Beware! Fx Crypto Gain 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.
Websites like Fx Crypto Gain make us suspicious with their very name. It didn’t take long to find out that this is just yet another online scam trying to cash in on the hype surrounding cryptocurrencies and the ignorance of the general public about financial trading. Let’s take a detailed look at why it’s in your best interest to stay away from Fx Crypto Gain.
FX CRYPTO GAIN REGULATION AND SAFETY OF FUNDS
When you visit the website of a legitimate broker you can expect to find clear and detailed information about the company that owns and operates it, where it is based and what regulatory regimes it is subject to. Licensed financial services providers are also required to provide a comprehensive set of legal documentation.
The lack of even one of these elements is a big red flag that we’re dealing with scammers. Fx Crypto Gain does not specify which company owns and operates this website. The all too brief Terms and Conditions do not meet the standards for such a document at all and consist of promises of high returns.
The only identifying information is an address in “Berlin, Italy,” which shows that even the scammers themselves don’t take themselves too seriously.
As might be expected, there is no trace of the Fx Crypto Gain in the registers of the financial registrars in Germany and Italy – BaFin and CONSOB.
Fx Crypto Gain is obviously a completely anonymous website that has no legal authorization to offer financial services and products.
If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations. If you are based in the EU, a good choice would be a broker licensed and supervised by Cyprus Securities and Exchange Commission (CySEC).
There are many advantages to working with such brokers because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА). They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. When clients deposit money in their trading accounts, they are kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.
All brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. EU forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.
FX CRYPTO GAIN TRADING SOFTWARE
Fx Crypto Gain promises us trading on a world-class platform, but doesn’t specify which software is in question. The website only has a link to download a dubious mobile app installation file that is not uploaded to Google Play or Apple Store. Installing suspicious software from an anonymous website is not a good idea.
Registering a new account requires a reference code. Genuine brokers make creating a demo account as easy as possible. However, some scammers rely exclusively on potential victims attracted by spamming social networks and online forums. Fx Crypto Gain seems to be such a case.
Even if Fx Crypto Gain has some kind of trading software, this trading is fictitious. Fraudsters use trading platforms to fool their victims into believing that their money is really being invested.
If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (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.
FX CRYPTO GAIN TRADING CONDITIONS
Fx Crypto Gain does not offer different types of accounts that you will find with real brokers. We understand from the Terms and Conditions that accounts at Fx Crypto Gain use only the cryptocurrency Binance USD (BUSD). The minimum deposit is 100 BUSD, which is equivalent to 100 USD. It would certainly be a wiser choice to work with a legitimate broker, most of which allow you to start trading with an even lower minimum deposit.
The only information about trading conditions on the website is a promise of a daily profit of 0.5%. No legitimate broker will or could promise you a guaranteed return, even for assets that are not as volatile as cryptocurrencies. In fact, when you open the website of a genuine broker you will find a warning about the high risk of losses when trading financial instruments.
FX CRYPTO GAIN DEPOSIT/WITHDRAW METHODS AND FEES
As it became clear, the Fx Crypto Gain only uses cryptocurrencies. This is typical of financial fraudsters. The reason is that cryptocurrency transactions do not allow the defrauded to ask for a refund or chargeback.
While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, QIWI or iDeal.
Since Fx Crypto Gain 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-fulfil traded volume conditions.
HOW DOES THE SCAM WORK
Many people are looking for ways to make money passively, but do not have the necessary knowledge to invest in the financial markets themselves. This makes them a target for the many online scammers posing as brokers. If you come across some of them and give them your contacts, you will be contacted by skilled scam artists who will assure you that they can take on the incomprehensible aspects of investing for you. You will only be required to invest and take profits.
But when you try to collect even just a fraction of your money, it will turn out to be impossible. Your supposed profits will suddenly evaporate, or you’ll find that you have to meet impossible traded volume requirements first. Fraudsters often insert huge withdrawal fees into client agreements amounting to 10%, 20% or even more. You won’t be able to hold scammers accountable because they hide behind fake names and shell-companies offshore. Scammers also typically use non-refundable payment methods.
WHAT TO DO WHEN SCAMMED
First of all, you should be very careful not to fall straight into the clutches of other scammers. Another common scam is to promise money recoveries from fake brokers for an upfront fee.
If you used a credit or debit card for the transactions, you can charge a chargeback. Visa and MasterCard have a long period in which they allow such requests – 540 days. But keep in mind that fraudsters can dispute if you have provided them with a copy of your ID and proof of address. It would also be helpful if you alerted the authorities in your country and other people online to the activities of the scammers.
