Eager to start online trading? You are certainly not alone. Recently, a massive number of people have taken an interest in the financial markets because they want to take advantage of the opportunities they are offering. Since the coronavirus pandemic has limited investment options, the financial markets have become very lucrative because of their impressive returns. But, you first need to sign up with a broker and this will bring you to the following Colmex24 review. Hundreds of brokers exist in the markets and you will soon find yourself overwhelmed because every other platform claims to be best.
Does this mean all of them are created equal? No, they are not and this will become apparent when you do a bit of research. The existence of scam brokerages will come to light, which indicates that you have to proceed very carefully if you don’t want to become yet another victim. Millions of people have been entrapped by these fraudsters and you don’t want to go down the same route. You want to find a good broker, but this doesn’t mean that you take what you read on a company’s website at face value.
After all, it is immensely easy for scammers to setup a website and claim anything, but actually fulfilling these claims is a different ballgame altogether. Therefore, you need to protect yourself and check everything that a broker is promising before you decide to trust them with everything. You should follow the same route in the case of Colmex24, which is one of the brokers you will find. A look at their website comes off as quite impressive because they advertise themselves as a legitimate broker that is offering you professional services. The reality turns out to be quite different and you are in for a surprise. What are some of the issues with this broker? Let’s take a look:
It is a clone firm
When you start digging into Colmex24, you will realize that it is not a legitimate company at all and is actually a clone firm, which is a common strategy that many scam brokers use for attracting clients to their platform. If you take a look at the broker’s website, you will find that it claims to be a tradename of a legitimate Cyprus Investment Firm (CIF) called Colmex Pro Ltd. This is registered by the Cyprus Securities and Exchange Commission (CySEC), which gives the impression that the brokerage is also duly regulated.
However, when you check the online register of the CySEC, you will find that while Colmex Pro Ltd. is indeed regulated, Colmex24 is not one of their domains. They only have two domains, which are colmex.com and colmexpro.com, but there is no colmex24.com. Hence, the scammers are simply using the name and licensing details of an authentic company in order to fool people.
Of course, the fact that Colmex24 is taking advantage of the credentials of a licensed company has not gone unnoticed by the regulatory authority. Therefore, CySEC has actually issued a warning against the broker, which is all the proof you need that you are not dealing with an authentic platform at all.
It has an excessive minimum deposit
As stated above, a warning issued by one of the world’s leading regulatory authority is enough confirmation that Colmex24 is not a reliable or good broker at all. You would think that this is the only problem the broker has, but there are more issues to be found. If you continue looking at the offerings on their website, you will come across other issues. The minimum deposit they require is an excellent example and should alert you right away.
In order to open a Basic account with Colmex24, you have to deposit a minimum of $2,000, which is extremely high. If you check authentic brokers, you will ask that none of them ask for more than $250 for a standard trading account and micro accounts can be opened for as low as $10. Thus, this broker is asking for eight times as much as the average minimum deposit and this is definitely shady. Other than minimum deposit, you will find that the spreads offered by Colmex24 are also excessively high, which makes it an expensive broker as well.
It does not clarify its trading platform or payment methods
Another problem that you will come across on Colmex24 is that they have not provided any clear cut information about their trading platform. If you try to register an account, no confirmation email is sent and this makes it difficult to verify any information about the broker. It is not wise for anyone to use a broker’s services when they are not transparent and open about their offerings. After all, the trading platform is one of the most important features online brokers can offer and not something you should take lightly.
It plays a key role in your trading journey, so you want to ensure that the platform you are being offered is capable of providing you the right trading tools, features and technology you need for making the most profits. The MT4 and the MT5 trading platforms are recognized as the top ones in the market, but there is no mention of them on Colmex24 and this is definitely not something you would expect from an authentic broker.
Furthermore, another piece of missing information on the Colmex24 is that of their payment methods. As you have to deposit and withdraw funds when you are trading online, you would want to know what payment methods are supported by a broker. However, bank transfer is the only payment option that is mentioned and it should be noted that this method does not allow for a chargeback. This means that if something was to go wrong, you would not be able to get your money back.
Along with these problems, you will also learn that Colmex24 also charges some very salty inactivity fees from their clients, which makes it obvious that the broker is not up to any good.