Beware! DowMarkets 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.
We will go on and say it. DowMarkets did not do anything for us upon first inspection. There is nothing to remember it by, no unique element, be it visual or technical. This is a very average looking broker, that does not attempt to leave the flock. What we are left with is an experience that is rather boring. And this conclusion we reached without taking in consideration the many scammer like facets that we encountered once we started exploring. Read the review to find out what we discovers, and to answer the question of should you deposit in DowMarkets?
Signing up took us less that expected. As a matter of fact, the time to register was less that a 15 seconds. We can say now, that any self respecting broker cannot and will not allow its registration process to be so short. The client area was not impressive in terms of quality, but it was interesting when looked upon with a different eye. What we mean by that is the structure of it. The user has the option to open one in 5 account types, deposit, and trade. And that it the basic structure of it all:
There is also an Account Detail section with more options, but it’s more in the nature of a simple subsection.
Anyway, we opened a trading terminal, which produced a EUR/USD spread of 2 pips, a cost of trade that is in no way lucrative to users. The leverage was capped at 1:200 for us. The trading assets are fore pairs, cryptocurrencies, commodities, indices, and shares.
Both the website and client area are available in English, Polish, Russian, and German.
DOWMARKETS REGULATION AND SAFETY OF FUNDS
Exellium Ltd is the holding company of this broker. The official operating address of the parent company is in the Marshall Islands, a country known for its population of illegal forex brokers. This is explained by the looser laws which govern the nation, but most of all, the presence of an uncountable number of illegitimate forex brokers is evidenced by a missing local FX regulator. Thus a company may easily be incorporated in the Marshall Islands, but to be regulated there is not possible.
So DowMarkets is NOT REGULATED, and thus is a risk to all investors.
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.
Note that the broker may provide its affiliates, or any third parties with which it operates (names undisclosed) with users’ personal information.
Furthermore, in case the client enters into a dispute with a third party, the broker is not liable, and will not be held accountable for anything.
DOWMARKETS TRADING SOFTWARE
The trading software utilised here is one of the most interesting ones we have come across in a while. It is not, however, the alleged MT4 that he broker mentions to be offering.
Aesthetic wise, this web based trading software is not easily surpassed. What about the features? Here is where it fall short. There is a very limited number of features, the only one worth mentioning being the chart customisation opportunities. It achieves to be useful and very handy with a very limited of features, which in itself is an achievement.
Note that DowMarkets will close down an open trading position within 21 days. This is very worrying… usually a user is allowed to hold it open for as long as she wishes.
DOWMARKETS DEPOSIT/WITHDRAW METHODS AND FEES
The payment area for registered users gives us the following payment gateways: Visa, MasterCard, Zotapay, a range of crypto wallets, Cardpay, e-Payouts, and CEX.IO. However, we were not able to go forth with the funding process because the broker wanted ID docs to verify who we were. Even though this is a good sing, there are far too many fraudulent signs for us to recommend anyone to deposit. The account section, claims the minimum deposit to be $250.
The withdraw section reveals nothing because we had not deposited. According to the Terms and Conditions, the minimum withdrawal amount is $50. If less than 5 trades are made prior to the withdrawal, an additional 5% charge shall be levied from an account. There is no indication on a withdrawal processing time.
There are additional fees that apply. These include but are not limited to spread commission, other commissions and charges. The fees structure is nowhere to be found. So be aware that DowMarkets may at any time charge an unexpected fee. Furthermore, the broker can change the structure of fees at any time without notice.
The dormant account fee of 5%, no less than 25$, will be deducted each month after 90 days of inactivity.
Before withdrawing a bonus, the user must complete a turnover requirement. The structure of this prerequisite is uncommon, as it changes depending on the amount of bonus granted to the user. A $10 000 bonus need to be traded with $10 000 000 times for every $1000, whihc is completely absurd. And the requirements keep building up:
The company can close an account without giving a reason, at any time it wishes:
Here is one of the worst provisions, stating that the broker may use a user’s account funds in any way it sees fit. This is absolutely prohibited by all regulaotrs!
With these in mind, we urge you not to deposit in DowMarkets! You will certainly lose all funds!
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.