Cmarketcap review – 5 things you should know about cmarketcap.com

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

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

According to the Cmarketcap website, it is a regulated forex broker offering innovative solutions for individual and institutional clients. But according to our fact-checking, this is yet another online scam targeting people without the necessary experience and knowledge of financial markets. Let’s take a detailed look at why it’s in your best interest to stay away from Cmarketcap.

Cmarketcap 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.

Cmarketcap claims to be based in the United Kingdom, and to be licensed not only by the UK’s Financial Conduct Authority (FCA), but also by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Services Commission in the offshore zone of Mauritius.

But immediately we see an obvious problem – no company name is given. Even in the text of the Terms and Conditions no specific legal company is mentioned. Moreover, the document refers to another offshore jurisdiction – Vanuatu.

A check of the records of the aforementioned financial regulators confirms that there is no authorised broker using the domain and trade name of Cmarketcap.

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 CySEC or FCA.

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.

Cmarketcap Trading software

The website advertises advanced trading software, but after signing up for an account we get access to a non-functioning web trading platform that doesn’t even display buy and sell prices.

But even if Cmarketcap had a more convincing platform, that would not make this website credible. Fake brokers use rigged trading software to mislead their victims that their money is really being invested. But this trade is entirely sham.

If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading platforms in the industry are 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.

Cmarketcap Trading instruments

Cmarketcap states that it offers trading in all major asset classes, including cryptocurrencies. The latter constitutes further evidence that this cannot really be a licensed broker in the UK because the FCA prohibits trading in crypto derivatives.

Cmarketcap Spreads and cost of trading

As stated, at the time of writing this review, the Cmarketcap trading platform does not show a spread. The descriptions of the different account types also lack information on the price paid by the trader.

Cmarketcap Maximum leverage

Cmarketcap claims to offer maximum leverage between 1:5 and 1:20, which is actually lower than that offered by regulated brokers. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs.

Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.

If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

Cmarketcap Deposit and withdrawal methods

Cmarketcap only allows deposit of funds via Bitcoin.

Cryptocurrencies are the payment method of choice for most financial scammers. The reason for this is that on the one hand cryptocurrencies provide a degree of anonymity and on the other hand they do not allow the defrauded person to ask for a refund.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.

Cmarketcap Minimum deposit

According to the descriptions of the account types, Cmarketcap requires a minimum deposit of 1,000 USD. In the deposit menu itself, a minimum of 100 USD is set.

It would undoubtedly be a better idea to work with a licensed broker. The leading brands in the industry offer the novice traders Micro Accounts with very low minimum deposit.

Cmarketcap Withdrawal requirements

Cmarketcap does not specify fees or conditions for withdrawals. But amidst all the false information on this website, you can expect high hidden fees and extortionate terms.