Egmarkets – Are They a Scam?

Website URL: https://egmarkets.trade

Founded: 2022

Regulations: None

Languages: English

Deposit Methods: Unknown

Minimum Deposit: No Minimum Deposit

Free Demo Account: No

Number of Assets: 1000+

Types of Assets: FX, Indices, Stocks, Commodities

Trading Accounts and Conditions

Egmarkets does not specify what types of trading accounts they offer their clients. The only thing the broker mentions on their website is that you can register for an account.

There is no clear information on the broker’s website about their trading conditions either. There is simply one reference to a trading condition, where Egmarkets states that their spreads are the tightest across Nigeria and Africa.

We accessed the broker’s trading software to find out what the trading conditions actually were. On the platform, we saw that the trading costs (spreads) for the EURUSD were at 1.5 pips. The trading risk (leverage) was at a maximum of 1:400.

We do not know if there were any fees and commissions being charged.

Egmarkets – Advantages

The one advantage that Egmarkets has is that they offer their clients the use of the MetaTrader 4 software. While the MT4 is not the latest software or as advanced as its successor the MetaTrader 5 software, it is still among the most popular platforms in the world.

This software allows traders to use a massive range of charting tools, market analysis options and other functions that make trading so easy. Added to that traders get access to a huge marketplace where they can buy third-party apps to enhance their trading experience.

Egmarkets – Disadvantages

Given below are all the reasons why we believe that Egmarkets cannot be trusted.

• Unregulated Broker

Egmarkets, or Eagle Global Markets, is a broker that is owned and operated by Eagle GM Limited, a company that is registered in Nigeria. The broker also mentions two more companies – Eagle Global Markets (UK) Limited and EGM Analytics Limited – both of which are supposedly registered in the UK. However, the broker does not specify what the relationship between these companies is. The contact number provided on their Contact Us page does not have a country code, so we do not know where this number is from.

This broker claims to be internationally regulated and that they are also members of The Financial Commission, which is a non-government self-regulatory organization that settles disputes between brokers and traders and attempts to protect traders from scammers.

Now, here is the truth about this broker. Egmarkets was actually expelled by the Financial Commission, so this broker’s claim of membership is a lie! Added to that, to operate in the UK, or be registered in the UK, a broker needs to be regulated by the Financial Conduct Authority (FCA), which is the financial regulator of the country. When we checked the online register to see if this broker (or the companies they mention) is listed with the FCA, we found out that they are not. Which means this broker is not registered in that country.

The Nigerian Securities and Exchange Commission oversees all forex brokers in the country. We also checked this authority’s online database and found that this broker was not even listed there.

All of this research into Egmarkets’ regulation status tells us that this broker is operating without any valid license and is therefore an illegal entity, which means that they are scammers.

Plus500

$100

Minimum Deposit

Start Trading

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• High Leverage Ratio

We need to point out that the maximum leverage of 1:400 is too high a trading risk. While there is a chance to make some heavy profits when using such high leverage, the chances of losing all your invested funds are much higher. In fact, statistics show that as much as 85% of all trades end in failure. So, when you invest with such high risk, the chances of losing all your money are extremely high.

Added to that, in countries like the UK (which is a jurisdiction this broker seems to be targeting), the maximum leverage is capped at 1:30 to protect traders from the very losses we have spoke of. Thus, the kind of leverage offered by Egmarkets is not only dangerous, but it is also illegal.

• Unknown Funding Methods

While Egmakrets has no minimum deposit requirement (which means that you do not need to deposit any funds to be able to open a trading account with them), which makes the broker very affordable, we do have issues with the fact that the broker has not given any information on their funding methods.

We therefore do not have any idea about what their deposit or withdrawal fees are. We also do not know what their commissions are, if any.

We also do know how what the funding options are, so we do not know how customers are supposed to make their deposits.

These are basic pieces of information that tell us clearly that we are dealing with a scammer.

• No Legal Documents

One of the biggest red flags that tell us that a broker is a scammer is the quality of their legal documents. Legal documents are the contracts between brokers and traders therefore brokers are legally required to ensure that these documents are available on their websites.

These documents detail the terms of the services brokers offer, their fees and commissions, usage policies, and so on. So, if these documents are missing, then a broker can take advantage of a trader’s funds and even personal information.

Since most of us tend to blindly click on the I Agree button for the Terms and Conditions option, scammers get away with not bothering to include legal documents. And this is exactly what Egmarkets has done. This broker does not have any legal documents whatsoever. Which means that if you agree to their terms (which they don’t have!), then you are leaving yourself vulnerable to them. 

Conclusion

Egmarkets is a scammer and this is not a broker that you should ever trust.

Egmarkets

2.6

User Experience

3.0/10

Payment Options

2.8/10

Security

2.5/10

Support

2.3/10

Reputation

2.6/10

Pros

• None

Cons

• Unregulated Broker
• High Leverage Ratio
• Unknown Funding Methods
• No Legal Documents