Even if you don’t trade in the financial markets, you have probably heard of fraudulent brokerages scamming people out of their money. Every other day, you will discover that someone has lost their money because they fell into the trap of a fake trading platform. But, why does it happen so frequently? Why don’t people learn from others’ mistakes? The fact is that it is easier said than done because these scams know just how to present themselves as legitimate and professional companies. You can check out this CRPmarkets review to see how it happens.
A look at a broker’s website is not enough for you to make a decision. You only get to see their side of the story, which means you cannot rely on it alone. Creating a website and adding content to it has become incredibly easy these days, due to which scam websites have multiplied so quickly. You should check out their claims to ensure they are what they have portrayed themselves as. This is when most scams fall apart because obviously, they can only talk big and cannot really deliver. You will find this to be true in the case of CRPmarkets as well and this can come as a shock for many.
After all, their website is done very nicely and they seem to tick all the right boxes. Thus, when you discover that it is nothing but a sham, it can be difficult to accept. The key is to find out whether any red flags exist or not because this can help keep your investment safe. According to CRPmarkets, it is a UK-based brokerage that is offering forex, ETF and CFD trading services to its clients. Overall, the website seems to be decent enough, but when you take a closer look, it becomes apparent that it is like the hundreds of other scam websites. Why? This is because it lacks a lot of important information and has various red flags. Take a look at them:
Anonymous and unregulated
When you decide to open an account with a broker, you first need to know who you are dealing with. This means looking into their corporate background, checking their licenses and most importantly, their regulatory status. This way, you can determine whether you will be able to get any protections and the quality of services you can expect. Regulated and licensed brokerages have to comply with numerous policies and standards and offer fair and transparent services. Where does CRPmarkets fall?
A look at the CRPmarkets website shows that the brokerage claims to be based in London and has also listed a UK phone number. However, this information is not enough because they have not provided a physical address. This means there is no way for them to prove that they are actually based in the UK. Furthermore, you can scour the entire website, but not find any information about the company that owns and operates the platform. Essentially, this means that you don’t know who you are dealing with.
Handing over your hard-earned money to an anonymous platform and sharing your personal data with them is leaving yourself vulnerable and exposed. The anonymity is a big red flag because authentic companies will always be transparent about their corporate background. As for the claims of CRPmarkets of being based in London, all you have to do is check the online register of the Financial Conduct Authority (FCA).
This is the regulatory authority in the UK that issues licenses to brokerages, so CRPmarkets should be in their register to be able to operate in London. Unfortunately, you will not find the broker listed and this means it is not based in London, or if it is, then is operating illegally. Either way, the broker cannot be trusted.
Blacklisted by the FSMA
You have already concluded that CRPmarkets is an unregulated and unlicensed broker and even though they don’t make claims of being so, the lack a proper license is a big red flag. The problem is that this is not the only issue you will find with the broker. What can be worse than not being regulated? It is being blacklisted by a regulator and this is exactly what has happened.
The Financial Services and Markets Authority (FSMA) in Belgium has blacklisted CRPmarkets, as it appears to be providing fraudulent services in the Belgian market. This is enough to tell you that the brokerage is not a reliable one and should be avoided at all costs.
Malicious bonus terms
Another red flag that you will discover about CRPmarkets is the fact that they offer you trading bonuses. Shouldn’t that be an incentive? The first thing you should know is that trading bonuses have been banned across most regulated jurisdictions because they tend to be exploitative, as they have strings attached. This also applies in the United Kingdom, where CRPmarkets claims to be based.
This is further proof that CRPmarkets is not operating from London because it wouldn’t be able to offer trading bonuses then. Moreover, when you check out their bonus policy, you will find out that it is quite malicious. They have set a minimum trading volume that has to be achieved before withdrawals can be made. It is a common practice of scam brokers for restricting client withdrawals.
Offer of unrealistic profits
As mentioned earlier, ETF trading is also supported on the CRPmarkets platform and this is where you will find another red flag. The brokerage is making unrealistic profits in ETF trading and this is a telltale scam indicator because even the most professional and expert traders in the world cannot guarantee you any kind of profits. Anyone who does make this kind of promise is just scamming you and this is exactly what CRPmarkets appears to be doing. Their 300% returns are nothing but a way to attract more victims and you need to resist the temptation of signing up.
With so many red flags in their offerings, you can see that CRPmarkets is a broker that should be avoided at all costs.