Limit Markets – Is This Broker a Scam?

| Publish date: 01/14/2020 (Last updated: January 14, 2020 08:47 AM)
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Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Limit Markets - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Deposit
X

updated 2020

Limit Markets offers its customers various account types, which we have listed here:

  • Free Real Account: This account has leverage ratios of 1:200, and from what we can make out, no minimum deposit requirement.
  • IB Partners: This seems to be a partnership program however details are sketchy and couched in general terms.
  • MAM Account: This account type allows traders to manage unlimited accounts with a single account. MAM stands for Multi Account Management.
  • Swap Free/Islamic Account: This account type is targeted at Islamic traders or those who do not wish to be responsible for swap or interest income costs.
  • Rebate Account: The broker states that in this account type the trader is offered an opportunity to earn an income from the same trade twice.

Try these regulated brokers if you want to start trading cryptocurrencies

AvaTrade - Regulated broker
Trade with an award-winning broker

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.

Website URL: https://www.limitmarkets.com

Founded: N/A

Regulations: Regulated by Vanuatu Financial Services Commission

Languages: English, Turkish, German, Dutch (Suriname), Spanish

Deposit Methods: Unknown

Minimum Deposit: Unknown

Free Demo Account: Yes

Number of Assets: Unknown

Types of Assets: FOREX, CFDs – Cryptocurrencies, Indices, Commodities, Metals

Trading Accounts and Conditions

Limit Markets offers its customers various account types, which we have listed here:

  • Free Real Account: This account has leverage ratios of 1:200, and from what we can make out, no minimum deposit requirement.
  • IB Partners: This seems to be a partnership program however details are sketchy and couched in general terms.
  • MAM Account: This account type allows traders to manage unlimited accounts with a single account. MAM stands for Multi Account Management.
  • Swap Free/Islamic Account: This account type is targeted at Islamic traders or those who do not wish to be responsible for swap or interest income costs.
  • Rebate Account: The broker states that in this account type the trader is offered an opportunity to earn an income from the same trade twice.

These account types seem attractive, but there is literally no information about trading conditions, leverages (except for the first Free Real Account), or even spreads. However, when we logged into the demo account, we found out that the benchmark currency pairs the EUDUSD, had a spread of 1 pip, which is half a pip lower than the industry standard, which makes it an attractive option for many traders.

Limit Markets – Advantages

There are the few advantages we could find about Limit Markets:

  • License and Regulation

Limit Markets is owned and operated by Limit Markets Ltd., and is registered in Vanuatu, and is regulated under the Vanuatu Financial Services Commission.

The VFSC does issue licenses to brokers offering Forex trading services, so technically, Limit Markets is regulated by a financial regulator.

  • MetaTrader 4 Platform Offered

This is the biggest advantage we could find for Limit Markets. The MT4 platform is one of the world’s foremost trading platforms, offering nearly 100 market indicators, customizable trading bots, charting options and many other features.

So, the fact that Limit Markets has this platform is a big plus.

  • Demo Account Available

Another big plus is that this broker offers a free demo account where traders can test the trading conditions. It was when we logged into this account that we were able to find out about the spread and related trading conditions.

Limit Markets – Disadvantages

Unfortunately, besides the few advantages listed here, there isn’t much else we could say is positive about this broker. Here are the more serious concerns we have about Limit Markets:

  • Offshore Registration

Despite the fact that Limit Markets is registered with the VFSC, we still have cause for concern. The challenge is that the VFSC isn’t known for its stringent regulations, the way other European watchdogs such as the FCA or the CySEC are.

What this means for you as the trader is that if you were to trade with Limit Markets, your money would not be safe and you would not receive much protection in case of an unfortunate event.

So, we would still advise caution while dealing with Limit Markets.

AvaTrade
$100
Minimum Deposit

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.

Plus500
$100
Minimum Deposit

76.4% 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

 

  • Regulatory Warning from UAE Regulator

While we were checking up on Limit Markets’ regulation status, we also came across something that caused us a lot of concern.

The United Arab Emirates’ Securities and Commodities Authorities had issued a warning against Limit FX, which showed that its address was in the UAE. The blacklist was issued by the SCA for authorized trading in the UAE.

Later, after that warning was issued, the broker rebranded itself as Limit Markets, so that warning would still be valid against this broker – even if it changed its name.

The point is that this broker was blacklisted for offering financial services illegally, so, that to us is a major red flag.

  • No Mention of Trading Costs

The most basic as well as most critical information that any online broker should publish is its trading conditions and costs. Trading conditions are critical for traders to be able to make informed decisions and knowing how much they would need to pay when executing trades.

Unfortunately, this is another key piece of information that is missing from Limit Markets’ website. There is are no details with regard to reference spreads and minimum initial deposits required.

It is the questionable brokers who avoid giving information on trading conditions since it gives them a chance to add in unexpected fees which a customer has no choice but to pay once he or she starts trading on that broker’s platform.

So, this is another serious issue that points to the fact that Limit Markets is not a broker to be trusted.

  • No Information on Withdrawal Methods

Brokers usually mention the payment methods on their website so that traders know how they can make withdrawals and deposits. Standard payment methods include debit and credit cards, bank wires and some online wallets such as Neteller, Skrill and so on.

Unfortunately, on Limit Markets’ website, there is absolutely no information about how you can make deposits or withdrawals. There are just no payment methods mentioned.

This lack of information is typical of brokers that are out to scam traders, so Limit Markets not having this basic information on their website is definitely a cause for concern.

Conclusion

This financial services provider has made a nominal effort to get regulated – with a regulator that is know for its lax oversight. Added to that, there is no information on trading conditions, payment methods or even clarity on account types.

Therefore, we recommend that you avoid trading with Limit Markets, or you could end up losing your investment.

Limit Markets

2.5

User Experience

3.0/10

Payment Options

2.3/10

Security

2.4/10

Support

2.1/10

Reputation

2.8/10

Pros

  • Regulated by the VFSC
  • MT4 Trading Platform
  • Availability of Demo Account

Cons

  • Offshore Broker
  • Blacklisted by UAE Regulator
  • No Information on Trading Costs
  • No Information on Payment Methods

Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:

AvaTrade
$100
Minimum Deposit

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.

Plus500
$100
Minimum Deposit

76.4% 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

eToro
$200
Minimum Deposit

eToro is a multi-asset platform which offers CFD and non CFD products. 66% 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.

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