Beware! Nobel500 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.
Nobel500 is a Forex brokerage probably registered offshore. It provides the Activ8 platform with a clear-cut focus on crypto trading but also offers CFDs on stocks, indices and Forex currency pairs.. The leverage extended to traders is just 1:30 which is quite balanced but the spread on EUR/USD is fixed at three pips which is excessive and double the industry average.
Nobel500 regulation & safety of funds
The corporate information shown on the website only tells us that the brokerage is supposedly regulated under the Markets in Financial Instruments Directive of the European Union. Here is a screenshot:
However, we find no mention of a license by any authority of a country member of the EU – thus we may safely conclude that the brokerage Nobel500 does not fall under any European regulatory oversight.
Furthermore, we are not given neither an address, nor even a name of a company which leads us to conclude that the website is anonymous and the firm is most likely registered offshore in some cozy place such as the Marshall Islands. Places like the Marshall Islands have become a top-destination for would-be scammers due to its very liberal laws regarding the registering of companies. The government does not even require for someone to be physically there in order to register a company. Such a loophole has surely been noticed by many ill-minded brokers and utilized. Nonetheless, it’s safe to assume that Nobel500, irrespective of its legitimacy, does not fall under any regulatory oversight whatsoever because the government of the Marshall Islands does not include Forex trading within its regulatory framework.
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. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
Nobel500 trading software
Putting that aside, the brokerage provides the Activ8 trading platform which is a pretty neat choice. Even though we consider the MetaTrader 4 platfom by far the best option for traders, we highlight that the Activ8 platform can be easily synchronized with both MetaQuotes’ platforms (MT4 and MT5). Among the trading products available we see CFDs CFDs on currency pairs, cryptocurrencies, indices, commodities, precious metals and stocks.
We could see a fixed spread of 3 pips which, however, is twice the industry average and quite unfavorable in our view. Furthermore, there is a discrepancy between the information presented on the website according to which the spread is 1 pip and the spread presented on the demo platform. All in all, the offshore location of the brokerage and the obvious lack of regulation highly inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
Nobel500 deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via the standard Visa and MasterCard, as well as bank wire. Furthermore, we see the logos of many e-wallets such as Skrill, Neteller, QIWI,
Going through the terms and conditions of the brokerage we did find quite a few troubling provisions. Here is a screenshot:
The brokerage openly states that it charges withdrawal fees which go as follows: $50 for wire transfers, $35 for credit cards and $25 for e-wallets. A further 10 percent will be charged on accounts that have no executed more than 200 in turnover. These fees separately are not that big of a deal but when they add up they become a serious disadvantage for any potential clients of the brokerage. Furthermore, there is minimum withdrawal amount of $250 for wire transfer and $100 for all the rest of the payment methods which is very excessive and should not figure in the terms of a legitimate brokerage. On top of all this we also read that there is a monthly dormant account fee of 10% for accounts that have been inactive for more than three months. In Forex trading it isn’t unusual for brokerages to charge such a fee but the amount stated by Nobel 500 seems a bit over the top for us.
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?
Unfortunately, the possibility of a scam looms over almost every trade in Forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash 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 motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
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!
The review of this company is completely accurate cause i have invested and lost $200 usd and was told i must give more to the amount of $250.00 -$300.00 usd additional to my investment to withdraw. They are all scammers Gerald, Thomas and Emma and anyone who works on behalf of this fraudulent company nobel500.com. They don’t have a physical business location, social media and or their email and phone numbers do not work. Please stay very far, don’t give any credit card info or any type of your personal info to which they can use for identity theft. Nothing but telemarketing thieves, i am here to raise awareness about them.
Nobel 500 has apparently rebranded their operations now being a false company by the name called royal coin, or a name similar to that effect. These people are hell bent on scamming hard working individuals of their money do not accept any calls from anyone claiming to do online trading especially if they from another country. After they stole my money they still have the balls to come after me again they will ever regret the money they stole from me.