The proliferation of scam brokers in the financial markets has not gone unnoticed. Every other day, there are reports about another fraudulent broker disappearing with the funds of thousands of people. It is because of the influx of people in the markets that these scammers have gotten an opportunity to exploit them. The financial markets have become easily accessible nowadays and a greater number of people are seeking the services of a broker to start their trading journey. Most people are not able to identify these scammers because their disguise is very good and this Marketbull review can give you an idea of how they succeed.
These fraudsters understand that people have their guard up when they are looking for a broker, so they purposely add such features and offerings that people find hard to resist. Their overall appearance seems to be legitimate and extremely impressive, so much so that even the most cautious of people fall into their trap. Thus, it is a good idea to take some time and closely check the details provided by a broker in order to avoid the same scenario. Doing so in the case of Marketbull can pay off in the long run because you will discover just how deep the scam goes.
When you first come across Marketbull, the brokerage will undoubtedly impressive because it promises tight spreads, high leverage levels and reliable trading solutions. Moreover, they also represent themselves as a licensed and regulated firm and this adds further weight to their promises. But, all you have to do is look closer to find out just how empty they are. Let’s get started:
Licensing and regulation
When scam brokers became rampant, people soon realized that these were unregulated and shady firms. It wasn’t possible for licensed and regulated brokers to operate without any accountability and they were required by law to follow proper rules and guidelines for providing their services. Hence, traders began to prioritize licensed and regulated companies. Realizing this, these scammers portray themselves as the same in order to fool people.
You will find Marketbull to be no different in this regard. First off, you will discover that the brokerage claims to be based in London and also that it is licensed by the regulator of the region i.e. the Financial Conduct Authority (FCA). It also claims to be licensed by several other authorities, including the European Central Bank (ECB) and the Prudential Regulation Authority.
Regulators in Austria and Luxembourg have actually exposed Marketbull as a scam. As a matter of fact, you will find that the Commission de Surveillance du Secteur Financier (CSSF) has actually issued a warning against them. It has specified that the broker is falsely claiming to be based in London and also being licensed by the CSSF.
You can also check the online registers of all the aforementioned regulators and it will become apparent that Marketbull is lying about where it is operating from and its licensing and regulation as well. It is nothing but a tactic to fool people into signing up, believing that it is a regulated brokerage.
Terms and Conditions
Before you choose any broker, you would obviously want to go through their Terms and Conditions because this is where you will find the trading conditions involved, such as the fee, withdrawal policy and more. This is essentially the legal agreement that outlines the kind of relationship you will have with the broker, so it is best to know what it entails. Therefore, it is positively alarming to find that there is no such document provided by Marketbull on its website.
You can scour their entire website and not find any legal documents, such as Terms and Conditions or Client Agreement that specifies what you can expect from them during the course of trading. This is a major red flag because every legitimate broker would certainly have these documents, yet Marketbull is not bothered to provide any such thing.
An important offering of any broker is the leverage they provide to traders because it gives them flexibility to trade more than their capital allows. Of course, it also magnifies the risks, so most regulated markets like the UK only permit brokers to offer limited levels of leverage to traders. This is to protect them from the excessive risk, and still allow them to enjoy a little bit.
Considering that Marketbull claims to be regulated by the Financial Conduct Authority (FCA) in the UK as well as other European regulators, it should immediately send up a red flag that they are offering leverage as high as 1:1000. This is way beyond the limits of 1:30 set by the FCA, clearly indicating that the broker is not regulated and is only trying to lure in people.
It is the norm for brokers to have minimum deposit requirements that traders have to meet in order to open an account with them and Marketbull can do the same. However, a quick check shows that they are asking for as much as $1,000 as the minimum deposit and this is certainly higher than what most authentic brokers ask for. The standard falls somewhere between $200 and $250. As a matter of fact, these days, most platforms are offering micro accounts for as low as $10, which makes this demand extremely high.
Another issue that you will find with Marketbull is that they haven’t bothered to disclose what payment methods they support. It is best to remember that you should use options like bank cards, including VISA and MasterCard, because these give you the chance to file for a chargeback within 540 days of making a deposit. You can use this option in case something goes wrong. If other methods are available, it is best to avoid because those are permanent and nothing can be done.
Even if Marketbull offers the MetaTrader4 trading platform to its clients, it is just not enough to make up for the glaring issues of this broker that clearly indicate it is a fraudulent platform and not legitimate.