Beware! FGS 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.
FGS Markets is a forex MT4 brokerage, based in Cyprus, with a striking few financial instruments. The brokerage provides both the MT4 platform and a web-based trading platform. We also see a spread of 1.9 pips on EUR/USD and a generous leverage of 1:100. The spread is a bit above the industry average, but the leverage is quite nice.
FGS Markets regulation & safety of funds
FGS Markets is owned by the company Preseplio Limited with a Cyprus address. Furthermore, from the website we learn that the company holds a licence from CySec with a reference number 369837. However, we weren’t assured from just the broker’s website and after checking with the online registry of the regulatory body – we can confirm that the information is misleading. We found no mention of the company among the list of licencees. But what most cemented our suspicion we are dealing with a scammer are the numerous complaints we found of broker’s clients claiming have been the victims of fraud. All this is very disturbing and most important of all – the lack of credible regulation exposes potential clients of FGS Markets to a number of risks.
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 capital will be covered in the unlikely case the broker goes bankrupt or attempts to scam traders.
FGS Markets deposit/withdrawal methods and fees
Potential clients of the brokerage have a very poor choice of payment methods before them. They may deposit or withdraw only via Bank Transfer, Maestro, MasterCard, Visa and wire transfer. Furthermore, we read in the Terms and Conditions that there are nasty withdrawal conditions. To be able to claim a withdrawal the remaining funds in your account must be at least twice the used margin. There is also an inactivity fee of $25 a month on every dormant account. We must remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Scammers mostly rely on vulnerable and easily tricked people, that is why a well-informed trader is, perhaps, their most difficult target. As such – we believe every trader should be well-versed in the ways of the scam. Here is how it would typically go about:
In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Crown Signals or Bitcoin Loophole where registration will require your email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.
After stinging you for a few hundred bucks, senior scammers will take you up and begin pushing you to further invest. You may even budge and continue investing. At some point, however, you’ll 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, it will be high time for the “recovery people” to take it from here. They will begin further stalling in any way possible in order to remove the last guard you may have – filing a chargeback with your bank. This options expires for good after six months or more have passed since the initial deposit.
What to do if scammed?
A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain your reaction will be adequate and on spot.
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 change it asap!
So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!