Are you interested in become a trader? There is no doubt that this market has a lot to offer to people, no matter what their background. You could be a doctor, teacher, lawyer or even a student and still enter this market because there are no barriers to entry. The only things you need are money for investment and a brokerage to help you get started. But, this is where people have the most issues. Finding a broker to start your journey seems simple enough, but it is not as easy as it seems. Yes, you can find a number of brokers who are offering their services to traders, but not all of them can be trusted with your money.
If you do some research, you will come across many stories of scam brokers and that tells you to exercise caution. However, some brokers have such impressive numbers and features that resisting them can be difficult. CcMart is one such broker, which claims to be one of the leading brokers in the United States. This broker is offering binary options on cryptocurrencies, which makes it a very specific type of broker. The broker claims to have won a number of prestigious awards and declares its trading platform to be the best in the market.
Likewise, depending on the investment plan you select, the broker is offering very high weekly returns that fall between 200% and 400%. Other than that, CcMart claims to regulated by the U.S. Commodity Futures Trading Commission (CFTC), the Cyprus Securities and Exchange Commission (CySEC) and the International Financial Services Commission (IFSC) in Belize. All of this does sound reassuring, but the problem is that the broker is mostly anonymous. This means that there is no information about the company that owns and operates the broker. In addition, there are no major benefits that CcMart has to offer other than its tall claims, which are also proven as false later on.
Some of the problems that indicate the broker cannot be trusted are:
- Anonymous website and false claims
As mentioned above, CcMart claims to be regulated in a number of jurisdictions, which include Belize, Cyprus and the United States. It should be noted that obtaining a trading license in the US is a very tricky business. First and foremost, the broker has to be registered as a retain foreign exchange dealer (RFED) and a futures commission merchants (FCM) at the Commodity Futures Trading Commission and for becoming a member of the National Futures Association (NFA).
Furthermore, this membership has strings attached with it like having a minimum operational capital of at least 20,000,000 US. This is essentially the same amount that’s required by Switzerland’s regulatory authorities for the Swiss banks. These difficult requirements are the primary reason why only a limited number of brokers have the authority of offering their services in the US market. Therefore, it doesn’t come as a surprise to see that you cannot find CcMart’s name in any of the NFA registers. The truth is that there are only two licensed binary options brokers that are operating in the US market, Nadex, which is connected to Cantor and IG.
Similarly, you can also check the registers of the Cyprus Securities and Exchange Commission and that of the International Financial Services Commission in Belize and you will not find CcMart listed there either. Furthermore, since July 2018, a ban has been imposed on the sale of binary options in the market in Europe. So, what are you left with? CcMart is an anonymous website that makes false claims about regulation for scamming investors.
- Offering unrealistic returns to investors
Every investor needs to be extra cautious when any broker is promising them guaranteed returns. This is exactly what CcMart is doing, which should be deemed as a red flag. They have promised returns between 200% and 400%, depending on what investment plan you select. Legally, the brokers are required to publish the stats pertaining to traders who lose money, which is about 70% to 80% as a whole.
- There is no client agreement
One of the most important legal documents that a legitimate broker needs to have is the Terms and Conditions. It is sometimes also referred to as Client Agreement and is designed to establish contractual relations between the broker and the trader. When you visit CcMart’s website, you will notice that they don’t have any such document in place and if you decide to open an account with them, you will be in automatic agreement with their terms, even though you haven’t read any of them.
- The broker doesn’t have a real trading platform
It will soon become apparent that a real trading platform is not offered by CcMart. When you compelte your registration with the broker, you will find a dashboard boasting a chart that’s directly taken from TradingView. This is a third party social network for investors and traders and has nothing to do with CcMart. Hence, the broker doesn’t really have a reliable trading platform to offer to you, like the MetaTrader4, which is the most popular option in the market right now.
- The payment methods are not good enough
It turns out that CcMart only accepts payments with Western Union, PayPal, MoneyGram and bitcoins. They don’t accept major debit and credit cards, such as Visa and MasterCard. Similarly, they don’t have any e-wallets included, which includes Skrill. This is worth mentioning because Skrill recently introduced an anti-scam policy, which means that it only offers support for regulated brokers. Moreover, the absence of Visa and MasterCard is also intriguing because if you use them to make a payment and get scammed, you can actually file a chargeback, but CcMart has eliminated this option as well.
All of these indicators point to one thing; CcMart is a scam and their website has been designed to mislead potential customers because it is completely anonymous. From the signs, it is highly doubtful that the broker is a real and legitimate one.