Beware! Market4FX 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.
So many brokers have passed through our hands, and yet still the likes of Market4FX keep popping up, as if they are continuously growing out of nowhere. This continuous stream of brokers not only is perpetually flowing, but it also, ironically, does not evolve the brokers themselves in any way. In some cases, brokers seem to get even worse. We now know where our verdict for Market4FX is headed towards, the only thing that is left to ask is, how bad things are? To answer this , we present to you the following review.
The first sign of the shady nature of this company is the registration page, which saw us fill up the same empty spaces that we have filled dozens of times before, all pertaining to illicit brokerage firms. The next step was a dashboard where, after some digging, it turned out had no trading platform. So no applicable trading conditions here.
The website is translatable is English and Spanish.
MARKET4FX REGULATION AND SAFETY OF FUNDS
The legal documents make their fair share of contribution to the overall attempt at persuading traders that Market4FX is regulated somewhere. The legal provisional make sure to mention the European Economic Area, as well as the U.S. Department of Commerce’s US-EU Safe Harbor Framework, which insures that organisations within the European Union or United States treat user’s personal information with the highest security standard. At the end point of the Terms and Conditions, as of out of nowhere, a clause putting this broker in the Marshall Islands, and as such under their local laws.
It’s easy to see that all this information overlaps completely. The brokerage is not regulated in Europe, nor is it located in the United States (just to point it out). As for the Marshall Islands, the broker might be located there; it makes no difference, for the nation does not have an FX regulator. All brokers located there are unregulated. And so is Market4FX.
Market4FX HOLDS NO LICENSE, thus making it a complete risk to all investors. Unregulated brokers have been known to withhold deposits for an indefinite period of time.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
And to mention, just in case all the evidence is not enough, Market4FX has an official CONSOB warning issued against it
CONSOB is the official FX watchdog for Italy, and as such we have no doubts in trusting it. Being warned by this watchdog is a clear sign that you should not trust the firm that the warning is issued for. It’s without a doubt that this broker is illegitimate.
MARKET4FX TRADING SOFTWARE
Both the MT4 desktop software and the web-based MT4, belonged to a different entity- algotrades. This mysterious third party is unknown to us. Its inclusion as part of the Market4FX experience further deepens the illegitimate status of the broker.
There is no trading platform used here. All the trading information that the website so enthusiastically points at, is in fact absolutely useless.
Be aware that without a trading software, a broker is no longer a broker, but a simple website that offers services; in Market4FX’s case, a scam for sure.
MARKET4FX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $200. Users can deposit via the most scammer option, i.e cryptocurrencies. This method of payment will always be known for its hard to trace features. Crypto currencies are the most preferred payment method for scammer broker.
Withdrawals are said to be processed as quickly as possible. Credit and debit cards are issued a 3.4% fee, while bank transfers have a $30 commission to them. The minimum withdrawal amount is $100. All withdrawal information is taken from the website. So we cannot trust it fully. Nether should you.
There is a bonus trading volume requirement that must be met. The just of it is simple- all the user must trade with at least 10% of the bonus granted plus initial deposit in order to be able to withdraw her bonus.
One thing to mention before finalizing are the legal provisions. Not only short, but also highly uninformative, especially the Terms and Conditions. Check with any legitimate brokerage, and what you will find are legal provisions scrupulously detailed. The same cannot be said of Market4FX. Here, we felt that the company just included these only to have them as filler text. Aside from some bonus provisions, nothing else is worth your time. Lackluster legal documents are a common sign of a fraudulent brokers. They attempt to fill a gap that cannot be replenished so easily.
What our readers must remember is that this broker is not a holder of any sort of a FX license, and thus it is against our advice to deposit any sort of investment.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.