Beware! 555Markets 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.
555Markets is a simple broker, that does not even try to do a lot, even to hide its true nature that will be revealed soon enough. 555Markets’ website is nothing to be impressed by; simple graphics, a pale white colour, and lack of any eye-catching content. In short 555Markets is an underwhelming experiences that is underlined by offshore broker tropes. Read the review for all important details we found about it.
Registering was quite the substantial amount of info from us, which is unexpected seeing the lacklustre nature of the broker. After signing up we arrived at a decent looking dashboard. For reasons discussed below, users have no real access to a trading platform. So any spreads are not applicable. What’s more, trading assets are not available to verify. The website reveals them as forex pairs, commodities, stocks, bonds, and indices.
The leverage offered to us while registering did not go any higher than 1:200. However, there is no way to apply this.
The T/C say that the spreads are set by 555Markets in absolute discretion. We interpret this as a sign that 555Markets make up the spreads without referring to a liquidity pool.
The website is available in English, Russian, Arabic, Portuguese , Vietnamese, and Spanish. However, the user area is available only in English, Portuguese, and Spanish.
555MARKETS REGULATION AND SAFETY OF FUNDS
The broker is official located in the Marshall Islands, with its billing office in Cyprus. The T/C claim that the broker is licensed by the Marshall Islands Business Corporation Act, which in fact does only one thing- to exempt local companies of any taxes. Furthermore, the Marshall Islands do not have a financial regulator, meaning that all forex brokers registered in its territory are in essence unlicensed.
As for the Cypriot address, we highly doubt that this piece of info is true.
What’s more is that 555Markets has been officially reported by the Comisión Nacional del Mercado de Valores (CNMV), the Spanish financial watchdog.
This is enough to 100% confirm our suspicions that 555Markets is completely UNLICENSED, and therefore a huge risk to all investments made in it!
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.
Please note that 555Markets will share personal info with its affiliates and partners, individuals and/or firms whose identities have not been disclosed.
Furthermore, the user agrees upon signing up to have her personal information sent outside the European Economic Area.
555MARKETS TRADING SOFTWARE
The alleged MT4 platform is not owned by 555Markets but by a brokerjet, which we assume is another illicit company. Thus the MT4 is not available. Furthermore, when we tried to open the other alleged platform, the Sirix WebTrader, we were again greeted by brokerjet‘s logo. So even Sirix is not by 555Markets.
What we can conclude based on these observations, 555Markets has no trading platform. What kind of a broker is 555Markets then?
Nevertheless, here is proof that there are spread commission applied to opening and closing positions.
555MARKETS DEPOSIT/WITHDRAW METHODS AND FEES
According to the payment area, a user can deposit via the following gateways: Visa, MasterCard, directa24, Yandex Money, Alfa Bank, QIWI, and a range of cryptocurrency addresses. However, there is no way to chose these. Instead there is a single “Deposit” button, that when clicked on redirects us to a NasaPay terminal, which we could not access because we had not provide sufficient personal info. We do not advice users to provide any info with these scammers!
According to the website, the minimum deposit is $100.
As for the withdrawal section of the client dashboard, this is all it is:
A user can one an account in EUR or USD.
The broker will not accept a deposit if the user gives away any sings that she will file for a chargeback sometime in the future.
Withdrawal processing times depend on the method used for depositing: wire transfer up to 5 days, online payment method up to 5 business days, credit/debit card withdrawal processes can take up to 10 days.
There is the chance that fees are applied that are not imposed by the broker.
The rollover fee is tripled on every Wednesday to compensate for the weekend. This is a popular provision among illicit brokerage firms.
Bonuses require a completed turnover of 1 per every $10 bonus, Otherwise user will not be able to withdraw.
Inactive accounts are charged with $10 per month. An account becomes inactive after 60 days of inactivity. (the clause is too long to add it)
The broker will probably hold your money segregated in banks outside the EU. Should this entity become insolvent, the broker will not be liable for any loss of funds.
Here is one of many indemnification provisions. This one claims that users will be liable to pay sums covering legal charges that the broker takes against claims issued by the user concerning her losses as a result from sing the broker’s services.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.