Beware! FTGMarkets is an offshore broker! Your investment may be at risk.
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FTGMarkets is a Forex brokerage registered in the UK. It provides a web-based trading terminal, not the MetaTrader 5 trading platform and a leverage of just 1:40. Furthermore, the website flaunts with a wide range of trading products, the required minimum deposit is just about the industry average at $250, however, further trading conditions remain undisclosed.
FTGMarkets regulation & safety of funds
The brokerage only mentions the Financial Conduct Authority in the UK, however, no further corporate information of any substance is provided which immediately renders the website basically anonymous and should raise a serious red flag since anonymity is the biggest blow to the supposed legitimacy of a given website. We remind readers that brokerages operating on the territory of the UK have to abide by strict rules imposed by the Financial Conduct Authority respectively. Upon running a check through the online registry of the FCA we did not find any relevant information regarding the broker brand on the website of the British financial watchdog. This means the brokerage is providing financial services without proper authorization. We highlight the danger in doing business with such a website since the people behind it do not answer to any authority and have no reason to uphold the client agreement. It is safe to say that there is tremendous risk on any transactions interested traders may conclude with the brokerage and we deeply recommend they look elsewhere for viable trading options.
Even though we do not come across an official warning issued by a regulator regarding the activities of FTGMarkets, it’s a safe bet that soon enough they will fall on the radar of the relevant authorities and be blacklisted. Until then we are confident to say that the lack of both corporate information and regulation put tremendous risk on any transactions interested traders may conclude with the brokerage and we deeply recommend they look elsewhere for viable trading options.
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
FTGMarkets trading software
The brokerage does not provide the MetaTrader 4 trading platform, which is something we always consider a disadvantage since the MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Even though the website claims access to a web-based platform, no such access is actually available. We only read that the required minimum deposit is just the industry average and we advise interested customers to steer clear of such dubious offers. Furthermore, the website in question does not provide any mention of the spread offered by the brokerage which is the most crucial aspect of Forex trading. The only unusual thing regarding the brokerage is the surprisingly low leverage of just 1:40 which isn’t common for unregulated websites. Besides this, everything else supports our view that FTGMarkets is involved in foul play and we always recommend to readers not to risk it and steer clear from such offers.
FTGMarkets deposit/withdrawal methods and fees
We did not find any stated withdrawal fees, however, we do warn readers that there are usually withdrawal conditions pertaining to accounts that have taken advantage of the bonus promotion. A trader has to achieve a certain trading volume in order to be eligible for withdrawal which is purposefully excessive in order to impede any trader from actually receiving his money. Legitimate brokerages which are regulated in Europe do not offer such promotions and even if they do, the information regarding potential withdrawal requirements is always presented straight-forward on the website, not hidden away in the terms and conditions.
Such website are also the reason 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 Bitcoin Evolution or Cashless PayGroup 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 Btcoinpro – 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!