled to the brim with unnecessary information, and not enough helpful details. This is just one of the issues we had with CryptoTradeCorp. Read the review for the others.
The registration was a reminder that we are dealing with an unauthorized broker. The leading user area, which was in fact a web trader with sub-menus to other features, was a common one, used by hundreds of unlicensed brokers. But at least we have a trading software.
On it, we read that the cost of trade for the EUR/USD pair is around 3.8 pips, which is unfavorably high! The leverage was capped at 1:200, and the available financial instruments are forex currency pairs, ETFs, bonds, cryptocurrencies, indices, commodities, and stocks.
The website is available exclusively in English.
CRYPTOTRADECORP REGULATION AND SAFETY OF FUNDS
The footer of the website puts the broker in Seychelles. There, the Seychelles Financial Services Authority is the FX regulating body. However, it does not license the broker. Not only is there no claim by CryptoTradeCorp of this, but the overseer’s online database is also void of any presence of the firm.
There is another clear sign of the illegal status of the broker, this one in the shape of a clause found in the terms and conditions. It claims that the website is not intended for users who are located in a jurisdiction where local laws prohibit them to access it. Basically stating that users are those that must be authorized and not the broker!
There is nothing else in the terms and conditions to suggest a license. Thus we have no choice but to label this broker UNREGULATED and a risk to all investments!
To deposit in an unlicensed broker is the equivalent of throwing your money away for no reason. We always say that the first thing to do when dealing with any broker is to check for a license; this should be your priority! Usually, we would go for either an FCA or CySEC regulated brokers or other respected overseers. These regulators all employ harsh rules and impose very severe penalties on those brokerages that do not abide by the scrupulous rules. Furthermore, some agencies, like the FCA and CySEC, include reimbursement schemes to all users of brokers under their wings. These compensation funds schemes, as they are called, are put into action once broker cannot pay their clients back to bankruptcy. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
CRYPTOTRADECORP TRADING SOFTWARE
The trading software is a popular one among the scammer broker community.
Its main trading features are pending orders, time frames, live tv and news, price alerts, limited chart customization, stop-loss, take-profit, and that’s basically it. However, as far as illicit brokerage platforms go, this one is decent enough.
CRYPTOTRADECORP DEPOSIT/WITHDRAW METHODS AND FEES
In the user area, we learn that clients can deposit through, well nothing. The payment area does not give us the chance to invest, which might be due to the fact that we had not verified our account. The terms and conditions, and other legal documents claim that the investment methods are credit cards, debit cards, wire transfers, and some unknown alternative payment methods!
As per the website, the minimum deposit is supposed to be $250, which seems trustworthy enough, this being the most common minimum deposit requirement.
The minimum withdrawal amount for wire transfer is $500, while the minimum credit card and debit card transfers is $100. Withdrawal requests are processed in 7 to 10 days. There exists the possibility of withdrawal fees, but in typical scammer broker style, CryptoTradeCorp has remained ambiguous about them.
One of the most revealing clauses is the one that follows, in which we learn that the broker will use the user’s profits plus her deposited funds as collateral against any fees and commissions that the client owns the firm. What these fees are, we do not know, for the broker does not reveal them!
We found an interesting clause that is both new to us, and very confusing. It shares that should the user’s transaction expires in-the-money, he or she will receive a certain pay-out, which is pre-determined from the collateral invested in the transaction. nOw, this might not be so bad, although something tells us that the broker may be able to spin this around and make it malevolent. We leave it to the users’ interpretation.
Next, we have a clause claiming that the broker has the right to set or amend limits to the user’s overall trading experience. These limits may include control over the order size; control over the exposure of the company to the user; control of the prices of assets; and more. And all these changes will be applied without notification! A completely manipulative clause!
Below is an example of your very typical indemnification clause, whose sole purpose is to keep the broker and its fraudulent operatives safe from harm by stating that CryptoTradeCorp will not be held responsible for any losses that occur while using its website.
The classic scammer Non-Deposite Funds clause returns here with a bang! It states that users cannot withdrawal their profit!
There are also bonuses offered here, which is the last sign we need to deem this broker unworthy of your money and trust. Do not waste your time with CryptoTradeCorp.
How does the scam work?
The straightforward way into an investment scam is through the thousands of online ads that flood our browsers and social media sites. These are those familiar ads that promise impossible returns and luxurious lifestyles as a result of investing.
Succumbing to such ads will lead to either the scammer investment site, or to an intermediary source with close ties to this and other fraudulent websites.
In either case, the user will be asked to provide a phone number and probably an email address. The purpose of these is for the reps of the scam to be able to contact the client and push for initial investments. This is the first wave of the fraud, and is usually done by the rookie team.
The second wave is the pros, sometimes those behind the whole scam. These are charming and cunning individuals, whose communication skills can potentially result in the users to invest a second, or third, or even fourth time.
Basically, the scam continuous until the client realizes that she is being scammed. At that moment, when she wishes to withdraw or has questions for the scammer, it is already too late.
The culprits will easily ignore all requests or stall them. There are times when unlicensed brokers even terminate entire accounts, and on rare occasions entire websites are closed!
What to do if scammed?
The safest way to get your money back is to file for a chargeback using your credit or debit card provider. MasterCard and VISA have a chargeback period of 540 days. However, this only applies if you have deposited through a card.
Wire transfers are more difficult to reimburse, although some banks may have a specific plan for such times, so we advise users to directly contact their banks and ask them for help. What’s crucial is for users to change their bank account user names and passwords as soon as possible.
As for any funds invested through a cryptocurrency wallet, be sure that they are lost! Crypto transfers are untraceable!
And finally: never trust recovery agents or agencies. These are fraudsters who will ask for money in return for nothing. Do not trust these!