ASX Markets greeted me with a bonus offer when I visited their website. Only shady forex brokers offer bonuses to their clients because various regulatory authorities have prohibited their brokers from offering bonuses.
So even from the start of writing this ASX Markets review, I had an idea that these people aren’t running a legit enterprise.
In my ASX Markets review, you’ll find out why you should avoid trading with this sketchy broker:
ASX Markets License and Regulation
The first thing to look for while checking a broker is to see its license. ASX Markets has mentioned in its terms and conditions that it’s based in St. Vincent and the Grenadines.
St. Vincent and the Grenadines is an offshore region. Their local financial regulator, SVGFSA, doesn’t have the power to control the forex brokers based there. As there is no regulatory authorities, St. Vincent and the Grenadines has become a haven for forex scams. Almost all the brokers based there are unregulated and unlicensed.
So it’s obvious that ASX Markets is an unlicensed and unregulated broker. Your funds and ata wouldn’t be safe with them.
You shouldn’t trade with unlicensed and unregulated brokers. There are many scams in the forex industry and so, financial regulators exist in many regions such as the US and Europe. These regulators impose heavy restrictions and laws on forex brokers (and similar service providers) to ensure that the broker doesn’t act against the interests of its client.
However, an unregulated and unlicensed wouldn’t have to follow those restrictions. They can act against your interests (such as steal your data) and get away scot-free.
On top of that, regulators like FCA offer insurance compensation in case the broker steals the funds of their clients. For example, FCA can give you up to £85,000 if a FCA-regulated broker steals your funds. You don’t get such facilities with unregulated brokers. This is a strong reason why I don’t recommend trading with an unregulated forex broker.
ASX Markets is based in an offshore region and doesn’t have a license. You should avoid trading with them.
ASX Markets Trading Conditions
Before I start discussing the various trading conditions of ASX Markets, I must point a clause I found in their terms and conditions:
This is a very dangerous clause as it makes you a debtor of the broker in case you get negative account balance. Note that all the regulatory authorities in Europe have laws in place that don’t let forex brokers enforce such provisions.
If you’re trading with a regulated broker and your account balance becomes negative, the broker would have to bring it back to zero at no added cost.
However ASX Markets has kept this provision, which lets them charge your money and interest in case your account balance turns negative.
This is a huge red flag and it alone indicates that ASX Markets isn’t a good option.
ASX Markets offers a web-based trading platform and the MetaTrader 4. You don’t get MetaTrader 5 with this broker, however.
Almost all reputed forex brokers use MetaTrader 4 and 5 because they offer a ton of features. Some of the highlights of MT4 are the option to use automated bots, code base with custom scripts, and numerous trading signals.
However, many shady brokers try to use the pristine reputation of MetaTrader platforms to appear reliable. It seems to me that ASX Markets is using the same tactic here.
A positive thing about this broker is that it doesn’t have a minimum deposit requirement. This really surprised me and is certainly a good sign.
Many forex scams keep their initial deposit requirement high which allows them to grab a lot of funds immediately. Such brokers are aware of their pathetic services and so, they don’t give you a chance to test out their services beforehand. Instead, they force you to make a big financial commitment. In case you decide to discontinue availing their services, they will steal the huge deposit you had made.
Leverage and Spreads
The maximum leverage you can get with this broker is 1:400, which is too high. Such a high leverage ratio can wipe out all of your earnings and even put you in debt quickly.
When you consider the negative balance clause I pointed out earlier, it becomes clear why they offer such an outrageous leverage.
This broker wants to put you in debt so it can recover funds from you as a loan provider.
High leverage is usually a sign of a scam. This is why financial regulators restrict their brokers on how much leverage they can offer to their clients. For example, the UK-based regulator FCA doesn’t allow its brokers to offer a leverage ratio higher than 1:30.
They are very risky, especially if you’re a beginner.
ASX Markets Payment Methods and Charges
With ASX Markets, you can add funds to your trading account through wire transfers and credit or debit cards. Note that you should only use credit or debit cards to add funds to your trading account because they let you file a chargeback 540 days since the date of transaction. Wire transfers, on the other hand, are non-refundable and don’t provide such a facility.
The limited number of payment options you get with this broker is quite a disappointment.
ASX Markets doesn’t charge any inactivity fee or withdrawal fee. They can close your account if your account remains inactive for six year and keep all the funds stored there. This is another indication of them being a scam because no reliable broker keeps such a provision in its terms and conditions.
There is no minimum withdrawal limit with this broker as well.
ASX Markets offers plenty of bonuses to its clients. It offers you a 100% deposit bonus and a 50% matching bonus on your second deposit. However, it doesn’t specify the additional terms and conditions of these bonuses.
You should never trust a forex broker that offers bonuses because regulatory authorities have prohibited this practice.
A common strategy among shady forex brokers is they would offer you a ton of bonuses. Bonuses in the forex industry are notorious as they allow the broker to complicate the withdrawal process for the user. The funds you receive in a bonus always belong to the broker, not you.
Is ASX Markets a Scam? Yes!
The forex industry attracts a lot of scams and they are of various sorts. Some scammers tend to give an unsolicited call and claim that you’re eligible for a random bonus. Others would run ads on the internet claiming to offer attractive deposit bonuses or easy profits.
Creating a website and filling it with lies is very easy. And these scammers target inexperienced traders too. Usually, these brokers operate from offshore areas such as St. Vincent or the Commonwealth of Dominica. They operate from such areas because these places don’t have financial regulators like the US or the UK. So they don’t have to follow any strict laws and can easily steal the funds of their users without facing any legal repercussions.
You should always check a broker’s regulation and T&C’s before trading with them.
ASX Markets Review: Conclusion
ASX Markets is an unlicensed and unregulated broker with very unfair terms and conditions. This broker is targeting novice traders through offering bonuses and charging 0 fees, but its wicked terms and conditions will trap you for a long time. I don’t recommend trading with them.
There are many scams in the forex industry like ASX Markets. And they keep growing. The best way to combat these scams is to spread the truth about them so their schemes would fail before they even start.
If you know someone who’s interested in forex trading, share this article with them. They should know the truth about such scammers.This review (ASX Markets) was originally published at Gripeo. To read the full review, go to – www.gripeo.com/asx-markets/