Beware! MarketSpots 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.
There are certain things that we are good at, and one of them is noticing when a broker is hiding something. Today’s company, MarketSpots, is up there with most of our reviewed broker, although it might not seem at first. It nevertheless is. The signs of its illegitimacy are hard to spot at first, especially if you are a novice trader. For us, one of the first signs was the structure of the website, the way things are laid out. The pattern we noticed is a popular one, used by many illegal brokers because it is simple to produce and it does the job of convincing users that you are trustworthy. Read the review to find out why MarketSpots is not worth it.
Trouble starts a-brewing with the broker early on. MarketSpots offered no registration form, meaning that clients can only register if they are invited by the company, which is completely unacceptable as an approach. This way of doing things is common among scammer brokers because this way they can easily pick the most vulnerable investors.
Without a registration, we have no way of accessing the user dashboard area, putting us in the tight spot of relying on the website for all trading and payment details. As you might have guessed, the website of MarketSpots is not entirely trustworthy.
The available financial instruments according to the website are forex currency pairs, stocks, cryptocurrencies, commodities, and indices. The maximum one can get is 1:400. There is no indication of a spread. Once again, none of this information is 100% vouched for.
The website of the broker is available in English and German.
MARKETSPOTS REGULATION AND SAFETY OF FUNDS
There is no mention of any regulation or applicable jurisdiction in the legal documents. These documents are long and tedious, but there is no info to claim that the broker is regulated.
In fact, the closest thing we get to helpful information is the following clause.
Things couldn’t get any more scammer than this. Through this provision, MarketSpots basically asserts that it is not regulated anywhere where the local law would be against it, which is a smart way of saying that the company is unregulated.
Furthermore, we find absolutely no evidence of a contact address, to help us locate the broker. MarketSpots is literally anonymous, and we believe that the only way to use it is if it finds you!
The client’s money will be put into the same account as one of other users of the broker. The worst part is that the company may use this money as collateral for open positions, but MarketSpots never indicates how much or when. Furthermore, the client’s money, once deposited, will be treated as the property of MarketSpots. There is definitely something suspicious going on here.
As you can see we have both evidence that MarketSpots is UNREGULATED, and client funds are not safe.
Investing in unregulated brokers is kissing your money goodbye. Always look for a license before investing into a brokerage, most preferably from either the FCA or CySEC, but also from other renowned agencies. These regulators have strict rules and prerequisites that all brokers must follow, or otherwise, penalties or foreclosure may follow! What’s special about the FCA and CySE said that they offer reimbursement schemes to all users of brokers that they regulate, covering their losses if the broker becomes insolvent. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
MARKETSPOTS TRADING SOFTWARE
We have no trading platform to work with here. Not only were we unable to access the user area, but the website itself is also barren of any platform download link.
We find written evidence that there is a commission on open trading orders, but no real disclosure as to the exact pricing model.
Overa.. without any evidence of a trading software, we cannot vouch for one.
MARKETSPOTS DEPOSIT/WITHDRAW METHODS AND FEES
None of the payment information is fully trusting, for it was taken from the website of an unregulated broker!
The minimum deposit according to the website is $10 000, which is absolutely ridiculous and unacceptable. The alleged payment methods are credit cards, debit cards, BPAY, and wire transfers.
The minimum withdrawal through wire transfer is $100, and $50 for all other methods. There is also an alleged 3.5% fee attached to all withdrawals. Withdrawals are processed within 3 to 4 days.
There is a very confusing clause on withdrawal fees, that we don’t really understand. What we assume it is saying is that there is a minimum turnover requirement of 1% of the total deposited amount and that the percentage is calculated in lots. If users do not meet thins requirement, then the broker will charge them a 4.5% withdrawal fee.
Please note that the terms and conditions are heavy on fee clauses for all sorts of ambiguous things!
The broker shall execute all dealings in accordance with the terms and conditions at its absolute discretion, meaning that it won’t warn the user of any changes. This way, the client might not be aware of important changes before it’s too late.
There is also the clause revealing that the policies concerned with the trading services can be amended at any time by the broker without notice.
Here are a couple of clauses that indemnify the broker from any financial damages, and other things, that it causes to the user.
MarketSpots has a ton more clauses like the ones we have included in the review. Their sheer number is a clear indication of how illicit MarketSpots is. Do not invest in this broker!
How does the scam work?
Online ads that seem extravagant, promising impossible returns, are the entry point into an investment scam.
When a user clicks on the ad, he or she will be redirected to one of the following: a scammer broker site or an intermediary website. The user will then be asked to provide a phone number or a phone number.
Giving in to these ads will lead to a deposit, initiated by the first level of fraudsters, whose skill as negotiators should not be underestimated. Once an initial deposit is made, the user has entered the scam.
The core fraudsters, a.k.a “account managers”, will try to keep users invested in the scam until the user does not realize he/she is being scammed. Usually, it takes around 2 to 3 deposits to realize something is off. The fraudsters might pay some profits, just to keep the client invested.
Once the client realizes she is being scammed, the broker would have either closed her account, shut down the entire website, or simply will not allow for a withdrawal.
What to do if scammed?
A credit or debit card scam is one in which users can most easily get their money back, through a chargeback procedure. MasterCard and VISA have a chargeback period of 540 days.
If the user has given the scammers money through a bank transfer then they must ASAP change bank account username and password and only then proceed to contact the bank, asking them for direct help.
Money invested through a crypto wallet is gone for good, because crypto transactions are untraceable!
Users might stumble upon these so-called recovery agents or agencies. They will say that they can recover lost funds in return for a hefty service fee. Needless to say, after the user falls for this, these agents will never be heard of ever again!