Electrum Review – Who Is Electrum Broker?
Electrum is a textbook case of an investment scam, deceiving customers with the promise of safety, state-of-the-art technology, and excellent trading conditions; however, those are exaggerated and baseless statements.
In reality, Electrum is a fraudulent broker operating unregulated and anonymously. There is nothing safe nor beneficial associated with these scammers but only insecurity and good-for-nothing.
Continue with our Electrum broker review to discover more about how these scam brokers execute scamming schemes.
|Address||Stockerstrasse 23, 8002 Zürich, Switzerland|
Regulation and Safety of Fund at Electrum
Online trading is a firmly controlled industry; all legitimate brokers must be authorized by respective supervisory agencies. Most reputable trading corporations hold one or more licenses from top-level authorities such as FCA, CySEC, and ASIC, among others.
Trading credentials protect the rights and interests of customers and ensure service quality. Although trading is risky, your funds are secured with genuine brokerage services due to risk management tools, like negative balance protection and segregated accounts.
The former means that your money is safe if a broker bankrupts, while the latter implies that your funds are kept separate from a broker’s capital. In addition, financial regulatory bodies run compensation schemes to indemnify traders in case of a broker’s insolvency.
For instance, CySEC compensates traders up to 20.000 EUR, and FCA covers a max of 85.000 GBP.
Speaking of Electrum, the company does business unauthorized with unclear information about its HQ, which is reportedly in Switzerland. If so, the company should be approved by Switzerland’s financial market regulator (FINMA), which it isn’t.
Additionally, it isn’t accredited by any other supervisory authority. This way of doing things resembles shady business practices; by its very nature, trading with Electrum doesn’t worth the risks.
Electrum Trading Software Overview
A reliable FX broker provides modern and proven trading platforms like MetaTrader4 (MT4) and MetaTrader (MT5) that offer a user-friendly interface and advanced features such as automated and copy trading, enabling prosperous trading.
Electrum utilizes its below-par trading software, WebTrader, which lacks adequate tools. Needless to say, its WebTrader can’t be matched MT4/MT5.
However, some WebTrader platforms, such as cTrader and Sirix, are worth mentioning due to their excellent functionality.
The bottom line, avoid phony brokers and their manipulative, poor trading programs and opt for trustworthy forex providers and their cutting-edge trading software.
Deposit and Withdrawal Procedures at Electrum
Electrum supports credit/debit cards and wire transfers concerning deposits and withdrawals. However, when you try to make a deposit, you will be informed that it’s discreet and that an account manager will contact you.
That’s weird and raises suspicion. While legit companies do not use this practice, it remains unknown why Electrum follows it. Given that it’s a dishonest scam broker, we can only conclude that this procedure serves to trick people.
Electrum probably lies about accepted payment means, and its account manager will try to persuade you to deposit with a crypto wallet. By doing so, when you lose money, it can’t be traced.
Cryptocurrency payments are unsafe for you but safe for financial swindlers. As for withdrawals, the company levies hefty fees, a hallmark of deceitful brokers.
According to its terms and conditions, you will be charged the following costs:
- $50 for Wire Transfer
- $35 for Credit Cards
- $25 for E-Wallets
- 10% for Unverified Accounts (accounts verification is standard procedure, but legitimate companies don’t charge for it)
- 10% for Nontrading (applies after three or six months)
First-rate brokers usually don’t charge these fees, but if they do, it’s much less. For example, FBS Broker doesn’t charge inactivity and withdrawal fees. Overall, don’t invest with a bogus brokerage; it will cost you more than you think.
Here’s How They Execute the Scam
Speaking of the Electrum scam, it’s conducted like any other online trading fraud. The main point is to make people believe that the company is the real deal. The more challenging part is convincing you to invest money.
Con artists achieve this by proposing lucrative opportunities. Electrum offers clients generous bonuses even though they are prohibited in the EU and other jurisdictions. There is always a catch with rewards since you must meet unattainable goals to get a prize.
You will not be able to draw funds before meeting preconditions that include advance payment. All in all, with illegal brokers, you are always at a loss.
In this Electrum review, we exposed another fraudster and supplied you with more than sufficient reasons why you shouldn’t invest in trading with this illicit brokerage.
To summarize, the firm operates anonymously with no precise info about the jurisdiction (if any); it’s reportedly based in Switzerland but lacks permits from respective financial authorities (Swiss FINMA and any other).
Also, Electrum offers bonuses and high leverage (1:200), although the EU restricts leverage to 1:30 and prohibits bonuses.
Other things for consideration are its WebTrader doesn’t serve the purpose and is very rudimentary, no demo account, $250 to start trading (far above the industry offerings), deposits are not clearly defined (so-called discreet deposits), and withdrawals come with hefty fees.
Most importantly, Electrum is a hoax, so don’t trust it.
FAQs About Electrum Broker
What Is The Electrum Minimum Deposit Amount?
Electrum requires a $250 minimum deposit to start trading, which is higher than top brokers like FBS ($1 min deposit) and HFM ($5 min deposit).
What Are the Deposit and Withdrawal Options for Electrum?
Electrum has set up dubious deposit and withdrawal options; it allegedly accepts credit/debit cards and wire transfers. Deposits require contact with an account manager, while withdrawals come with commissions.
What Account Types Does Electrum Provide?
Electrum doesn’t offer demo accounts, only the following live trading accounts: standard ($250 minimum deposit), premium ($2.500 min deposit), and premium+ ($25.000 min deposit).