Like every other broker, CryptosWorld claims to be one of the world’s leading trading platforms that deal in cryptocurrency and forex. The company asks for a minimum initial deposit of $60 along with offering high returns. CryptosWorld offers to trade in 600+ trading instruments. Why is CryptosWorld called a scam? In this article, we will be showing all the red flags that make CryptosWorld a scam.
CryptosWorld Scam and the red flags:
Although the company claims to be a leading broker, CryptosWorld lacks a valid license number. A license from the regulatory authorities not only ensures the safety of the citizens’ money but also helps us in knowing that the company is legitimate. Under the address section of their website, CryptosWorld states that it is based in London, United Kingdom. The company, in their website, states that the company has a license from The Cyprus Securities and Exchange Commission or CySEC under the name of MAXIFLEX LTD. However, this is a completely false claim as the Financial Conduct Authority or FCA of UK has issued a warning against this company and also states that CryptosWorld is a clone firm. This is the first red flag that indicates a CryptosWorld scam. One must never trade or invest with a company that doesn’t have a license or has a warning issued by any of the regulatory authorities.
Also, the phone number shown is +44 203 807 1837.
Even though CryptosWorld claims to have the best trading software, the company has a Victorian-era website. This is a contradictory move and leads us to the fact that CryptosWorld is a scam. Cryptosworld offers Forex Trading in Forex market, Crypto trading, trading on Metals, Indices etc. Upon a little investigation on their website, we found out that the company does not offer a demo account. This is a red flag as the absence of a demo account restricts the new users and other traders from understanding trading strategies and the working of this company.
Another thing that baffles us is the leverage offered by this brokerage firm. CryptosWorld offers leverage of 1:2000 to their precious users. In general, the regulatory authorities around the world restrict the leverage that can be offered at 1:50. Higher leverage causes an increased risk of loss and therefore, one must avoid higher leverages. This plants yet another red flag for CryptosWorld as it is a common practice among scam brokers to offer huge leverage to make the trader deliberately lose the money. Furthermore, the minimum initial deposit is $50 and this is the only good sign about the country.
Is CryptosWorld a scam or legit?
The withdrawal option listed by the company is pretty unique as they only let you withdraw money through Bitcoin. Moreover, the company also charges 19.4% as the service charge every time you withdraw and amount. This is clearly a very high amount to be charged and thus raises yet another red flag against the company. In order to sum up all that has been said above, CryptosWorld is a complete scam. We warn our readers to invest or trade with this fraudulent company. If you are a victim of such scams, report a complaint with us right away!