Whether it is the stock, forex, commodities, or the cryptocurrency market that has drawn your interest, you will need to find a broker to start trading. This sounds easy enough and that’s exactly what most people think. However, it will not take you long to realize that it is not as simple as it seems. There are hundreds of brokers operating in the financial markets and not all of them are legitimate. As the internet is unregulated and there is no authority governing it, cybercriminals have become very active in the space, particularly in the financial markets.
Their favorite tactic is to pose as brokers and lure in people, so they will invest their money and also share their personal information, which they can get away with. You obviously don’t want to become a victim, so you need to do your homework. This applies to JMtrade as well, a broker that you will find in your search. Go over this JMtrade review to find out whether it is legitimate or not:
Regulation and Licensing
The first thing you need to check when you want to ensure the legitimacy of a brokerage is their regulation and licensing. Every professional and authentic platform is licensed by a regulator and JMtrade also claims the same. According to their website, it is licensed by the Ministry of Commerce in Kuwait. Obviously, you cannot just take their word for it and need to do a follow up. When you do so, you will find that this is a false claim because it is not licensed by Kuwait regulatory bodies.
If it was licensed in the country, it would have to go to the Central Bank of Kuwait for obtaining a license and not the Ministry of Commerce. The former does not issue licenses that easily and has stringent rules that have to be met for any broker to get a license. JMtrade does not have a licensed issued by them.
Terms and Conditions
It is understood that when you sign up with a broker, you agree to the Terms & Conditions they have set forth and these vary from platform to platform. You shouldn’t sign up with any company without going through them because you need to know exactly what you are agreeing with. Doing this in the case of JMtrade will work in your favor because their Terms & Conditions disclose that it is not a company to be trusted.
First off, they have clearly mentioned that they will not maintain segregated accounts on behalf of their customers. This means that if JMtrade was to go under, all client funds would also be lost. Thus, you will not get your hard-earned money back if the company goes bankrupt. No legitimate company ever does so and are usually required by regulatory bodies to maintain segregated accounts. This once more shows that this broker is unregulated.
Secondly, if you take a look at the ‘Commissions, Charges and other Costs’ clause in the Terms & Conditions of the broker, you will be in for another surprise. According to these conditions, JMtrade can charge you as much as it wants and they are also free to change their fees schedule without having to warn their customers about it in advance. Plus, they have not described their fees anywhere on the website, so you have absolutely no idea what you will have to pay.
The leverage offered by JMtrade to its clients is about 1:400, which is extremely high and most regulatory bodies do not allow brokers to offer this much leverage to traders. This highlights that it is not a licensed company and is only trying to defraud its clients.
Even though you will see the MT4 trading platform available for trading purposes and the minimum deposit requirement is also just $250, this doesn’t mean that JMtrade is a trustworthy or legitimate broker because it has all the hallmarks of a scam.