Beware! Elcomercio24 is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
We never had high hopes for Elcomercio24 to begin with. This broker, at first sight, seemed to us questionable, and the more time we spent with it the more we were convinced of this. Its interface, for one, is very common, and there are many elements on its website that remind us of previous brokers that we have reviewed, scammer ones. Read the review to find out what Elcomercio24 truly is about.
The account creation process, much like the website, was a painful reminder of hundreds of other unregulated brokers that we have reviewed. Even the leading HUB area, which was centered around a trading software, was familiar in a bad way. But at least we got a trading software.
We were just about to read a EUR/USD cost of trade when the broker kicked us out, without notice. We presume that we were not the definition of a paying user by Elcomercio24, and thus seeing that it would not profit from us it kicked us out.
This leaves us no choice but to take all the trading and payment information from the website, which seemed like a breeze at first, but later we found out that it wasn’t. The only solid thing we can say is that Elcomercio24 presents itself as a crypto broker, but judging by the glimpse we took of the web trader, Elcomercio24 offers other assets. There is no indication of a spread or a leverage.
The website is available exclusively in English.
ELCOMERCIO24 REGULATION AND SAFETY OF FUNDS
Most of the main sources for relevant regulatory information have one thing to say. 8 DOTS LTD, the parent firm of the broker, is registered in Saint Vincent and the Grenadines.
The Caribbean nation does have a financial regulator, yet it does not oversee the FX markets, neither locally nor globally. Thus all brokers in Saint Vincent and the Grenadines al technically unregulated. Over the year, the country has acquired thousands of illicit brokerages, all of them taking advantage of the local restrained laws. If Elcomercio24 really is in fact located in the country, then it is unregulated.
Further down the Terms and Conditions, we find out that all disputes will be handled by the English courts, conveying a tie to the UK. If it were true, then that would mean that Elcomercio24 is licensed by the FCA, which it totally is not!
In fact, Elcomercio24 is NOT REGULATED by anything. It is illegally operating, and is most probably a scam!
Losing money is the only certainty when it comes down to investing in unregulated brokers. The thing we advise users to do first is to check for a license, preferably from know regulators, such as the FCA or CySEC, or other European overseers. The big regulators all apply specific frameworks for brokers to abide by, and should they diverge from these rules, the brokerages will sooner or later be penalized for their actions! This is a stimulus for brokers to follow the rules, thus making them trustworthy FX trading sources. Moreover, the FCA and CySEC have financial compensation schemes for users. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
Please note, that users should not use the AnyDesk program, which allows a third party to take over your PC!
ELCOMERCIO24 TRADING SOFTWARE
The trading software is very familiar to us, as we have been presented to it on countless occasions by hundreds if not more, illicit brokers. However, we could not provide you with a snip of it because the broker was quick to shut down our account.
The software itself is not that bad, in the context of platforms used b illegitimate brokers. It has a decent amount of features, but it will get stale after a while.
ELCOMERCIO24 DEPOSIT/WITHDRAW METHODS AND FEES
The payment methods mentioned constantly throughout the legal documents are wire transfer, credit cards, and debit cards. However, we know for a fact that illicit brokers never say what their real payment methods are, not until one accesses the user area.
The minimum deposit according to the Account Types page is €500, while the Terms and Conditions claim the minimum to be €250. According to the T/Cs the minimum withdrawal through wire transfer is €500, and €100 for card payments. The broker will pay the user out in 10 days tops. There is a contradictory clause on fees. On the one hand, it says that there are no payment fees issued by the broker, but then we learn that there might be other fees…
None of the information above is verifiable, but readers should not worry about it, as we are completely against investing in Elcomercio24 in the first place.
How does the scam work?
The first step to being scammed is traced all the way back to online ads. We all have seen them. They offer luxurious lifestyles, beautiful women, sports cars, and shiny items. It’s all a part of the scheme. The first step is to tempt users to click on these ads.
The ads lead to either a scammer broker site or an intermediary source. On whichever one you fall you will be surely asked to provide a phone number and an email address. These are imperative to the scammers because they need a way to contact you.
The second step is to contact the user, and pushing him or her to invest for the first time. This is done by the first wave of scammers, whose job is to hook you to the scheme. The first investment is important because through it you build trust.
The initial deposit will ensue the second wave of scammers, which are the core and probably the creators of the fraud. The expert scammers sometimes called “account managers”, are responsible for keeping you invested in the shame. They might even pay you a hefty preliminary sum, just to add confidence to your investments. Their deposit requests will gradually become bigger, and in the perfect scenario, the user will deposit an additional 2-3 times, until she realizes she has been scammed.
At this point, your money will not be eligible for withdrawal, and neither will your profit. The broker can withhold requests, close down accounts, or even shut down entire websites! The final step is for the fraudsters to keep what they have stolen!
What to do if scammed?
Credit and debit card losses are easiest to recover because users can file for a chargeback. What’s more, is that MasterCard and VISA have a chargeback period of 540 days.
Money invested and lost to scams through bank transfers can be potentially refunded if the bank the user is using has an emergency plan. Remember to always change your bank account username and password when scammed!
Cryptocurrency deposits are untraceable, and so cannot be recovered. Forget about investing in unregulated brokers through this method.
Recovery agents are the last frontier of the entire scammer process. They will appear out of nowhere and will convince users that they have the tools to return all lost deposits. However, they will ask for an upfront payment. If paid, they will disappear.
Rich Snippet Data