Beware! NGTCM 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.
NGTCM presents itself as a forex and CFD broker based in one of the global financial centers and offering world class customer service. But these claims do not stand up to scrutiny. NGTCM is in fact a typical scam website that makes only minimal efforts to appear legitimate.
NGTCM REGULATION AND SAFETY OF FUNDS
At first glance it is obvious that something is wrong with this alleged broker – the website does not mention the name of a legal entity that operates it. Legitimate brokers are required to provide detailed information about their legal and regulatory status.
Links to the Terms and Conditions and other legal documentation refer to the index page of the website. So in the case of NGTCM we don’t know who we are dealing with and what their terms of service are. This is more than a good reason not to trust them with your money.
The only specific information about the owners of this website is a contact address in London, United Kingdom:
But as with most scammers of this type, this address is fake. To operate in the UK, a broker must be authorised by the Financial conduct Authority (FCA). The lack of a company name and registration number is sufficient proof that NGTCM is not a licensed broker. For the purpose of this review, however, we checked the UK regulator’s database and predictably found nothing on NGTCM:
Trading financial instruments carries enough risks on its own, even for experienced investors. You should therefore make sure that the brokers you work with are legitimate and provide good terms. The best way to do this is to only work with brokerage firms that are truly based in leading financial hubs such as the UK and operate under the supervision of respected regulatory institutions such as the FCA.
These brokers have to meet stringent requirements for financial stability and transparency. They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.
NGTCM TRADING SOFTWARE
The NGTCM website presents the “state of the art” trading platform as the main advantage of this alleged broker. However, the platform in question is rather simplistic web-based software that can be seen in many other fake brokers.
While the platform has the basic features for placing orders, customizing charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
NGTCM TRADING CONDITIONS
The NGMC website lists five types of trading accounts. The minimum deposit for a Basic Account is 250 USD. In comparison, many licensed brokers offer micro accounts with lower deposits of around 100 USD.
The website does not provide any information on basic forex trading parameters such as spreads and commissions. The trading platform displays a spread of 0.4 pips for the benchmark currency pair EUR/USD. Theoretically, these are competitive levels, especially if not tied to additional commissions. But in practice, scammers like NGTMC only offer imitation trading, so these values don’t matter.
A leverage of 1:100 is set in the trading platform. In the descriptions of the account types, leverage levels of up to 1:300 are mentioned.
This is further evidence that NGTMC could not really be a licensed broker in the UK. The FCA follows the same rules as regulators in the European Union and limits leverage for retail traders to 1:30. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. Regulated brokers offer higher leverage only to professional clients who must meet high standards and forgo the guarantees enjoyed by retailers.
NGTMC also claims to offer deposit bonuses. Bonuses, promotions and prize games are practices prohibited by all leading regulators, including the FCA.
NGTCM DEPOSIT/WITHDRAW METHODS AND FEES
The logos of several payment methods – Visa and MasterCard credit cards and the Bitcoin cryptocurrency – can be seen on the NGTCM website. At the time of writing this review, NGTCM’s deposit menu did not allow a choice of payment method.
Such scammers usually only use cryptocurrencies because payments with them are non-refundable. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Sofort or WebMoney.
Due to the lack of publicly available Terms and Conditions, it is unclear what hidden fees and other traps may have been set by the scammers.
HOW DOES THE SCAM WORK
Fake brokers are a type of scam that has spread especially rapidly in recent years, aided by the excitement surrounding cryptocurrencies. People looking for ways to make money online can very easily come across one of the many scam websites of this type. Scammers are very skilled at convincing people to invest – first small amounts of a few hundred dollars, and then larger sums of money. Some of the scam schemes are quite elaborate and even use trading software to convince victims that their money is actually being invested and even racking up profits.
But when you ask to withdraw those winnings, or even your deposit, you’ll find it’s impossible – you’ll be told that a sudden change in the market has wiped out all your money, or that you have to meet impossible minimum trading volume requirements and pay huge fees and commissions hidden in the terms and conditions. Fraudsters can also simply disappear because they use fake names and offshore shell companies for their operations.
WHAT TO DO WHEN SCAMMED
If you find yourself scammed, the first thing you should do is notify the financial authorities in your country about the scammers’ activities, and spread the word online to warn other potential victims.
Your options for getting your money back are limited. If credit or debit cards were used for the transactions to the scammers, you have the option to request a chargeback. Companies like Visa and MasterCard now allow such requests to be made up to 540 days after the transaction. But keep in mind that if you have provided proof of your identity to the fraudsters, they may dispute that the transaction was voluntary. In addition, fraudsters typically use cryptocurrencies and shady e-wallets that do not allow refunds.
Victims of scams are often targeted by another type of online fraudsters who promise that their money can be refunded for an upfront fee. Under no circumstances should you trust such offers.