Fxlivemarkets Review – 5 things you should know about forexlivemarkets.com

Fxlivemarkets Review – 5 things you should know about forexlivemarkets.com

Beware! Fxlivemarkets is an offshore broker! Your investment may be at risk.

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Fxlivemarkets is trying to pool the wool over our eyes trying to look legit and claiming to be founded in 2010 and serving more than 150 countries. With such long and widespread experience how come its manager Owen Hunter is not in the public space? What other lies are out there and should you trust this broker with your precious money? Here are the answers.

Fxlivemarkets Regulation and safety of funds

From the Client Agreement and Terms and Conditions document, we understand that Advanced Binary Technologies Ltd with a principal address in St. Kitts and Nevis operating under the trading name Ideal Trader Options is the owner of the website. For your information, St. Kitts and Nevis is an offshore zone for forex trade without an official regulator for forex brokers which automatically makes Fxlivemarkets non-legit as it lacks registration as well as license to operate as a provider of financial and investment services.

In the Contact Us section on this broker’s website, there is an address in the US. However, first of all, US citizens are banned from trading with this broker, as per the information on the website, and secondly, the name of the company is not in the register of the US National Futures Association (NFA), the self-regulatory organisation for forex brokers.

This is a double whammy for this dodgy broker and our advice is to stay well away from it.

Licensed and reliable brokers can be found in some well-established jurisdictions, such as the US, the EU and the UK where strict regulations ensure that clients’ funds are kept safe and all precautions against scammers are set in place. First of all, forex brokers in these jurisdictions must be well-capitalised and for the US it means investing $20 million and in the EU and the UK, 730,000 EUR in the form of initial capital. These huge amounts of money serve also as a barrier to keep scammers out as they will never invest so much money for the benefit of looking legit. Other measures include keeping clients’ funds segregated from broker’s, report transactions on a regular level, keep low leverage, conduct internal and external audits, etc. The downside of trading with US brokers is that they do not participate in compensation funds or schemes from which in case of bankruptcy their clients can get compensations, whereas in the EU and the UK, such funds and schemes exist. UK brokers participate in the local Financial Services Compensation Scheme which provides up to 85,000 GBP per clients if the broker goes bankrupt, whereas EU brokers participate in a local investor compensation fund which provides up to 20,000 EUR per client in case of bankruptcy.

Fxlivemarkets Trading software

If you register a trading account with Fxlivemarkets and go to the dashboard, you will find out that there is no trading platform. What you get is just a display of a chart developed by the third-party TradingView that cannot be used for executing trades. So if you cannot trade, then what are you supposed to do? As per this broker, clients earn profits depending on their invested capital and get a 15% referral bonus for each person they introduce. In addition to that, clients are being offered investment plans that bring a high return on investment profit. For example, in the Starter plan which has a minimum initial deposit of $1,000 the weekly ROI is given as $5,400 minimum and $5,400 maximum return. In fact, this is a high-yield investment program that is not realistic in what it offers to the clients as the money are not made in real trade but is based on bringing in investors.  This makes joining Fxlivemarkets extremely dangerous as it is obvious that it is a scammer scheme.

 

Fxlivemarkets dashboard

 

Now let’s take a look at the next image showing the leverage for forex and cryptocurrencies. You can see that the leverage for Bitcoin is 1:100 and for the EUR/USD it is 1:1000. Trading with such high leverage is very dangerous because it amplifies the exposure to risk for clients’ funds in case of unsuccessful transactions which happens to 70% of traders. It is not by chance that regulated brokers in the EU and UK cannot exceed leverage of 1:30 for forex currencies and 1:2 for cryptocurrencies. In the US, the cap for the forex currencies leverage is 1:50.

 

Leverage

 

Obviously, the trading conditions offered by Fxlivemarkets are not to traders’ benefits and this scammer is looking for ways how to fleece its victims.  We advise you to look for a licensed forex broker that offers good quality trading software such as the MetaTrader 4 or MetaTrader 5 trading platforms which are considered to be the Rolls-Royces in forex trade. Both platforms offer excellent packages of trading tools and instruments that do not disappoint and consist of an auto trading option, VPS, an app market, trading signals, a financial calendar, etc., that enhance clients’ trading performance.

Fxlivemarkets Deposit/Withdrawal methods and fees

We already mentioned the investment plans that are located on the left-hand side of the dashboard. They are in fact 4 – Starter at $1,000, Platinum – $2,000, Bronze $5,000 and Gold $10,000 and clients’ profit are heavily subjected to unrealistic expectations for high ROI.

The only payment method for deposits is in Bitcoin.

Withdrawals can be made in Bitcoin, Ethereum, Litecoin and bank transfers and the minimum withdrawal amount depends on the choice of payment method. For example, the minimum withdrawal amount for Bitcoin and Litecoin is $10 with $2 fixed charges and another 2% fee. For Etherum, the minimum withdrawal amount is $5 with the same charges and fees. For banks transfer, the minimum withdrawal amount $100 with the same charges and fees but the duration of the processing time is 2 business days whereas for cryptocurrencies it is instant.

Please note that payments made in Bitcoin and via bank transfers will limit your options for filing for a chargeback as we explain in the last section of this review.

How does scam work?

A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.

What to do if scammed?

Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.

Rich Snippet Data
Review Date
Reviewed Broker
Fxlivemarkets
Broker Rating
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