NewRichMarkets – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
NewRichMarkets - DO NOT TRADE WITH THIS PROVIDER
2.6/10
$100
Minimum Depositupdated 2020
NewRichMarkets does not offer information on the types of accounts it offers its clients. Because of this, we do not know what the minimum deposit requirement is for opening an account with this broker.
We were able to find out that this broker offers a maximum leverage of 1:200 and a spread that starts at 3 pips for the EURUSD pair. This information was taken from the web trader platform that we accessed.
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: www.newrichmarkets.io
Founded: 2007 – 2020
Regulations: Unregulated
Languages: English, Russian
Deposit Methods: Phone, Credit Card, Bitcoin
Minimum Deposit: Unknown
Free Demo Account: No
Number of Assets: N/A
Types of Assets: Foreign Currency Pairs, CFDs on Precious Metals, Commodities, Indices, Stocks & Cryptocurrencies
Trading Accounts and Conditions
NewRichMarkets does not offer information on the types of accounts it offers its clients. Because of this, we do not know what the minimum deposit requirement is for opening an account with this broker.
We were able to find out that this broker offers a maximum leverage of 1:200 and a spread that starts at 3 pips for the EURUSD pair. This information was taken from the web trader platform that we accessed.
NewRichMarkets – Advantages
We did not find any advantages in this broker.
NewRichMarkets – Disadvantages
Given below are all the red flags that we have found in NewRichMarkets:
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Unlicensed Broker
NewRichMarkets is owned and operated by the St. Vincent and the Grenadines-based company by the same name – NewRichMarkets Ltd. The broker claims to be regulated by the country’s Financial Services Authority (FSA).
This claim is a lie for the simple reason that SVG’s financial watchdog has publicly announced that it does not have a legal framework in place for forex and CFD brokerages.
And because this broker has not provided any other information on its regulation, we can conclude that NewRichMarkets is an unregulated broker that is operating illegally.
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 FCA
We are not the only ones to have noticed that NewRichMarkets is operating without proper authorization. The UK’s financial regulator, the Financial Conduct Authority (FCA), has blacklisted this broker for this very reason. In fact, if you read the warning that the FCA has issued, it clearly indicates that this broker may be running a scam operation.
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Lies About Trading Platforms Offered
NewRichMarkets states that if offers support for the MetaTrader 4 and 5 trading platforms. If this were the case, it would have been a big advantage for the broker.
The MetaTrader 4 and MetaTrader 5 platforms are two of the best trading software in the world. They are easy to use for both novices as well as expert traders, and offer a wide range of trading tools.
However, the only trading platform we were able to access on this broker’s website was a simplistic web-trading interface. The charts shown on this platform have been imported from TradingView, a third-party market data provider.
What this means is that the charts and data shown on this platform do not belong to this broker, and therefore whatever trading conditions are displayed are not really accurate.
This is a play typically used by scammer to fool novice traders into believing that the broker actually has a platform that works.
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Lies About Spreads
On its website, NewRichMarkets claims to offer spreads that start at 0.8 pips. However, when on its web-trader platform, the spreads on the EURUSD pair started at 3 pips. Such spreads are ridiculously high and even if this broker were legitimate, we would still advise traders not to contract with it since the cost of a trade would be too high.
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No Information on Accounts and Minimum Deposits
NewRichMarkets has not given information on the types of trading accounts it offers. And neither is there any information on the minimum deposit required to open an account with them.
This is yet another indication that you are dealing with a scammer. For your information, the standard minimum deposit requirement ranges from $100 to $250. However, there are many very reputable brokers that require much lower deposit, some even as low as $5.
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Lies About Deposit Methods
When you go through this broker’s website, you will see the logos of multiple payment providers – Credit/Debit Cards, Bank Wire, Skrill, WebMoney, Neteller, Yandex and China UnionPay.
However, when you check their payment area, the only ways in which you can make deposits are via credit card, through Bitcoin or over the phone.
There is little information on withdrawal methods and fees.
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Unfair Bonus Clauses
Once again, we see the hallmark of a scammer – bonuses. Bonuses have been banned across Europe and the UK because of their unfair clauses. And here we have exactly that!
Clients are offered a bonus for referring friends to the broker. However, that bonus may not be withdrawn from your or your referee’s account for 3 months from the time the bonus is credited to your account.
Furthermore, if you wish to withdraw your funds after the 3 month period has passed then you need to have traded a volume of at least 0.10 lots for every dollar you have received as a bonus.
There is also mentioned of a 50% Bonus which also has a trading volume target, but that target is not mentioned.
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Indemnification Clause
The indemnification clause in this broker’s Terms and Conditions is extremely long and covers just about anything that the broker may be held responsible for. This means that if anything goes wrong with your account – even if it is the broker’s fault – you will have to bear the consequences. The broker does not take any responsibility for what happens to you when you use its site or platform.
In the simplest terms, if you contract with NewRichMarkets and you lose your funds because of something being wrong with the broker’s site or platform, then you cannot complain against this broker!
Besides the heavy emphasis on indemnification, there is little in terms of a legal contract.
Conclusion
NewRichMarkets is a scam operation and if you invest your money with them, chances are, you will not see that money again. We recommend that all traders avoid this broker.
NewRichMarkets
Pros
- None
Cons
- Unlicensed Broker
- Blacklisted by FCA
- Lies About Trading Platforms Offered
- Lies About Spreads
- No Information on Accounts and Minimum Deposits
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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