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A 24 Capital Markets Forex broker in-depth review
There thousands of Forex brokers today and all of them a piece of your business. We are here asking ourselves ‘is 24CM Forex broker a scam?’. Well, we will get an answer after looking through some of the features the broker has. For starters, 24CM is a broker which started operating in mid-2020. The firm is owned and operated by F1Markets Investment Limited which is an investment firm based in Cyprus.
Min. Deposit: $200
Trading Platform: MT4
US Clients: Not Available
Registration and license details of 24CM Forex broker
The offices of F1Markets Investment Ltd, the firm which owns and operates 24CM, are located along Kolonakiou Avenue 43, 4103 Agios Athanasios Limassol, Cyprus. The broker has a customer service telephone line of Cyprus. On the official website of the broker, it is indicated that F1Markets is licensed and regulated by Cyprus Securities and Exchange Commission (CySEC). The license number is 267/15.
As you browse the website further, you will find that there is another company by the name IOS Investment Limited and which shares the 24CM brand with F1markets. Unlike F1Markets, IOS is licensed by the International Financial Services of Belize. This means that there are two companies which share the same brand but are related. The F1Markets is meant to serve customers who are located within the European Economic Area while IOS is for international customers.
How is trading at 24CM
In our 24CM review, we discover that the broker has put some thought in the trading platform which is designed by a company called Scipio. The platform is easy to understand and navigate. In addition to the web-based platform, 24CM Forex broker uses MT4 trading platform which is the most popular trading tool with FX traders. For the traders who wish to access the markets and their accounts using the mobile devices, 24CM has a Mobile App which is compatible with iOS and Android OS.
There are over 250 underlying assets which you can trade in when you open an account at 24CM. With the increase in the adoption of cryptocurrency, the firm also offers you Bitcoin, Litecoin, Dash, and Ripple among other altcoins to trade in. The leverage for these cryptos is 2:1. The broker observes the new MiFID II regulations which state that leverage for currency pairs come down to 30:1. According to the European Parliament, these rules were introduced to stop newbie FX traders from continually losing all their money.
The accounts found at 24CM
When you read many of the 24CM reviews, you will note that $250 is supposed to be the minimum initial deposit. The broker offers four different types of accounts which are Basic, Silver, Gold, and Platinum. Some of the common features with all the accounts is the ‘dedicated accounts managed’ and having access to a demo account which comes with at least 100k virtual money.
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Is 24CM Forex broker legit?
After browsing the 24CM website, you will notice several things which are good about the broker. For example, the license details are quite clear and understandable to read. Regardless whether your account is under IOS or F1Markets which is based in Cyprus, you can rest easy and know that you are in the hands of a regulated and trusted broker. The other feature which the broker should certainly address is the omission of the minimum initial deposit requirement. Many traders want to see what are the exact requirements vis-a-vis benefits before they can commit themselves into opening a trading account.
Here you can read an old 24 Capital Markets review, please note it is outdated.
Forex trading has become very popular in the past few years, especially for the retail traders. According to the Bank for International Settlements (BIS), The FX traded volume per day was in excess of $4.9 trillion as of August 2020. The market is open 24 hours a day and traders can enjoy trading anytime from anywhere in the world. This has attracted many players among them 24CM. In this www.24cm.com review, we are going to try and establish whether this broker is worth investing in. We will also look into the services they offer as compared to what other established FX brokers have to offer.
CFD trading at 24CM
Contracts-for-Difference (CFDs) are now very popular because they enable traders to participate in instruments even without necessarily buying the actual instruments. At 24CM there are tutorials which are designed to help beginner traders get a better footing. With a reasonably low capital outlay, a trader is able to participate in CFD trading. What’s uplifting about the whole ordeal with 24CM is the fact that they require a deposit of minimum $250 for this service, please note that this is done in order to keep you interested in the process. There are many Forex brokers that ask for $100 or even $50 as initial deposit. Unfortunately, as a beginner, you may find this a bit expensive, to begin with, but as an experienced trader it will give you quite a boost to check the whole calibre of the situation.
Forex trading at 24CM
Until recently, 24CM was not widely known for its Forex platform but rather for its prowess at offering the best binary options trading platform. Is 24 Capital Markets legit? This is the question that many traders who didn’t know the firm’s popularity in binary options keep asking. On the new FX platform, traders are able to use MT4 which is the most popular trading platform. According to 24CM, traders get to enjoy three different chart types and over 50 technical indicators. The Traders are required to download the MT4 app to their computer or smartphone. Just like CFD trading FX trading at 24CM is hampered by the high initial deposit requirement of $250 which makes it tough for many first time traders.
Like a majority of FX brokers, 24 Capital Markets Forex broker is now offering its customers cryptocurrency alongside fiat currency, CFDs, and commodities. This means that you can participate in the speculation business of cryptocurrency whether by buying and selling cryptos directly or through CFDs. Major cryptos such as Bitcoin and Ethereum are some of the digital currencies to explore here. In order to participate in crypto trading on the 24CM platform, you will need to download the MT4 app. Just like it is with the fiat currencies, the owners of the company promises the crypto traders between 60-88% winnings. The minimum initial deposit is still $250 and residents of the USA don’t have access to the platform.
Is 24 Capital Markets scam?
24 Capital Markets broker is regulated and licensed by CySEC. This is a clear inclination, that the company is trustworthy and you can honestly rest easy, by knowing that your investments are in good hands. Some of the complaints which you will find against the broker include the high initial deposit of $250. Also note that the brokers are quite insistent for you to start trading, but also know that a simple “no” is enough for them to back off. The only reason they are suggesting more deposits is that of more returns and profits for your account. If for example, a trader deposits an initial deposit of $250 and is persuaded to add another $200 by the account manager then they are eligible for way higher returns than others who refuse to add more investments. In our 24CM review, we have seen that the broker’s commitment to giving traders their winnings is 100%. Consider the fact that the profits of the company are directly tied to your profits, therefore putting your best interest in their best interest.
Admiral Markets Group consists of the following firms:
Admiral Markets Cyprus Ltd
Admiral Markets Pty Ltd
Admiral Markets UK Ltd
Reading time: 14 minutes
Did you know the forex market is the largest financial market in the world, with over $5 trillion traded every single day? Not only does it allow central banks and corporations to trade with each other, or holidaymakers visit new destinations, it also also allows speculators to take advantage of a market that trades 24 hours a day, 5 days a week.
There has never been an easier time to access the world’s forex market either. At the click of a button you could be trading on the direction of the Euro, British pound, Japanese Yen, US dollar or even the Russian Ruble! There are hundreds of currency pairings to trade from, so you’re free to find the ones that interest you most.
However, while the financial gains of trading the forex market seem lucrative, it’s not considered easy. Having a sound trading education, a properly funded trading account and understanding of risk management techniques are essential. Unfortunately, there are many unscrupulous individuals who will try to scam individuals through forex trading scams.
Forex scams will be around for as long as the Forex market exists. As schemes are evolving, scammers are always somewhere nearby, trying to extort your money away. But could there be a solution to this problem?
Investment scams take many different forms. Some of the scams are even named after their creators – such as a Ponzi scheme, after the infamous scammer Charles Ponzi. Forex scammers tend to target beginners or uneducated traders. The best way to combat this, and avoid getting scammed, is by getting a good Forex trading education, so you are aware of everything before you enter the markets.
Once you master the markets, you are no longer an easy target. Forex scams often use phrases like “a too-good-to-be-true investment opportunity” as a way of convincing you to part ways with your money. When you lack trading experience, swindlers will try to exploit your optimism and fears. Here’s where Forex scammers step in and make you exciting offers.
How To Spot A Forex Trading Scam
The most important giveaway of a Forex scammer is the guarantee of unusually large profits with little or no financial risk. First of all: there’s no such thing as a 100% guarantee. If there was, there’s no way traders would share it with other market players. Some of these offers may sound very attractive, especially to beginning traders. But as the saying goes, the only free cheese is in the mouse trap. The bottom line is this: if something sounds too good to be true, it probably is.
Here a few simple rules to follow in order to avoid scammers:
- Remain safe and don’t run after empty promises
- Be especially wary of software that claims to have found a ‘secret formula’
- Do not install any programs until you are certain they won’t damage your computer
Another giveaway is that scammers never register with any regulatory authority. Remember – true brokers always provide proof of their legitimacy. If you suspect that a Forex brokeris lying about their regulation, you can contact a regulatory authority who may be able to provide a list of regulated companies, and a list of cases opened against regulated companies. This will help you understand which Forex brokers to avoid.
Three Major Types of Forex Scams to Avoid
Those involved in forex scams, money scams and general trading scams are always trying to find new and innovative ways to take advantage of new traders. However, there are three major types of forex scams that people commonly fall victim to. Understanding them is the first step in trying to avoid them.
#1 Forex Robot Scams
A forex robot is a trading program which uses algorithms, or lines of computer code, as technical signals to enter and exit trades. Typically forex robots are built using expert advisors, or EAs, within the popular MetaTrader suite of trading platforms.
Of course, not all forex robots are scams. Searching online for forex robot scams list may help you avoid some of the known scammers. However, here are a few things to watch out for to avoid any forex robot scams you may come across:
- Marketing messages that are unrealistic: If the author of a forex robot has to ‘sell’ you on it the dream of what it could do for you, then it’s unlikely they’ll have the results to back it up. After all, numbers don’t lie, or do they?
- Very high percentage growth returns: There are some forex robots that are advertising systems that should over 4,000% return in just a few years. This may seem fantastic, but it’s important to look at the statistics. The return could just be closed trades, the system may have open trades that if the stop losses were hit could wipe out any gains.
- Undiversified scalping strategies: Many forex robots employ a scalping system which means they trade for very small profits. This then shows a high win rate and can inflate the results in a supportive market condition. Yet, market conditions change, and if the system loses more per trade than it wins, it will only take a few losing trades to wipe out any accrued profit.
- Using unregulated brokers: There are some forex robots that show extremely good results using unregulated brokers no one has ever heard of. In this instance, the results might be good on their own interbank spreads but if you open an account with them your spreads and commissions will be wider, thereby eating into much of the profit.
At the end of the day, if you are considering using a forex robot, then treat it like a business rather than make an emotional decision. Start with an online search for a forex robot scams list and then do your own due diligence. As the saying goes, ‘if it looks too good to be true it usually is’.
#2 Forex Signal Seller Scams
Forex signal sellers are individuals who send out trade ideas which usually include a currency pair, direction, entry price, stop loss and target levels. There are multiple things to look out for so you don’t fall victim to these kinds of forex trading scams and money scams:
- Subscription fees: Individuals may market you amazing results without any verification. To get access to the trades, you often need to pay high subscription fees, or they start out low and use credit or banking details for other kinds of money scams. If their trade calls were so good, why sell them at all?
- Broker-tied signals: Some signal sellers offer you trading signals, but only if you sign up with a specific broker. This means they may be getting a kickback from the broker, so are motivated to send you any trades for you to take regardless if they win or lose. Having said this, there are some that will want to keep you profitable so they can continue to receive their kickbacks from the broker, which acts as their payment for the service.
- Unverified results: It’s all well and good saying your forex signals have made a high percentage return but if they can’t show a verified track record it means they’re not trading the signals themselves – which is clearly a red flag in itself.
The key to avoiding any type of currency exchange scams, money scams or trading scams is to, again, think like a business and do your due diligence, rather than act on an emotional decision of inflated promises and dreams.
#3 Phony Forex Trading Investment Scams
There are many adverts nowadays promoting phony forex trading investments scams and phony forex investment funds. In essence, a slick marketing message or salesperson will sell you on the phantom, or unverified results, of their forex fund. All you need to do is send them your investment, and you can sit back and enjoy the returns.
Of course, many people who send their money over often never see it again. The company says they’ve never heard of you and have not received any funds from you. What started as a forex trading investment scam now turns into one of those money scams.
Another outcome, is that they open an account for you, usually with an unregulated shady broker. However, after one or two trades, they wipe out your account. While they blame it on the market, it’s all gone to their brokerage company. And, because it is unregulated, it’s very difficult to get your money back – just another type of currency scam.
Why You Should Educate Yourself To Avoid Trading Scams
As Forex trading carries exceptionally high risk, losses are inevitable. Retail speculators are almost always trading undercapitalised, and are subject to the problem of gambling addiction and improper use of leverage. Any speculator who trades without skill is essentially playing against the market as a whole, which has nearly infinite capital, and they will almost certainly go bankrupt as a result.
In all fairness, a large number of the reports of money being stolen by brokers is a result of weak trading, and not scam brokers. If unskilled traders spent time developing a proper trading methodology they would become better traders much quicker, and would likely avoid Forex scammers altogether, as they would suitably informed about the potential risks and what to avoid.
Most retail traders should be able to use almost any trading platform with any broker, and see very little difference in their results – it’s that simple. Once you accept your losses, trade with a trading system, and master your market, it will be much harder for you to fall for a scam.
Three Signs of Forex Trading Investment Scams
1. Trading Systems and Education Without Any Proof
There are a lot of scammers selling trading systems and education. When you ask them to provide any proof of their trading history, they evade the answer. There are also many traders who would offer their systems without a trading room or any services. These types of scammers are sometimes referred to as “snake oil merchants”. “Snake oil” is the term traders use for false traders and trading systems that have no valid proof of their trading history.
2. Email Spam Asking for Personal Info
Scammers may also ask you for personal information, such as:
- Your full name
- Your phone number
- Your home address
Don’t give away your personal details to someone you don’t fully trust. Be suspicious of brokers who don’t provide you with a written risk disclosure statement. Even if they do, read the statements thoroughly, because the devil is in the details. Remember, data may become currency soon.
3. No Background
Never work with someone who refuses to provide you with their background information. Be it a broker, a trader, an educator, or a money manager. Always do a quick check online to see if the person or company is legit.
According to New York Magazine, a kid from Queens, New York City in the USA made tens of millions of dollars by trading stocks on his lunch breaks at Stuyvesant High School. What happened in reality, is that it turned out he never made any money, and all his profits were made in a paper trading account.
How to Avoid Forex Scams
The best way to avoid investment scams is to take your time. Don’t rush your decisions – and make sure to assess all the pros and cons first. Finding a reliable Forex broker is not an easy task, but you’ll benefit in the long run from investing your time. The first step you should take when you come across a Forex broker or agency is to google their business name.
Look for customer reviews on reputable websites. If there are none or they are sound fake, you should stay away from that service provider. Additionally, you can browse through scam reviews and see if a Forex broker is as reliable as claimed. Also, make sure to find out if there are any outstanding legal actions against the broker.
For example, you can:
- Visit Forex forums and see whether there are any complaints about fund withdrawals, and if so:
- Contact the user who posted the complaint and ask for more details.
Perhaps the user was mistaken or confused, but it never hurts to ask. A proper background check will also minimise your risks.
Keep Away From Opportunities That Seem Too Good to Be True
Easy money? No way! Don’t believe anyone who tells you it’s easy to make money with something like ”20% gain per month”. It’s pure nonsense, because Forex & CFD (contract for difference) trading requires a lot of screening time, education, patience, and quick wits to become profitable. There is no easy money achieved here. If you dedicate your time and learn how to trade properly, you might achieve an additional source of income.
Further Steps You Can Take To Protect Yourself
Make sure to compare the regulations of the regulatory authority with the terms on the broker’s website to find inconsistencies and anomalies in their terms. If you don’t trust your own judgement, or you simply don’t have time, ask the advice of a licensed financial advisor. Additionally, you can ask for business registration proof before registering with a broker. Make sure to read through all the fine print when opening an account. Sometimes scammers use account incentives against the trader, when it comes to withdrawing funds.
- If you receive bonus funds and wish to withdraw them, a Forex scammer may deny you that right due its terms and conditions.
Don’t forget that when you start live trading – always trade a small volume for a short period initially, and then attempt a withdrawal. If everything goes smoothly, it’s safe to deposit more funds. The availability of a Demo account is another indicator of a good or bad broker. If you don’t get offered this option, or are discouraged from demo trading, this is a strong indication of a Forex scammer.
Questions To Ask To Avoid Forex Trading Investment Scams
Remember that you have every right to ask questions. A few proper questions, can determine whether you are dealing with a trustworthy broker or a Forex scam artist. Make sure know your rights, research the contacts, and check the company’s registration and business background. Keep in mind that all the information you receive from a potential new broker must be in written form. Never rely on phone conversations or oral statements.
Ask yourself these questions:
- What can you do when you realise a broker’s offer is not for you?
- How binding is the contract?
- How easy is it to reach customer service?
- Can you contact the broker by phone, Skype or email?
- Do they list a physical address?
- Do they use actual names?
- Are they a registered company?
- Can they provide performance history?
To ensure you’re not a victim of a scam, always use a regulated broker that is well established, has favourable online reviews, and is 100% transparent in their fees and compliance policies. The allure of quick money and easy cash will always be omnipresent, which is why you should make sure that you fully understand what it truly takes to become successful at currency trading, without using quick-fix schemes that put you at risk.
Trading With A Demo Account
Trader’s also have the ability to trade risk-free with a demo trading account. This means that traders can avoid putting their capital at risk, and they can choose when they wish to move to the live markets. For instance, Admiral Markets’ demo trading account enables traders to gain access to the latest real-time market data, the ability to trade with virtual currency, and access to the latest trading insights from expert traders.
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About Admiral Markets
Admiral Markets is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world’s most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
How to Spot a Forex Scam
The spot forex market trades over $5 trillion a day, including currency options and futures contracts. With this enormous amount of money floating around in an unregulated spot market that trades instantly, over the counter, with no accountability, forex scams offer unscrupulous operators the lure of earning fortunes in limited amounts of time. While many once-popular scams have ceased—thanks to serious enforcement actions by the Commodity Futures Trading Commission (CFTC) and the 1982 formation of the self-regulatory National Futures Association (NFA)—some old scams linger, and new ones keep popping up.
Back in the Day: The Point-Spread Scam
An old point-spread forex scam was based on computer manipulation of bid-ask spreads. The point spread between the bid and ask basically reflects the commission of a back-and-forth transaction processed through a broker. These spreads typically differ between currency pairs. The scam occurs when those point spreads differ widely among brokers.
- Many scams in the forex market are no longer as pervasive due to tighter regulations, but some problems still exist.
- One shady practice is when forex brokers offer wide bid-ask spreads on certain currency pairs, making it more difficult to earn profits on trades.
- Be careful of any offshore, unregulated broker.
- Individuals and companies that market systems—like signal sellers or robot trading—sometimes sell products that are not tested and do not yield profitable results.
- If the forex broker is commingling funds or limiting customer withdrawals, it could be an indicator that something fishy is going on.
For instance, some brokers do not offer the normal two-point to three-point spread in the EUR/USD but spreads of seven pips or more. (A pip is the smallest price move that a given exchange rate makes based on market convention. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point.) Factor in four or more additional pips on every trade, and any potential gains resulting from a good trade can be eaten away by commissions, depending on how the forex broker structures their fees for trading.
This scam has quieted down over the last 10 years, but be careful of any offshore retail brokers that are not regulated by the CFTC, NFA, or their nation of origin. These tendencies still exist, and it’s quite easy for firms to pack up and disappear with the money when confronted with actions. Many saw a jail cell for these computer manipulations. But the majority of violators have historically been United States-based companies, not the offshore ones.
The Signal-Seller Scam
A popular modern-day scam is the signal seller. Signal sellers are retail firms, pooled asset managers, managed account companies, or individual traders that offer a system—for a daily, weekly, or monthly fee—that claims to identify favorable times to buy or sell a currency pair based on professional recommendations that will make anyone wealthy. They tout their long experience and trading abilities, plus testimonials from people who vouch for how great a trader and friend the person is, and the vast wealth that this person has earned for them. All the unsuspecting trader has to do is hand over X amount of dollars for the privilege of trade recommendations.
Many of signal-seller scammers simply collect money from a certain number of traders and disappear. Some will recommend a good trade now and then, to allow the signal money to perpetuate. This new scam is slowly becoming a wider problem. Although there are signal sellers who are honest and perform trade functions as intended, it pays to be skeptical.
“Robot” Scamming in Today’s Market
A persistent scam, old and new, presents itself in some types of forex-developed trading systems. These scammers tout their system’s ability to generate automatic trades that, even while you sleep, earn vast wealth. Today, the new terminology is “robot” because the process is fully automated with computers. Either way, many of these systems have never been submitted for formal review or tested by an independent source.
Examination of a forex robot must include the testing of a trading system’s parameters and optimization codes. If the parameters and optimization codes are invalid, the system will generate random buy and sell signals. This will cause unsuspecting traders to do nothing more than gamble. Although tested systems exist on the market, potential forex traders should do some research before putting money into one of these approaches.
Other Factors to Consider
Traditionally, many trading systems have been quite costly, up to $5,000 or more. This can be viewed as a scam in itself. No trader should pay more than a few hundred dollars for a proper system today. Be especially careful of system sellers who offer programs at exorbitant prices justified by a guarantee of phenomenal results. Instead, look for legitimate sellers whose systems have been properly tested to potentially earn income.
Another persistent problem is the commingling of funds. Without a record of segregated accounts, individuals cannot track the exact performance of their investments. This makes it easier for retail firms to use an investor’s money to pay exorbitant salaries; buy houses, cars, and planes or just disappear with the funds. Section 4D of the Commodity Futures Modernization Act of 2000 addressed the issue of fund segregation; what occurs in other nations is a separate issue.
An important factor to always consider when choosing a broker or a trading system is to be skeptical of promises or promotional material that guarantees a high level of performance.
Other scams and warning signs exist when brokers won’t allow the withdrawal of monies from investor accounts, or when problems exist within the trading platform. For example, can you enter or exit a trade during volatile market action after an economic announcement? If you can’t withdraw money, warning signs should flash. If the trading platform doesn’t operate to your liquidity expectations, warning signs should flash again.
The Bottom Line
Conduct due diligence on the forex broker you’re considering by going to the Background Affiliation Status Information Center (BASIC), created by the NFA. Many changes have driven out the crooks and the old scams and legitimized the system for the many good firms. However, always be wary of new forex scams; the temptation and allure of huge profits will always bring new and more sophisticated scammers to this market.
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