Beware! NewRichMarkets 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.
NewRichMarkets comes prepared with charts and an aesthetic look that has the potential to trick you into thinking that NewRichMarkets is more than a suspicious broker, which NewRichMarkets definitely is. We have reviewed thousands of brokers, and so we have an eye for such things. Yes, NewRichMarkets does not look like it, but trust us when we say that there is something hidden behind the facade of the company. Read the review to find out why we think NewRichMarkets is suspicious, and witness how things will escalate.
Registering was extremely simple, and we were led to a browser trading software which also served as the main page of the client dashboard. This has become a trend amongst shady brokerages, and is immediately confirming our suspicions that NewRichMarkets may not be what it seems.
The EUR/USD spread is 3 pips, an amount useful only to the broker itself, while users cannot profit from this. The leverage was capped at 1:100. Users can trade with forex pairs, commodities, stocks, crypto, and indices.
The available languages are English and Russian.
NEWRICHMARKETS REGULATION AND SAFETY OF FUNDS
The company’s parent company would matter if it was not located in Saint Vincent and the Grenadines, because this location has become so common with scammer brokers, that the moment we see it mentioned somewhere, we immediately know what follows.
Saint Vincent and the Grenadines is a country that does not regulate FX brokers and as such cannot issue licenses to the FX brokers located there, which surpass the thousand mark. NewRichMarkets is one of these, and as such is definitely not licensed in the Caribbean nation.
There is no other mention that the broker at hand is regulated by any license issuer, or that it is located anywhere else but in Saint Vincent and the Grenadines. Thus NewRichMarkets is definitely NOT IN POSSESSION OF A LICENSE and as such is a direct risk to all invested capital!
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.
We have to mention just how limited in nature the website of NewRichMarkets is. The legal docs are very short and uninformative, and the website offers close to no information on trading conditions and payment terms, which are the two staples of forex brokers. Without this info, users have to register if they wish to get a hold of any similar details.
NEWRICHMARKETS TRADING SOFTWARE
Here we have been granted access to an above average trading software, that we have seen before. Most recently we found something similar with UFT Group, another illicit firm .
This trading terminal is nothing to get your hopes up about. Literally, the only two distinct options that users can utilise, are pending orders and some varied chart customisation options. And that is it; aside from that, this platform has nothing else to offer. Furthermore, it does not even look nice, with a very lacklustre visual. Overall a passable experience.
NEWRICHMARKETS DEPOSIT/WITHDRAW METHODS AND FEES
The deposit information was taken from the payment gateway located in the client area. There is was revealed that the minimum deposit is $50. Payment methods are as follows: Credit and Debit cards, bitcoin, and deposit by phone.
The withdrawal area is very limited and does not say anything about a minimum amount or any fees. The only info we have is that withdrawals are processed within 24 hours.
There is of course an indemnification clause that absolves the broker from any guilt that might arise from a user’s usage of the site, and any consequences that occur due to said usage.We will not include it because it is away to long.
The bonus received, the so called “Refer a Friend”, cannot be withdrawn within the first three months of the receival of the bonus. Furthermore there is a trading requirement that must be completed before withdrawing the bonus: 0.10 standard lots times every $1 of the bonus.
It turns out there is another bonus scheme, called the “UP TO 50% Bonus”. Here users must also make a trading turnover that has not been disclosed at all!
The legal documents are short in content, and as such do not provide many provisions. This for a scammer broker is both a good and bad thing, because having not many scammer provisions means that the firm will not fee you for unnecessary things. However, on the other side, the short legal docs with unregulated brokers might easily get updated by fraudulent clauses without the notice of users. These updates will come out of nowhere and will surely find ways to fee you for the usage of the website, or other ridiculous provisions. Furthermore, the high spread, the lack of a license, and the overall feel of the broker all say the exact same thing that we have been affirming in the review: NewRichMarkets is not to be trusted with you money!
If for whatever reason you have decided to deposit here, we advice you to fund your account only with the minimum $50 requirement!
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 wil 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.