Beware! CentralMarkets.io 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.
We are reviewing CentralMarkets.io, a highly unreliable broker. We found their services to be pretty expensive, and they introduce way too many fees to drain your account up. The trading conditions offered are seemingly favourable, but the platform provided isn’t trustworthy enough. Most importantly, though, it’s an offshore broker, and we are going to show you why you shouldn’t deal with such entities in the full CentralMarkets.io review.
CentralMarkets.io REGULATION AND SAFETY OF FUNDS
CentralMarkets.io is a brand name of Duo Holdings LTD; a company allegedly registered in the Commonwealth of Dominica, which itself creates a plethora of problems. First of all, the Dominican businesses are wholly non-transparent, and you can’t unearth anything about them whatsoever. Then, the Caribbean island is a poorly regulated tax haven and not surprisingly overcrowded with scammers and dodgy companies. The local financial authority doesn’t even license the brokers there, so those companies work entirely unsupervised and may get involved in fraudulent activities without bearing the consequences of their actions. Your funds are not safe because CentralMarkets.io is a shady unregulated broker and a suspected scam. We’ll show why we believe so in the following paragraphs.
In fact, the same Duo Holdings LTD is running another broker we already reviewed- Kryptoknights. Follow the link provided to see how similar both entities are. Also, make sure to pay attention to the comments because it’s really interesting there.
Avoid CentralMarkets.io and see the high-rated EU brokers and British brokers instead. The European markets offer high-grade security, and there are even deposit insurance funds protecting traders’ money in case of insolvency or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. The European brokers are safe, so don’t hesitate if you are interested in trading and eligible to open an account there.
CentralMarkets.io TRADING SOFTWARE
CentralMarkets.io offers web-based trading software, including third-party provided charts. This makes them unreliable because the trading panel is functioning separately, which indicates that the platform is prone to fraud and price manipulation. Also, CentralMarkets.io’s trading software is nowhere near MetaTrader, so make sure to find brokers offering more sophisticated platforms.
To help you do so, we can offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists. The MT distributions are reliable and include advanced trading features such as Expert Advisors, Algo Trading, complex indicators and advanced charting tools. Traders can also access a marketplace with more than 10 000 apps that can be successfully fit into for better results.
The EUR/USD spread is floating around 0.2 pips, which is an excellent Buy/Sell difference, but don’t get excited about it. As already explained, the platform is susceptible to price manipulation, so the favourable spreads may turn out to be fraudulent. The Forex market is highly competitive, and it’s easy to find better opportunities by following the links provided throughout the review.
The leverage can be up to 1:500, an exceptionally risky ratio that’s no longer considered suitable for retail traders. 1:500 is so risky that if traders use it carelessly, they can suffer severe losses inflicted within minutes if not even seconds.
In fact, leverage is the most dangerous aspect of trading, so many financial authorities imposed regulations to reduce leverage-related risks. As a result, EU, British and Australian brokers limit their clients to 1:30, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
CentralMarkets.io DEPOSIT/WITHDRAW METHODS AND FEES
CentralMarkets.io’s minimum deposit is $250, which is higher than the regulated brokers’ requirements on average- $100. The funding methods are Credit/Debit cards, PerfectMoney and Quamtor. The latter is a crypto payment processor with a very bad reputation, and some people even claim it’s a scam. Anyway, we do not recommend any cryptocurrency deposits whatsoever because the digital coin payments are final, and it’s impossible to get your money back if things go wrong. On the other hand, people can dispute bank card transactions and eventually get a refund, so those payments are seen as much safer.
While discussing deposit methods, see some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated brokers on the lists are strictly regulated, so you won’t face scammers.
Now we are going to discuss some trading conditions that instantly raised the alarm. The minimum withdrawal amount is 50 UST for Credit/Debit cards and 100 UST for Wire Transfers. UST is a cryptocurrency that’s roughly at par with the US dollar, and it makes us wonder why the withdrawals, fees and other provisions should be UST designated. That’s fishy.
Each withdrawal will be a subject to 5% fee, which is a scam clause whatsoever. But that’s not the end of the story because there is a minimum trading volume each trader needs to reach to avoid additional charges. Well, the clauses we encountered are pretty unintelligible, and we wouldn’t like to speculate about it, but CentralMarkets.io indeed reserves the right to refuse withdrawals at any time. You can see what we are talking about in the screenshots below.
The inactivity fees are also highly unfavourable. After only 60 days of inactivity, an account becomes dormant and will be subject to a deduction of 10% or 100 UST (whichever greater) per month. That’s yet another scam clause.
There are trading incentives called Company Credits starting from 25% on the deposit. Well, just like many other provisions, the incentives’ provisions are also incomprehensibly presented, so we can’t speculate about this either.
Now, we are going to discuss the last clause in this review. It turns out that CentralMarkets.io will collect an annual handling fee of 3% above Libor (which they say is about 10%). So, they are going to cut another 13% from your balance for no obvious reason. On the other hand, LIBOR is nowhere near 10%, so the information presented is simply fraudulent. CentralMarkets.io’s business looks like a midday robbery, so make sure to stay away.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s effectively a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; that’s the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the trading results to show victims massive profits and ask for more money, promising to generate a fortune in no time. However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!