Beware! PrimeCPRO 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.
PrimeCPRO is an anonymous broker that advertises trading in Forex, Stocks, Commodities, Indices and Cryptocurrencies. They offer three types of accounts starting from a minimum deposit amount of $250 up to $25,000, and quite similar trading conditions – see below:
Тo register for an account we had to provide our names, email address, p[hone number, address and select currency – EUR or USD. The registration was successful but no confirmation email was sent to our mailbox (an immediate red flag), and we were redirected to the client area.
PrimeCPRO Regulation and Safety of funds
The brokerage does not have a physical address or a phone number listed anywhere on the website. There is only a contact form and email address, but no further details about the company or where it is registered are readily available. In the screenshot above we see an entity “Soros Trade” mentioned, but nowhere else is explained the relation between that and PrimeCPRO, so we cannot be sure if this is not a typo. A quick internet search also did not result in more information about any of the two entities.
There is only a casual mention in the Terms and Conditions about “Estonian Governing laws”, but nothing specific really. Despite the lack of any company or regulation details the broker does not shy from putting boastful claims on its website. From “10 years in the market” to “low spreads” and “no fees”, one would think this is an established, respectable broker. This is hardly the case, however.
Regulated brokers will always share their company details, as well as the authority that regulates them plus their license number. In such circumstances, claims like working “with premium liquidity providers” will not be empty statements.
We would advise our readers to invest with brokers that are licensed and regulated by established regulatory agencies, such as the Financial Conduct Authority (FCA) or the Cyprus Securities and Exchange Commission (CySEC). These watchdog organizations, impose strict rules and requirements on their licensees: Minimum Capital Requirements for the broker of 730,000 EUR guarantee their good financial standing, while participation in Compensation Schemes provide additional guarantees to investors’ funds in case the broker goes bankrupt – up to 85,000 GBP in the UK and 20,000 EUR in the EU. There is also Client Account Segregation designed to keep clients’ money separate from the broker’s operating funds, and a Negative Balance Protection policy – traders may not lose more than the initially invested funds.
PrimeCPRO is an unregulated, anonymous broker, however, so they are not bound by these rules and policies and any statements regarding adherence to them are misleading or outright false claims. We advise our readers to choose a regulated broker instead.
PrimeCPRO Trading Software
The broker offers a web-based trading platform, Webtrader. Although here again we see a number of superlatives – “cutting edge, market-leading platform” – we are not impressed with it. It does not have great design, nor many features and functionalities – see for yourself. It doesn’t have a mobile version either.
Established software, such as the MetaTrader 4 (MT4) on the other hand, offers an intuitive and user-friendly interface, advanced charting and analysis tools, as well as copy and auto-trade options. It can be customized to create different trading strategies using its proprietary MQL4 programming language, and comes as a desktop, web and mobile (iOS and Android) application.
Although PrimeCPRO states on their website that they provide state of the art trading platforms like MetaTrader 4 on their website, this is another misleading statement – we could find any download link on the website or the client area.
MT4 is still the world’s number one platform in terms of trading volume. It was recently surpassed by its successor, the MetaTrader 5 (MT5), in terms of the number of brokers offering it. The latter has some advantages – it allows traders to execute trades on different financial markets through a single account and it also has a hedging option.
PrimeCPRO Trading Conditions
The spread we see in the Webtrader platform is too good to be true – 0.1 pips for EURUSD. Considering the dubious nature of this software, however, we have serious suspicions it might be made up. Regulated brokers usually provide spreads between 1 and 1.5 pips for the major, most traded currency pairs.
As we see in the accounts section, PrimeCPRO offers leverage up to 1:500. Trading on leverage can be rather tricky as it entails significant risks, especially to inexperienced traders. Although it allows for making bigger profits, one may incur great losses too, often much greater than the invested funds. That is why, most regulatory authorities impose leverage caps for non-professional traders: in the USA it is 1:50, while for brokers licensed in the EU and the UK it is 1:30. The Australian Securities and Investments Commission (ASIC) also started restricting leverage for major currency pairs to 1:30 from March 29, 2021.
PrimeCPRO Deposit/Withdrawal Methods And Fees
The broker’s website shows the logos of several payment transaction methods – credit / debit cards (VISA and MasterCard), Wire Transfer and OKPay. We could not confirm these are available as deposit options, however, because clicking the deposit button in the client area brought up a message that an account manager will contact us. Other popular payment methods, such as PayPal or preferred by traders e-wallets, Skrill and Neteller, are not supported.
The minimum deposit amount is $250, while the minimum withdrawal is $250 for wire transfers, $100 for all other methods. From a Deposits & Withdrawals document we find on the broker’s website we understand that the withdrawal fees are quite steep – take a look:
In addition to the standard fees PrimeCPRO charges a levy of 10% of the withdrawal amount to any withdrawal from an account that has not executed more than 200 in turnover and/or from accounts that have not been verified. There is also a Dormant Fee – if you did not login and traded from your account within six (6) months, your account will be subject to a deduction of 10 % each month.
In conclusion, we want to warn our readers again that there is a high probability that PrimeCPRO is a scam broker and they should not invest with them!
How does the scam work?
Here we will outline the most common scamming scenario. The first step is to capture the users’ attention with ads promising fast money. When they click on such an ad, they are redirected to a website that would ask to provide email address and phone number. This personal information is then used by the scam brokers who will start calling and asking to invest with them. The initial deposit is usually around $250 from which these brokers will make a fat commission.
After that, users are transferred to senior brokers. These are expert con-artists who will sweet-talk them into putting even more money. When the traders decide to get out, however, it turns out it is not that simple. The scammers will talk them into postponing their withdrawals or will draw out various reasons to deny the request. All of this is with the objective to miss the limited time period for filing a chargeback with their bank and get their money back.
We should note that VISA and MasterCard have recently taken measures to combat online scams and are classifying all forex transactions as high risk. Furthermore, they have increased the period for filing a chargeback from 6 months to 540 days.
What to do when scammed?
In the event you become a victim of such a scam there are some things you should know. If you used a major credit card to fund the account you should immediately file for a chargeback with your bank or credit card provider. In case you supplied sensitive financial information to the scammers, such as account details and passwords, you should cancel your credit card or change your pass.
If you used bitcoin or bank wire, however, chances of recovering your funds are slim. Do not get hooked by any “recovery agents”, who prey on scam victims, using their hopes of retrieving their money. These are just another type of scammers who will ask you for an upfront fee in order to get your money back, but once you pay them, you will not hear from them again.