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CryptoEU Review - is it scam or safe?

CryptoEU review - Is cryptoeu.com scam or good forex broker?

RATING: 1 / 1 REVIEWS CryptoEU
CryptoEU is an offshore broker. Your money is not safe.

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CryptoEU is a CFD broker, focused on the crypto currency market, which might be confused for a cryptop exchange.

 

 

Account type Min. deposit Max. leverage Spreads
Bronze Account $250 n/a n/a
Silver Account $10 000 n/a n/a
Gold Account $25 000 n/a n/a

 

We should note that there is a fundamental difference between buying an asset like a crypto coin – you can do that on a cryptop exchange - and making a bet with a Contract for Difference - the kind of trade CryptoEU is offering. For more information on the subject you may check our article:

 

CryptoEU Advantages:

 

CFDs on 56 crypto coins

 

Form the presentation on their web page we learn that CryptoEU is offering trade with some 56 crypto coins, which is impressive, as few real crypto exchanges offer such diversity. However, as we have already pointed out CryptoEU is a CFD broker, where you can not but real assets, but only bet on price moves. Here is the list of the coins they are offering: Bitcoin, Ethereum, Dash, QTUM, WAVES, Steem, OmiseGO, Lisk, Gnosis, Golem, Augur, Status, MaidSasfecoin, GameCredits, DigixDao, Basic Attention Token, Metal, FirstBlood, Aragon, Civic, FunFair, Edgeless, Numeraire, Wings, Storj,  Xaurum, Melon, Hamaniq, Synereo, Mysterium, QRL, adToken, Nexium, Chronobank Labor-Hour Tokens, Patientory, Guppy token, Swarm City Token, Lunyr, AdEx, Creditbit, Legends Room, Hacker Gold, Bitcoin Cash, Ripple, NEO, IOTA, Monero, Zcash, Tether, NEM, Ethereum Classic, PIVX, EOS, Bytecoin, Stellar and Litecoin. Still you may also want to check our list of brokers, also offering Bitcoin CFDs:

 

>>Bitcoin Forex Brokers<<

 

Bitcoin accepted as payment

 

With CryptoEU you can fund your account using Bitcoins as well as fiat currencies. Payment methods include  major credit cards like VISA, MasterCard and American Express, wire transfer and e-wallets such as WorldClearing, PostePay EntroPay, EasyEFT and MegaTRansfer. Still we miss popular e-wallets like Skrill, Neteller and PayPal so here you may check our list of brokers, where you can pay with Skrill:

 

>>Skrill Forex brokers<<

 

CryptoEU Disadvantages:

 

Lack of regulation

 

CryptoEU is owned and operated by Columbia Capital Group LTD, a company registered on the Marshall Islands at Trust company complex, Ajeltake road, Ajeltake Islands, Majuro, MH96960 -  a well known to us address, where a number of other unregulated, offshore brokers, including Novatrades, iForex24, Tradex1, IntelligentCapital,  AvaInvestments and Cryptopremier are also based.

 

However, the broker says its operations are run from Bulgaria by another company -  O.A Media Solutions LTD – and this is another interesting detail, because under the Bulgarian Law all forex and CFD brokers should be licensed by the Bulgarian Financial Supervision Commission (FSC) or a similar financial agency in another EU country. 

 

So we have checked the FSC registers and neither O.A Media Solutions LTD nor Columbia Capital Group LTD were listed there. As far as the Marshall Islands are concerned there is no official financial regulator in the country, although it has become a favorite location for registering offshore businesses, as the process is rather simplified and can be done online. 

 

All that said we should conclude CryptoEU is an unregulated, offshore broker, which is unfortunate, as most often than not unregulated brokers are involved in scam. 

 

Investing with unregulated brokers involves an implicit risk of loosing your money to scammers, so our best advise is to invest with properly licensed brokers only. 

 

Well established financial institutions such as the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC) and even the Bulgarian FSC require all licensed brokers to maintain certain level of operational capital, as well as to keep all clients funds in a segregated, protected form creditors account.  In some cases brokers are even obliged to insure traders money.

 

FCA and CySEC brokers for example have to participate in client compensation schemes. Under the FCA backed Financial Services Compensation Scheme traders can receive back up to 50 000 GBP of their capital in case their broker goes insolvent, while under a similar insurance mechanism, traders with CySEC brokers can receive back up to 20 000 EUR. Here you can check our list of brokers licensed by the FCA:

 

>>FCA Regulated Forex Brokers<<

 

CryptoEU poses as a crypto exchange

 

Since the crypto boom of the late 2017, posing as a crypto exchange is a growing trend. Such brokers usually offer no forex pairs or other CFDs, but crypto CFDs only. No where on their web page CryptoEU mentions anything about Contracts for Difference, but this is exactly what they are offering. 

 

Managed accounts offered

 

From the terms and condition section of CryptoEU website we learn the broker is offering managed accounts, but as most probably CryptoEU is a Market Maker,  this by definition implies a conflict of interest.

 

With Market Makers, when traders loose money the broker wins, while if traders score a profit, the broker pays for it. In other words if you trust your money in a managed account with a Market Maker, you can be sure the account will be managed in such a way that you will loose.

 

Certainly, there are social trading schemes like Zulu trade, where you follow the trades of professional traders. However, that is not the case here.

 

Unusual withdrawal conditions

 

In the Terms and Conditions section on the CryptoEUr website we read that clients with “PAMM Account Trading Program are obliged to no withdrawals for up to 12 months”, while those with HF SemiAutoTrade Program “are obliged to no withdrawals for up to 3 months starting from the last deposit.” This is highly unusual, take a look for your self:

 

 

Unreasonably high commissions 

 

CryptoEU says it takes between 4% and 6% trading commission depending on the account type, which is excessive. Taking a 6% trade commission on the BTC/USDT pair will adд about 360 USD to the spread, assuming one Bitcoin buys 6000 USD. Have in mind that the usual  BTC/USDT is between 30 USD and 50 USD. Here you may check our list of brokers, offering tighter spreads:

 

>> Lowest spread forex brokers<<

 

Excessive minimum deposit requirements

 

The minimum deposit requirement to start trading with CryptoEU is 250 USD and this, in our view, is excessive as with most brokers you can open a trading account with a hundred dollars or so, while with some well established players like XMFXTM and IG you can open a trading account with just 5 USD. Otherwise, for its two premium accounts  CryptoEU wants you to invest 10000 EUR or 25 000 EUR respectively.

 

Conclusion:

 

CryptoEU is an unregulated, offshore CFD broker, which tries to attract customers posing  as a crypto exchange. However, as we have already discussed, investing with unregulated companies comes with implied risk of loosing your funds to scammers.

Latest news about CryptoEU
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Traders` reviews for CryptoEU

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будьте осторожны от CryptoEU

Здравствуйте.Я пополнил баланс на CryptoEU 331 $.И поднял до 42000 $ но они сказали что у нас меняется система и перешли на другую систему и я зашел на новую систему а там только 331 долл.чего странного у них служба поддержки или онлайн чат абсолютно не реагируют сколько писал, без результата.Связался с аналитиком но он тоже уже разговаривать не хочет.сейчас поставил на вывод 331 долл. теперь будем ждать,сколько ждать не знаю.

Translated by Google:

Hello. I deposited 331 $ with CryptoEU . And raised to 42000 $, but they said that we have a system changing and switched to another system and I went to a new system and there are only 331 dollars. What is strange about their support service or online chat absolutely do not react how much they wrote, without the result. I contacted the analyst, but he did not want to talk either. I have now put $ 331 on the conclusion, now we will wait how long I do not know.

Абдыкадыров Улукбек 09/21/2018
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