Beware! SpringMT5 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.
What kind of a name is SpringMT5 for a broker. It is obviously advertising the MT5, which is, in fact, available here, but this is not the way of doing things. By including the MT5 in the title, the broker strips a chunk of its identity and sells it for some very limited time in the spotlight. The short-lived fame is due to the fact that the website is half-broken, and users will notice this in a matter of seconds. The half-broken website is the first thing we noticed here and is the perfect introduction to SpringMT5, a sloppy and risky broker. Read the review for all the necessary details about this one.
The account creation tool was in Chinses with no way to translate it. So we could not create an account because the process kept giving us some error message that we could not translate for the life of us!
Without a way to register, we have to take all trading info from the website, as well as the payment ones. This would be normal if we had any trust for SpringMT5, but the broker has already proven to be a huge disappointment and even a bigger failure.
Allegedly the leverage is capped at either 1:400 or 1:200; we are not sure which value it is, because sources on the website claim different things- not too big of a surprise, seeing the condition of the broker.
The promoted tradeable assets are stock indexes, stocks, forex currency pairs, and probably other undisclosed assets. The spread is asserted as 2.2 to 2.7 pips for the average account, which is kind of worthless. The next account in the tier is one offering a cost of trade of 1.2 to 1.8 pips, which is better, but to activate it users are told to invest a minimum of $20 000! This is a great way to lure users into making a bigger investment.
The website is only available in English.
SPRINGMT5 REGULATION AND SAFETY OF FUNDS
We located an ASIC logo, as well as a claim that the broker is licensed by the NFA! There is also a subtle reference to FINTRAC, which is the Financial Transactions and Reports Analysis Centre of Canada, the nation’s national financial intelligence agency.
The latter of these three has nothing in common with the FX market, let alone with the regulation of it. As for the NFA license, first of all the US-based agency just to work with the CFTC to regulate a broker, and second, SpringMT5 cannot in a thousand years be licensed to offer trading conditions in the US.
Last but not least, we have ASIC, the national FX regulator of Australia. No, the overseer does not license the broker.
And anyway, a broker with such a poor website cannot be regulated. No one would take it!
SpringMT5 is nothing more than an UNLICENSED broker, and a risk to all deposits made in it.
To deposit in an unlicensed broker is the equivalent of throwing your money away for no reason. We always say that the first thing to do when dealing with any broker is to check for a license; this should be your priority! Usually, we would go for either an FCA or CySEC regulated brokers or other respected overseers. These regulators all employ harsh rules and impose very severe penalties on those brokerages that do not abide by the scrupulous rules. Furthermore, some agencies, like the FCA and CySEC, include reimbursement schemes to all users of brokers under their wings. These compensation funds schemes, as they are called, are put into action once broker cannot pay their clients back to bankruptcy. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
SPRINGMT5 TRADING SOFTWARE
Somehow the broker was able to get its hands on an MT5
We did not open it due to our inability to create an account, but we do vouch for its presence. However, the MT5 is not nearly enough to redeem the broker.
SPRINGMT5 DEPOSIT/WITHDRAW METHODS AND FEES
$7000 is the minimum deposit according to the website. This is preposterous and outrageous. No one can expect to invest this much money into such a sloppy broker!
Unfortunately, there is no further payment information! We find no payment methods, no withdrawal fees, nor any processing times.
The lack of payment details is just one reason why users should stay clear of this scammer broker. All your money will be lost should you invest!
How does the scam work?
The straightforward way into an investment scam is through the thousands of online ads that flood our browsers and social media sites. These are those familiar ads that promise impossible returns and luxurious lifestyles as a result of investing.
Succumbing to such ads will lead to either the scammer investment site, or to an intermediary source with close ties to this and other fraudulent websites.
In either case, the user will be asked to provide a phone number and probably an email address. The purpose of these is for the reps of the scam to be able to contact the client and push for initial investments. This is the first wave of the fraud, and is usually done by the rookie team.
The second wave is the pros, sometimes those behind the whole scam. These are charming and cunning individuals, whose communication skills can potentially result in the users to invest a second, or third, or even fourth time.
Basically, the scam continuous until the client realizes that she is being scammed. At that moment, when she wishes to withdraw or has questions for the scammer, it is already too late.
The culprits will easily ignore all requests or stall them. There are times when unlicensed brokers even terminate entire accounts, and on rare occasions entire websites are closed!
What to do if scammed?
The safest way to get your money back is to file for a chargeback using your credit or debit card provider. MasterCard and VISA have a chargeback period of 540 days. However, this only applies if you have deposited through a card.
Wire transfers are more difficult to reimburse, although some banks may have a specific plan for such times, so we advise users to directly contact their banks and ask them for help. What’s crucial is for users to change their bank account user names and passwords as soon as possible.
As for any funds invested through a cryptocurrency wallet, be sure that they are lost! Crypto transfers are untraceable!
And finally: never trust recovery agents or agencies. These are fraudsters who will ask for money in return for nothing. Do not trust these!