Beware! CryptoProspectTradingfx 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.
CryptoProspectTradingfx tries to pass itself off as a regulated forex and CFDs broker. However, even a minimal inspection quickly exposes these claims as a lie.
CryptoProspectTradingfx is a rather unconvincing scam scheme designed to capitalize on the excitement surrounding cryptocurrencies. Under no circumstances should you be fooled by their promises of easy profits and trust them with your money.
CRYPTOPROSPECTTRADINGFX REGULATION AND SAFETY OF FUNDS
That the CryptoProspectTradingfx is not a legitimate business is evident from the fact that nowhere on the website is the legal entity behind it named.
To operate within the United Kingdom, a broker must be licensed by this country’s regulator, the Financial Conduct Authority (FCA). However, a search for CryptoProspectTradingfx in the FCA database did not find a licence, but a warning that this website offers investment services without authorisation:
CryptoProspectTradingfx is not a licensed broker and does not offer the services it claims. If you have a desire to start trading cryptocurrencies or other financial instruments, you should be very careful not to fall into the clutches of the numerous scam sites like CryptoProspectTradingfx.
In order to trade without getting scammed, you should use the services of one of the many licensed brokers actually operating from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority (FCA). They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.
CRYPTOPROSPECTTRADINGFX TRADING SOFTWARE
CryptoProspectTradingfx doesn’t try too hard to look legitimate. While many scammers try to deceive by offering actual trading platforms, the CryptoProspectTradingfx has none at all.
On the main page of the website one can read a vague description of a web-based trading platform, but after creating an account it becomes clear that there is none. Instead, only an error code is visible in the client portal:
The description of the “trading steps” on the website also seems designed for binary options trading, not CFDs. Binary options trading is actually banned in the UK and a number of other jurisdictions as it is associated with many exploits and scams.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
CRYPTOPROSPECTTRADINGFX TRADING CONDITIONS
Information on the terms of trade of the CryptoProspectTradingfx is scarce, but nonetheless contradictory. One section of the website describes four types of accounts with a minimum deposit of 350 USD. On the main page, however, four “investment plans” starting at 500 USD can be seen.
Nowhere is there any information about basic trading parameters such as spread, leverage and commissions. CryptoProspectTradingfx is clearly a scam aimed at people who have no idea what to expect from a broker.
Legitimate brokerage firms typically offer different packages tailored to the needs of clients with different backgrounds and capital. Many offer starter accounts with a minimum deposit of around 100 USD.
CryptoProspectTradingfx also claims to offer bonuses – a practice strictly forbidden by the regulators in UK, EU, US and Australia.
CRYPTOPROSPECTTRADINGFX DEPOSIT/WITHDRAW METHODS AND FEES
The logos of numerous payment methods can be seen on the CryptoProspectTradingfx website, including bank transfer, credit/debit cards, Cashu, Skril, Neteller, WebMoney, Western Union and QIWI. There is even a table of alleged recent customer withdrawals that lists the amounts and method.
However, only four options are visible in the deposit menu of the client portal: Bitcoin, Skrill, Western Union and MoneyGram. Only Bitcoin is actually active – selecting any of the other methods links to a message to contact support.
While there are legitimate brokers that accept Bitcoin as a payment method, they do so alongside other, more transparent options. Cryptocurrency as the only option is always a big red flag. Scammers prefer cryptocurrencies because these transactions are not subject to refunds.
A clause often used by scam sites can be found in the CryptoProspectTradingfx’s Terms and Conditions. If the client has received a bonus, the withdrawal of any profits becomes conditional on meeting high minimum volume requirements – 20 times the bonus amount plus the deposit.
HOW DOES THE SCAM WORK
The online space is full of ads promising easy money. They sound too good to be true, because they are not – they are outright scams. Many of these fraudsters pose as brokers and take advantage of the general public’s ignorance of the capital markets.
If you give your contacts to one of these scammers, they will start convincing you that they will multiply your money, with nothing required of you but to sit back and take profits. If you agree to an initial investment of a few hundred dollars, they will start persuading you to invest more and more.
But you will never get the promised profits or the money you deposited. Scammers have many ways to ensure this. First of all, they are hidden behind offshore companies, not subject to controls and regulations. For the money transfers they use shady payment platforms, direct bank transfers or cryptocurrencies that make recovering money very difficult and often impossible. The terms and conditions are always riddled with traps that also block your ability to withdraw your money, such as prohibitively high minimum trading volume requirements or withdrawal fees amounting to tens of percentages of your funds.
WHAT TO DO WHEN SCAMMED
Recovering money you have given to fraudsters is difficult and often impossible. Fraudsters always want you to provide them with documents such as a copy of your ID and proof of address so that they can claim that it is a legitimate transaction, agreed voluntarily between both parties. If the transaction is made by credit or debit card, you can request a cashback and hope for the best, but transactions via wire transfer or cryptocurrencies are not refundable. It is important not to trust online offers from people who offer to recover your money in exchange for an upfront payment, because this is also a well-known scam.