Venturing into the forex market is risky enough, even without considering the threat posed by scammers. Subsequently, you should be cautious with brokers like Fido Markets, who are no doubt illicit and keen to rip you off your money.
Are you considering trying a hand in forex investment? This is a flourishing market, and the chances of thriving are plausible but not guaranteed. Investing in the digital space has its share of benefits. You can trade with the big fish courtesy of leverage. Notably, you can trade different currencies capitalizing on exchange rate differentials. However, you should also be aware that scammers like Fido Markets are on the loose.
This broker presents itself as a worthwhile platform while, in the real sense, it is out to defraud you. The trick these brokers use is to make you think they have the blueprints for profitable trading. There are promises that you will get insane returns just by investing with them. But as most victims realize in hindsight, you lose money the instant you deposit it. This is because these dubious brokers will place many barriers to keep you from withdrawing your funds.
To avoid finding yourself in such predicaments, it is prudent to conduct comprehensive research to establish that you are dealing with a licensed forex broker. The research will help you ascertain regulation, identify ongoing legal actions or caveats, and find customer reviews about a broker.
Fido Markets LTD and Zontia Markets LLC allegedly own this broker. It claims to be an international brokerage firm and a gateway to financial markets, registered its domain with whois on 12 May 2021. However, this should not be interpreted as credibility, nor should its claim of having 25k clients be treated as accurate. Anytime you are dealing with a broker, cross-check everything.
The broker promises investors a world class trading hub with access to over 50k trading instruments. These include forex, metals, indices, cryptos, CFDs, energies, and commodities. According to the broker, its advantages include affordable and transparent pricing-never mind the applicable fee is undisclosed. Moreover, traders can access enhanced MT5 and funds security. However, you should take the broker’s statements with a pinch of salt, as this is a confirmed scammer.
Fido Markets’ website is essentially anonymous. The broker does not provide a telephone number. Genuine brokers make a range of contact methods available so that customers can get in touch with them anytime. Conversely, scammers always keep their identities a secret to prevent being found.
Mind you, you should not necessarily trust a broker solely based on telephone contact. Indeed, some phony brokers provide them, to get an opportunity to contact you and, hopefully, manipulate you into depositing with them. The long and short of it is don’t contact a broker with unverified regulation.
Fido Markets Deposit & Withdraw Policy
Fido Markets claims to accept deposits via credit cards, wire transfers, e-wallets (Skrill, Neteller), and Bitcoin. The credit card option is ideal as it is eligible for a chargeback. Since Bitcoin transactions are untraceable and permanent, we recommend that investors avoid this payment option.
You’ll need to deposit at least $10 to start an account. However, you’ll need to top up because deposits that small aren’t accepted. There is a $50 for Neteller, Skrill, or Bitcoin deposits. The minimum investment using a bank card is $100, while you need $200 to make a wire transfer deposit. It’s still a good sign that the broker is reasonably priced, as these fees align with what most reputable brokers charge these days.
As for the withdrawal, investors cannot withdraw the bonus. Moreover, you can only withdraw the principal amount after a lapse of 30 days.
Fido Markets Investment Plan
Fido Markets has five investment accounts. The first account-Indus has a minimum deposit of $10. Investors with this account do not access commissions. Next, the Volga account has a funding threshold of $500 and no commission. Islamic traders can utilize this account as swap charges are conditional.
Investors interested in the Tigris account must pay at least $1000. As a benefit, they access a $10 commission per lot. The fourth account is the Fido pro, with a deposit requirement of $500. Investors access a commission of $10 per lot. But unlike the Volga account, this account has swap charges. Lastly, investors with a Fido Raw account must deposit at least $5000. In return, they access a commission of $8 per lot.
Licensure & Regulation
Foreign exchange (FX) broker regulation varies widely among nations. These rules and standards can be onerous, but they are necessary for the safety of investors. Keep in mind that forex brokers with an offshore registration can serve clients anywhere in the world without being subject to strict local laws. This case also applies to Fido Markets, which also claims to operate in the UK and UAE. Due to cheaper compliance expenses, offshore brokers can lure customers with the promise of more leverage and riskier financial instruments.
The broker is based in St. Vincent and the Grenadines, notorious as a haven for fraudulent brokerage firms. Since the local financial regulator does not oversee forex brokers, this country has become a den for brokers with underhand dealings.
There are no regulations governing the foreign exchange market, and local brokers are under no obligation to fulfill any entry requirements before beginning operations. In addition, no legislation requiring the disclosure of financial dealings exists either. This creates a situation where tax evasion, money laundering, and other forms of financial fraud are likely to go undetected.
As for UK operations, the broker is missing from the FCA’s register, pointing to foul play on the broker’s part. Be warned that dealing with an unregulated broker like this will cost you your entire investment funds. You cannot take legal action against this broker even when it steals your money, as it is immune from such.
Fido MarketsTrading Software
The MetaTrader platforms provide you with everything you need to become a successful Forex trader. The MT4 and MT5 meet all investors’ needs, experience, and ability levels. These platforms are excellent for both novice and seasoned traders because of their reliability, professionalism, and access to cutting-edge trading technology.
Fido Markets gives users access to the MT5 trading platform, which is widely considered the best in the business. However, the software’s reliability is not enough to ignore the other risks and warning signs of dealing with offshore brokers.
Fido Markets has attached lousy T&Cs that speak volumes of the shiftiness of this broker. As expected, the terms have dodged relevant areas such as applicable fees. You should be highly alert whenever a broker mentions bonuses or other promos. This is because such incentives are attached to extortionate withdrawal conditions. Although this broker has not divulged much about the conditions, we noticed that investors must top up within 7 days of partial or full deposit withdrawal. We also noted that the broker awards a 50 percent bonus for all first-time deposits.
Fido Markets offers a leverage of up to 1:500, which is ridiculously high if you ask us. This is because the level magnifies your losses in market downturns. Indeed, it is for this reason that forex regulators, such as FCA (UK), ASIC(Australia), and CySEC(EU) cap leverage at 1:30, CFTC(US) and IIROC(Canada) at 1:50, and FSA(Japan) at 1:20.
Fido Markets’ spread of 1.7 is around the industry 1.5 pips standard, so acceptable. However, decent brokers are offering tight spreads below 1 pip. You should try them instead.
Venturing into the forex market is risky enough, even without considering the threat posed by scammers. Subsequently, you should be cautious with brokers like Fido Markets, who are no doubt illicit and keen to rip you off your money. Think about it; all the signs are glaring, from dubious jurisdiction to outrageous trading leverage.
To be on the safe side, only invest with licensed forex brokers. To confirm this, check that a broker indeed exists in the respective agency registry. Also, check that the trading conditions are reasonable and beneficial to you.