5Markets – Are They Safe?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
5Markets - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2022
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://fivemarkets.io
Founded: 2021
Regulations: None
Languages: English, Spanish
Deposit Methods: Credit Cards, Debit Cards, Bank Transfer, E-Wallets
Minimum Deposit: $250
Free Demo Account: No
Number of Assets: N/A
Types of Assets: Fiat Currencies, Energy Commodities, Metal Commodities, Agriculture Commodities, Stocks, Indices
Trading Accounts and Conditions
5Markets has a rather complicated account system. There are 3 types: Beginner Trader, Intermediate Trader, and Advanced Trader.
Beginner Trader: The broker states that the deposit range is from $250 to $2,499.
- Student: The minimum deposit is €250. There is a Welcoming Bonus and Refer a Friend Bonus of 5.2% each. Spreads start from 0.1 pips and the leverage is 1:10. The broker charges no commissions.
- Pro: The minimum deposit is €1,000. The Welcoming Bonus and Refer a Friend Bonus is 5.2% each. The leverage is 1:20 and the spreads start from 1.2 pips. There are no commissions.
- Pro+: The minimum deposit is €2,499. The Welcoming Bonus and the Refer a Friend Bonus is 12.4% each. Leverage stays at 1:10, and the spreads start at 1.3 pips. There are no commissions.
Intermediate Trader: The broker states that the deposit range is from $2,500 to $24,999.
- Professional: The minimum deposit is €250. The Bonuses are 13.2% each. Leverage is 1:100 and spreads start from 0.1 pips. Commissions start from €0.2 per lot.
- Expert: The minimum deposit is €10,000. The Bonuses are 15.4% each. Leverage is 1:200 and spreads start from 0.2 pips. Commissions start from €0.7 per lot.
- 10+: The minimum deposit is €24,999. Bonuses are 16.4% each. Leverage is 1:300 and spreads start from 0.3 pips. Commissions start from €0.9 per lot.
Advanced Trader:
- Business: The minimum deposit is €250. Bonuses are 18.2% each. Leverage is 1:400 and spreads start from 0.1 pips. Commissions are from €0.9 to €2.1 per lot.
- Platinum: The minimum deposit is €75,000. Bonuses are 19.4% each. Leverage is 1:450 and spreads start from 0.2 pips. Commissions are from €2.1 to €2.7 per lot.
- Luxury: The minimum deposit is €100,000. Bonuses are 20% each. Leverage is 1:500 and spreads start from 0.3 pips. Commissions are from €2.7 to €3.5 per lot.
5Markets – Advantages
There are no advantages to trading with 5Markets.
5Markets – Disadvantages
Here are the reasons why we have marked 5Markets as a scam:
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Lack of Regulation
The first thing that lets us know that we are dealing with a scam is the fact that 5Markets is unregulated.
The broker claims to be operated by Uncanny Services LLC, a company registered and based in St. Vincent and the Grenadines (SVG). There is no contact information besides that one address in SVG.
Here is where we point out a couple of things. First, the fact that the only thing we have is an address and no other contact details means that we are dealing with a more-or-less anonymous entity. And second, being registered in SVG means nothing, since this country’s financial authority has made it clear that they do not regulate forex brokers.
Thus, we are dealing with an unregulated and anonymous broker – a scammer.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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Blacklisted by CONSOB
While checking on 5Markets’ regulation status, we actually found out that this broker has been blacklisted by the Italian regulator – the Commissione Nazionale per le Società e la Borsa.
The regulator states that this broker is operating without proper authorization, which means that they are a scam.
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Poor Legal Documents
When you check their website, there seems to a large number of legal documents – KYC, Privacy Policy, Terms and Conditions – the whole set!
However, when we clicked on each of these documents, we found out that they were just short documents with general terms. There was nothing specific in terms of the services offered, fees, payment policies and so all – all the legal details you would expect from a legally regulated broker.
Since the legal documents are the contract between the trader and the broker, the lack of these documents signals a scam.
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Poor Trading Software
While this broker harps on about providing the best technology, what you actually get is a poorly designed WebTrader trading software, one that we have seen being repeatedly used by other scammers.
A real broker would ensure that their main product offering – their trading software – would be of the best quality. Like the MT4 or MT5 platforms. But only scam brokers would use shoddy platforms that can barely carry out buy and sells.
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Issues with Trading Conditions
As you can see from our Account Types and Trading Conditions section, this broker has gone out of their way to provide seriously detailed information on their trading accounts and trading conditions.
However, while they look impressive, 5Markets’ trading conditions actually hold little substance. The minimum deposit requirements are mentioned in Euros in the main section, but in Dollars in another section.
The leverage ratios are really high – which means that traders face excessive risks while trading with this broker.
Spreads seem really low, but then the commissions kick in.
All in all, these trading conditions are not something that we would trust.
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Bonuses Offered
The fact that this broker offers some really hefty bonuses tells us that they are scamming you. These bonuses have been banned from most jurisdictions because of the unfair withdrawal terms. And when you check their withdrawal terms, they are so vague that it leaves us extremely suspicious about the real withdrawal conditions this broker has in place.
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Issues with Payments
This broker has – once again – not bothered with any details. The broker claims to offer credit and debit cards, bank transfers and e-wallets as payment options. However, we couldn’t even access their payment terminal, so there is no way to confirm this claim.
Conclusion
5Markets is not a safe bet; this broker is yet another scam.
5Markets
Pros
- None
Cons
- Lack of Regulation
- Blacklisted by CONSOB
- Poor Legal Documents
- Poor Trading Software
- Issues with Trading Conditions
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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