Beware! IQCryptos 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.
IQCryptos is a Forex broker like no other! We’ve never seen so much lies and pieces of conflicting information gathered in one place. They list UK contact number, an address in Germany, and a Bulgarian company that supposedly run this broker, but under the laws of Montenegro. They also claim to offer Metatrader, but actually cannot provide the clients with any platform to trade on. On top of that most of the links are not working well and upon click, you’ll get sent to the page top. There are even more red flags and warning signs, which you can find in the full IQCryptos review.
IQCryptos REGULATION AND SAFETY OF FUNDS
As already pointed out, IQCryptos purports to be a Forex broker owned by a Bulgarian company with German address and UK contact number that’s governed by the laws of Montenegro. We don’t need to explain any further- it’s a fishy business that’s rare to find. We did thorough research in the registers of the financial regulators of all the countries mentioned but could find IQCryptos in none of them.
Your funds are in danger if you deposit with IQCryptos because it’s an unlicensed, unauthorised and unregulated illegal Forex broker that fail to give any adequate products or services to the traders, but asks for a deposit.
Do not ever trust anonymous and offshore Forex brokers, but stay safe by choosing legit and regulated entities, such as the European ones. EU and UK are acclaimed for the strictest rules imposed and the security of their financial sectors. Many customer protection measures were agreed and implemented in Europe. These include a minimum capital requirement of 730 000 EUR; segregation of the clients’ funds; negative balance protection of the accounts; predefined stop-out levels and other that we’ll mention later in the review. But most importantly, money protection schemes were put in place to further contribute to the health of the system.
ICF under CySEC in Cyprus and FSCS under FCA in the UK is the most famous schemes inaugurated in Europe. In Cyprus, you can make a claim of up to 20 000 EUR per client and in the UK of even up to 85 000 GBP per client, in case a Forex broker faces difficulties to meet its financial obligations. If it were an offshore entity, however, it would simply disappear, and you would lose all of your investments, instead of making profits elsewhere!
IQCryptos TRADING SOFTWARE
IQCryptos claims to offer MetaTrader4, but that’s a big whopper! MetaTrader5 is not available for trading. They speculate with the name of Metatrader because it’s the most powerful and at the same time the most popular Forex trading platform in the world. IQCryptos is merely trying to take advantage of its popularity; it’s as simple as that. Metatrader is highly renowned for its stability, reliability and ease of use. It also comes with such sophisticated trading tools as Expert Advisors, Automated Trading, Complex Indicators, Strategy Tester and even its own marketplace. Bet on brokers that provide with Metatrader because it’s the best choice for the traders, but regulated ones!
Warning! IQCryptos comes with a malfunctioning platform, and it’s a red flag, notwithstanding that it might have been some temporary problem.
There is no information about the real spreads and leverage. On their website, though, IQCryptos claims to offer spreads as low as 0.0 pips and leverage as high as 1:1000. Still, on different places throughout the website, we see that the maximum leverage possible is 1:30 and 1:100, respectively, which is an information discrepancy that instantly raises a red flag!
The spread and leverage are the two most critical features for the traders. The spread is the difference between Buy and Sell and it forms part or all of the trading costs. A lower spread means a lower price to execute a trade, which further means that the profit potential increases.
The leverage on the other side is a powerful financial tool that opens the markets for traders that do not intend to invest a fortune in Forex trading. It allows them to increase the size of their positions, but the risks escalate and above certain levels, the danger becomes overwhelming. If misused, the leverage might cause losses that are really difficult to repair. That reason alone made the financial regulators around the world to force a leverage cap- 1:30 in EU, UK and Australia (coming in effect from the spring of 2021) and 1:50 in the USA. We recommend that you should stop looking for brokers offering increased leverage levels such as 1:500 because you might quickly end up being scammed. Not to mention that the increased leverage levels went to become one of the favourite marketing tools among the scammers!
IQCryptos DEPOSIT/WITHDRAW METHODS AND FEES
Warning! The minimum initial deposit required is said to be $50 for Credit/Debit cards, Skrill, Neteller, FasaPay and Vload, but $250 for Wire Transfers. As a matter of fact, you can make a deposit only by Credit/Debit card, which comes to prove once again that nothing IQCryptos claim does correspond to what’s in reality!
No minimum withdrawal amount requirements specified with no withdrawal fees to apply. That’s in line with the legit retail FX industry as most of the brokers will allow the traders to pull out as much money as they want. The withdrawal request is said to be processed within 2-5 days.
The dormant account policy is truly unfair! An account becomes dormant after 3 months of inactivity and will be subject to a deduction of 10% each month. It’s a scam clause whatsoever! In comparison, the legit brokers are going to charge you with no more than 5 to 10 bucks per month at most!
IQCryptos offers two types of bonuses- a 100% deposit bonus and some 15% recovery bonus. Both of the offers actually block the account of the traders and make it impossible to withdraw, because of the conditions that apply. A minimum trading volume of 30 times the bonus plus the deposit should be executed by the trader to become eligible for withdrawal. It’s yet another scam clause! You should know that the bonuses are not free money but a leverage tool that further increases the risks for the traders. In this case, the trader faces unbearable volume requirements to trade and that creates stress which might cause overtrading which in turn might lead to poor trades. Most of the brokers are market makers, which pocket the money that traders lose on the market. It’s pretty obvious that IQCryptos wish that the traders are losing money and make whatever it takes to facilitate that process!
That reason alone made the EU and UK ban the trading incentives as customer protection measure!
Warning! IQCryptos allows indebted account, but doesn’t specify how the Non-deposited funds assigned are being handled thereafter!
HOW DOES THE SCAM WORK
The Forex scam is a financial crime and involves the illegal sale of financial products and services without proper authorisation. Being involved in a scam and consequently getting ripped off might be a life-changing event with intense, long-lasting effects. Learn how to recognise the warning signals; the knowledge will hopefully help you remain safe. Have a look at five of the common scam signs:
- Scammers are usually anonymous and offshore.
- Scammers promise investment opportunities that sound too good to be true.
- Scammers offer risk-free trading, reassuring that there is no danger for your funds, unlike the true Forex brokers which will always warn you about the loss potential in the FX trading.
- Scammers present pieces of conflicting information. For example, on their website they claim to provide with leverage of 1:100, while in reality, upon registration you might find out that the possible ratio is up to 1:500.
- Scammers might accept only Cryptos or use some fishy payment systems, generally unknown to the broad public.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. 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. Seek help actively!
It’s very important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!
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