Beware! FXQM 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.
FXQMarkets, or FXQM for short, is a broker allegedly located in Seychelles. First impressions are positive, as most users will probably be dazzled by the website’s aesthetics which incorporates an almost video game style. It may seem appealing, but looks are not what forex brokers are about, and thus should not be considered as a vital element of one. One must focus on are trading conditions, a safe regulated environment, and reliable payment methods. Does FXQM deliver? Read the review for an answer.
We were able to very easily register, yet the broker demanded verification documents in order to authenticate our account and start trading with a live account. What’s more, is that even the opening of a demo account required proof of id, and similar documents. Don’t get us wrong, brokers that require ID verification take things seriously, however its unnatural for one not to be able to give a user a free demo account to see the trading conditions and platform for trade. Furthermore, with suspicious brokers such as FXQM there is no way to check if the trading platform actually works. What ever the case is, be wary that any trading conditions that we speak of are taken from the website, and not the trading platform, meaning that they might not be accurate.
We can give you a on-point value for the leverage, which is capped at 1:1000, a dangerously high about, most commonly seen with offshore brokerages. The website courageously states that the EUR/USD spread is 0.1 pips without a commission, for the standard account type. There is no mention, as far as we’re concerned, of the available trading assets.
The website is exclusively in English, while the user dashboard adds a surprising addition- Cambodian. Speaking of the website, we found it to be noticeably slow and limiting. All the text feels like filler, and most notably, the only way to access the Terms and Conditions was through the registration process.
Before continuing, we jut want to say that the only legal document is the Terms and Conditions. Usually, brokers are expected to have an additional 5 to 10 legal documents that create a framework for the broker and client to follow. The lack of such files is another in a range of many sing that there is something suspicious going on.
FXQM REGULATION AND SAFETY OF FUNDS
The footer of the website is the only location that gives us information useful for this section. There it is said that the broker is located in Seychelles, a location that, even though has a regulator, is still mostly famous for harboring suspicious, and sometimes downright scammer brokers.
Nevertheless, we proceeded to check with the local Seychelles Financial Services Authority for it has an online database with all authorised firms. As we feared, there is no mention of both parent company or broker. Add to that the fact that the Terms and Conditions have no regulatory details, we are left with the only conclusion that FXQM is UNLICENSED, and therefore a risk to all investments.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
FXQM TRADING SOFTWARE
While we did not have access to the MT4, we can confirm that the broker offers it; the exe. file is under the name of the company.
The Metatrader 4 is considered the best trading software out there. The industry is clustered with uncountable platforms, none of which can surpass the MT4. The terminal comes equipped with superior trading tools, some of which are so intricate that only the best players utilise. That is not to say that the MT4 is not properly accommodated to novice users.
It’s always interesting for us to land on an unlicensed broker that has the MT4. Readers should be aware that even if thought they can access this superior terminal, it does not mean that this broker is to be trusted. There are shady ways to be granted access to the Metatrader.
FXQM DEPOSIT/WITHDRAWAL METHODS AND FEES
The payment area in the dashboard for registered users reveals that the only means of depositing and withdrawing is through Bank transfers. This is an odd choice, because most unregulated brokers choose crypto as their payment methods because it is untraceable. We were able to continue with the depositing procedure with just $1, meaning that there is no minimum deposit.
The base currencies have not been revealed. However, seeing that on can deposit only in USD, then we can conclude that this is the only base currency.
As for withdrawals, there is one thing that the Terms and Conditions reveals; that the processing time is from 1 to 3 days. There are withdrawal fees whose mentions are scattered throughout the T/C, however they are never revealed. Unfortunately, this is the only withdrawal info that we got.
There is a dormant account fee of $25. FXQM defines a dormant account one that has not seen any transaction in the past 12 months. If a client’s account reaches $0, the the broker has the right to close it down.
The legal document, which incorporates all normal legal docs, mentions that a user may be eligible to pay a tax for making profit that is dependable on the user’s current jurisdiction. We don’t advice you to wait to see who collects these taxes.
Furthermore, the broker gives itself the right to change the Terms and Conditions without telling the user, putting its clientele in a trap if that should happen.
There is also the classic indemnification clause, which holds the broker innocent should it cause any damage to the user. This is a classic illegal forex addition, one that can be found in 90% of all scammer brokerage firms. These are usually made ambiguous and confusing for a reason.
We strongly advise traders to only deposit the minimum deposit, or better yet – not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.