Beware! FxCrop 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.
FxCrop promises to be “a global ECN Forex broker, offering a broad range of instruments” – however, they do not even offer a trading platform or the possibility to trade. This is a scam that has already attracted the attention of the FCA – one of the most respected forex regulatory bodies in the world. There is zero doubt that whatever you invest with this broker would be lost forever – read the review to find out more.
FxCrop REGULATION AND SAFETY OF FUNDS
FxCrop has provided an address in the UK knowing fully well that this would suggest that they are presenting themselves as a regulated UK broker. However, this is not the case – in fact, the UK financial regulatory body, the reputable FCA, has recently warned investors about this specific broker.
Such a warning is to be taken extremely seriously – as the FCA itself has mentioned, it means that the broker is not authorized to offer services and therefore you, as a client, would not be able to take advantage of the many protections that come from working with an acclaimed, licensed broker. It also means that we are dealing with a broker willing to deceive its way into finding clients – which most probably makes them scammers.
FxCrop is actually registered in St. Vincent and the Grenadines – a country that does not formally regulate forex brokers and does not impose any laws in the sphere of forex trading. This means that any broker registered there is not technically answering to any regulatory body. This is the reason why so many scam brokers have set up companies in this specific country.
We would advise you to turn to a broker who is actually licensed in the UK. Such brokers have to report to the FCA regularly to ensure that they are conducting business in a fair and transparent manner and employing good practices. They also have to meet quite a few requirements – for example, prove their financial stability by maintaining a minimum capital of €730 000 – possibly more if they have many clients – and participate in a compensation scheme. If the broker becomes insolvent, each of their clients could receive a compensation of up to £85 000 because of this compensation scheme. Negative balance protection is also ensured – this means that no retail trader could lose more money than they have in their account at a given time.
FxCrop TRADING SOFTWARE
FxCrop claimed that it provides access to MetaTrader 5 – one of the leading trading platforms in the industry. However, the platform’s desktop version could not be downloaded from the broker’s website – clicking on the “Download” button just reload the page. The broker also offered us to download the web version of MT5 – which is quite ridiculous since web platforms need not be downloaded. That version of the software was not available either – which essentially means that this broker does not offer a functional trading platform you could trade on.
These are some brokers who can offer you the MT5 experience. MT5 is a very good choice – both for beginners and more advanced traders because it combines a user-friendly interface with a high degree of efficiency. The platform offers an extensive charting and analysis package as well as many additional features – Expert Advisors that track markets and trade automatically, VPSs, a multi-threaded Strategy Tester, the opportunity for clients to develop custom indicators and trading bots, a community chat, a built-in economic calendar, and much more.
FxCrop TRADING CONDITIONS
FxCrop offered three different account types – the minimum deposit for the most basic Micro account was just $30. And although this is a pretty affordable price, keep in mind that Micro accounts often come with certain limitations – which is why most brokers would not charge you more than $5 for such an account. Prices for a more standard account vary from broker to broker – but they rarely go higher than $250 and are usually around $100. There are many affordable brokers that are also reliable and licensed – check some of them out instead of wasting time on scammers.
This broker does not offer a platform – which is why we cannot speak of spreads or leverage. We would like to mention, however, that FxCrop promises its clients maximum leverage of up to 1:2000 depending on the account. No legitimate UK broker could offer such rates – leverage in this jurisdiction, as in many others, is restricted by law to up to 1:30 on forex majors. Such restrictions exist to protect retail traders from the dangers that trading leverage poses – namely, much bigger faster losses. And while trading with higher leverage is possible with an offshore branch of a reputable broker, you should always be careful with your leverage settings.
FxCrop DEPOSIT/WITHDRAWAL METHODS AND FEES
FxCrop claimed that we would be able to deposit using “a variety of deposit options”. However, variety is not what we got – we were urged to make a deposit to an unknown crypto wallet and were given absolutely no alternatives.
Stay away from brokers who only accept crypto because they are surely scammers. There is nothing wrong with cryptocurrencies themselves – the problem is that such payments are anonymous and irreversible. This would completely destroy your chance of getting a chargeback and seeing your money again which is why scammers prefer this particular payment method.
FxCrop did not provide us with any sort of legal documentation which is very bothersome – you cannot know what sort of shady, dubious fees you will only find out about at a later point.
HOW DOES THE SCAM WORK?
Such scams are more common than you think and trick thousands of people into investing with fraudulent brokers who exist with the sole purpose to rob you. The best thing you can do to avoid them is check registers, research matters carefully, and have a general idea about how scam brokers operate.
Such brokers usually promise immense, fast profits – slow, gradual, and informed rarely seems to be the way for them. You take one look at a broker’s website and decide that it looks decent and legitimate and that all the promises and claims must be true. Such scammers often try to convince you that they are legitimate in various ways – they lie about being regulated, provide fake legal documents, and divert your attention with unbelievable offers. You decide to try your luck and open an account – providing the scammers with your phone number and email in the process.
After that you would not be left alone before you make a deposit – you receive dozens of calls and emails from smooth-talking scammers whose very job is to prey on unsuspecting people who are trying to turn a quick profit. And once you have deposited, they will keep asking you for more and more money – which you would gladly invest because, at that point, you might even be turning a decent profit. However, when you try to withdraw your profits, you will quickly see that you have been fooled. Different reasons why withdrawing is impossible will appear – additional taxes, minimum withdrawal limits, and previously unmentioned clauses in the Terms and Conditions.
At some point, you understand you are being scammed – but by the time you reach this point, the scammers will already be long gone.
WHAT TO DO WHEN SCAMMED?
Unfortunately, the chances of you tracking down the scammers and retrieving your money are not good.
You can, however, avoid additional problems and losses of money by changing your banking details and passwords, and removing all software they have asked you to install – this just provides them with easy access to your computer and all of your passwords.
Don’t trust any recovery agents promising to retrieve your money for a fee – this is just another type of scam, often conducted by the same people who initially robbed you.
If you have used Visa or MasterCard to deposit, there is a chance that you might be able to get a chargeback – both card providers allow chargebacks within 540 days of the transaction. Reversing wire transfers and payments made in crypto, on the other hand, is impossible – only use these payment solutions with trusted brokers.
Finally, make sure to notify the responsible authorities and share your story with as many people as possible – this way, others will know how to avoid such scams and stay away from them.