Beware! FeMarkets 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.
At first glance, FeMarkets can be very intimidating. The broker unloads a considerable amount of information on its home page. This has the potential of both frightening and sparking an interest in the trader, and we think that this is the goal that FeMarkets endeavors to achieve. Read this review first if you wish to trade with FeMarkets, for it reveals a lot about the broker that it does not want its users to know.
The home page has a quick registration form, which we filled up in no time. The follow up was a user dashboard that was similar in vision and feel to the main website. There exists a web trading platform, that overall offer closes to nothing but buy/sell options, meaning that it might be one of the most useless platforms we have encountered.
The EUR/USD spread there was 1 pip, which is a very solid cost of trade and offers lucrative opportunities for traders. Our leverage was changeable to 1:1000. Please be aware that this is a very dangerous amount, and it can easily lead to complete loss of funds if users are not careful.
The financial instruments that the broker allows to be traded with are forex pairs, cryptocurrencies, and stocks. The platform also reveals that it offers binary options trading services.
The language bar expands immensely, revealing over 20 languages, all part of the Google translate package. Brokers who are using this service are lazy, and thus put very little effort into providing a decent trading environment.
FEMARKETS REGULATION AND SAFETY OF FUNDS
There is no information that FeMarkets is a holder of a legitimate FX trading license. It is as if though FeMarkets has not even tried to lie about its illegitimacy. We are aware of how this sounds, yet considering that most unregulated brokers attempt to deceive users by claiming false assertions, FeMarkets seems pretty lazy.
The About Us page claims that the broker is “regulated and governed” by MiFID. MiFID is a legislation by the EU on how to regulate financial markets in the union. It aims most of all to standardize trading practices across the European Union. However, it is not a licensing body, and so it cannot regulate the plethora of forex brokerages. In Europe, the job falls most of the time to CySEC or the FCA, yet some countries have their own regulators.
So, FeMarkets is NOT IN POSSESSION OF A REGULATION and is therefore a risk to all investors!
All user who are interested in trading Forex or CFD, are urged to do so only with the real regulators of the industry. Some of the most renowned and secure are the FCA and CySEC. These regulators act upon a set of rules that have been put into a legal framework with the local governments, and that is why users should trade only with brokers regulated by them; once a broker is granted a license from one of these watchdogs, they immediately adapt these legal frameworks as their own rules of conduct. What’s more is that the FCA and CySEC make it is obligatory for all brokers under their gaze to participate in financial compensation schemes; 85 000 pounds per person for FCA, and up to 20 000 euros CySEC.
FEMARKETS DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit as per the user trading area is $250. This is the most common minimum deposit requirement to date. The user area also revealed through what methods the funding of an account can happen: skrill, bitcoin, PerfectMoney, Payeer, WebMoney, airtm, credit card, and debit card.
Withdrawals are made through the same methods as the depositing ones. There is no clear mention of the processing times, however, the Terms and Conditions did mention that a withdrawal amount can take up to 10 days to reach a user’s account. There is no clear indication of withdrawal fees. For example, the Terms and conditions do not mention any commissions or similar.
Overall, we have to admit that we see some semblance of potential here. If the firm took its time to focus on legitimate services, with a year FeMarkets can become regulated and would receive a positive score, because many of the trading conditions are decent. However, for now, FeMarkets is not worth any investment!
How does the scam work?
Scammers have been known to use the same type of scammer structure, with just different hues and approaches. With that said, the way the scam works is actually incredibly easy to grasp, and once yo know how it works, yo will always be able to detect it.
The first step to being scammed, if we can express ourselves so, is to be lured in by an ad online. These are found all over the internet, but especially on social media websites. Illicit FX firms advertise false promises and fake trading conditions. Internet users that are tempted by these will either be redirected to a so-called robo-scam website or straight to the unlicensed entity. These websites will require you to register with an email or a phone number, and once you provide these details, you will start getting contacted by reps of these scammer firms. These reps require a minimum deposit from users, and will probably achieve to convince you because they are charismatic and confident in what they do.
However, they are no match for the expert scammer, whose goal is to talk you into making more deposits, and in the end will tell you that you cannot withdraw your funds for a number of reasons that will sound suspicious. In the end, what matters is that the client will not be able to withdraw his or her money back.
What to do if scammed?
The only thing to do in that case is to file for a chargeback with your credit card provider. VISA and MasterCard have extended their chargeback time span to 540 days, so good news for those that at have deposited by either of these methods.
If you have deposited via bank transfer, be sure to block the account or change the password. Or you could contact your bank and see what they can do.
Never deposit funds using crypto methods into an unregulated broker. These methods are untraceable, and there is no way to get your money back.
Last but not least, do not trust the so-called recovery agencies, who are nothing more than fraudsters in disguise. If you get scammed, you might get contacted by someone claiming to be a recovery agent who is willing to fight for your money back, in exchange for a small hiring fee. Once you pay them the fee, they will disappear.