Beware! FxMarketReaper 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.
FxMarketReaper’s simplicity and style will certainly impress you, even more those among you who are new to the forex industry. The groove of the website is noticeable, as there is a cool flow from one section to the other, yet there are some many thing that are left out. The looks alone cannot save FxMarketReaper from our review. Read on to see what we think.
Creating an account was a step by step process, which is a good sign, and is a techniques used by many global brokers. This is always a very obvious sign that the broker you are dealing with is definitely unlicensed. However, these steeps turned out to be very simple questions, and the registration method in the end did not require any personal details, neither did it dig too deep into who we were. When we reached the end of the signing up process, the procedure was halted, and we could not proceed with reaching a user dashboard; the “complete registration” button simply did not work.
So what this means in essence, is that we could not access the user area, nor a trading terminal. So, we must rely on the website with crucial trading information, like a spread or leverage value.
As per the website, the leverage is capped at 1:500, which is the most common offshore value. The cost of trade is alleged to be 0.1 pips for the ECN account and 1 pip for the Standard account, which we find hard to believe, more so considering what the rest of the review reveals about FxMarketReaper.
The trading assets are cryptocurrencies and forex pairs, a very limited catalogue of instruments.
The website is only in English.
FXMARKETREAPER REGULATION AND SAFETY OF FUNDS
The Regulation part of the website claims that the broker is regulated by ASIC, the Australian licensing agency, and one of the top offshore regulators. By offshore here, we mean not part of Europe or North America.
It was no surprise that there was no mention of FxMarketReaper in ASIC’s register of licensed entities.
Also, there are no legal documents. The footer holds links to Terms, Privacy, and other alleged legal provisions, yet when we clicked on them they just redirected us to the home page of the website. This makes it even easier for us to conclude that FxMarketReaper is UNLICENSED, and therefore a risk to all those that deposit 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.
FXMARKETREAPER TRADING SOFTWARE
When opening an account, we had the choice to open three accounts: an MT4 one, a MT5 one, and a cTrader one. However, seeing that we could not finalise the registration process, we cannot confirm that these trading softwares are a part of FxMarketReaper.
Both the MT4 and MT5 are trading platforms that define forex trading as a whole, and we would be in a different place without these software. Both terminals have some much features and elements going on that it opens a universe of opportunities for traders; pending order, automated trading bots, price alerts, multiple charts, and so on… The MT4/5 are to what you compare other softwares, and it will always be like this it seems.
The cTrader is actually another high end trader, that has a much more likeable style than the Metaquotes softwares, but cannot compare in other ways to them. A leading feature of the cTrader is the ability to access a liquidity pool for better pricing and lower spreads. Another unique feature for cTrader is cAlgo, giving users the ability to write their unique trading algorithms, while also allowing for bots to automate users’ trading. Overall, a very solid and helpful trading software. However, how much these things apply to FxMarketReaper we cannot answer.
FXMARKETREAPER DEPOSIT/WITHDRAW METHODS AND FEES
There is no way to check the payment methods and consequential details in the payment area, because we could not sing up. So the website will have to do.
The base currencies are said to be AUD, USD, JPY, EUR, NZD, SGD, GBP, and CAD.
Withdrawal information is kept to a minimum. In fact the only information of withdrawals is that the methods for it ware the same as the depositing ones. Any fees, processing times, and minimum withdrawals are not mentioned.
The missing legal documents means that we will not be adding any clauses. However, the sheer lack of the essential documents is a sign that FxMarketReaper should not be trusted. All of the things that we have discussed in this review, all point to just how unsafe FxMarketReaper is for investors personal information, and especially deposits. Illegal brokerage firms are notorious for not returning deposits, and not allowing for withdrawals. Thus we advice everyone to stay away from FxMarketReaper, or at least deposit the minimum amount.
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.