There are numerous stories of people making it rich from investing and trading Bitcoin and other cryptocurrencies. As a result, this has prompted many traders globally to jump into the trading arena, believing there is plenty of profit left to be made in the crypto markets. Well, in reality, they are right. There is still plenty of money to make from trading cryptocurrencies online in either the short-term or long-term. However, in order to participate in the profit-making, you will need to start by registering for a new account with a reputable cryptocurrency broker.
Many people have been talking about Teramusu and the interest in the broker has been significant lately. Although at first glance the broker may seem to be providing a solid platform and reliable services, there are various issues you should be aware of before signing up with this broker. So, let us explore this broker in more details.
What Does Teramusu Have to Offer?
Minimum Deposit
Once you have opened an account with Teramusu, the broker only requires $250 as a minimum deposit in order to start trading. This should be affordable for most people, making the cryptocurrency markets accessible.
Variety of Payment Methods
Teramusu gives you a variety of payment methods to choose from. This includes most major credit and debit cards such as American Express, MasterCard and VISA. The broker also allows for wire transfer. In addition, you can choose to pay with cryptocurrency, such as Bitcoin, Litecoin, Ethereum, Dash and more. The wide choice of deposit options is a plus and this enhances convenience for traders wanting to trade crypto CFDs.
Software Performance
TeraMusu offers traders access to the online trading world via the SpotOption 5.0 web based CFD trading platform. From the comfort of the platform, you can trade over 100 assets. The platform is easy to use and to navigate so even new traders can get started right away. When you are ready to open a trade, simply select the leverage amount, set your take profit and stop loss amounts and get started.
No MetaTrader 4 Platform
It appears that Teramusu’s software interface is not compatible with MetaTrader 4. This is disadvantageous for many traders that are serious about making money in the markets. MetaTrader 4 is the industry standard trading interface due to its powerful features, effective trading tools and responsiveness. If having access to the MetaTrader platform is important to you, then remember that there are many other choices for cryptocurrency brokers that offer this option.
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Watch Out for Scam Cryptocurrency Brokers
Not all cryptocurrency brokers are the same. There are some trustworthy and reputable brokers, for sure, in the cryptocurrency space, however, there are also numerous scams and fraudulent brokers that open shop simply to scam people out of their hard-earned cash. Unfortunately, Teramusu seems to be one of these questionable brokers. The broker is currently facing regulatory action and there are many stories online of traders being misled and ripped off by the Teramusu scam broker. Let us explore this in more detail.
Regulatory Actions
One way to spot a potentially untrustworthy or a scam broker is to check if there have been any actions taken against the broker by any national or international regulatory agencies. This appears to be the case with Teramusu. This unregulated broker has run into some trouble with the law in the UK over some questionable activities that you should definitely be aware of and take into consideration before registering for an account with this particular cryptocurrency platform.
The Financial Conduct Authority (FCA), which is the financial regulatory agency in the UK, issued a warning against the broker for targeting investors in the UK. The problem is that the FCA has not authorized the broker to operate in the UK. This means that by soliciting customers in the UK, the unregulated broker is breaking the law. The bottom line is, Teramusu is not regulated and as a result, they do not operate under the laws and regulations of any financial body.
Why Does It Matter If a Regulator Has Taken Action Against a Broker?
The role of a financial regulatory agency, such as the CySEC, the FCA and more, is to enforce the laws related to the financial markets. These laws had been created, in theory, with the best interests of consumers in mind. Existing regulations are based upon past occurrences of harmful and misleading actions and business practices of financial firms and brokers. Although these actions may have been legal at the time because they may have resulted in harm to consumers, these actions were made illegal by lawmakers.
Therefore, when a broker skirts these rules and regulations, it is more likely the broker is doing something dishonest and misleading which can easily result in harm to its customers. This certainly seems likely to be the case with the Teramusu scam broker which has been issued warnings from the FCA. Consumers should stay clear from brokers which have been found guilty of violations or have been sanctioned by any regulatory agency. This is a clear sign that the broker is not operating a transparent and secure trading platform that operates within the rules of the regulatory body.
Unregulated Brokers
Making sure a broker is regulated is important when choosing a broker to register an account with because, in order to be regulated, the broker has to have met certain thresholds for transparency and security. Being regulated means that the broker has obtained the required licensing to operate within a specific jurisdiction. If a broker has been licensed, then this would mean the broker has materially committed to maintaining legitimacy within the jurisdiction of the regulatory agency issuing the license to operate. The Teramusu scam broker has clearly not made this commitment towards legitimacy.
Since a regulated broker has done the work and paid the expenses associated with becoming licensed, this broker actually has something at stake in providing a safe and secure trading experience for its customers. Therefore, the licensed broker would have more incentive to provide increased transparency and security for traders. Also, a licensed and regulated broker will be less likely to break the law or skirt the regulations designed to protect consumers, since this can result in the broker losing its valuable license. Unfortunately, Teramusu has failed to obtain the proper licensing which is why it has faced regulatory actions by the FCA. Based on this, we highly recommend that you consider other leading, regulated brokers if you plan to trade online.
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Teramusu’s Regulatory Situation
Operating from Tallinn, Estonia, the Teramusu brand is owned by Arumas Ways OU. However, it does not appear that the broker is even licensed and regulated with the Estonian Financial Supervision Authority. Both the broker and the parent company seem to be unregulated entities which should certainly invite plenty of suspicion from those looking to start trading with the platform.
Again, even if it is not in the UK, it is important that cryptocurrency brokers meet all licensing requirements at least in their own country. Brokers must follow strict ethical and fiscal rules in order to maintain licensing. This includes requirements for maintaining enough capital, insurance coverage and segregated accounts. Conforming to these rules can be important to protect consumers in the case of a broker becoming suddenly insolvent. It is too bad that Teramusu has not taken the necessary steps to protect consumers. Anybody looking to register with this broker for a new account should know that their capital will likely not be safe and secure with the Teramusu scam broker.
Selecting a Broker to Partner With – Does Teramusu Meet These Requirements?
It is always important to stay vigilant when looking at online trading brokers to potentially sign up with. Knowing what the common signs of a scam broker are can help save you from major problems in the future. Below are some of the aspects to watch out for when looking out for a scam broker:
- Frozen Account – If you find that a broker has frozen your account for no reason and without warning, there is likely something not right with this financial firm. Therefore, it is best to look at posted reviews to make sure this has not happened to others before registering.
- Website Not Functional – You should be highly suspicious if a broker’s website cannot be opened or functions poorly. This suggests a lack of transparency on the part of the broker.
- Unauthorized Deductions – Brokers that have been known to deduct money from trader accounts without their knowledge and for no reason, should be avoided.
- Unanswered Phone – One red flag is if you call the broker’s listed telephone number and there is never an answer.
- Unauthorized charges – Some brokers will charge your bank account with some random amount of money without permission.
- Outlandish Claims – Brokers that make claims of ridiculously high profits should also prompt suspicion. Many times, scam brokers will continually request you make more deposits in order to obtain these promises of massive profits.
- No Licensing Listed – Another sure way to spot a scam broker is to check to see if the website lists what licenses the cryptocurrency broker holds. Also, a legitimate cryptocurrency broker will list which regulatory agencies currently regulate the broker. If these items are not listed on a potential broker’s website, make sure to steer clear.
Final Words – Teramusu Is Not the Broker for You
Unfortunately, many people will not heed these warnings and may end up with a shady broker like Teramusu. For those that have lost money from the Teramusu scam, it may be quite challenging to try to recover the lost funds. With all this in mind and the evidence that Teramusu does not deliver the services and features it promises to, always make sure to do your due diligence and research thoroughly before making a decision on a cryptocurrency broker for accessing the markets. After all, you definitely don’t want to get caught in any scam!
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