Beware! CKMarkets 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.
CKMarkets is a MT4 brokerage situated in St. Vincent and the Grenadines. From the broker’s website we gather that potential clients have at their disposal a leverage of up to 1:500 and low floating spreads that fluctuate between 1 and 1.5 pips. The required minimum deposit is surprisingly low at $100 which is significantly below the industry average.
CKMarkets regulation & safety of funds
CKMarkets is a pretty strange case as forex brokers go, since it is unusually open about it’s trading conditions, stating both the spreads, the leverage and the trading platforms it provides, all the while not providing a demo account for interested traders. The company that owns the brokerage is registered in SVG as CKMarkets Ltd at Suite 305, Griffith Corporate Centre,
Beachmont, P.O Box 1510, Kingstown. The lack of any information regarding regulatory oversight should not come as a surprise since the government of SVG, as has been said many times, does not include forex trading within its regulatory framework. The lack of regulation in itself opens up potential clients of the brokerage to a number of risks that can be otherwise avoided.
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 swindle traders.
CKMarkets deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Visa, MasterCard, bank wire transfer and Bitcoin. We did not find any explicitly stated nasty withdrawal requirements in the broker’s Terms and Conditions.
Traders should take notice that there are a number of safety-checks they may try with the brokerage, instead of trusting it at face-value. Firstly, they must always invest only the required minimum deposit, so that there is certainty about the legitimacy of the brokerage, before risking a bigger amount. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. If they do – traders may rest assured that they’re dealing with a scammer.
How does the scam work?
One of the best trust-creators in the trading business is the regulatory status of a brokerage. It distills confidence and almost completely removes the risk that the brokerage might be a scam. Nevertheless, we may not always rely on regulation, especially in cases such as this where the brokerage is from countries which do not regulated forex trading. That is why traders should be informed about the ways of scamming:
Almost certainly you have had pop-up ads waving “quick money” at your face. One day, curiosity gets the better of you and a nice-looking website such as The Bitcoin Compass or Bitcoin Malay System shows up asking you to register. After sharing your personal information, a call from a broker will undoubtedly come, a broker with a once-in-a-lifetime opportunity for you. After a few minutes of him going in great detail about it , you decide to deposit some $200-250. And just like that – the scammer snatches a nice $50 commission from the initial deposit.
However, brokers are surely aware they can get more out of you. They redirect you to the “retention” where next in line scammers begin working you into putting even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what is left of your account.
Now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, the scammer will begin pleading with you to wait it out, six months at the most. What they aim at is barring you from 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?
We wish no trader has to consider such circumstances, however, in the dire case you are scammed – it is much better knowing what 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 recover their losses. They will say that in exchange for an up-front payment, you will get your money back, but no such thing will occur!