Beware! Crypto-ECM 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.
Crypto-ECM is a broker offering only cryptocurrency trading pairs to its clients. At the same time, they claim to be headquartered in Britain, which immediately makes this business highly controversial. Find out why in the full Crypto-ECM review.
Crypto-ECM REGULATION AND SAFETY OF FUNDS
Crypto-ECM lists a UK address in London’s business district Canary Wharf. It’s a location recognised as one of the world’s financial centres, so supposedly, Crypto-ECM should be a sizeable business. Or a scam that’s misleading the public. Our research showed it’s a fraudulent scheme set up by shady individuals who want to steal as much as possible from traders and investors. Precisely the British financial authority FCA issued a warning against Crypto-ECM, exposing this sham FX creature as a scam. Your funds are in danger if you deposit with this broker.
Avoid Crypto-ECM and check out the legit EU brokers and the British brokers we vouch for. Europe is a safe domain because of the sophisticated regulatory framework put in place. Deposit insurance funds protect the investors’ money in Europe considered the last resort in the unfortunate event of insolvency. CySEC firms’ clients can claim up to 20 000 EUR in compensation, while the British protections are up to 85 000 GBP per person. Also, there are other customer protection regulations such as clients’ accounts segregation, negative balance protection and leverage restrictions, to name a few. We are going to discuss the latter in the sections below.
Crypto-ECM TRADING SOFTWARE
Crypto-ECM offers web-based trading software that’s very unreliable. The FCA warning aside, we would quickly dismiss this broker as a scam solely because of the platform. It’s only possible to trade cryptocurrency pairs, which is a warning sign whatsoever. The cryptos are extremely volatile and risky but also considered prone to fraud and price manipulation. The British authority even prohibited the trading of digital coins at the beginning of 2021.
The platform is not intuitive and lacking in functionality. There aren’t any useful charting tools whatsoever, except for a few basic indicators. The Crypto-ECM so-called trading software is totally useless.
Weighing up platforms, see the MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the leading retail Forex platform, which traders and investors prefer for its trustworthiness. It features advanced trading tools such as Expert Advisors, Algo trading and many complex indicators. Traders can also access a marketplace offering more than 10 000 apps available at the time.
Seemingly, the spreads start from 2 pips, which is a very tiny difference for crypto pairs, and we suspect that Crypto-ECM manipulates prices. Even the leading brokers can’t offer such rates, let alone an exposed scam. The spread is the Buy/Sell difference, so lower rates are better for traders. By following the links provided throughout the review, you can find many brokers offering favourable spreads of 1 pip and below.
The leverage is hidden, which is a major red flag itself. It’s a fundamental element in trading, a financial tool improving profit potential but very risky indeed. The hidden ratios suggest concealed dangers, and it’s an argument enough to confirm that Crypto-ECM is a scam.
The leverage hazards stimulated many financial authorities to restrict the leverage levels. Thus, the European, British and Australian brokers (to come in effect later in 2021) are limited to 1:30, while the Canadian brokers and the US brokers can’t deliver more than 1:50. The Swiss brokers can offer increased leverage for risk-tolerant traders, but the capital requirement of 20 million francs certainly drives scammers away.
Crypto-ECM DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Crypto-ECM is $50, which meets the industry standards- legit brokers ask for $100 on average. The single funding method is Bitcoin, which is a disturbing sign itself because digital coins direct transfers are final and non-refundable. By far, the safest deposit method is Credit/Debit card because traders can file a chargeback 540 days after the deposit date. Consider this fact, regardless of the broker.
However, if you have a preferred funding method, see our lists with legit Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers and Bitcoin brokers. The selected brokers are strictly regulated, so it’s unlikely to experience fraud.
There is no information about withdrawal conditions and requirements, fees or bonuses. The legal documents presented are totally irrelevant for the products and services Crypto-ECM pretends to offer. Beware!
Overall, Crypto-ECM is an exposed scam, so stay safe and avoid this crooked scheme.
HOW DOES THE SCAM WORK
New types of investment scams come about literally every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.
Scammers usually find their victims through ads on social media or other websites, which is the latest trend. Classical tactics, such as cold calling, became less widespread as the Internet is prevalent nowadays. The offers look legit and present exciting opportunities to invest money in the Forex market. Traders are reassured that the people behind the broker have an excellent track record, promising high returns or seamless trading. They claim that there are no problems when trading with them, concealing that the FX market is utterly risky.
What usually happens is that scammers just pocket traders and investors money letting them believe they trade in a real environment. Sooner or later, clients would ask for a withdrawal, but scammers would delay or straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or send a tiny amount of money. It’s also a common manoeuvre for scammers to ask for more money to sort the withdrawals out. Either way, traders are likely to lose some or all of the capital invested. At some point, when the fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!
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