CMGmarkets – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
CMGmarkets - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Depositupdated 2020
CMGmarkets claims to be owned by Mitz Holding Ltd, which is based in St. Vincent and the Grenadines. The broker also claims that all payments are processed by another company – Mitz Partnership OU. This company is located in Estonia.
SVG, as the island nation is more popularly known, is a haven for scam brokers. This is because the country’s regulatory authority, the Financial Services Authority, does not have regulations in place to oversee financial services providers such as forex and CFD brokerages.
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://stockfunds.co
Founded: 2019
Regulations: Unregulated
Languages: English
Deposit Methods: Credit Card, Bank Transfer
Minimum Deposit: $250
Free Demo Account: No
Number of Assets: N/A
Types of Assets: Foreign Currency Pairs, Metals, Commodities, Cryptocurrencies, Indices, Stocks
Trading Accounts and Conditions
Here is the list of trading accounts offered by StockFunds:
- Primary: The minimum deposit requirement is $250 for this account type. Leverage ratios are at 1:10.
- Moving Forward: The minimum deposit you are asked to make to open this account is $500. The leverage is a maximum of 1:30.
- Eager Trader: The minimum deposit you need to make is $1,000. The maximum leverage is 1:50.
- Confident Investor: The minimum amount for deposit is $5,000. The maximum leverage is 1:80.
- Trading Master: The minimum deposit you need to make for this account type is $10,000. The maximum leverage offered is 1:100.
The spreads in all account start from 0 pips. We were unable to verify any of this information as there was no demo account available and we also could not access their trading platform.
StockFunds – Advantages
There are no advantages you will get from trading with this broker.
StockFunds – Disadvantages
StockFunds has numerous – and serious – disadvantages because of which we would recommend to all traders that they not contract with this broker. Here’s the list.
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Unregulated Broker
StockFunds states that it is owned by a company called White Rock Partners Ltd. This company is based in St. Vincent and the Grenadines, which makes this broker an offshore entity. However, the payments are processed by W Rock Management OU, a company that is registered in Estonia.
The problem here is two-fold. First, St. Vincent and the Grenadines’ financial regulator does not have provisions in place to regulate forex and CFD brokerages. Therefore, even if this broker is registered in this territory, it would mean that it is still unregulated.
Next, this broker seems to also have operations in Estonia. And to be able to operate a financial services company in this country, you need to be regulated by the Estonian Financial Supervision Authority. Despite the registration number provided, we found out that this broker is not licensed to operate in Estonia.
Now, StockFunds (and the companies related to it) do not have any other licensing information, we can safely conclude that this is an unregulated broker. Dealing with unregulated brokers puts your funds at serious risk.
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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Bonuses Offered
StockFunds offers its clients generous bonuses. This is a huge red flag for two reasons – first that such bonuses have been banned in both the UK and Europe, the very markets that this broker targets. And second, because the withdrawal terms attached to these bonuses are designed to prevent you from withdrawing your funds.
Sure enough, we found out that to be able to withdraw your funds if you have taken a bonus offer, you will need to trade 30 times your deposit and bonus amount. This is a figure that is almost impossible to reach, which means that you will never get to withdraw your money!
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Promises Investment Income
If you read through StockFunds’ website, you will notice that this broker promises its clients additional investment income. The problem with this promise is that no broker can guarantee an income to its traders. The very nature of the derivatives market means that most traders (about 70%) will suffer losses. This type of a market is highly speculative and carries huge risks. Therefore, it is unethical for any broker to promise returns.
In fact, regulated brokers are legally mandated to issue warnings to their customers about the risk of losing money on the market. They also need to publish the percentage of traders that have lost money during trading. This number varies from 75% to as much as 85%!
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Offers Automated Trading Software
StockFunds offers its clients a special automated trading software, where you get to simply invest your funds and let the robot do all the work for you. In theory, it sounds great.
However, brokers are called market makers. They make money when traders lose money on the market. Therefore, if you allow a market maker to handle your finances, then chances are that they can program this so-called automated robot to ensure that you lose money so that they can profit.
When a market maker offers to manage your funds and trading decisions for you, it is known as a conflict of interest.
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No Committed Time Frame to Process Withdrawal Requests
When you deal with a regulated broker, your withdrawal requests are processed promptly; the average time taken by such brokers to process requests is about 24 hours (but there are many brokers today that can do in just a few hours!).
With StockFunds, the broker clearly states that it does not commit a time frame to processing your withdrawal request. This means that you may never have your withdrawal request approved!
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Unable to Access Trading Software
First of all, StockFunds does not offer its clients a demo trading account. And then, there is no way to download the promised MetaTrader 4 platform that this broker claims it offers.
There is also an indication that this broker offers the Status WebTrader online trading platform.
Since there was no way for us to access either of the trading platforms, we cannot guarantee that this broker actually has a trading software at all.
Conclusion
StockFunds is not a broker that you can trust. In all probability, this is just another scam operation that is focused on divesting unwary investors of their funds. The broker makes tall promises, none of which are true.
We would strongly recommend to all traders that they avoid trading with StockFunds.
CMGmarkets
Pros
- None
Cons
- Unregulated Broker
- Links to Other Scam Brokers
- Promises of High Returns
- Unfair Terms and Conditions
- Issues with Spreads
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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