Beware! FXTradingMarket is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
FXTradingMarket is a Forex brokerage probably registered offshore. It provides the MetaTrader 4 platform with a wide range of trading products. The leverage extended to traders is quite generous at 1:100, however, the spread on EUR/USD is a bit too good to be true.
FXTradingMarket regulation & safety of funds
There is a staggering lack of information on the website of the brokerage since we do not learn neither the name of the company nor even the country of origin. Furthermore, there isn’t even a contact address presented which means that the website is absolutely anonymous. This amounts to a huge problem in Forex trading since accountability is among the things we value the most. All we were able to find was a mention of the governing law in the terms and conditions which leads us to conclude that the firm is registered offshore in 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 FXTradingMarket, 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.
FXTradingMarket trading software
The brokerage does provide the MetaTrader 4 trading platform which we always consider a huge advantage since it is the foremost trading terminal at the moment equipped with features such as almost a 100 market indicators, as well as customizable trading robots. It is also the preferred choice for more than 80 percent of the traders in Forex. However, we were unable to register for a demo account. We have always considered the test-drive to be the most transparent and trust-creating way of getting acquainted with the trading conditions of the broker.
Without a demo account we are unable to discern the spread offered by the brokerage and there is also no information regarding the spread on the website which we view as a huge disadvantage since is the one of the most crucial aspects of Forex trading. The leverage extended to traders goes up to 1:100 which is quite generous and common for unregulated brokerages. The required minimum deposit, however, is at $500 which is twice the industry average and quite unfavorable in our view.
FXTradingMarket 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, PayPal, Cash and WebMoney. Surprisingly we read that the brokerage does not charge any withdrawal fees.
However, the brokerage does offer a bonus promotion and ties it with a nasty trading turnover requirement. Here is a screenshot:
We read that a trader has to achieve at least $500 000 for every $50 used in bonus promotion which is an absurd provision which has as it’s chief purpose to impede any potential withdrawal of bonus money by clients. This is quite a common trick with unregulated brokerages and we urge readers to take heed of this provision.
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!