GrowDeposits – Are They a Scam?

Website URL: https://growdeposits.com

Founded: 2022

Regulations: Not Regulated

Languages: English

Deposit Methods: Bitcoin, Tether

Minimum Deposit: $1

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Forex Pairs, Commodities, Precious Metals, Stocks, ETFs, Indices, Cryptocurrencies

Trading Accounts and Conditions

There is little information provided by GrowDeposits with regard to the types of trading accounts they offer as well as the trading conditions they have.

We found out that you may open an account with as little as $1 as your deposit. The broker also advertises that their spreads start at 0.1 pips. We are not sure about the exact leverage because of contradictory information: the broker first states that the leverage is maxed at 1:20 for forex pairs, which is reasonable. However, in two other sections of their website, GrowDeposits states that their maximum leverage is 1:100 and 1:500.

There is also no mention of what the commissions and other trading conditions are.

GrowDeposits – Advantages

There are no advantages to trading with GrowDeposits.

GrowDeposits – Disadvantages

Here is the list of issues we have found that tell us clearly that we are dealing with a scammer here:

• Unregulated Broker

GrowDeposits states on their website that they are based in Cyprus in Nicosia. This broker claims that they are regulated by multiple regulators from different parts of the world. According to their website, GrowDeposits is regulated by the following authorities: the Financial Conduct Authority (FCA) of UK, the International Financial Services Commission (IFSC) of Belize, the Financial Services Commission (FSC) of Mauritius, the Financial Services Commission (FSC) of Vanuatu, the Australia Securities and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC).

All of these claims are just lies, of course. It is a simple matter to check a broker’s licensing status; all you need to do is check the online register of the authority that the broker claims they are licensed by. If they are actually authorized by that regulator, then their details will be listed on that database.

So, we checked the databases of the regulators that this broker had listed on their website. We found out that this broker has lied about being regulated. There is not one single regulator that GrowDeposits is registered with.

Even the address that this broker has provided is fake. There is no brokerage by this name at the address GrowDeposits has provided.

Thus, we are dealing with an unregulated broker that is operating anonymously – a scammer.

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• Blacklisted by FCA

While researching on GrowDeposits’ claims of being regulated by so many authorities, we found out that this broker has actually been blacklisted by one of these authorities – the FCA.

The UK’s regulator, one of the top financial authorities in the world, has issued a warning against this broker, stating that GrowDeposits is not authorized to operate in the UK and that the broker is targeting traders in their country illegally. The regulator also states that if you do business with this broker, then you will not be afforded the protection traders get when they deal with regulated brokers. So, if you get scammed, the authorities will be unable to help you.

There couldn’t be a clearer indication that GrowDeposits is another shabby scam that needs to be avoided at all costs.

• Issues with Trading Software

GrowDeposits is one of the scammers that actually has a trading software in place. Having said that, the software that this broker offers their clients does not even come close to what regulated brokers offer their clients.

Since the trading platform is a broker’s main product offering, legitimate brokers go all in in providing their customers with the best possible trading platform – one that will have a wide range of features and functionalities, is easy to use and has access to other tools, marketplaces and so on. Two of the best platforms are the MetaTrader 4 and MetaTrader 5 software, and these two are used by the majority of brokers across the world.

With GrowDeposits, you are offered a simple web-based platform, one that has some features and functions – enough to work on beginners, but not enough for advanced traders.

• Issues with Trading Conditions

As we mentioned earlier, GrowDeposits has not been transparent about they trading accounts or trading conditions. We do not know what the minimum deposit is; we did find out that you can deposit as little as $1 to start an account with this broker. But they themselves have not specified what their minimum deposit requirement is.

The spreads are suspiciously low at 0.1 pips. When a broker offers such a low spread, they usually compensate by adding on commissions. With GrowDeposits, they have not bothered to mention what the added fees and commissions are, so we do not know what the actual cost of trade is.

As for the leverage ratios, there is conflicting information on their website. At one point it seems it is 1:20, but the broker also claims to offer leverages as high as 1:500. While the first one is within legal limited for most of the jurisdictions that they target, the second one is dangerously high and illegal to boot.

• Issues with Funding Methods

We also have concerns with the funding methods offered by GrowDeposits. The only two ways via which you may fund your account is by Bitcoin or by Tether – both are cryptocurrencies. This raises a huge red flag for us.

Cryptocurrency payments are permanent and anonymous, which means that you won’t know where your money has gone and neither will you ever be able to recover it.

This is the reason why scammers prefer to offer only this single payment option. Once they have your money, you will never get it back. 

Conclusion

GrowDeposits is a scam operation – one that has been flagged off by the FCA. Do not do business with them.

GrowDeposits

2.5

User Experience

2.5/10

Payment Options

2.5/10

Security

2.8/10

Support

2.3/10

Reputation

2.6/10

Pros

• None

Cons

• Unregulated Broker
• Blacklisted By FCA
• Issues with Trading Software
• Issues with Trading Conditions
• Issues with Funding Methods