Beware! Cryptansa 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.
As soon as you open Cryptansa’s website, you can see the broker swearing to be open, transparent and honest. Well, false claims straight from the beginning, and we say so because it’s an offshore entity registered in a non-transparent jurisdiction labelled as a tax haven. Cryptansa is dangerous, and we are going to discuss why in the following text, so you’d better read it first if planning to deal with this suspicious business.
Cryptansa REGULATION AND SAFETY OF FUNDS
Cryptansa is introduced as a brand of High Net Group Ltd, a company allegedly incorporated in the Marshall Islands– a shady tax haven indeed overcrowded with scammers. In fact, the country is so uncooperative that it’s even impossible to verify there is such a legal entity in existence. On top of that, the Marshall Islands do not have financial authority, let alone a regulated Forex market. Those things considered, we safely conclude that Cryptansa is unregulated, and your funds won’t be safe if you deposit. Nevertheless, as we are Europeans and could freely open an account, we felt bound to check for a European license but found none. Eventually, Cryptansa illegally sells financial products and services on regulated markets without authorisation. The so-called broker is potentially a scam scheme, and you should avoid it unless you fancy getting into trouble.
As Cryptansa is not a broker you can trust, check the high-rated EU brokers and British brokers on both lists if you are interested in trading and investments. The European companies are well regulated, but most importantly, covered by deposit insurance funds created to protect investors’ money if things go wrong. For example, CySEC brokers’ clients can claim up to 20 000 EUR in case of bankruptcy, while the British guarantees are up to 85 000 GBP. CySEC (Cyprus) and FCA (Britain) licenses are trustworthy, and you should keep this in mind when looking for brokers or investment opportunities.
Cryptansa TRADING SOFTWARE
Cryptansa pretends to offer superb trading software, but precisely the opposite is true, so we have even more evidence of a scam. The platform is web-based, primitive, ugly and limited in functionality. There are too few unreliable indicators, the drawing tools are challenging to use, and overall the chart is terrible, as you can see in the picture at the bottom of this section. In fact, we’ve seen the same inferior Webtrader deployed by many suspicious brokers, including exposed scams, so you’d better be careful with Cryptansa.
However, things are even worse as the EUR/USD spread is floating around 6.5 pips most of the time. That’s a massive Buy/Sell difference, so trading with Cryptansa is utterly costly, which is a good reason alone to stay away from this otherwise suspected scam. Luckily, the FX market is highly competitive, and it’s a piece of cake to get reputable brokers offering better platforms and much more favourable spreads of 1 pip and below.
That being said, we can offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists, which happen to provide the best trading terminals. The MTs are market-leading platforms packed with advanced features such as Expert advisors, many indicators, and excellent charting tools. The software also includes a marketplace with more than 10 000 apps and third-party developed solutions, which is an unrivalled advantage.
The default leverage is 1:200, but it can be up to 1:400, depending on the deposit size. Both ratios are too risky for retail traders, and to make things worse, Cryptansa doesn’t allow clients to adjust the level to their own preferences. Eventually, the broker intentionally drives people into a hazardous environment where they can quickly lose their funds. Make no mistake, Cryptansa, like most brokers, acts as a market maker and pocket clients money when they lose it. Beware!
In fact, leverage is utterly dangerous, and that’s why many authorities restrict its usage by regulations. For example, the regulated EU, British and Australian brokers have to limit retail clients to 1:30 for FX majors, while Canadian brokers and US brokers to 1:50. Swiss brokers are safe but not leverage restricted, so experienced and risk-tolerant traders eligible to open an account in Switzerland can safely go for it. However, the rest of the high-leverage companies are poorly regulated and very likely a scam, so you’d better be careful.
Cryptansa DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Cryptansa is $250, a sum slightly higher than the rest of the regulated companies’ demands on average- $100 to let traders enter the market with real money. Still, many legit companies have micro accounts starting from as little as $5, so solely due to the deposit requirements, Cryptansa proves to be a broker you’d better avoid.
Cryptansa mentions nothing about funding methods, but judging by the Terms, Credit/Debit cards and Wire Transfers should be possible. We also didn’t test their deposit system because the broker insisted on ID verification, and naturally, we refused to submit documents. Cryptansa is very likely a scam, and the identity theft risks are real indeed.
Anyway, while talking about deposits, see our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred e-wallet or a trusted payment system. The high-rated companies are well-regulated, and you won’t face scammers, so you can safely open accounts.
Cryptansa also reveals nothing about withdrawal and fees but only mentions that the request should be processed within 3 days. Dormant account policy and inactivity charges are also unknown, and the absence of information can reasonably be considered a red flag.
Overall, Cryptansa is an unregulated offshore broker, which is more than enough for you to steer clear of this shady business.
HOW DOES THE SCAM WORK
Fraudulent brokers and fishy websites come forth every single day. Nevertheless, most new scam projects represent a modification of common fraud that’s similar from country to country.
Nowadays, scammers are stalking victims mostly on the Internet and social media. Their offers look legit and present thrilling opportunities to put your money in the Forex market. To get enticed, people will be reassured the broker can secure high returns and risk-free trading. The scammers intentionally make people believe Forex is harmless, but precisely the opposite is true- you can lose everything if not careful enough.
In the usual scenario, scammers just pocket victims’ deposits and won’t send a dollar back. Sometime after the deposit, clients would ask for a withdrawal or a refund, but the con artists would delay or downright refuse to pay back. Make no mistake, scammers would find excuses to deny withdrawals and would even shamelessly ask for more money to let clients get their money. At the end, when fraud becomes evident, the scammers would simply cut the communication, leaving the victims defrauded. Then, sooner or later, the fraudulent broker will be abandoned, and another one will appear in its place. Scammers are professionals and will carry on creating fraudulent schemes, so you need to stay alert and always double-check.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If you get scammed, the first thing you need to do is to consider the secondary risks. Deactivate your bank card immediately, if you used it to deposit, contact your bank and ask for advice.
Then, report what happened to you, file a complaint, contact the authorities, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly to recover funds because fraudulent chargeback agencies and individuals are stalking, trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Share online your experience; it’s important to protect others, too. Be responsible