Pre Markets review – 5 things you should know about premarkets.co

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

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Pre Markets will not do you a good job as a broker through which to invest in the financial markets. This anonymous website could be useful only as an example of how to identify financial scams. In this review, we will show you the clues that Pre Markets is just that, a scam, and point you to more credible alternatives.

Pre Market Regulation and safety of funds

As stated, Pre Markets  is anonymous, which exposes this website as a scam. 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.

Pre Markets does not even provide a contact address:

The text of the Terms and Conditions references Estonian law:

But there is no licensed broker using the Pre Markets’ brand and domain in the Estonian Financial Supervision Authority register. Another European regulator, UK’s Financial Conduct Authority (FCA), has issued a warning that Pre Markets is not authorised to provide financial products and services.

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  or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.  In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK.

Pre Market Trading software

Pre Markets implements a basic web-based trading platform. Here is how it looks like:

The platform includes only cryptocurrencies and some stocks, and lacks forex assets. It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use rigged trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.

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).

Pre Market Trading instruments

Pre Markets advertises trading in all major asset classes, but as stated, currency pairs are not included in the trading software. If you want to trade financial instruments, it is undoubtedly wiser to do so through a licensed and established forex broker.

Pre Market Spreads and cost of trading

Pre Markets does not provide any clear information on the parameters of the trade it advertises. 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.

Pre Market Maximum leverage

Leverage of 1:3 for cryptocurrencies is set in the trading platform. This level is not allowed in the EU, where the maximum for crypto trading is 1:2.

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.

Pre Market Deposit and withdrawal methods

Pre Markets only allows the deposit of funds with cryptocurrencies. This is typical of financial scammers. Cryptocurrencies are their payment method of choice because on the one hand they allow the scammer a degree of anonymity, and on the other hand they do not allow the scammed 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.

Pre Market Minimum deposit

A minimum of 250 USD/EUR/GBP is set in the deposit menu. At the same time, the base currency of the account is crypto – USDT. For the same or often lower amount, you could open a starter trading account with a leading global broker.

Pre Market Withdrawal requirements

According to the Terms and Conditions, withdrawal fees vary between 25 and 50 USD/GBP/EUR depending on the payment method. In addition, there is a processing fee. Legitimate brokers do not normally charge transaction fees, and when they do these fees are much lower.

Unlike most genuine brokers, Pre Markets imposes a minimum withdrawal amount of between 100 USD and 250 USD depending on the payment method. But as long as the only actually available payment method is cryptocurrencies, it’s not really clear what the values are.

Even more revealing is the 10% levy that will be charged by an account that has not met the vaguely worded minimum traded volume requirement of “200 in turnover”, which presumably should mean 200 lots, or 20 million currency units. This is a typical scam clause designed to block any withdrawal requests.