Have you ever come across a company that actually talks about its shortcomings or flaws? There is no such business that exists, particularly in today’s competitive environment. Of course, it is natural for them to lack in one area or the other because no one can be perfect. However, it is the lack of authenticity and legitimacy that becomes a big concern when you are looking for an online broker. Fraudulent brokerages have increased tenfold, as more activity in the financial markets means more opportunities. Therefore, learning the truth about a company is of the utmost importance and FNPMarkets review is one way to get it.
How else will you uncover the reality? As mentioned earlier, no one is going to tell you outright what is wrong with them. As for scam brokers, they are going to do the opposite, which means they will go to any lengths to convince their clients that they are a legitimate company and everything you need. They are able to get away with it because most people are in a hurry to start trading and don’t look beyond the surface to find out the truth. This is a mistake that can cost you significantly, so you need to avoid falling into this trap.
No matter how eager you may be, it is smart to learn the truth about a broker before making a decision, so you don’t find yourself scammed at the end of the day. Doing so in the case of a forex broker like FNPMarkets will certainly be rewarding because it can save you from a disastrous decision. How? You can read on to find out:
No company information
The online broker you sign up with for your trading journey will act as your partner. You will deposit your money with them, trust them with your personal information and use their services and platform for trade execution. Therefore, you should know everything possible about the company before you trust them to such an extent. An attempt to do this in the case of FNPMarkets will leave you disappointed because you will find their website to be devoid of any such information.
As a matter of fact, the FNPMarkets website is completely anonymous because you will not find a company name mentioned anywhere. Most importantly, there are no contact details given either, which means no phone or even email. How will you contact them if you have a problem? This is one major concern. The only data that they have provided is that they operate in the European Union.
This is likely to be a false claim because the European Union is a jurisdiction that boasts a strong regulatory framework that applies to financial services providers. Hence, they cannot operate anonymous like in the case of FNPMarkets and they have to be licensed as well. No licensing information is available on their website, which highlights their lack of authenticity.
Malicious Terms and Conditions
You have to agree to the Terms and Conditions of a company before you decide to use their services, as they define your relationship. In the case of a broker, they highlight the rules you have to comply with and the fees you will be charged and other legal issues. When you check the Terms and Conditions on the FNPMarkets’ website, you will find out just how malicious they are.
First and foremost, you will notice that FNPMarkets has some very salty withdrawal and inactivity fees. They apply a 10% levy on withdrawals made from accounts that haven’t reached a turnover of 200 times, something that’s impossible to achieve for the most part. As for dormant account fee, if you don’t use your trading account for six months, they will charge you a monthly fee of 10%, which is higher than what any legitimate broker charges for inactive accounts.
Lastly, you will also come across the clause of Non-Deposited funds on the FNPMarkets website, which means that the trading bonuses offered by the broker have trading volume requirements. First off, it shouldn’t be offering trading bonuses at all because they are banned in regulatory markets like the EU because of their exploitative nature. Secondly, this clause indicates that traders will not be able to withdraw anything, including the funds they deposit.
How? Non-deposited funds’ clause highlights that profits made via trading bonuses cannot be withdrawn until the minimum trading volume requirement is met. But, how do you separate the profits made from your own deposits and those made from trading bonuses? There is no way to do so, which means you will not be able to withdraw at all.
Lack of a good trading platform
The trading platform is a vital tool in your overall trading journey and it needs to be up to the mark for you to be able to profit in the long run. Unfortunately, you will find that FNPMarkets offers a web-based trading interface that doesn’t even have their logo. Such platforms are easily manipulated and low-cost and they are also severely lacking, particularly when you compare them to the likes of the MT4 and the MT5, which are recognized as the best trading platforms in the market.
Most brokers charge spreads from their clients in order to make profits and this is a routine part of trading. Therefore, the fact that FNPMarkets also charges spreads shouldn’t be surprising and it isn’t. The problem is with the high spreads they charge. The cost of trade associated with the standard EUR/USD pair is a whopping 8 pips. This is considered excessive because the spread for this pair is usually between 1.5 and 2 pips and this is four times that.
The leverage provided by FNPMarkets is also worth noting because they are offering you high level of 1:200, something they shouldn’t be doing if they are based in the European Union. Regulators in the EU, UK and Australia have imposed a ban on such excessive leverages.
You can easily learn the truth about FNPMarkets from the aforementioned problems and decide that it is not a trustworthy platform for your trading needs.