September 10, 2020

Escostock Trading Review

Overview

Escostock Trading claims to be a distinctive investment company, with huge returns to its clients. Primarily focussing on Bitcoin based trading and mining. It claims to have a team of experts who provide 24/7 service to its clients. The company seems to be based out of California, USA. However there is no clear address, and just the very vague “California, USA” mentioned. The domain for their platform was registered just about a year ago in 2019. But there is no mention of the owner of the company or the CEO/CFO/COO for the company. Read the full Escostock Trading review here.

About Escostock Trading

There isn’t a lot of information about the company in the public domain, which makes things quite shady. There does however exist some complaints among harsh words for the company, on the internet. But let’s look at the information that Escostock provides on its own website. The company suggests that it deals in CFDs with a variety of underlying assets, but with the prime focus seemingly on Bitcoin. While it doesn’t share much information about the average spread that it offers, or the leverage that traders can expect, it does introduce to you its different account types. The basic “Mini Package Investment plan” requires a minimum deposit of 500 USD. The broker doesn’t make use of Meta Trader 4, and uses its own web based portal. This keeps some features away from traders, who have gotten used to Meta Trader 4.

But the first red flag that comes to one, isn’t any of the aforementioned, but the fact that the company isn’t licensed, and hence not regulated. It claims as a “private transaction”, it is by default exempt from any and all US Securities Acts and the US investment Company Act. Also, the company isn’t insured by the FDIC.
Another huge red flag is how lax they are with their customers’ data. There are no visible measures for data protection, or certifications that suggest a high resistance to data breach, and the company mentions in it’s terms and conditions that it doesn’t share your data, but also isn’t liable for any loss of your it either. Another term that stands out is one that tells you not to post any bad reviews or posts in the public domain without contacting their administrator first. The company also has some testimonials with seemingly stock photos and token racist names from around the globe.

However the worst of the website is a small spread of overlooked typos, and changes that were never made on another fraudulent seeming broker, named Exploit Crypto. The text on the website fluctuates between the two company names, and provides conflicting information.

The Verdict

Based on the lack of information about the origins and leadership of this company, the bad reviews, lack of regulation and the many more red flags mentioned above, makes the verdict pretty obvious. We believe Escostock Trading remains a rather risky broker, and customers should be cautious about investing with them.