Beware! SiliconFXMarkets 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.
By the first look of it, SiliconFXMarkets stands out as a company for not the faint at hearted forex traders. The company deals in cryptocurrency and binary options, a highly risky undertaking on the forex market. If you are a newbie in forex trading you shouldn’t even read further but if you do, here are some reasons why you should forget about this company.
As soon as you register, a really simple procedure, you are taken directly to the trading platform. From there you can select your trading plan. We’ll discuss the details in those plans further down in this review.
SiliconFXMarkets Regulation and safety of funds
According to the company’s website, this brokerage should be registered in the USA and regulated by IFSC and CySEC. You should be aware that forex companies are not allowed to trade in binary options unless they are registered with the Commodity Futures and Trading Commission (CFTC) in the USA. However, all the searches we did to check about its registration and regulation came with zero results. Much as it may claim to be legit, this company is not, and probably we are talking about scam here.
What you should be aware of is that trading with binary options is heavily regulated in the USA as it is considered to be akin to gambling. And because of that, some companies that offer this kind of trade are trying to operate under the radar. In such cases you need to exercise caution and look for brokerages that are registered and regulated in the well-established jurisdictions, such as EU, UK, US and Australia. If you didn’t know this, let us tell you that legit companies need to meet strict requirements to be registered in those jurisdictions. Let us give you an example – to be registered in the EU or UK, a broker company must have an initial capital of no less than 730,000 EUR. In addition to that, they have to make contributions to a compensation fund and deposit 20,000 EUR if they are regulated by CySEC or 85,000 GBP if they are regulated by FCA, per client. In such case as the brokerage goes bankrupt, its clients won’t lose their money. Please ask yourself the question – would a scam brokerage bother investing so much money just to meet such requirement?
If a broker company does not appear to be legitimately registered and regulated, run away from it, and run fast! Actually such a decision is no brainer really because who will be foolish enough to risk their hard earned money with a shady business!
SiliconFXMarkets trading platform
What strikes us as highly suspicious and unacceptable is that the platform does not offer a demo account. As we already mentioned trading in cryptocurrencies and binary options is a high risk undertaking. If you are a new and inexperienced forex trader, you need a demo account to practice and gain knowledge and experience before you start any trading activities for real. And even more so where trading with cryptocurrency and binary options are concerned. Such brokerage company that doesn’t offer this option is not credible. Don’t trade via it as you’ll be undertaking a huge risk.
Tools and instruments on a binary options trading platform are rather limited (please see the screenshot above). All the platform does is let you have a choice of cryptocurrency, predict position and the amount button. You can define the expiration time and then sit back and watch whether you are going to win or lose. It may look very basic and simple, but the problem is that in such trade you think more like a gambler rather than a businessman and if this is combined with unrealistic expectations, you are at risk of losing more than you can gain. Some experts in the binary option trading even say that about 80% of the traders lose money on the binary options trading platforms. Do you want to be one of those? Think again.
When it comes to a trading platform what we always advise our readers is to look for a platform that offers a demo account which allows you to practice before you trade for real. In the forex trade world, two platforms stand out by the excellent trading software they offer. They are MetaTrader 4 and MetaTrader 5 and are very popular among forex broker as they offer excellent trading tools and instruments, such as a financial calendar and an app market, VPS, and automated trader. Another advantage is that they offer a demo account which as we already mentioned is pivotal to new traders. We strongly recommend you when choosing your forex trading company to check their trading platform and to choose a company which along with all other pluses has a trading platform with a demo account.
SiliconFXMarkets Deposit/Withdrawal methods and fees
The minimum initial deposit is $300 as you can see from the first screenshot. To deposit funds, traders can chose Bitcoin, Skrill, PayPal and MoneyGram. The company offers 4 different accounts – starter, silver, gold and VIP. The initial deposits for each account vary and the highest deposit you can make is $100,000. We also noticed that for each account there is a ROI (return of investment) percentage, starting with 200% weekly for the starter account and going as high as 400% weekly for the VIP account. It is not very clear how this brokerage is going to keep up with such high ROI or what type of guarantee for ROI are there in place. There is no terms and conditions document on this company website, so we don’t have a way of finding out how things are regulated. Which, of course, puts us on high alert for scam.
From the company’s website, we find out that requests for withdrawals can be made at any time and will be processed immediately. The withdrawal methods include Bitcoin, PayPal and a bank transfer. There is no mention of fees.
How does scam work?
A lot of people get scammed everyday, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for chargeback.
What to do if scammed?
Although there isn’t much you can do at this stage, nevertheless, you must apply for chargeback which is retroactive cancellation and refund of your deposit. However, this is only in case you have used a credit/debit card. Visa and MasterCard now allow you 540 days period in which you can file. If you are within this timeframe, there is a good chance that you may recover your money.
However, if you have used other payment methods, such as bitcoin or bank wire, chances of recovering your money are very slim. Also, we want to warn you to be cautious of the so-called ‘recovery agents’ that may approach you. Not all of them are genuine and probably most of them are scammers. So, before you choose a recovery agent, do your homework and research the company’s credibility.
Also, make sure you erase any links that give scammers access to your private information. If you have given them your CVV, make sure you cancel your credit/debit card. If you have given them access to your PC, erase any software that may cause you further damage.