Beware! NbiMarkets 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.
NbiMarkets is an example of one of the most brazen types of financial fraud. This website attempts to pose as a representative of a regulated forex broker by illegally using the details of a legitimate company. This website will not serve us as an investment intermediary, but it is a good reminder of the importance of doing careful fact checking before putting our money on the line.
NBIMARKETS REGULATION AND SAFETY OF FUNDS
The first thing to look for in a forex broker’s website is which legal entity runs it, where it is based and what regulatory oversight it is subject to. Licensed companies are also required to provide a comprehensive set of legal documentation.
On the homepage of the NbiMarkets website, we first see a statement that it has been licensed for 15 years by the UK’s Financial Conduct Authority (FCA).
But in the footer of the website, we see another claim – that the company Nbi Investments Limited is licensed by Cyprus Securities and Exchange Commission (CySEC).
In the Cyprus regulator’s database we find such a company, but it operates through a different domain.
The NbiMarkets website is only available in Italian, but the account registration form, the dashboard and some of the legal documents are in English. Such inconsistencies are typical of fraudulent websites.
When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.
Under no circumstances should you trust your money to such anonymous websites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK. As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
NBIMARKETS TRADING SOFTWARE
Like many other fake brokers, NbiMarkets has a basic web-based trading platform. Scammers use trading software to fool their victims into believing that their money is really being invested and even bringing in profits.
While this platform has the basic functionality to place orders, it cannot compare to the capabilities provided by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It is no coincidence that these platforms have established themselves as the industry standard. 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.
NBIMARKETS TRADING CONDITIONS
The trading parameters described on the NbiMarkets website provide us with further evidence that this could not really be a licensed broker based in Cyprus, the UK or any other regulated jurisdiction.
NbiMarkets claims to offer four types of trading accounts with leverage reaching 1:400. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.
NbiMarkets also promises bonuses. Financial regulators prohibit licensed brokers from offering bonuses and promotions. In addition to this, NbiMarkets claims it is offering cryptocurrency trading, which is prohibited for brokers operating in the UK.
The minimum deposit required by NbiMarkets is 250 EUR. For the same or often lower amount you could open a starter account with almost any licensed forex broker.
NBIMARKETS DEPOSIT/WITHDRAW METHODS AND FEES
NbiMarkets claims to allow deposits and withdrawals via a wide range of payment methods. But the deposit menu is blocked if the account is not verified by providing a copy of ID. Financial scammers of this type often advertise conventional payment methods, but in reality only use cryptocurrencies, which prevents the defrauded from requesting a refund.
While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like Skrill, Neteller or Sofort.
If you are allowed to withdraw any money at all, the fees for doing so are substantial and as high as 50 USD. Legitimate brokers rarely charge transaction fees, and when they do these fees are much lower. There is also a monthly fee of 10% of the balance if the account has been inactive for more than six months.
And even more worrying, NbiMarkets charges a whopping 10% levy on accounts that withdraw funds before they reach “200 in turnover”. It doesn’t specify 200 what – presumably they mean 200 lots, i.e. 20,000,000 currency units. Such vague and extortionate clauses are typical of fake brokers.
We’ve seen the exact same deceptive wording with numerous fake broker, for example Cryptos Circus, Librapros, Globexbull, Onecapital Invest and CryptoChainGroup.
HOW DOES THE SCAM WORK
With all the buzz surrounding cryptocurrencies and NFTs, many people are starting to consider investing in the financial markets as a bid to improve their fortunes. Scammers on the internet have taken notice of that and take advantage of the ignorance of the general public by creating countless websites posing as brokers. These websites offer no real brokerage services and only deceive people into believing that their money is really being invested.
If you come across such a scam website and give out your contacts, you will be contacted by experienced scammers who will convince you that they can take on all the frighteningly complex aspects of investing for you. But you will never get any real profits, nor will you be able to get back the money you deposited. The terms and conditions of these websites are riddled with clauses that make withdrawing funds from your account unfeasible – for example, extremely high minimum trading volume requirements or hefty fees of 10%, 20% or even more of the amount.
Scammers hide behind fake addresses and names and operate through offshore companies that are not subject to regulation and scrutiny. So even if all the withdrawal requirements are met, they may simply disappear and move on to their next fraudulent scheme.
WHAT TO DO WHEN SCAMMED
It is very important not to rush into trusting people on the internet who offer to magically refund your money for a fee. These are also scammers, and they may even be the same ones who scammed you in the first place.
If you have made the transfers using credit or debit card, you can claim a chargeback. Visa and MasterCard allow this to be done within 540 days. However, such a request may not be approved if you have given the fraudsters documents such as a copy of an ID and proof of address. This will allow them to claim that the transaction is legitimate and approved by both parties.
