Markets.com Is Why Im Broke

 50 Words on – Why you can go Broke with Markets.com?

Social trading seems to be on a bullish trend lately and the guys at Markets.com do their best to align to this trend. Unfortunately their best is not enough because if you take a look at their Social Wall, you will notice something weird, to say the least: traders buy or sell EUR/USD at prices that didn’t exist when they allegedly opened those trades. On top of that, almost all trades were taken 3 hours before… a lot can happen in 3 hours in Forex. So let me get this straight: Markets.com wants me to “copy” a trade 3 hours old that was opened at a non-existing price… no thanks! That’s an easy path to account obliteration, but not the only one unfortunately.

 

How to Avoid Going Broke With Markets.Com

  • Obviously, do not copy trades. I don’t think those are trades taken by real traders.
  • They offer a bonus of up to 2000 USD (at the time of writing). I’d avoid such bonuses because those always come with strings attached.
  • If you decide to accept a bonus, read the terms and conditions and make sure you fully understand and agree with them.
  • When you open an account, it will be automatically set to fixed spreads (which are wider than floating spreads) so if you want to trade using floating spreads (lower but tend to widen more in volatile conditions), contact them and ask for a change.
  • Send all the documents required when opening an account and ask for written confirmation that no further documentation is needed. This will probably save you the trouble of being asked for more documents when you want to withdraw.
  • Withdraw periodically because there have been quite a lot of problems when people tried to withdraw their money.
  • According to their website “On Wednesday at 21:00 GMT, overnight rollover fees are multiplied by three (x3) in order to compensate for the upcoming weekend” Take this into consideration and make sure you don’t have open trades at the time mentioned above.
  • Think twice before opening an account with Markets.com

 

 

 The Good, the Bad and the Ugly Speak

So Ugly, You Make Onions Cry   So Ugly, You Make Onions Cry

Expressions like “the worst”, “a complete mess”, “total cr4p” are commonly associated with Markets.com. They have been accused of price manipulation, platform freezing and almost every bad practice you can think of. You name it – they’ve done it. Or at least that’s what people say. And talking about the people’s voice: Markets.com has a big fat “GUILTY” verdict on their case over at ForexPeaceArmy.com and this verdict was given by a staggering 98.48% of voters. Only one guy voted “NOT GUILTY”… I wonder who that was… a Markets.com employee maybe [1]. According to Monjed Alqenaei (the person who opened the case), Markets.com canceled 50, 000 USD of his profits, accusing him of hacking their servers. Sure hackers exist, but Markets.com representatives failed to provide proof of this so called hack for more than 6 months so I wouldn’t be so wrong to think they don’t have any proof. Furthermore, they sent a threatening letter (according to Monjed), hopping he would drop his case. If you don’t want all this hassle, take the advice of the clients complaining over at earnforex.com [2] and stay well away from Markets.com. BabyPips users [3] have bad opinions about this broker, same with guys on most online forums and even their affiliates complain for not being paid. Check out what Danny from Italy, one of their affiliates has to say [4].

I tend to believe that most of the positive comments are made by people who have some sort of business relation with Markets.com. Speaking of positive comments, most of them are short, very general and not reliable if you ask me. Gerard from Holland [2] is happy about the fact that he didn’t have problems signing up for an account… What? How is that relevant? Maybe Andrew from Moscow [2] can give us more specific information: “Super Broker! I like it!!!”… nope, that’s not helpful.

 

Everyone’s A Leader… Everyone’s A Leader…

“Markets.com is a market leader when it comes to customer service…” Then why did it take me about 15 minutes to get the information about Autochartist and trading signals? I asked a simple question and the answer I received was another question. I hate it when they do that; it’s like I’m asking for delicate information or something… Anyway, let’s move on to their spreads: their fixed spread for EUR/USD and GBP/USD is 3, while their typical floating spread for those currencies is 2.2 and 2.8 respectively. I see two problems here: first of all, the fixed spread is fat. Come of, 3 pips for these pairs… that’s huge, mate. Secondly, the floating spread is too close to the fixed one. So why would I want a 2.8 typical floating spread which I know can be widened without notice, when I can trade with a 3 pip fixed spread? Doesn’t really make sense to me… and there’s one more thing that bothers me: “… Markets.com reserves the right to widen spreads at its own discretion” (taken from their website). What does that even mean? In plain English I guess it means ”If we want to, we can take more of your money and you agree to that”. However, what’s worse than their spreads, customer service and their “discretion” regarding spread widening is the fact that almost everyone around the Internet hates Markets.com.

 

Hmm…So They Do Have A Good Side. Hmm…So They Do Have A Good Side.

The trading conditions offered by Markets.com are mildly appealing, without being something we can’t find at other brokerages: leverage goes up to 1:200, scalping and hedging are allowed, the popular Meta Trader 4 is present alongside a web-based platform (SIRIX) and traders can choose between fixed and floating spreads. The minimum deposit is 100 USD for a Classic account, 2,500 USD for a Standard account and for a Premium account you will have to deposit at least 20,000 USD. VIP traders can benefit from the use of Autochartist, a popular and powerful pattern recognition tool and on top of that, signals provided by Trading Central are available on Meta Trader 4. I have to admit I didn’t know much about Trading Central but after some research I found out they are an “investment research provider to financial market professionals” registered under SEC (USA), SFC (Hong Kong) and AMF (Europe); some of their partners include Bloomberg, Thomson Reuters and Dow Jones Newswires. I believe that Autochartist and Trading Central signals are good additions which increase the appeal of Markets.com, but according to their Live Chat operatives, signals are available for deposits of more than 2,000 USD and to get more information about Autochartist, you will need to open a Live account and contact your Account Manager. I guess he/she will also tell you how much you have to pay to become a VIP because according to their website, only VIPs get this tool.

 

 

Editor’s Note – Is Markets.com a Scam?

As I always say, considering a company a Scam is very relative: if you had your profits canceled or your withdrawal didn’t materialize, for you the company is a Scam and I would say you are right. On the other hand, if you didn’t have such problems, you’d have no reason to call that company Scam and I would say you are right again. So I don’t know if they are a Scam – it all depends on your experience with them – but I wouldn’t risk my own money trying to find out if they are a Scam or not from my point of view.

 

Bottom Line – Would I Trade With Markets.Com? No!

When the reliable brokers stop accepting clients for any reason, I will think about opening an account with Markets.com, but until then, there’s absolutely nothing that can make me open one. I don’t need any hassle when I’m trading, I don’t need to wonder if they will send me my profits or if they will find a stupid reason to cancel them. Simply put, I don’t want to worry about anything else than trading and it seems this broker doesn’t offer the peace of mind needed to do that.

 

References

  1. Monjed Alqenaei-vs-Markets Case
  2. Earn Forex on Markets
  3. Markets Spread on BabyPips
  4. ForexPeaceArmy on Markets

 

Have We Saved You From Going Broke?

  • Charles

    So where do i have to trade? Is there any legitimate way of trading online ? Even if it’s a small profit . Any suggested trading platform , ?

    Thank you

    Reply
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