Cryptostadt review – 5 things you should know about cryptostadt.co

Beware! Cryptostadt is an offshore broker! Your investment may be at risk.

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Cryptostadt presents itself as a highly professional and innovative forex broker that offers “hand-tailored accounts perfectly suited for your needs”. Before entrusting your money to an investment intermediary, you should do a fact check to make sure it is legitimate. In the case of Cryptostadt , the background check strongly indicates that this is not a licensed and trustworthy broker. Let’s take a detailed look at why it is in your best interest to stay away from Cryptostadt  and what better alternatives you have when choosing a financial services provider.

Cryptostadt Regulation and safety of funds

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.

We do not see a company name, contact address or any other identifying information on the homepage of the website.

The text of the Terms and Conditions states that this broker is operated by a company named CryptoSTADT Group, and lists the applicable jurisdiction as  St. Vincent and the Grenadines (SVG).

We found no such entity among those registered in the SVG. But even if the owner of the Cryptostadt is based in this country, this provides absolutely no guarantees to clients.

Because of the lack of regulatory norms and oversight, Saint Vincent and the Grenadines is one of the favourite bases of operations for shady brokers. While this country has a financial regulator, unlike other offshore areas, it does not regulate the activities of forex and CFD brokers. Тhe Financial Services Authority (FSA) of St. Vincent and the Grenadines has repeatedly issued warnings on this issue.

The website is also available in German, which has prompted the German financial regulator to issue a warning that this broker is not licensed.

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.

Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Investments 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.

Cryptostadt Trading software

After registering an account, we get access to a pretty basic web trading platform that doesn’t feature extensive customization options or advanced functionality. We’ve seen the exact same platform being used by multiple fake brokers we’ve encountered. Scammers are using rigged trading software to fool their victims into believing that their money is really being invested and even turning a profit.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

Cryptostadt Trading instruments

Cryptostadt’s trading software includes forex, crypto, commodities, indices and stocks. But as stated, there is no guarantee that this shady broker offers real trading. It is in your best interest to trade only through diligently licensed brokers.

Cryptostadt Spreads and cost of trading

In the trading platform we see a very low spread of 0.2 pips. This suggests that the broker is charging some kind of commission for the trade. But Cryptostadt does not provide any information about the trading parameters.

Genuine forex brokers provide detailed information about the trading conditions. Legitimate companies also offer different account types to suit clients with different experience, capital and investment intentions.

Cryptostadt Maximum leverage

The trading platform has a very high leverage of 1:400. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses.

If you are willing to take the risk of trading with high leverage and benefit from bonuses and promotions, the best option is to invest through an offshore division of an established brand.

Cryptostadt Deposit and withdrawal methods

At the time of writing this review, Cryptostadt  deposit menu is not active. But experience shows that this type of fake brokers direct their potential victims to crypto transactions that do not allow a refund to be requested.

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.

Cryptostadt Minimum deposit

Cryptostadt specifies a minimum deposit of 250 USD, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

Cryptostadt Withdrawal requirements

The minimum withdrawal amount is 50 USD. Cryptostadt  charges an outrageously high withdrawal fee of 30 USD.

But withdrawing funds becomes very difficult if the account has received a bonus. In such a case, minimum traded volume requirements  must be met. These requirements are a number of lots equal to the deposit amount divided by 2. Regulated brokers do not offer bonuses at all, and scammers often use them to tie withdrawals to huge fees and impossible to meet conditions.