Beware! UMO Markets 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.
UMO Markets says to offer over 100 tradable instruments across several markets, among which 35 plus currency pairs, and various CFDs on commodities and precious metals. All of that comes with a choice of three account types, generous leverage as high as 500:1 and the MetaTrader4 platform.
Unfortunately we were not able to directly open a demo account, so we can not comment on the UMO Markets trading conditions. Still, as they advertised spreads starting form 1,6 pips with their Standard Account, bear in mind that this is higher than what traders would usually consider attractive – the spreads of benchmark pairs like EURUSD and USDJPY are considered good only below 1,5 pips.
That however is not our main issue with UMO Markets, but the fact that they are an offshore broker, with no legit license to operate on regulated markets like the European Union, the UK, USA, Canada or Australia.
UMO Markets regulation & safety of funds
And as we already noted the broker is not regulated. The local Financial Services Authority (FSA) in Saint Vincent and the Grenadines do regulate the banking and the insurance sector on the islands, but not forex and CFD brokers like UMO Markets, which basically means that UMO Markets are totally unaccountable for the way they handle their clients funds.
As a general rule trading with unregulated brokers like UMO Markets has always been extremely risky, because for the safety of your funds you will have to rely entirely on the integrity of the people, who run those brokers, and quite too often that integrity is not very high.
So if you are tempted by the lavish leverage and seemingly attractive trading conditions, better think about the safety of your funds and trade instead with properly regulated brokers, like the once license and authorized by reliable financial watchdogs like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC).
UMO Markets deposit/withdrawal methods and fees
Talking about the payment methods, in its presentation UMO Markets says to accept major cards like VISA and MasterCard, bank wire and several e-wallets among which Neteller and Skrill. When we proceeded with our registration however, regarding the payment methods we were told to contact our account manager. So basically we can not be sure that UMO Markets really accepts VISA, MasterCard or Skrill.
Otherwise the minimum deposit requirements look good. UMO Markets asks for a minimum deposit of just 10 USD for a Micro Account, 100 USD for a Standard Account and 300 USD for what they call ECN Account.
How does the scam work?
The scam industry has grown to mind blowing proportions – new scam websites pop up on a daily basis, and are presented to potential victims through various channels as for example the so called robo scam websites, like Bitcoin Revival and Bitcoin Profit which are especially designed as scam traps for careless investors.
If you happen to visit one of those websites you will inevitably watch some video ad, telling you the story of how easily you may get rich by joining some innovative trading platform, which is supposed to generate you guaranteed returns while you sit back and watch. And all you will be asked in the beginning will be your e-mail and phone.
After you register, instantly you will be redirected to the website of a unregulated, offshore broker, where initially you will be required to deposit about 250 USD. Scammers however would definitely like to make you deposit more, so most probably they will manipulate your account – your first trades will seem amazingly successful and pretty soon the money in your account will see to have doubled. That however will not be real, but just a part of the scam.
And you will be getting phone calls as well – it will your “senior account manager”, who will be trying to convince you that if you really want to make some real cash, you surely have to invest at least 10 000 USD.
And surprisingly many people get carried away and do invest that kind of money without realizing they have been scammed until the very moment they decide to withdraw some of their funds. Than out of the blue they are told they do not have right to withdraw because of some minimum trade volume requirement, possibly linked to their welcoming bonus. The pretext to cancel the withdraw requests might be different, but in the end it will all come to the same – if you are scammed you will not be getting your money back.
What to do if scammed?
As slim as your chances might be, there is still one plausible way to get your deposit back – to file for a charge back with your bank in case you have paid with a credit card. Fortunately, both VISA and MasterCard will allow you to do that within 540 days.
Be aware that if by any chance scammers have tricked you to tell them your credit card number or online banking password, they will surely be trying to steal money directly form your bank account. So if this is the case, immediately change the password and block your credit card.
And do not trust the so called recovery agencies. Those people can not and will not help you in anyway, but simply will collect some fees in advance, basically scamming you a second time.