Beware! Cybatrix 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.
Cybatrix is in no way an investment option worthy of your time. This broker is fully unlicensed and fairly anonymous. Although they offer good conditions, investing with them will be a bad decision on your side – such a broker will scam you in no time. Stay away from such dangerous schemes if you want to trade safely.
Cybatrix REGULATION AND SAFETY OF FUNDS
Cybatrix claims to be a “banking holding company with headquarters in the city of Detroit, Michigan” that “provides financial services, including auto-financing, corporate financing, insurance, mortgage loans, exchange services, and online banking”. However, the address they provided was actually in Russia. The broker did not show up in the database of the NFA – one of the financial authorities, along with the CFTC, that is responsible for regulating US brokers. Nor did it seem to be licensed in Russia – the requirements there are extremely strict and very few companies (less than 10) are officially authorized to offer trading services there. This means that if you choose to invest with this broker, you would be dealing with an unlicensed enterprise.
Consider investing with a broker licensed in the UK, the EU, or Australia. Such companies are under the supervision of strict authorities and are expected to maintain a high standard of service. Transparency and fair treatment are a must if you are a broker who wants to get and keep a license. Brokers have to prove their financial stability by maintaining a capital of at least €730 000 in the UK and the EU, and A$1 million in Australia. Negative balance protection is mandatory – this prevents you from losing more money than you have in your account. Client funds are kept in segregated accounts – this proves that the broker would not be able to use your investment for their own financial operations – by mistake or knowingly – and speeds up withdrawals. Finally, EU and UK brokers also participate in compensation funds – if a licensed broker goes bankrupt, each of their clients could receive a compensation of up to €20 000 in the EU and £85 000 in the UK.
Cybatrix TRADING SOFTWARE
Cybatrix offers a decent enough web-based trading platform:
Such platforms generally offer more basic functionality – although you could still get access to some okay trading tools, the number of features you would be able to employ is fairly limited.
This is not the best the trading world can offer – try an advanced platform like MetaTrader 5 instead. MT5 is currently the most popular and beloved trading platform out there and judging from recent statistics, its popularity will only grow. MT5 offers useful features such as preprogrammed Expert Advisors that trade in accordance with an algorithm, multi-threaded Strategy Testers and the chance to export charts, signals you could set for prices going up or down, a community chat, a built-in calendar, hedging and netting options on the software’s newest updates as well as many other great features. Platforms like the one pictured above look like playthings compared to MT5.
Cybatrix TRADING CONDITIONS
Cybatrix asks for a fairly small minimum deposit of $150 to let you start trading. For this money, you would be getting access to a decent amount of trading tools – forex, metals, commodities, indices, stocks, and cryptocurrencies. However, many legitimate brokers also offer a decent range of instruments for even smaller prices – even for as little as $10.
Cybatrix offers a leverage of up to 1:100. This fairly high would be illegal in the US as well as in many other jurisdictions. Since trading with high leverage could result in bigger losses for inexperienced new traders, many financial regulators have imposed leverage caps. The limit is up to 1:50 on forex majors in the US, up to 1:30 in the UK, the EU, and Australia, up to 1:25 in Japan, and even as low as 1:10. The offer of leverage as high as 1:100 proves that this broker could not be licensed in a number of strict jurisdictions. We always urge readers to be careful with their leverage setting and only trade with the sort of leverage they are sure they can handle.
Finally, the spread we got with this broker was excellent – around 0.9 pips on EURUSD. However, platform manipulations are more common among scam brokers than you think – the broker might have fabricated this good spread. Moreover, they have not mentioned anything about its commissions – those might be huge and compromise the good spread.
Cybatrix DEPOSIT AND WITHDRAWAL METHODS AND FEES
Cybatrix only accepts deposits made through Telegram or in Tether. These are hardly the most convenient payment solutions – you will find that most brokers accept card payments, wire transfers, and various e-wallets. Some of them also accept crypto deposits – but they would always offer an alternative. Scammers, on the other hand, would often urge you to deposit in crypto. The reason for this is that all crypto transactions are anonymous and irreversible – you would not be able to track down your payment or get a chargeback.
HOW DOES THE SCAM WORK?
You might think that not many people fall for such scams but you would be dead wrong – some scams are quite elaborate and have managed to fool a lot of people. That is why it is important to know what to expect and look for in order to spot a scam broker from a mile away.
The scam starts with an ad on the Internet promising you an easy gateway to forex trading or investing – the only thing you would have to do is open an account with the broker. You know that there are people who trade for a job and that even regular Joes manage to earn a nice side income through trading and wonder why not the same, there is no harm in trying. So you give in and provide the scammers with your contact details.
This is the moment when you will start getting constant calls and emails asking you to deposit – even if you have only opened a demo account. At some point, since everything seems legitimate, you do deposit and in the beginning, things might be looking great. The profits you were promised come soon but you should remember that it is easy for scammers to manipulate platforms to make it look like you are turning a profit. But you will be asked to keep on investing – and you would have no problem doing that because you will be smooth-talked into it by people who scam others for a living.
But when you try to withdraw, you will start running into different obstacles – obscure clauses in the Terms and Conditions preventing you from withdrawing, additional fees and taxes, and weird procedures. At some point, you would not be able to deny the fact you have been scammed – but it will be too late. The scammers will disappear and stop answering your calls and emails and leave you wondering what to do.
WHAT TO DO WHEN SCAMMED?
So what can be done in case you have already deposited?
Be prepared that there is a rather high chance that you would never see your money again. There is, however, still hope to retrieve it especially if you have deposited with a credit or debit card – both Visa and MasterCard allow chargebacks within 540 days of the transaction. Moreover, there are some things you absolutely have to do in order to avoid further losses of money.
Change all passwords and banking details you have provided the scammers with and remove all sorts of remote access software if you have installed such. Some scammers would promise to help you trade, or resolve different problems if you only install such software – their actual agenda is to get access to your computer and all your passwords and information.
Don’t trust any so-called “recovery agents” who offer to retrieve your money for a fee – this is just another type of scam targeting desperate scam victims, often conducted by the same people that are behind your “broker”.
Make sure to notify authorities and try to share your story online, or with your acquaintances – the more people know about such scams and how they function, the lower the success rate they will have.