Beware! CV Markets 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.
The trading platform, Terms and Conditions and account types of CV Markets look like carbon copies of not one or two but three other dodgy brokers about which we already warned the readers not to engage in any trading activities with as the risk of losing their funds to those scammers are quite high. So here goes another one unreliable and non-legit broker trying to fleece potential traders.
CV Markets Regulation and safety of funds
The website of CV Markets is owned and operated by CV Markets Ltd which supposedly is registered in the UK. We searched the site of the Financial Conduct Authority (FCA), the official body in the UK that provides licensed and regulates forex brokers. We were not surprised when the name of the company did not appear in the FCA register (image below).
There are many dodgy brokers pretending to be registered with FCA. However, a simple search always reveals their shady intentions because forex brokers in the UK are ones of the most strictly regulated and there are many measures set in place to prevent scammers from infiltrating their ranks. For example, to get their license, forex brokers must invest an initial capital of no less than 730,000 EUR. As you can imagine, scammers will never match this amount for the benefit of looking legit. Other measures that scammers will never follow as it is not profitable for them are keeping clients’ funds segregated from the broker’s with tier-1 bank establishments, report transactions on a daily basis to provide transparency and avoid shady deals, provide protection against negative balance, observe limits on leverage and never offer bonuses or other incentives.
If you are looking to trade with a broker from the UK, you must know that one of the biggest perks is the fact that brokers regulated by FCA must participate in the local Financial Services Compensation Scheme which serves to compensate clients with up to 85,000 GBP per client if the broker becomes insolvent.
The regulations for forex brokers in the EU are also quite similar with the only difference that forex brokers licensed by CySec and contributing to the local Investor Compensation Fund will be able to provide their clients with up to 20,000 EUR per client in case of bankruptcy.
CV Markets Trading software
CV Markets is a forex broker trading in indices, commodities, forex and cryptocurrencies. The broker claims that the trading software it offers to the traders is a trading platform for champions but in fact, it is a web trader which is a rather simplistic platform with not much to offer to its traders (image below). What you see on the left is the menu with the trading products and their bid/ask price. In the middle is displayed the chart of one of the major currency pairs, EUR/USD, with the fluctuation of its price in a given time frame. From the bid/ask price for the same pair, we find out that the spread is 3 pips which is rather high compared to the industry average of 1.5 pips. It is understandable why this broker offers high leverage as the revenue the brokers derive comes from the spread. However, the implications for the traders are that the cost of transactions will be high and they won’t be able to make a sustainable profit.
What is also worrisome is the high leverage this broker offers to its traders. If you look at the last image with the account types information, you will notice that the leverage can go as high as 1:400. First of all, this is another sign that this broker is non-legit as in the UK and the EU the leverage is capped at 1:30 and brokers cannot exceed it. Secondly, trading with high leverage presents risks for the trader’s funds as in case of unsuccessful transactions which happens to 70% of the traders, the financial loss will be even more considerable.
We already mentioned that the web trader offered by CV Markets does not do much for its traders. We suggest that you look for a licensed broker that offers either MetaTrader 4 or MetaTrader 5 trading platforms. They are considered to be the Rolls-Royces in forex trade and are choice number one among 80% of brokers largely due to some key features which include an excellent package of trading tools and instruments, such as auto trading option, trading signals, code base with customs scripts, VPS, a financial calendar, an app market, etc. The list of advantages does not end here. Both platforms are famous for their amazing charting options that offer many charts, time frames, colours, and even the option of customised templates, as well as the array of technical analysis indicators that help traders predict the future direction of exchange rates and make a profit.
CV Markets Deposit/Withdrawal methods and fees
The number of trading accounts offered by CV Markets is six – Self Manage, Basic, Gold, Platinum, Diamond and Libra. The minimum initial deposit is 250 EUR and the payment options include payments via credit card, bank wire and Bitcoin.
If a trading account stays inactive for 30 days, the company will charge a monthly fee of 99 EUR/USD/GBP. Compared to legit brokers, the period of inactivity seems short. Normally it would be at least 3 months or even 6.
The minimum withdrawal amount via credit card or bank wire is 100 EUR/USD/GBP and for Bitcoin, $250. The withdrawal fee is 1% or a minimum of 30 EUR/USD/GBP and a maximum of 300 EUR/USD/GBP for every withdrawal made.
We already mentioned that licensed brokers do not offer bonuses to their clients. However, this one does which is another sign that we are dealing with a scammer. Some people may think that bonuses are good as they add extra trading power. However, these are funds belonging to the broker, not the trader, and they are subject to some conditions that are hard to fulfil. In this case, the trader will not be eligible to withdraw the bonus amount or any profit made unless he/she executes a trading volume which is 50,000 times the bonus amount. Needless to say, this is not something easily achievable even for experienced traders.
How does scam work?
Actually, it’s quite simple and people often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
Our advice is to immediately file for a chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.