Arakkal Markets review – 5 things you should know about arakkalmarkets.com

Arakkal Markets review – 5 things you should know about arakkalmarkets.com

Rating: 1

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

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Arakkal Markets is an offshore broker based in Saint Vincent and the Grenadines, which according to its website offers trade with currencies, CFD’s and metals. Due to its registration in a jurisdiction that does not regulate forex trading, its activities are not subject to any scrutiny and users receive no protections or guarantees. The theoretical initial deposit and spread terms it offers its customers are less favourable than standard for brokers operating under the supervision of reputable regulatory institutions. The lack of information and basic functionality on the site suggests that in all likelihood this is a fraudulent operation.

ARAKKAL MARKETS REGULATION AND SAFETY OF FUNDS

Because of the lack of regulatory norms and oversight, Saint Vincent and the Grenadines is one of the favorite bases of operations for shady brokers. While this country has a financial regulator, unlike other offshore areas, it does not regulate the activities of forex and CFD brokers. Тhe Financial Services Authority (FSA) of St. Vincent and the Grenadines has repeatedly issued warnings on this issue, with the latest such warning dated 23 June 2021. It clearly states that the agency “does not issue any licenses to carry on the business of FOREX Trading or Brokerage or Binary Options Trading nor does the FSA “Regulate, Monitor, Supervise or License” International Business Companies which engage in such activities”. So if you see a broker that claims to be regulated by FSA in St. Vincent and the Grenadines, you are most probably dealing with scammers.

If you want to try your abilities and luck in the world of forex trading, it is highly advisable to do so through legitimate brokers operating in one of the established financial centres in the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), National Futures Association (NFA), Commodity Futures Trading Commission (CFTC), and Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds, as well as guarantee for their funds in case the broker goes bankrupt. These guarantees amount to up to EUR 20,000 EU and 85,000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in United States.

ARAKKAL MARKETS TRADING SOFTWARE

Arakkal Markets claims to offer the latest version of the industry’s most widely used software – MetaTrader 5 (МТ5). However, this is very doubtful. Аt the time of writing this review, all the download links on the platform are inactive – both on the website and on the emails that the customer receives upon registration. It is not very likely that such a shady broker would really invest in the high licensing fees for cutting-edge professional software. But the blatant lie makes it look even more like a low-effort scam.

We can recommend a list of legitimate brokers who offer MetaTrader 5 experience to their clients. Despite being available since 2010, MT5 has only recently managed to overtake its popular predecessor MetaTrader 4 (MT4) in terms of users. Nonetheless, MetaTrader 5 has a number of advantages over MetaTrader 4, such as that it enables traders to execute trades on different financial markets through a single account.

Perhaps in an attempt to compensate for the lack of a real trading system, the Arakkal Markets’s website has a “live price” section, where it can be seen that the spread offered for most currencies is 3 pips and up, which is higher than usual and therefore unfavourable for the trader:

Arakkal Markets offers three account types – micro, standard and premium, with a minimum deposit of $500, $1,000 and $5,000 respectively. This is literally ten times higher than the established standard with legitimate brokers – in most cases they allow you to open a micro account with $100.

The proposed leverage is up to 1:300, a level long banned by most regulators because it involves too much risk for retail traders. Standard and premium accounts also allow usage of Expert Advisors software, but that means nothing, given that the platform cannot be downloaded and installed.

 

ARAKKAL MARKETS DEPOSIT/WITHDRAW METHODS AND FEES

The minimum deposit with Arakkal Markets is $500.

On the Arakkal Markets’s website itself, there is no information about the payment and withdrawal methods offered. Upon login in the barebones client portal only two possibilities are visible – an unspecified bank transfer and something called Amcash (which according to Google is a ERDF program for assisting SMEs). Similarly, nowhere can be found other basic information that one would expect from a legitimate broker – contract terms, trading conditions, fees, etc.

 

HOW DOES THE SCAM WORK

Unfortunately, for every licensed broker, there are dozens, if not hundreds of offshore registered and unregulated firms whose sole purpose is to scam gullible people. They recruit through attractive online ads, promising easy money for minimal effort. Once you have provided your details and they contact you, you fall into the hands of experienced scam artists, who confidently charm you until they con you out of real money in exchange for empty promises. Any attempts to recoup your initial deposit or additional investment will be blocked by confusing explanations and the catches written into the terms and conditions of the contract, such as hefty additional taxes and fees, amounting to 10% or 20% of your funds.

WHAT TO DO WHEN SCAMMED

The best chance to get at least some of your money back is to contact the bank or card company where the payment was made and ask for cashback. But there is no guarantee that your application will be approved, especially if you have provided your personal details like a copy of ID or proof of address to the scammers. It is important not to pay attention to offers from online companies to return your money in exchange for an upfront payment, because it is almost certain that they are also scammers.

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