Cryptocurrency Scams: How To Avoid Them
This article is a look at what you can do if you think you’ve been scammed. It’s likely that once an issue arises you won’t be able to get your profits, it is possible to get back your initial deposit but it might take some work. You should always be clear about who you are dealing with.
Ideally, focus on review sites that allow and encourage real-life users to get in contact and report and problems with particular brokers, so you can be sure that what you are reading is up to date. In all of these cases, the problem isn’t with binary options as a concept, it’s with the broker. MyChargeBack.com are a company who specialise in helping binary fraud victims recover their money. They liaise with bank or credit card firms in order to get charge backs made to reclaim deposits.
Maxitrade is owned and operated by Strategy One Ltd, which is based on Saint Vincent and the Grenadines and says to be regulated by Labuan Financial Service Authority (FSA) – a regulator supposedly based in Malaysia, we have never heard of before. Actually, our research shows that FSA is not a legit financial authority https://maxitrade.bid and respectively Maxitrade is just another unregulated, offshore broker with rather limited credibility. The MaxiTrade trading terminal deserves a separate discussion. It is compatible with any computer, has a user-friendly interface, and has a good design. The platform has already won the favour of users.
The fact that regulators take measures to prevent fraud does not make the industry scam free. Professional crooks are out there, trying to fool naïve traders en mass, with flashy sites and big, empty promises. The list of crooks is certainly not limited to brokers; marketing professionals dressed as service providers are trying to sell you mind-blowing returns. They pose no less danger than the old-fashioned bucket shops, and together they are creating havoc among untrained traders. Not all brokers and offers are regulated in the United States of America.
The customer service simply doesn’t reply to messages sent by the trader. ECN/STP brokers should only make their money on commissions, but sometimes they also add a markup. Markup can be defined as an additional pip that is added to the initial spread offered by the liquidity provider. For example, if the provider offers 0.3 pips spread on a pair, the forex broker will add a pip so they make more money. The spread is lower when there are no markups added.
This isn’t going to make you a better trader, because you don’t know what is happening behind the scenes. If a product or signal service stops Maxitrade scummers operating you are left with nothing. Even if you made money with the product/service you have to start from scratch all over again.
That is why research is very important when it comes to choosing the binary broker. Blacklisted CFD and binary brokers list can be a valuable source of information on brokers. It is a well-known fact that forex and CFDs trading is becoming more and more popular each year, and because of that significant number of frauds are attracted to it.
I really regret ever trading with this…
We don’t recommend, facilitate or encourage trading with products that are not regulated. FairForexBrokers.com does not recommend any forex, crypto and binary brokers or exchanges to US traders besides NADEX, which is licensed by CFTC.
- Some of them simply don’t comply with our criteria of what makes a good forex or binary broker that we would recommend but that doesn’t mean they are a scam broker.
- Both MaxiTrade and OANDA have training and analytics sections; such cannot be found in the Saxo Bank website.
- He said he had been approached by people who have lost money on dozens of different sites and that new ones appear to be springing up daily.
Of course remember though, past performance is not indicative of futures results. That is way it pays to do some homework, and make sure the strategy/system/service/product is based on a long history, and has proven itself profitable over all types of market conditions.
Time to call out the big guns. The great thing about expanding binary options regulation is that there is an alternative for many traders who think they’ve been scammed, you can contact the regulator. In some cases this can be a challenge as many brokers are located off-shore and hidden behind holding companies and virtual offices so be sure to do your homework.
It will be form your “senior account manager”, who will be impressed by your trading results, but will simply explain you that if you want to make some real money, you will simply have to invest more – like 10 000 USD or so. For example, if you are trading with a FCA broker and the broker happens to be insolvent, you will receive as a compensation up to 50 000 GBP of your trading capital. Similarly with CySEC brokers the compensation can reach 20 000 EUR. Beware! Maxitrade is an offshore broker!
Also made apparent is the absence of commissions in this company which is similar to OANDA. The latter is criticized for its low leverage while Saxo Bank users note unstable customer service. Also available through the site are up-to-date financial news and quarterly reporting dates for the world’s leading companies.
How to recognize a Scam?
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Information on FairForexBrokers.com should not be seen as a recommendation to trade CFDs or cryptocurrencies or to be considered as investment advice. FairForexBrokers.com is not licensed nor authorised to provide advice on investing and related matters. (NOTICE) – This website is NOT owned by any binary options company. Social media is a “perfect” platform for scammers and can be even more insidious and convincing, and unlike the JV marketers these people will talk to you directly, but only to a point.
Feel free to leave a comment of your experience with this broker to prevent other people from being scammed. You only have to register for free on MyChargeBack which is a company that fights against online scammers.
