Unless you were living under a rock for the last decade, you have probably heard about cryptocurrencies. Bitcoin is one of the most popular digital currencies nowadays and it has challenged the position of gold as a safe haven. Due to the extremely volatile nature of these virtual currencies, many people have managed to make massive fortunes within a short span of time. Therefore, it is not surprising that people want to trade cryptocurrencies in order to tap into their potential, which means demand for crypto brokers is an all-time high. This CryptoEpro review is an insight into one such broker.
There has been an influx of brokers catering to those who want to trade in the cryptocurrency market, but this doesn’t mean that all of them are authentic. Due to the unregulated nature of cryptocurrencies, this space has seen more than its fair share of scams. One of the common tactics used by these scammers is to masquerade as cryptocurrency brokers to lure people in and then scam them out of their money. This is exactly what CryptoEpro does, as it promises easy, flawless and safe investing in cryptocurrencies, but is nothing like that. What is it like? This review can give you some answers.
Regulation and Licensing
The easiest way for you to find out whether a broker is authentic or not is by taking a look at their regulatory and licensing status. Every legitimate company out there would be properly registered and regulated by a reputable authority, which is reassuring because you know they will not disappear overnight. Unfortunately, you cannot say the same about CryptoEpro because it is certainly not licensed or regulated anywhere.
The biggest problem with CryptoEpro is that when you check out its website, you will find that they have not offered any information about who is behind the website and the trading services it is allegedly offering. They have not provided any information about the company behind the broker and neither is there any contact information available. There is no name of the entity that runs the brand, or any specific information referring to its licensing. The only piece of information you will find is that the brokerage is based in New Zealand and that is it.
Since CryptoEpro is a CFD provider, it has to get licensing from the local Financial Markets Authority (FMA) and yet, they haven’t done so, which naturally raises a red flag. If it was truly legitimate, it would have made the effort of getting regulated and licensed.
It is understood that when you sign up with a broker, you will have to pay some fees for using their services. Obviously, they will not provide their services for free and you would expect the same with CryptoEpro. However, there is a big problem with this broker in regard to fees. Not only are they anonymous and unregulated, it appears that CryptoEpro charges excessive fees for draining their clients’ accounts. You need to take a look at their Terms & Conditions and under the section of withdrawal fees, you will find exactly what is wrong.
If you take a look at some other brokers, you will come to know that a number of them charge dormant account fees if you don’t use your trading account for some time. While CryptoEpro has done the same, the problem is that they have gone overboard with their policy. They are charging a substantial fee of 300 (USD, EUR, GBP; whichever currency you use) if your account remains dormant for just 30 days. Legitimate companies usually start charging their clients after they have been inactive for six months and the fees is considerably lower.
One of the most notable offering of any broker is their trading platform because this is the feature that connects you to the market and allows you to execute your trades. It also means that it plays a very important role in your trading experience, so it has to be up to the mark. Unfortunately, you will find that CryptoEpro has added a web-based interface, which is nowhere close to the leading trading platform in the market i.e. the MT4 or the MT5.
Most of the authentic brokers out there offer the MetaTrader platform to their clients because they aim to provide a powerful and smooth trading experience. But, this is not something you will find at CryptoEpro and this is not really surprising, considering that it is not really an authentic brokerage.
When you check out the CryptoEpro website, you will find that they are advertising a leverage of 1:100, which appears to be quite reasonable as cryptocurrencies are already very volatile and excessive leverage will only increase the risks. The problem is that they are misleading their clients about the availability of leverage because it is only available to VIP account holders who have to deposit a minimum of $50,000. For others, they offer the default ratio, which is 1:1 and this is regarded as significantly low, even when you are trading cryptocurrency CFDs.
Since you will have to make deposits and withdrawals for trading purposes, it is important to check the payment methods that are supported by the broker. Doing so for CryptoEpro reveals that they are offering Visa and MasterCard options and Bitcoin payments. The former is a suitable choice because it gives you the chance to file for a chargeback in case something goes wrong. However, crypto payments are not to be trusted because they are anonymous and there is no way to track them once you are done.
The fact that CryptoEpro has a minimum deposit of $250 might convince traders to try them out, but it is not a good idea to do so. As all the other aspects of the company clear indicate that it is not an authentic platform, it is better for you to look for a different crypto broker that can provide you with a secure trading environment to get started.