Beware! CMGmarkets 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.
More and more suspicious brokers keep coming out with interesting website, that are both filled with information, and have a decent visual style that is easily accepted as the industry standard by more novice traders. The information is there to hide some of the shady ongoings of the broker. We believe that CMGmarkets fits this description very well. Some of you might think differently, and to that we would like to remind that to judge a broker by its visual style is a mistake that illegitimate brokers hope traders make. Read the review to find out all the important details about CMGmarkets.
To register an account, users must go through a very familiar process, that has been covered in over a dozen previous reviews. All these reviews talked about illicit brokers… The follow up was a user dashboard, giving us a very limited number of choices, while also being reminiscent of previous illegitimated brokers. The trading platform gave us a EUR/USD spread of 8.2 pips. At first we though this to be a joke, but all the evidence was there:
However, there was the opportunity to open a different trading platform. There, the spread for the same pair was 3 pips. An improvement, but still not one bit favorable to traders.
Our leverage was capped at 1:100, while the trading assets are forex pairs, commodities, crypto, indices, and shares.
The website comes in English, Arabic, and Spanish.
CMGMARKETS REGULATION AND SAFETY OF FUNDS
The parent company of the broker, MitzHolding is said to be operated from St. Vincent and the Grenadines.
St. Vincent and the Grenadines is, for those not yet aware, the favorite location for illegal brokers. This is due to the fact that the nation does not have an FX regulator. So, all brokers there are unregulated; it makes no difference if they are registered there or not.
With that out of the way, there was no other information on a probable regulation. To conclude, CMGmarkets is UNREGULATED, and a risk to any investment made in it, no matter how big or small!
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.
CMGMARKETS TRADING SOFTWARE
The first platform that we were able to access was the MT4 that went under the parent company name. There the spread for the EUR/USD was 8.2 pips.
The MT4 is by far the best choice form any brokerage in the industry. Out of all the legitimate brokers that we reviewed, 99% held the MT4 with great esteem. The MT4 office is chuck full with opportunities, and users from all around will see that the more you use it, the more trading options will emerge.
The second platform was the Status WebTrader, where the spread was 3 pips.
Aside from pending orders, one point clicking, some options for chart customization, and copy trading, Status has nothing else on offer, which makes this terminal a great choice for scammer firms. It might look complicated to some, but rest assured that it takes very little time to become an expert in it, after which you will easily get bored with it.
Please be aware that CMGmarkets can change the margin requirement without notifying the user first. This is a dirty move, and it can create difficulties for traders.
CMGMARKETS DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit as seen in the client payment area is $250. Users can fund an account via the following options: credit card, wire transfer, MT5 (not connected to the trading platform; a shady service at best), PayTrio, and a range of cryptocurrency options.
Withdrawals are processed within 5 days tops. We think that there might be a 20% commission on all withdrawals. We are not entirely sure if this is the case, however seeing that the clause is taken from the Terms and Conditions, we have to believe it. A 20 per cent commission on withdrawals is huge, and not really worth any trades on the user’s part.
If a user has not logged in and trade from her account in more than three months, then the brokers will penalize said user with a monthly fee of 10%.
Here it is ladies and gentlemen. The Non-Deposited Funds clause; the one provision that once and for all staples this a scam broker. Non-Deposited Funds include funds that are gained from trading, or in other words, profit. CMGmarkets has prohibited the withdrawal of Non-Deposited Funds. Users cannot withdraw funds gained from trading. What else is there to add?
The broker can terminate the account of a user at any time, for what ever reason, without notice.
The following indemnification clause is one of many similar provisions that we read throughout the Terms and Conditions. With it, the broker makes it clear that it will not be accountable for any financial damage arising from its services offered to clients. This is one of the most important provisions, as it indemnifies the broker and clears its name.
If that was not enough, all claims against CMGmarkets will be nullified in 12 months.
There is more than enough evidence that CMGmarkets is a scam, and worse of all- it will take your capital and never return it to you. All in all, there is absolutely no conceivable reason why you should deposit here!
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.