Beware! FXInvestCrypto 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.
FXInvestCrypto claims to mainly be ‘a Bitcoin-based platform, offering a leveraged trading on several digital assets’ as well as platform for trading in forex, commodities and indices. In reality, you can not trade in anything on their platform as it was not at all available when we tried to open an account. Furthermore, the regulation of this broker is as shady as they come – there are as many as three possible locations they could be operating from. The terms they offer also don’t speak of a legitimate company – they just cement the fact that we are dealing with scammers and you should absolutely not invest any money with them.
FXInvestCrypto REGULATION AND SAFETY OF FUNDS
If you are careless and decide to trust the contact info FXInvestCrypto has provided, you would think they are a US broker. This is quite impressive considering the fact there are currently so few brokers still operating in the US. The country has probably the sternest regulations in the world and it is not at all easy to obtain a license there. For starters, brokers should maintain a huge minimum capital – $20 million – to ensure they are well-funded enough to endure all sorts of unexpected financial events. For comparison, that sum is A$1 million in Australia and just €730 000 in the EU and the UK. Brokers are also required to keep strict records and give clients access to certain transaction data. Hedging is not allowed – if a trader has multiple trades open on the same pair at the same time and those trades are of the same size, the trader is obligated to close the oldest position. Additionally, the US financial authority, the National Futures Association (NFA), forbids foreign broker from accepting US clients without being regulated in the US.
So it came as a surprise that a small broker like FXInvestCrypto could actually be regulated in the US. Non so surprisingly, they are not as they did not show up anywhere on the NFA register.
We though we might have an answer to the question where the broker is situated when we were looking through the Terms and Conditions. There, they said the abide by the laws of St. Vincent and the Grenadines – although the local financial authority has stated on multiple occasions that they do not regulate forex brokers.
A quick Google search of the company’s name led to another huge red flag – a warning issued on FXInvestCrypto by the UK financial authority, the FCA.
No legitimate broker would provide such inconsistent and untrue information regarding regulations. The FCA warning alone should be more than enough to convince you not to waste your time on these scammers. Look up brokers regulated by the FCA, ASIC or CySEC if you want to be sure your funds will be properly handled.
FXInvestCrypto TRADING SOFTWARE
As we mentioned, we could not open an account with FXInvestCrypto to look up their trading platform. All we could find out is that it is some sort of web-based platform that can be used both for cryptocurrency trading as well as trading forex, indices and commodities.
If you are interested in trading forex, commodities and indices, you can check out platforms MetaTrader 4 and MetaTrader 5. Both of them are good choices because they offer great functionality while still being fairly easy to use. You can use the Expert Advisors available or create your own trading bots and indicators with the software’s coding languages .
FXInvestCrypto TRADING CONDITIONS
FXInvestCrypto went out of their way to convince us that the high leverage they offer – 1:100 – could only make you gain a ton of money without mentioning anything about the danger such leverage can pose. In reality, high leverage can do more harm than good to an unexperienced investor. That is why the US has imposed a restriction on leverage – 1:50. That number is even lower for the EU and the UK – 1:30. Considering the fact that FXInvestCrypto claims to mostly be the right choice for people who want to trade in cryptocurrencies, the offer of 1:100 is even more outrageous. Leverage is supposed to be even lower here – 1:2 in the EU.
The minimum deposit the broker requires is $300 – which is too much considering the fact that completely legitimate brokers would rarely demand more than $250 for a starter account.
Without access to a platform, we cannot say what the spreads for different forex pairs are but that is not that relevant – this broker is a scam and no spread could convince us to do business with them.
FXInvestCrypto DEPOSIT/WITHDRAW METHODS AND FEES
FXInvestCrypto did not have a lot to say about deposit and withdrawal methods but gave hints that you would only be able to transfer to their Bitcoin wallet. Another red flag here – since payments made in cryptocurrencies are irreversible, scammers adore such payment methods.
Finally, FXInvestCrypto offers bonuses – which are banned in the US, Australia and Europe. Supposedly, you can get access to an abundance of referral bonuses and there is even a scheme that shows you how to gain more money based on the amount of people you refer and the turnover those people achieve.
Don’t do your friends a bad favor by introducing them to such scammers.
HOW DOES THE SCAM WORK?
The way such scams work is usually the same.
You are browsing and you see a banner or an ad for the scammer’s website promising you enormous profit. So you take a look at the website, think it looks good, and register – after all, who would not want to earn money so easily and quickly. And the scammers promise to make an experienced trader out of you in no time. The moment they acquire your contact info, you will start receiving emails and phone calls asking you to deposit. If you do, you will probably see you are making a lot of money soon – a trick aiming to make you invest more.
Time passes, you have made good money and now you want to withdraw. This is the moment the scammers will start making up wild reasons to delay that withdrawal – usually additional taxes. At some point you will start figuring out something is wrong and at that exact moment, the scammers will stop answering your phone calls.
WHAT TO DO IF SCAMMED?
Remain calm and don’t trust any so-called “recovery agents” that say they could retrieve your money if you only paid a small fee. Often enough, these are the same people that scammed you in the first place and even if they are not – that is a whole different type of scam aimed at desperate victims. Your “recovery agent” will disappear as soon as they receive the fee.
What you could do is ask your bank or credit card provider for assistance depending on your deposit method. With credit and debit cards you can file for chargeback within 540 days. Cryptocurrency transactions are non-refundable so don’t trust brokers only offering that payment method. Still, be prepared for the worst since such situations are rarely resolved in a happy manner. If you have verified your account, the scammers might use that as a basis for revoking your claim.
Still, make sure to change any passwords or other sensitive information scammers have received. Notify the authorities and spread the word – in your acquaintance circle and online. You can save a lot of people from the awful situation you might have found yourself in.