Beware! Cryptotrusthub 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.
Cryptotrusthub wants us to believe that it is a regulated forex and CFD broker with a global presence but does not provide the necessary evidence to convince us. Actually fact checking reveals that it is not a forex broker at all but yet another anonymous website designed to scam inexperienced people out of their money. Let’s take a detailed look at how you can detect such scams.
CRYPTOTRUSTHUB REGULATION AND SAFETY OF FUNDS
On the homepage of the website we see an image of a supposed certificate of incorporation of a private limited company in England and Wales for Cryptotrusthub Ltd.
Even if this certificate were legitimate, such registration does not entitle a company to offer financial services and products in the UK. For this purpose a company must have a broker’s licence from the Financial Conduct Authority (FCA). However, the regulator’s database does not list the Cryptotrusthub. In addition, the FCA prohibits trading in crypto derivatives, which Cryptotrusthub presents as a core part of its business.
But the contact address provided by the Cryptotrusthub is not even in the United Kingdom, but in the United States:
The US is a jurisdiction with even higher requirements for financial service providers than the UK. To operate as a forex broker in the United States, a company must be registered with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA). As might be expected, there is no trace of the Cryptotrusthub on the NFA register.
In fact, we’re pretty sure this company doesn’t exist at all. Cryptotrusthub does not provide access to legal documentation, although the registration of an account does require acknowledgement of the Terms and Conditions. Instead of the mandatory disclaimer about the risk of derivatives trading, there is an assurance in the footer of the website that cryptocurrency trading can be very profitable:
There is no room for doubt that this website is a scam. If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate 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.
CRYPTOTRUSTHUB TRADING SOFTWARE
Cryptotrusthub claims to offer the two most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). But registering an account did not provide us with access to this or any other trading software. The Cryptotrusthub dashboard only has a circular chart with the current prices of the EUR/USD currency pair without any trading functions. This shows that Cryptotrusthub is a low-effort scam that relies on fooling people with no experience in the financial markets.
If you want to take advantage of the broad capacity of the MT4 and MT5 platforms without worrying about being scammed, you can register an account with the many licensed brokers that offer this software to their clients. 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.
CRYPTOTRUSTHUB TRADING CONDITIONS
Cryptotrusthub claims to offer three types of trading accounts with relatively standard terms. However, the trading parameters mentioned have no real meaning since Cryptotrusthub has neither legal authorization nor the necessary software to offer such trading.
The stated leverage of 1:1000 can only serve as additional evidence that this could not be a genuine broker based in the UK or the US. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.
Cryptotrusthub also claims to offer a variety of bonuses and promotions – a practice that is completely prohibited to licensed brokers in both the UK and the US.
The minimum deposit is set at 0.01 BTC, which at the time of writing this review equates to around 200 USD. However, this is the price after a significant recent collapse in the price of Bitcoin. Real brokers allow you to start trading with a low minimum deposit, often even below 50 USD.
Cryptotrusthub places great emphasis on the claim that it offers copy-trading. With legitimate brokers, it’s a service that allows novice traders to benefit from the savvy of experienced investors. But with fake brokers, it’s a way for victims to be deceived into believing that someone is investing their money for them.
CRYPTOTRUSTHUB DEPOSIT/WITHDRAW METHODS AND FEES
Cryptotrusthub offers only two deposit options – Bitcoin and Ethereum. This is typical of financial scammers. They predominantly use cryptocurrencies because these transactions provide anonymity but do not allow for a refund or chargeback to be requested.
While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.
Since Cryptotrusthub does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfill traded volume conditions.
HOW DOES THE SCAM WORK
While browsing the interwebs there is a significant chance you will come across comments, videos, social media pages that promise easy ways to passively make money. If you follow the links you will be taken to websites claiming to be legitimate brokers or investment firms. And if you take the next step and make contact with the people behind these websites, you will be contacted by slick and experienced scammers who will lure you in with promises of easy profits. For a while they will convince you that your investment is generating impressive returns and you need to pour in even more money to make sure you don’t miss out on this once in a lifetime opportunity
However, the attitude towards you will be changed if you want to withdraw your money. Suddenly, it will turn out that your investment makes losses and you even owe money to the fake broker for unexpected fees and expenses. They will show you clauses hidden in the Terms and Conditions, according to which you can only withdraw money after you have traded an impossible minimum volume, or that you will have to pay withdrawal fees of 20%, 30% or even more. When you try to hold them accountable you will find they are using fake names and shell companies in shady offshore jurisdictions without any regulatory oversight.
WHAT TO DO WHEN SCAMMED
Your options to recover your money are limited. If credit/debit cards were used for the transactions, you have the possibility to request a chargeback. But most scammers insist that you send them proof of identity and address with which they can dispute that the transactions were legitimate. Fraudsters also predominantly use cryptocurrencies, where refunds are impossible.
You should also be aware that there are many scammers who offer to recover your money for an upfront fee. You should not trust such offers. It is better to contact the relevant authorities in your country and warn them about the activities of the scammers.