Beware! FxMarket365 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.
FxMarket365 wants us to believe that it is an established forex broker based in the City of London. But this anonymous website does not provide any convincing evidence to support this claim. In fact, FxMarket365 shows many signs of financial fraud, and a low-effort one at that. Let’s take a detailed look at how you might recognize that FxMarket365 is not the legitimate financial services provider it claims to be.
FXMARKET365 REGULATION AND SAFETY OF FUNDS
Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.
As stated, FxMarket365 claims to be based in the United Kingdom.
In order to operate as a forex broker in this jurisdiction, a company needs a licence from the Financial Conduct Authority (FCA). But we find no licence in the regulator’s database, but a warning that FxMarket365 is not authorised:
If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the FCA.
These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority (FCA). 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.
FXMARKET365 TRADING SOFTWARE
On the website, one can see claims that FxMarket365 offers its clients the MetaTrader 4 (MT4) platform, one of the most popular software among brokers and traders worldwide. But FxMarket365 does not provide a link to download the software or credentials to log into its own trading server. There is no trading functionality in the FxMarket365 dashboard. This shows that FxMarket365 is a scam aimed at people without any experience and knowledge in financial trading who do not know what to expect from a real forex broker.
There are more than enough licensed brokers offering clients the MT4 experience and/or the newer version of the software 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.
FXMARKET365 TRADING CONDITIONS
When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc.
Instead, the descriptions of the FxMarket365 account types include only information on minimum deposits and claims of guaranteed and high investment returns.
A genuine broker will not and cannot promise you guaranteed profits. In fact, licensed companies are obliged by regulators to warn their clients about the high risk of losses when trading financial instruments.
The website specifies a minimum deposit of 250 EUR, but the dashboard specifies 100 EUR and the deposit menu itself accepts a minimum of 50 EUR. Such inconsistencies are typical of fraudulent websites. Many licensed brokers offer novice traders starter accounts with very low minimum deposits, sometimes as low as 5 currency units.
FxMarket365 also claims to offer cryptocurrency trading and promises bonuses. Both of these practices are prohibited by the FCA, so this is further evidence that FxMarket365 could not be a licensed broker based in the UK.
FXMARKET365 DEPOSIT/WITHDRAW METHODS AND FEES
In the FxMarket365 deposit menu we see many options, but the only really active ones are cryptocurrencies and bank transfer to a personal account.
What both methods have in common is that they do not allow for a refund or a chargeback to be requested. This makes them convenient for financial fraudsters. Legitimate brokers typically offer clients a wide choice of transparent payment methods, including credit/debit cards and established e-wallets such as PayPal, Skrill, Neteller and Sofort.
The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet withdrawal terms.
HOW DOES THE SCAM WORK
Unfortunately, the internet is full of scammers. In the age of cryptocurrencies, many of them pretend to be brokers and take advantage of people’s desire to get rich easily through financial instruments they don’t really understand.
Fake brokerage sites lure you in with promises to take on all the difficult and confusing aspects of investing for you. If you make contact with such sites, they will first convince you to make a small, “risk-free” investment of a few hundred dollars. Experienced scammers will then begin to persuade you to “invest” more and more money, and will even deceive you into believing that your initial investment is generating incredible profits.
But you will never see those profits or the money you deposited. These scammers hide behind fake names and offshore shell companies that are not subject to oversight and regulations like regulated brokers. They use cryptocurrencies or other shady payment methods that make refunding money difficult or often impossible. The terms and conditions of these sites are riddled with pitfalls that block withdrawals with impossible-to-fulfil conditions for minimum traded volume and extremely high fees reaching 10, 20 or more percent of the amount.
WHAT TO DO WHEN SCAMMED
If you find yourself in such a situation, you should be very careful not to fall into the clutches of other fraudsters while trying to recover your money. Offers from people on the internet who promise to get you your money back from scammers for an upfront fee are also one hundred percent scammers.
If you used a credit or debit card for the transactions to the scammers, there is some chance you can get your money back by requesting a chargeback. Visa and MasterCard allow this to be done within 540 days. But such a claim can be challenged if you have provided the scammers with documents such as a copy of your ID and proof of address.