1. Unregulated

The top of the list is a license. Cryptocurrency brokers who are not regulated are not worth working with. Even brokers who have a sub-standard license at least make the effort to be regulated to some extent. However, if you run across a cryptocurrency broker with no license at all, it is safe to say that the broker may want to get away with things he or she might not otherwise do with more oversight. 

2. High Spreads and Fees

Look at the spreads and the fees. A scrupulous broker should list all of these clearly on the site. If you have to hunt for them, be careful. In some cases, you may not find the fees until you sign. Legitimate brokers have modest and reasonable fees and spreads. Do some research to determine what are decent rates in the industry for cryptocurrency brokers. 

If fees are a bit higher than average, that may not necessarily signal a bitcoin scam broker, but you may want to look around. You may find that a broker charges for deposits and withdrawals. Most regulated brokers do not charge these fees or if they do, they are a modest amount. It is common for a Forex crypto scam broker to not inform you of fees until you ask to execute a trade or withdraw money. This often a sign of a scam broker. 

3. Poor Communication

Crypto scam brokers are generous with the promises of easy and huge returns but when it comes to discussing their trading philosophy, they can be pretty quiet. Beware of evasiveness to questions about trading approach or why certain things are better trades than others. A good broker should be enthusiastic about his or her work and want to share insights, whereas bitcoin scam brokers may avoid the topic. 

4. Does Not Release Funds

The point at which many of the people we talk to finally realize that they are the target of bitcoin scams is when they are not allowed to withdraw their money from the brokers. Many of these brokers will not admit outright that they will not release funds, but will tell them there is a delay, that there needs to be an account minimum (that wasn’t discussed before) or that there is a fee so high that it may not be worth it. That is where you will need the assistance of a company like Crypto-Trace, because it is a fair chance they are getting ready to make off with your funds.