Beware! MarketsCG 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.
MarketsCG wants you to believe that your trading journey starts with this broker. But is it safe to entrust your hard-earned funds to this company? We find the answers for you.
MarketsCG Regulation and safety of funds
Trading with a licensed and regulated broker is the primordial condition in forex trade. However, what we find out on MarketsCG website is that the company’s address is in St. Vincent and the Grenadines (SVG) which is an offshore zone for forex trade without an official regulator for forex brokers doesn’t make trading with this broker reliable. Furthermore, your funds may be at risk because if the broker shuts down the site and disappears, there is nothing you can do to get your money back.
If you are looking for a licensed and reliable broker to trade with, we can advise you that in the EU and the UK where forex brokers are strictly regulated the conditions for forex trade are the best. To prevent scammers from infiltrating the ranks of legit brokers, one of the requirements for getting a license is that brokers must have an initial capital of no less than 730,000 EUR which will be impossible for scammers to match. To guarantee the safety of clients’ funds, the broker must keep them segregated with tier-1 bank establishments, provide protection against negative balance and report transactions on a regular basis for the sake of transparency and avoiding shady deals. One of the best perks in trading with licensed brokers from these jurisdictions is that they are required to participate in compensation funds or schemes from which the clients can get reimbursed if the broker goes belly up. Brokers that are regulated by the FCA in the UK will provide compensation of up to 85,000 GBP per clients in case of insolvency if they deduct funds towards the local Financial Services Compensation Scheme. The amount of recompense the brokers regulated by CySec is not that impressive, only 20,000 EUR per client but only in case, the broker participates in the local Investor Compensation Funds.
MarketsCG Trading software
From the image below, you can see that MarketsCG offers a web trader platform to its clients. On the left, you see the menu for the different trading instruments which include indices, stocks, forex, cryptocurrencies and commodities. For each trading instrument, you can see the bid/ask price. In the middle of the screen is displayed the chart of the EUR/USD currency pair which shows the fluctuation in price in a given time frame. From the bid/ask price for the same pair, we find out that the spread is 3 pips which is above the industry average of 1.5 pips. The implications for traders when using wide spread are that the cost of transactions will be high and they won’t be able to make a sustainable profit.
In addition to that, after looking at the last image that contains information about the different account types, we see that the leverage can go up to 1:150. We must warn you that trading with high leverage will put your money at risk in case of unsuccessful transactions where the financial loss will be amplified by the high leverage. Please note that in the well-established jurisdictions of the EU, the UK and the US where strict regulations aim at protecting clients’ funds, the leverage is limited at 1:30 for the EU and the UK and 1:50 for the US.
MarketsCG trading platform
If you are a newbie in forex trade, the web trader may look easy enough for you to use as it is a rather simplistic platform. However, you must know that as software it does not offer much to its clients and is not able to enhance their trading experience to the extent to which better platforms like MetaTrader 4 and MetaTrader 5 do. Both platforms offer demo accounts for those who need to practice and gain experience before opening live accounts. In addition to that, MT4 and MT5 come equipped with a great package of trading tools and instruments that include an auto trading option, code base with customs scripts, VPS, an app market, trading signals, a financial calendar, etc. One of the key features of both platforms consists of out of this world charting options and technical analysis indicators that help traders predict the future direction of exchange rates and make a profit.
Our advice is to find a licensed and reliable broker that offers either platform.
MarketsCG Deposit/Withdrawal methods and fees
Clients of MarketsCG have a choice of 5 trading accounts – Silver, Gold, Platinum, Diamond and VIP. The minimum initial deposit for the Silver account is 10,001 EUR. We consider this to be too high compared to the amount a regulated broker would ask for which can be as little as $1-5.
The deposit and withdrawal methods include payments via credit card, bank wire and Bitcoin.
The minimum withdrawal amount is 100 EUR/USD/GBP and for Bitcoin, it is $250. The withdrawal fee for every withdrawal is 1% with a minimum of 30 EUR/USD/GBP and a maximum of 300 EUR/USD/GBP which hardly beneficial for clients.
The processing time for a withdrawal request varies from instant to 7 business days depending on the type of account you open.
MarketsCG trading account types
You may have noticed in the image with the account types that for every account, there is a welcome credit offered. A welcome credit is a type of bonus which on the surface looks attractive as it seems to add extra trading power. However, what is important to remember is that these are funds belonging to the broker, not the trader and they are subject to some hard to fulfil conditions. Should you choose to accept a bonus from this trader, you will have to execute a trading volume that is equal to 50,000 times the amount of the bonus before you are eligible to withdraw the bonus amount. This is not something easily achievable even for experienced traders and we advise you to tread carefully when it comes to accepting bonuses. Also, be aware that legit brokers do not offer bonuses or other incentives and this is a way of recognising which broker is legit and which one is dodgy.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
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