Beware! AvalonMarkets 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.
Now here is name that is worthy of a brokerage firm. AvalonMarkets certainly has the bearing of a respectable name to go with a stable and authoritative brokerage firm, that nevertheless puts its customer base as priority first and foremost. Too bad that the reality does not meet our expectations, for AvalonMarkets does not deserve such a title. This is a very simple and limited broker, one that hides behind a crumbling facade, that desperately tries to conceal its true nature as a shady firm that is out to get your money.
To sign up, a user must complete a simplistic form, and after 10 or so seconds, she has activated a live account. The account section is decent enough, however what breaks it is the lack of a functioning trading platform. What needs to be said for now is that there are no trading conditions applicable here. So whatever leverage of spread AvalonMarkets claims to be offering is sheer deception.
The website can be used in English only.
AVALONMARKETS REGULATION AND SAFETY OF FUNDS
The footer of the company website claims the broker to be registered with the Securities and Exchange Commission (SEC). SEC is a an independent agency of the US federal government, and it has nothing to do with the regulation of FX brokers. In the US, this task fall into the hands of the the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). which we guarantee have nothing to do with AvalonMarkets We don’t even believe that AvalonMarkets is located in the United States.
It seems that AvalonMarkets is yet another lie, but most notably yet another clear example of an UNREGULATED broker. Such entities cannot and should not be entrusted with any sort of outside capital, because they will take it and never return it.
For your information, if you think that we labelled this brokerage as an unlicensed entity too fast, we ransacked the website for any solid regulatory proof and found nothing. So the conviction remains.
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 considerable proof that AvalonMarkets has no legal documents to speak of. Once a user is finished with the registration procedure, he has to click on the “agree to the T/C” in order to finalize the process. Yet, these Terms and Conditions were not hyperlinked with any link to existing legal docs. What’s more is that the website is also guilty of not including any legal provisions. It goes without saying that without any legal documents, there is no professional relationship between the client and the broker. Without this essential contract, the broker is free to do what ever it wants with the users info and capital!
AVALONMARKETS TRADING SOFTWARE
The trading platform here is nothing more than a third party chart with irrelevant trading conditions.
This is not a trading terminal, and all of the seen assets and values are in no way connected to AvalonMarkets.
In fact, the true nature of AvalonMarkets is revealed in the “Start Trade” portion of the user dashboard. This section reveals that a Return of Investment (ROI) scheme has been put into use here.
At the heart of this is a basic interest rate scheme. The promise is simple: a user deposits a sum and expects to get an interest rate over his or her deposit. Where this interest comes from, and who would spear it is a mystery.
As you can see from the above snip, the ROI is 50%.The user is allegedly trading with the EUR/USD pair and expecting some sort of profit, when in reality the user has just deposited an amount that she will never see again. At least, this is what we assume
Furthermore, and this is as a side note, AvalonMarkets has manged to screw this up as well. Usually, those brokers that offer such ROI schemes have simplified the process. AvalonMarkets has done the exact opposite, and has achieved to confuse us. The resulting mess has us puzzled over how exactly this scheme works. In the end, what really matters is that there is no real trading platform here, and all your funds will be stolen!
AVALONMARKETS DEPOSIT/WITHDRAW METHODS AND FEES
Bitcoin, PerfectMoney, and Skrill are the sole depositing gateways. However, the Skrill and PerfectMoney option were ultimately unavailable. So the only real way to deposit is via a Bitcoin address, which is the favorite way fro illegal brokers to steal your money because many BTC transfers are untraceable. There is no limit on the minimum deposit.
Withdrawals are also done by means of Bitcoin. This time there is a minimum withdrawal amount of $500, which is way too much. There is no clearance on any fees or processing times.
The missing legal documents can be seen as even a more worrying sign than the usual scammer clauses that we include as part of these reviews. The fact of the matter is that without legal documents AvalonMarkets can do what ever it wants with the users funds and information, as there is nothing in its way to stop it. We will never recommend this company to anyone. Do not deposit here!
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 will 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.