Beware! Nano-Markets is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Nano-Markets is a broker that offers trading in cryptocurrency only. They have four different account types – Green, Silver, Gold and VIP – starting from 10,000 GBP to 250,000 GBP, which is a very big amount compared to other brokers. They do not have a Demo account option, which is a definite red flag – all respectable brokers offer one.
We registered for an account by providing our names, email address, phone number, country and date of birth. There is a requirement (checkbox) to accept their Terms and Conditions in order to complete the registration but it worked without checking it – a sloppy implementation which was not the first one we noticed on their website. A confirmation email was not sent to our mailbox also, but we were transferred to the client area, which also acts as a trading platform.
Nano-Markets Regulation and Safety of funds
Nano-Markets is an anonymous entity – there is no information regarding the company behind the website, where it is registered or whether it is regulated. On the Contact Us page there is a UK and a Switzerland office addresses and a UK phone number. Because of the UK address and phone number we checked the FCA’s database for such entity but there is no record of them.
The broker claims to be “the premier U.K.-based blockchain platform”, but just take a look how this is presented. The statement looks like it is taken from a template, but whoever used it has forgotten to replace “Company Name” with the actual name:
The same holds true for the Terms & Conditions – take a look:
The links at the bottom of the first screenshot are intended to make potential investors feel safe about their funds or present additional features but in reality all 4 links go to a broken “404 – File or directory not found” page.
We generally advise traders to avoid anonymous and offshore companies and to invest with brokers regulated by reliable authorities such as the UK’s Financial Conduct Authority (FCA), or the Cyprus Securities and Exchange Commission (CySEC). These watchdog agencies impose strict rules on the brokers they license – Client Account Segregation requires that clients’ funds are kept separate from the broker’s operating funds, while Negative Balance Protection ensures that traders cannot lose more money than what they invested. Other policies include a Minimum Capital Requirement of 730,000 EUR in order to guarantee the broker’s good financial standing and participation in Compensation Schemes, which provide additional assurance for investors’ funds up to a certain amount (85,000 GBP in the UK and 20,000 EUR in the EU).
Nano-Markets is an unregulated, anonymous broker, however, and they are not bound by any rules or policies imposed by recognized regulatory bodies. We advise our readers not to invest with them as there is no guarantee for the safety of their funds.
Nano-Markets Trading Software
As we mentioned above, Nano-Markets’ trading platform is incorporated in their client area. It is a web-based software that allows for trading of crypto currencies vs. Fiat money and crypto currencies vs. Bitcoin only. It also looks quite limited in terms of design and functionalities.
There is a statement that would lead one to believe the broker has mobile platforms / apps but as we saw earlier it leads to a broken page. Respectable brokers provide access to established trading software for their traders, such as the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) platforms. MT4 is considered the world’s number one platform, preferred by over 80% of users. It offers an intuitive and user-friendly interface, advanced charting and analysis tools, as well as copy and auto-trade options. Its successor, MT5, has some advantages – it allows traders to execute trades on different financial markets through a single account and there is a hedging option. It boasts various features such as additional order types (“Buy Stop Limit” and “Sell Stop Limit”) and a built-in e-mail service in which it surpasses the MT4. Both platforms are available as desktop, web and mobile (iOS and Android) applications as well.
Nano-Markets Trading Conditions
The spread we see in the trading platform for BTCUSD is quite big – $90, while regulated brokers offer spreads of around 1% or $10. Such a large spread is not beneficial to the trader, but guarantees huge profits to the broker.
Nano-Markets does not say anything about the leverage they offer. Offshore brokers enjoy no restrictions on leverage, but leveraged trading entails significant risks, especially to inexperienced traders. High leverage provides huge profit potential, but also presents great risks to the traders because any losses incurred will be multiplied. That is why, most regulatory authorities impose leverage caps for non-professional traders: in the USA it is 1:50, while for brokers licensed in the EU and the UK it is 1:30. The Australian Securities and Investments Commission (ASIC) will also restrict leverage for major currency pairs to 1:30 from the end of March this year.
Nano-Markets Deposit/Withdrawal Methods And Fees
The broker provides a limited number of payment transaction methods for deposit and withdrawal – only the standard Credit Card and Wire Transfer are available. Although in the footer of the website we see the PayPal logo, there is no such option in the client area. Preferred by many traders alternative methods – e-wallets, such as Skrill and Neteller, are also not available.
Since we are not comfortable providing credit card information we tried the wire transfer option. It asks for an amount, currency and country, and says that “an email will be sent you shortly” – of course, we did not get an email.
There is no information about a minimum deposit requirement, but the minimum withdrawal amount is quite big – for wire transfers is 250 USD/GBP/EUR, while for any other method is 100 USD/GBP/EUR. The withdrawal fees are also excessive – see for yourself:
The bonus clause should also be noted – it is tailored in such a way as to make sure it will be very hard to withdraw bonus funds: if you get a $100 bonus you would have to trade at least $3,000 to do that. In conclusion, we have to note again that Nano-Markets is not a regulated broker and most probably a scam – investing money with them is a huge risk!
How does the scam work?
Users often fall prey to very simple but quite efficient scams. The first snare is usually an internet ad promising big profits over a short period of time, and all you need to do is provide your personal information, usually email address and phone number. If you do that, you will start getting calls from scam brokers who will continue with the pitches of quick and easy profits until you decide to make a first deposit of $200 to $300. On these funds the scammers get a fat commission and transfer you to senior “brokers”.
These expert con-artists are smooth talkers who start talking you into putting even more money in, because “now is the perfect moment” or “the more money you invest, the higher your profits will be”. Usually about this time most traders will start to feel the scam and will want to withdraw their money and get out fast.
Unfortunately, the scammers will not give in easily. First, they will try to persuade you not to withdraw right now because you will miss on “big profits”, and if that does not work, they will find numerous reasons to deny or delay your request by asking you for additional documents or claiming that there are some other causes for not executing the withdrawal. The ultimate objective in such procrastination is to make the traders miss the crucial period in which a chargeback request can be filed, and thus lose the chance of getting their money back.
What to do when scammed?
If you used a credit card to make a deposit with the scammers you should immediately file for a chargeback. Both VISA and MasterCard have increased the time in which you can file to 540 days, in part specifically to fight such online scams.
If you used bitcoin or some other untraceable source, however, chances of recovering your funds are slim. You might get approached by so-called “recovery agents”, but don’t fall for their tricks. They will ask for payment up-front to recover your money, but this is just another scam and you will not get anything back.