You have come across tons of stories about people who have earned huge returns by putting their money in different financial markets. Stocks, forex and cryptocurrencies have all helped people change their life and you want to enjoy the same perks. The good thing is that it is incredibly easy for anyone to enter the trading world, but there are some cautionary measures that you have to remember. One of them is selecting a broker to begin your journey with. This is one decision that you should make after putting in a great deal of thought because it can have serious consequences for you.
The broker offers you the trading platform, affects how much profits you make and the various instruments you can trade. But, there are also those that are ready to take advantage by charging you high fees and entrap you. You need to be wary of such brokers, such as FxTradingMarkets. It claims itself to be the leading trading technology platform in the world, which offers binary options. But, the most notable thing about this broker is that it claims to be licensed by the British government, which is a really tall claim. Obviously, when you are considering a broker, you would think about what benefits it can offer.
The trouble is that the broker doesn’t really provide much information for you to understand its perks and the information it does give is not accurate. This lack of information indicates that FxTradingMarkets may not be reliable. What are the problems associated with this broker? Some of them are mentioned below:
- False claims about regulation
When it comes to ensuring the security of your funds, regulation plays a vital role. Any broker that’s regulated properly by well-known organizations and regulators, such as the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) or the Australian Securities and Exchange Commission (ASIC) have to follow some strict rules and regulations. These include maintaining minimum operational capital, filing regular reports, undergoing external audits and keeping their clients’ capital in segregated accounts for protection from creditors.
In addition, regulated brokers also participate in investor compensation funds as insurance, which gives you peace of mind that you will get your money back if the broker goes bankrupt. Now, taking a close look at FxTradingMarkets, you will discover that the broker is owned and operated by a company called FxTradingMarkets Limited and they have provided a contact address in the UK. The broker has also claimed to be regulated in the United Kingdom, stating that the British government has personally issued their license. This is clearly inaccurate because binary options brokers are not licensed by them.
Instead, the financial market, which include all CFD and forex brokers, are regulated by the Financial Conduct Authority (FCA). But, if you check their registers, you will not find a trace of FxTradingMarkets anywhere. This proves that it is an unregulated website, which is just out to scam people.
- There are no terms and conditions mentioned
Also referred to as the Client Agreement, the Terms and Conditions of a broker is a key legal document for defining contractual relations between a trader and the broker. But, if you go over the website of FxTradingMarkets, you will notice that such a document cannot be found anywhere. This means that if you sign up with the broker and open up an account with them, you will be agreeing to terms that haven’t been outlined.
- No details about payment methods
Most of the brokers that are operating in the market accept payment methods, such as credit cards like Visa and MasterCard, different e-wallets like Skrill and Neteller and bank wire transfer. Skrill boasts an anti-scam policy, which dictates that it only partners with regulated brokers. The fact that FxTradingMarkets hasn’t mentioned any of these methods shows that the broker is not transparent about their offerings and could mislead people.
- There is no option of demo account
Another problem with FxTradingMarkets is that they don’t offer potential customers the option of opening a demo account. This is an issue because it means you cannot see what kind of spreads they offer and what other trading conditions exist. Since there are no terms and conditions, the demo account could make a big difference and yet it is nowhere to be found.
- No information about the minimum deposit requirement
There is one more piece of information that’s missing on the broker’s website and that’s the minimum deposit requirement that traders need to fulfill. Most brokers have set this at $250, but FxTradingMarkets has not disclosed what requirement needs to be deposited, which adds another cloud of uncertainty.
- No support for MetaTrader4
As there is no demo account available, you cannot see what trading platform that FxTradingMarkets is offering to its traders. However, one thing is clear that a binary options platform cannot do the same job as a real trading platform because you cannot run algorithmic trading sessions or trade CFDs. These are some of the things that you can do if you have the MetaTrader4 trading platform and it comes with a variety of tools and indicators. There is not much information available about the kind of trading platform you will find when you open an account with FxTradingMarkets and this is another risk you have to take.
All of these flaws with the broker clearly point towards one thing; you shouldn’t trust FxTradingMarkets because it is a scam that is ready to trap anyone naïve enough to sign up with them. Their website is virtually anonymous even though they have made some false claims on their website. You should always double check the information provided by a broker and it is best not to choose a broker that’s unregulated by a reliable entity. If you do so, your finances will be at risk and you will always remain uncertain about what will happen if the broker goes bankrupt. If you don’t want to increase your losses, don’t sign up with FxTradingMarkets.