Warning! Libra Markets is an offshore company! Your deposit may be at risk.
RECOMMENDED FOREX BROKERS
Is LibraMarkets as the name suggest a liberating experience, one that crosses the boundaries of what is expected from a broker, or is it something different but still familiar to us? Read on to find out.
The broker is presumably owned Yield Enterprise Currency Software OÜ in Estonia, and is operated from Latvia. Let us dig a little and see what we will find out. First of all, Yield Enterprise Currency Software OÜ is in fact a registered as a private limited company in Estonia with capital of only EUR 2500.
In Estonia the Finantsinspektsioonacts (FI) acts as a regulatory entity for all financial services institutions, with all regulated companies being officially included in an online register. We went through the online registry and found no results, so we can conclude that LibraMarkets is not regulated in Estonia. Even if a company is registered in a country that does not make it licensed by its appropriate body which is crucial for any forex broker to be.
Next we have the operational address in Latvia. The Financial and Capital Market Commission (FCMC) is the Latvian forex regulator, among other financial industries. If international brokers wish to operate in Latvia they must absolutely hold a FCMC license, otherwise their activities in Latvia will be annulled. After checking with the website we found no trace of a LibraMarkets. So in conclusion LibraMarkets in UNREGULATED and as such is a risk to all investments.
Not to mention that both Estonia and Latvia are known amongst the Forex industry as places where many shady brokerage firms base their operations.
Investing in unregulated brokers is the digital equivalent of throwing your money away for the wind to disperse it. It’s obvious that no one would do such a thing. Go with brokers that are regulated by trustworthy organizations like the FCA or CySEC. These entities work closely with the law, enforce it when called for, and have strict requirement for those under their gaze. Not to mention that those under their jurisdiction are members of compensation funds that cover victimized clients’ losses of up to £85 000 (FCA) and €20 000 (CySEC).
The leverage we were offered when opening a Live Account (only shady brokers allow for easy live account Sign Ups) was 1:400 max which is above the 1:30 ESMA imposed value; another sign of the broker’s fraudulent activities. Furthermore, the broker claims that it can offer up to 1:500 leverage on other account types.
The EUR/USD cost of trade is 3.2 pips on average which is unacceptable, aiding only the broker.
The assets given to traders are as follows: Forex Pairs, Crypto, Commodities, Stocks, and Indices.
The website is accessed in English, German, and Spanish.
LibraMarkets come with a web based trader that reminds us of Olympia Markets’ platform, which is by all means not a good thing since this is yet another shady company. The are multiple time frames, chart indicators, and options for optimizing a traders game, but there isn’t enough to retain and even impress.
The leverage is capped at 1:400 on the platform, and the EUR/USD spread is around 3.2-3.4 pips, which speaks for itself just how ridiculous it it.
There are commissions attached, yet they follow in the steps of the spread, i.e they are absurd. The commissions can range from $0 to $100 per 1 lot traded depending on the account type and the “terms and conditions for every client”
Furthermore, these “other accounts” we found no trace of. Our research left us with the conclusion that there are only two types of accounts: Live and Demo.
LIBRAMARKETS MINIMUM DEPOSIT
The minimum deposit is $250. This is the standard amount that most brokers demand. For Wire Transfer the minimum is $500.
Depositing methods are Credit/Debit cards, Wire Transfer, and Bitcoin.
Due to he broker’s lack of any regulation, we advise against depositing any amount whatsoever. If traders wish to invest in online forex, they will find that any FCA/CySEC regulated broker will surely do. These agencies are at the top of their game, demanding a strict conduct from brokers, and requiring regular reports on their activities
DON’T PROVIDE YOUR CREDIT CARD CVV CODE
The three digit CVV code is essential to making purchases or completing transactions online. By handing this info to someone claiming to be a broker, your are exposing your savings to the biggest risk of all!
DON’T PROVIDE ACCESS TO YOUR COMPUTER AND BANK ACCOUNT VIA ANYDESK OR TEAMVIEWER
Be sure to never give AnyDesk or TeamViewer access to your PC to unverified agents. These 2 platforms allow for your PC to be taken over by a second party, often times for help or guidance, but in the case of these brokers for the sole purpose of looting your bank account(s) and personal information. However, in order to do so your consent is needed, and this is the only thing standing in the scammers’ way.
LIBRAMARKETS WITHDRAWAL TIME AND FEES
The minimum withdrawal via Wire Transfer is $500. When we tried to withdraw from the Client Area, we were given a minimum of $50, yet we had no option to choose our withdrawal method. And so we are unsure if the Wire Transfer minimum is actually $500.
A clause worth a mention is one that is concerned with the appliance of a bonus. In order to withdraw an amount that has a bonus attached to it, one must meet an undisclosed amount of trading volume.
The broker claims that it will process withdrawal request between 5 and 10 days. Add to that the time it takes for the payment systems to send over your money and you have on average 2 weeks of waiting time.
There are no withdrawal fee mentioned anywhere.
ADDITIONAL FEES AND TAXES
There are no additional fees mentioned in any of the Legal Documents. Don’t let this soften you up. Brokers that have no regulation are known to launch incoming fees without notice. For this reason they try to postpone any withdrawal request. The most popular excuses for denying your withdraw requests are usually smart and for the most part scripted. These include but are not limited to loopholes in the T/C, asking for more deposits in order to withdraw, or just prolonging your pending withdrawal by claiming that the market will suddenly propel, multiplying your winnings by unrealistic proportions.
If a broker is unlicensed, never give you ID and personal details to it, because the broker will use these details against you once you file for a charge back. Furthermore, any allegation held against the brokerage will be easily refuted if they have in their possession a copy of your ID and proof of address.
We are positive that this so called broker will not return your funds; the evidence we have laid out before you work in sync against it. The sound thing to do is to direct your attention and investment to an FCA or CySEC licensed broker where the law is integrated in every aspect of their operations.
HOW TO RECOVER
The most sound advise we could give you is to immediately file for a chargeback with you credit card company.
Any details you might have shared with the broker, most notably the CVV code, are sure to be used against you, thus you should swiftly cancel your credit card ASAP.
Victimized traders will have their guards down looking for every opportunity to get their money back. This is where the fake recovery agents come in, seeing an opportunity in your desperateness. First of all, they will promise to recover all your money, but they will ask a fee to cover their services. Once this fee is paid rest assured that you will never again hear from them.
The last line of defense for these indecent folk is more like a desperate cry: often times they will comment on reviews and cite the whole ordeal as a conspiracy initiated by competitive brokers against them; at times even claiming that reviewers are anything but objective, and that no one writes good reviews. The absurdities are limitless!
As you have seen LibraMarkets is everything but liberating. In fact it will probably imprison your funds and never return them, and for this main reason (and more) we urge traders to keep away from this one.