Beware! CMTPRO 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.

 

The CMTPRO website promises to make forex and cryptocurrency trading easy for us. But fact checking leaves no room for doubt that the purpose of this website is to scam us out of our money. Let’s take a detailed look at the clues that CMTPRO is not the legitimate financial services provider it claims to be.

CMTPRO REGULATION AND SAFETY OF FUNDS

If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has. Genuine brokers also provide access to a comprehensive set of legal documentation. The availability of such information does not guarantee that it is not false or misleading. But the absence of these elements is very indicative that in all likelihood you are dealing with scammers.

CMTPRO does not disclose the name of the company behind this website or provide a contact address. Even the text of the Terms and Conditions does not mention the name of a legal entity or specify an applicable jurisdiction. Such anonymity is unacceptable for any legitimate business, let alone a forex broker who wants us to trust it with our money.

Although the CSRC does not mention a regulator, one European regulator has spotted the fraudulent activity of this website and blacklisted it – the Belgian  Financial Services and Markets Authority (FSMA).

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the Commodity Futures Trading Commission (CFTC) in US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.  In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

CMTPRO TRADING SOFTWARE

CMTPRO has a web-based trading platform that does not feature advanced functionality. Here’s what it looks like:

While this platform has the basic functionality to place orders, it cannot compare to the capabilities provided by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It is no coincidence that these platforms have established themselves as the industry standard. 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.

It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.

CMTPRO TRADING CONDITIONS

When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc.

The CMTPRO website mentions different account types but does not specify the trading conditions associated with them.

The website promises low spreads close to zero, but in the trading platform we see a spread of 2 pips – a level that is considered too high and unprofitable for the trader.

CMTPRO also claims to offer leverage up to 1:500. This is not a level that you see with regulated brokers. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders. In the EU, UK and Australia the maximum permitted level is 1:30 and in the US it is 1:50. This maximum level only applies to trading major currency pairs, with even more limited leverage for more volatile assets.

According to the Frequently Asked Questions section, the minimum deposit is 250 USD/URD/GBP. For the same or often lower amount you could open a starter account with almost any licensed broker.

CMTPRO DEPOSIT/WITHDRAW METHODS AND FEES

CMTPRO’s deposit menu requires you to provide your credit card details but does not allow deposit. Instead, a message pops up that you need to contact the people behind the website directly to get instructions on how to make a transaction. Financial scammers often use tricks like this to steer potential victims to opaque payment methods that do not call for a refund to be requested. In the most common case, these are cryptocurrencies.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller. If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.

CMTPRO does not provide clear information on deposit and withdrawal fees and terms. But we can be sure that, like all scammers of this type, CMTPRO will surprise you unpleasantly with hidden fees and extortionate terms.

HOW DOES THE SCAM WORK

With all the buzz surrounding cryptocurrencies and NFTs, many people are starting to consider investing in the financial markets as a bid to improve their fortunes. Scammers on the internet have taken notice of that and take advantage of the ignorance of the general public by creating countless websites posing as brokers. These websites offer no real brokerage services and only deceive people into believing that their money is really being invested.

If you come across such a scam website and give out your contacts, you will be contacted by experienced scammers who will convince you that they can take on all the frighteningly complex aspects of investing for you. But you will never get any real profits, nor will you be able to get back the money you deposited. The terms and conditions of these websites are riddled with clauses that make withdrawing funds from your account unfeasible – for example, extremely high minimum trading volume requirements or hefty fees of 10%, 20% or even more of the amount.

Scammers hide behind fake addresses and names and operate through offshore companies that are not subject to regulation and scrutiny. So even if all the withdrawal requirements are met, they may simply disappear and move on to their next fraudulent scheme.

WHAT TO DO WHEN SCAMMED

It is very important not to rush into trusting people on the internet who offer to magically refund your money for a fee. These are also scammers, and they may even be the same ones who scammed you in the first place.

If you have made the transfers using credit or debit card, you can claim a chargeback. Visa and MasterCard allow this to be done within 540 days. However, such a request may not be approved if you have given the fraudsters documents such as a copy of an ID and proof of address. This will allow them to claim that the transaction is legitimate and approved by both parties.

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1 Comment

  1. Bosco Jiménez Gómez

    Hi, l’, spanish anda dont speak english only little. Anyone know anything about how tell with cmtpro? Thanks

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