Cryptec – Is It Safe to Trade?

Website URL:  https://cryptec.io/

Founded: 2020

Regulations: Unregulated

Languages: English

Deposit Methods: Debit Card, Credit Card, Bank Wire

Minimum Deposit: $250

Free Demo Account: No

Number of Assets: 120

Types of Assets: Cryptocurrency Pairs

Trading Accounts and Conditions

Cryptec offers its customers 5 different account types with which to trade:

• Basic Account: You are required to make a minimum deposit of $250 to start trading on this account. The leverage ratio for this account is 1:10.
• Silver Account: For trading on a Silver Account, you first need to make a minimum deposit of $10,000. The leverage offered for this account is 1:20.
• Gold Account: To trade on a Gold Account, you need to first make a deposit of $25,000, and you get a leverage of 1:30.
• VIP Account: For the VIP account, you need to make a minimum deposit of $50,000, and the leverage offered to you is 1:40.
• Black Diamond Account: To start trading on this account, you need to first make a deposit of $500,000. You are given a leverage of 1:40.

There is no mention of what the spreads offered by this broker are.

Cryptec – Advantages

Here are the advantages of trading with Cryptec:

• Wide Range of Cryptocurrencies

Cryptec, as a crypto-trading broker offers its customers a wide range of cryptocurrencies. The broker has 120 different crypto-pairs, which is quite a large range by any standard.

• No Registration Required to Access Trading Software

Cryptec offers its customers a web-based trading software. What is interesting is that you do not need to register an account to access the software. While the trading software isn’t as good as the world’s most popular interface, the MT4 platform, this broker’s software does offer a decent platform with which to make trades.

Cryptec – Disadvantages

Here are the disadvantages of trading with Cryptec:

• Offshore Broker with No License

Cryptec claims to be owned by a company called Point Place Ltd. This company is based out of the Commonwealth of Dominica, which makes it an offshore company.

However, the broker also claims that all payments transactions are handled by a company called Meantech OU, which is based in Estonia in the European Union.

First, the Commonwealth of Dominica is known to offer regulatory oversight for the banking sector as well as a few non-banking entities. However, it does not offer regulatory oversight for Forex and CFD brokerages. Thus, if Cryptec is based in this jurisdiction, it is not properly regulated and cannot offer legally authorized crypto-trading services.

Second, Estonia is a part of the EU, which means it is governed by all the regulatory laws that apply in that jurisdiction. So, if a company is operating out of that country, it needs to be either regulated by the Estonian financial watchdog, the Finantsinspektsioon (FSA) or any other regulatory body in the EU.

When we checked online for Cryptec’s regulatory status in the EU, we found that this broker is not regulated at all. This, in effect, means that this broker is offering its crypto trading services illegally.

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• Unusual Fees

According to the Terms and Conditions section of Cryptec’s website, if your account is inactive for 60 days or more, then you will be charged 10% of your account balance, or $100 – whichever is greater – as a penalty. This fee is being called an inactivity fee.

This is a ridiculous condition since no legitimate broker would charge its customers such high fees for inactivity.

In the first place, a licensed broker will wait at least 12 months before deeming your account dormant or inactive. And then, you will only be charged a minimal fee for dormancy.

The broker also states that it reserves the right to change its fees structure at any time without notice to its clients. And that it is your responsibility to stay updated on all changes that take place.

The only way you can make withdrawals from Cryptec is via credit card.

These conditions are not just unusual, but also unfair to the trader. This is a huge red flag and we would recommend that you not trade with this broker at all with such unfair conditions.

• Offering Trading Bonuses

Besides being unregulated and having unfair fees and conditions, Cryptec also offers its customers trading bonuses.

Trading bonuses are hugely controversial promotions that are designed to take your money, and give you nothing in return. Scammers use this tactic to pull in customers and trick them into giving up their money.

When you avail of a trading bonus, you are seldom told of the conditions attached. You will need to be an unachievable trading volume target before you will be allowed to withdraw your funds. If you don’t meet that target, you are penalized.

This is why most regulated markets have now banned the use of trading bonuses to attract customers.

• No MT4 Trading Platform

As we said before, while the platform offered by Cryptec is okay, it is nothing compared to the world’s most popular trading interface – the MT4 trading platform.

This software is easy to use, and offers traders interactive charting options, customizable market indicators and automatic trading bots.

• Long Withdrawal Processing Time

Cryptec’s Terms state that it will take them at least 10 working days to process withdrawal requests. This is highly unusual, since in this day and age, it takes most brokers about 24 hours to process such requests.

Conclusion 

While Cryptec has a wide range of cryptocurrencies on offer, and it doesn’t require you to register an account to check out their trading platform, the broker is unlicensed and has some very unfair Terms and Conditions.

We would say that this broker is not one that is safe to trade with, so it would be in your best interests to avoid Cryptec and find a more reliable crypto-trading broker.

Cryptec

2.6

User Experience

3.7/10

Payment Options

2.3/10

Security

2.4/10

Support

2.1/10

Reputation

2.4/10

Pros

• Wide Range of Cryptocurrencies
• No Registration Required to Access Trading Software

Cons

• Offshore Broker with No License
• Unusual Fees
• Offering Trading Bonuses
• No MT4 Trading Platform
• Long Withdrawal Processing Time