BrokerMasters – Are They a Scam?

Website URL: https://brokermasters.com/

Founded: 2019

Regulations: No Regulatory Oversight

Languages: English, German, Spanish

Deposit Methods: Bank Wire, Visa, MasterCard

Minimum Deposit: $5,000

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Forex, Spread Betting, Other Related Services

Trading Accounts and Conditions

BrokerMasters offers its clients 4 different types of trading accounts:

• Mini: For this type of account, the minimum deposit required is $5,000.
• Standard: For the Standard account, you need to make a first deposit that is at least $50,000.
• Gold: For the Gold account, you need to make a first deposit that is at least $1,000,000.
• Platinum: For the Platinum account, the minimum deposit is $1.5 million.

We only know the spread for the Mini account, which stands fixed at 3 pips. The leverage offered for all 4 accounts is 1:50.

BrokerMasters – Advantages

While there are many serious disadvantages to this broker, there are a couple of strong points that they have:

• Support for MetaTrader 4 Offered

Whatever said and done, BrokerMasters offers its clients the MetaTrader 4 trading platform, which is a big plus.

The MT4 software is the world’s favorite trading interface today. It offers users a wide range of features such as technical market indicators, charting tools and automated trading robots. Furthermore, it is a very easy to use platform, so even traders who are beginners will not find it a problem to use.

• Solid Leverage Levels Given

Despite the fact that BrokerMasters states on its website that its leverage ratio is just 1:50, when we checked the demo account, we found that this broker offers leverages as high as 1:200, which is quite high.

This means that traders with varying trading strategies will be happy to use this broker. However, we also need to warn our readers that high leverages also come with correspondingly high risk. This is why many financial authorities have put a cap on how high a leverage brokers regulated by them can offer.

• Demo Account Available

Surprisingly, BrokerMasters also offers its clients a demo account, which is how we found out about the leverage ratios and the spreads offered by them. A demo account is a good way for traders to test the trading conditions as well as the trading software.

So, that’s another plus for this broker.

BrokerMasters – Disadvantages

Despite the advantages we have listed above, we would still recommend that traders avoid this broker. Here are the reasons why:

• Anonymous Broker

The first serious problem we encountered with the broker is that BrokerMasters is operating anonymously. There is no corporate information provided; we do not know the name of the company that runs this website, and the only two pieces we have is a generic UK number (which is not difficult to get from anywhere in the world today) and an address in Switzerland.

Anonymous brokers are usually scammers and should be avoided.

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• Not Regulated

BrokerMasters has not mentioned a license or registration number anywhere on its website. This usually indicates that a broker is operating without a license. However, we decided to confirm suspicion.

Since there is a UK number as well as a Switzerland address, we decided to check the online registers of the UK financial watchdog, the FCA (Financial Conduction Authority) as well as that of the Swiss regulator, the FINMA (Financial Market Supervisory Authority). Of course, we did not find this broker’s name listed on either of the two registers, proving our suspicions correct.

Thus, this broker is unregulated and operating outside the law. Dealing with such brokers is a huge risk because it means you do not get any regulatory protection from scamming or bankruptcy of brokers.

• Blacklisted by FINMA

While searching for this broker’s regulatory status, we also found out that BrokerMasters has actually been blacklisted by the Swiss financial authority. The regulator clearly states that this broker is not authorized to offer its services in their territory, which means that the chances of them being scammers are very high.

Such blacklisting is only done if there have been numerous customer complaints of being scammed.

• Trading Costs Not Mentioned on Website

Another negative about this broker is that they have not mentioned their trading costs clearly. The only way we were able to find out was by checking their demo account.

• Extremely High Initial Deposit

BrokerMasters also demands and excessively high initial deposit of $5,000. The industry average is around $250, so that makes what this broker is demanding 1,900% more than the average! Furthermore, there are brokers who only require you to make a deposit of $5, so what this broker is asking for is just ridiculous.

• High Spreads

BrokerMasters offers a fixed spread of 3 pips, which is once again much higher than market standards. Most legitimate brokers have a spread that ranges from 1 pip to 1.5 pips, so what this broker is asking for is just too much. It is just not profitable for a trader to trade with such high spreads.

• Withdrawal Conditions for Trading Bonuses

Another black mark against this broker is that it offers trading bonuses and has very unfair withdrawal conditions attached to these bonuses. If you have availed of these trading bonuses, then you need to meet trading turnover targets to be able to withdraw your funds.

That trading volume is so high that it is all but impossible to meet that target. And the broker then uses your not meeting the target to deny your withdrawal request.

Basically, you never get to see your money again.

Conclusion 

BrokerMasters has too many things wrong with it, indicating that it is a scammer that should not be trusted. We recommend to all our readers that they avoid this broker.

BrokerMasters

2.6

User Experience

3.0/10

Payment Options

2.5/10

Security

2.7/10

Support

2.6/10

Reputation

2.4/10

Pros

• Support for MetaTrader 4 Offered
• Solid Leverage Levels Given
• Demo Account Available

Cons

• Anonymous Broker
• Not Regulated
• Blacklisted by FINMA
• Trading Costs Not Mentioned on Website
• Extremely High Initial Deposit