Beware! CX Markets is an offshore broker! Your investment may be at risk.
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CX Markets is a binary options brokerage which is based in Dominica. It provides a web-based trading platform but does not disclose much about its trading information, nor its corporate information. We have serious reason to suspect the brokerage may be fraudulent. Read the whole review to find out why!
CX Markets regulation & safety of funds
According to the website of the brokerage CX Markets is owned and operated by the infamous company – Options Tech Limited. It is presumably registered and situated in the Commonwealth of Dominica.
As a matter of fact, the UK’s Financial Conduct Authority issued an official warning against the company by the name Options Tech Limited. It reads that the firm is suspected of being involved in scam operations and urges clients not to invest funds with it. Here is a screenshot:
An official warning issued by an European regulator is about a clear-cut sign of trouble as there can be in Forex trading. Furthermore, binary options trading is not included in any European regulatory framework and is actually prohibited in Europe. The brokerage also does not disclose anything about its trading conditions and such a lack of information hurts the presumable legitimacy of CX Markets and any sort of trust it may wish to create with traders.
The brokerage does not provide a test-drive to its platform but we, nonetheless, were able to register and get a look at it.
It cannot be called functional and there is no option for trading – all in all, the whole set-up has scam written all over it. Having in mind the complete lack of regulation, as well as the official warning by the FCA, we advise traders not to risk it with the brokerage.
Furthermore, we urge traders to minimize the risk in trading by taking up on their offers only brokers regulated by prestigious agencies, such as the UK’s FCA and CySec, require compliance with a number of strict rules that give significant assurance for the security 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 swindle traders.
CX Markets deposit/withdrawal methods and fees
We could not gather from the website of the brokerage the available payment methods for potential clients. In the terms and conditions of the brokerage we read the following:
“The Company reserves the right to modify, from time to time, the size, the amounts and percentage rates of its fees and the Client will be informed accordingly, however, all fees are based on a percentage of the profit generated that month.” Such a provision is worrisome and should not figure among the terms of a legitimate brokerage.
We always remind traders to take notice about the many 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. Solid regulation is extremely important in business because it distills confidence and almost completely removes the risk that the brokerage might be a scam. Nevertheless, we may not always rely on regulation and traders should be informed about the ways of scamming:
Almost certainly you have had pop-up ads waving “quick money” at your face while browsing the internet many times. One day, you simply click on it and a nice-looking website such as Bitcoin Blueprint or Bitcoin’s wealth 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 gabbing about it , you decide to deposit some $200-250. From those few hundred bucks the broker gets a fat commission.
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!