Beware! X Markets 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.
X Markets is a Seychelles-based forex CFD brokerage owned and operated by Celestial Trading Limited. The brokerage does not disclose much of its information to traders. On it’s website we can only read that the minimum deposit for the most basic account comes at $250 which is pretty much the industry average. We always view the lack of information with unease, because credible brokerages would usually be open about their trading conditions.
X Markets regulation & safety of funds
X Markets not only does not state any sort of regulatory status on its website, but the Financial Conduct Authority came out with a statement expressing concern about this specific brokerage. The authorities highlight the fact that the broker is not regulated by them, but has targeted traders. Furthermore, X Markets changes it’s address – a few months ago it was registered in Marshall Islands and now it has chosen Seychelles. All this constitutes a major security concern and opens up potential clients to a number of risks.
Prestigious regulatory agencies, such as the UK’s FCA and CySec, require compliance with a number of strict rules that give significant assurance for the safety of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to scam traders.
X Markets deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Visa, Mastercard, Maestro, Neteller, Paysafecard, Wire transfer. X Markets also has a minimum withdrawal amount of $250 and states that it may take up to 14 business days for the withdrawal to be processed. On top of that, inactive for more than three months accounts are liable to a $50 fee.
How does the scam work?
Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. After informing themselves for the brokers trading conditions – traders should be well-versed in the way of the scam:
In most cases through clicking a tempting ad with promises for fast money, you will be redirected to a website where registration will require you to give your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are ready at the phone to bait you with benevolent trading offers. After a few minutes hearing them talk, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After pulling a fast one on you, senior scammers will take you up and begin pushing you to further invest. You may even budge and make a few more trades. At this point, regardless whether you are losing or winning, you probably begin to consider closing the account and getting back your money.
However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, they will redirect you to yet another representative who will begin pleading with you to wait it out, six months at the most. The angle here is simple – remove the last guard you may have – filing a chargeback with your bank. If six months expire, that option is closed and your money is gone for good.
What to do if scammed?
Even though most of us think it cannot possibly happen to us – it is much better being as well-informed as you could so that you may react to a scam in an adequate manner. Here are the available options you have in front of you:
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate and ready at anything to somehow retrieve their funds. They will say that in exchange for an up-front payment, you will get your money back, but no such thing will occur!
Claire Hamblin
I feel like such a mug! I have recently become unemployed and have been suckered in to an X Markets scam. They have promised me that they would triple any money put into their scheme within a month.
Realistically, that have diminished my input to one tenth of its original size and have stopped ringing me now. Is there anyway I can get any of this money back?