Are you thinking about trading in the financial markets? Whether it is forex, stock or any other market, you will require the services of an online broker to begin. It doesn’t feel like that big of a challenge because a quick search on Google will tell you that there are hundreds of brokers operating in the market, so you actually have plenty of options at your disposal. On the one hand, this is appealing because it gives you access to variety, but it can also be stressful because going through so many options is not that simple.
Plus, you also have to consider the fact that not all companies in the market are legitimate. There are lots of stories to be found about scam brokers. You definitely want to avoid any such fraudulent platform. This is quite reasonable, but not that easy to do. Why? This is because these scam brokers don’t go around advertising themselves as fake. They deliberately add such offerings that can lead to confusion and draw the attention of traders. In your eagerness to take advantage of their offerings, you may end up signing up with a fraudulent platform altogether.
This has happened to people and can happen to you as well. An excellent example of such a broker is Cryptansa. It is advertised as a leader in online trading that was established in 2012 and has a great reputation. However, you will soon realize that this couldn’t be far from the truth. Why? When you go through this Cryptansa review, you will discover that it is an unregulated offshore broker that is just like hundreds of other fraudulent online trading websites. How does it draw people in? Let’s take a look:
The leverage made available at Cryptansa is between 1:200 and 1:400, which is undoubtedly on the high side. The possibility of being able to use such high leverage often tempts traders because a number of brokers offer only limited leverage. But, you should be aware that the reason some brokers don’t offer high leverage is because most financial regulators have imposed restrictions on the amount of leverage that can be offered. Therefore, limited leverage is offered by most legitimate companies.
Another tactic that has been used to attract clients to the Cryptansa platform is the minimum deposit requirement of just $250. This is industry standard and not on the high side, as one may expect from scam brokers. This can lull people into a false sense of security and they end up signing up with the brokerage because it seems like such a small amount and doesn’t send up any red flags.
Nevertheless, it will not take you long to realize that Cryptansa doesn’t even come close to an authentic broker. There are some warning signs that you need to be aware of and these include:
The first characteristic of any brokerage that indicates whether it can be trusted or not is their regulatory status. Only a legitimate platform will bother with getting itself regulated and no scammer will go through the process. If you dig into the background of Cryptansa, you will come to know that it is owned and operated by a company named High Net Group Ltd. Where is this based? They are located in the Marshall Islands, a country that has a reputation of being the home of many forex scammers. Setting up a company there is as easy as you having $5,000 in your hand.
As a matter of fact, anyone can register a company in the Marshall Islands, without ever having to set a foot there. You can do it all online, which means the registration of a company there has absolutely no value. If you decide to use the Cryptansa platform, you will have no guarantee about security of funds, or any other security that you get with a regular broker.
If you have done your research into trading, you are aware that you need a trading platform to execute trades in the market and it is the job of a broker to provide you one. It is not difficult to find out that the best trading platform in the market is the MetaTrader range of platforms, including the MT4 and the MT5. Any good broker that wishes to succeed in the long-term offers their client this trading solution. You would expect the same of Cryptansa, as it claims to be a reputable brokerage, but you should be prepared for disappointment.
A look at their trading platform shows that they have added a browser-based platform, which is probably vulnerable to manipulation. If you take a close look at the Cryptansa trading platform, you will notice that it does not have the same indicators at the MetaTrader and any of the sophisticated features that you can find in the latter are not present altogether. However, the most prominent aspect of the trading platform that you will notice is the spreads. These are significantly higher than the industry average of spreads of 1 to 1.5 pips for the EUR/USD pair.
Why would anyone want to settle for a shoddy trading platform and such trading conditions that can result in lower profits?
No detail about payment methods
When you look into the payment methods offered to you at Cryptansa, you will not find any information available and this is quite surprising. Most authentic brokerages are very open about their offerings, but you don’t find the same here. Of course, a quick look at the legal documents does tell you that they accept debit and credit cards as well as wire transfers. There are no other details that can be found, whatsoever.
After a careful evaluation of the perks Cryptansa is offering and the downsides of opting for this brokerage, it is quite apparent that this broker cannot be trusted. Rather than risking your money and data, it is better to opt for a platform that can help you maximize your trading efforts.