Beware! London Future Market is an offshore broker! Your investment may be at risk.
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London Future Market is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides a web-based trading platform, not the MT4 trading platform, and a generous leverage. Traders are extended a leverage of up to 1:100. Furthermore, there is a wide range of trading products from which to choose and a spread of just 0.6 pips which is quite favorable but inclines us to question whether there is a commission as well. The required minimum deposit is $1000 which is four times the industry average and quite excessive in our view.
London Future Market regulation & safety of funds
On the brokers website we read that the broker brand is owned and operated by a SVG-based company with the name A Corp Limited. Saint Vincent and the Grenadines is a well-known offshore zone and a preferred location for shady brokerage.
We remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that not only is the brokerage not regulated. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients. However, putting all this aside – the brokerage does provide a web-based trading platform without an available demo account. We had to register for a live account in order to view it.
On it we could see a spread of just 0.6 pips on EUR/USD which is exceedingly low having in mind the industry average of a pip and a half. Such a low spread always makes us question whether there isn’t a trading commission as well but we could not find information about such on the website. Furthermore, the leverage extended to clients is 1:100 which, however, hides the undesirable risk of losing more than the initial deposit. The minimum deposit is the biggest disadvantage of the broker – traders are required to put up at least $1000 in order to open the most basic account. Such a sum is quite excessive.
Overall, the lack of regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
London Future Market deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via credit cards and wire transfer, as well as many e-wallets such as Yandex, AstroPay, Neteller, Skrill, WebMoney, Paysafecard and QIWI Wallet.
Going through the terms and conditions of the brokerage we did find quite a few noteworthy provisions. First there are withdrawal fees for the different payment methods. Here is a screenshot:
The withdrawal fee is $50 for wire transfer and $25 for withdrawals via e-wallets and credit cards plus a processing fee of $10 (only for credit cards). Furthermore, a levy of 10 percent will be charged to any account that has not executed more than 200 in turnover. Such requirements should not be present in the terms and conditions of a legitimate brokerage and further make us question the broker’s intentions.
We also read there is a dormant account fee. Here is a screenshot:
Readers should be aware that accounts which have been inactive for more than 6 months will be subject to a monthly deduction of %10. This is also quite excessive.
But on top of all this we also read that there is a minimum withdrawal amount for wire transfers of $250 which is another disadvantage for potential clients of the brokerage.
Having discussed the withdrawal fees of the brokerage we also highlight the bonus conditions. Here is a screenshot:
There is a requirement for a minimum trading volume of 25 times the deposit amount in order to withdraw from an account that has taken advantage of the bonus promotion.
Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. This is why we advise traders 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?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Traderia – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
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 to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!