Every once and a while, a new broker enters the Forex market, and expensive marketing campaigns are launched to attract potential investors. However, not all of those brokers are legitimate and professional, and some of them are created for malicious reasons. That is why it is vital to learn as much as possible about each broker you want to sign with, and our UMarkets review will provide you with enough facts about this particular trading provider.
What to know about UMarkets broker
The possibility of fraudulent activities is always high in the global financial world, and investors should always be careful when investing their funds. The same situation applies to the potential UMarkets scam, and some background check is necessary when planning to invest your hard-earned money. For example, we discovered that UMarkets is a broker established in 2014, and it was under the ownership of a corporation called “Maxi Services Ltd.” However, the actual “issue” with UMarkets is not in the structural organization of the company, but more in the lack of proper licenses and seals of approval, which are crucial in the Forex market. Currently, the broker’s website is owned and operated by TS Software Ltd.
UMarkets FX broker – The Safety and Security
Even though their website does not offer a lot of information, we managed to gather the most relevant facts about this broker by reading other UMarkets reviews and by using the most reliable sources. The broker was regulated in Belize but no longer holds any license from any authority. This raises red flags immediately as losing a license indicates a potential scam. Generally, legit brokers only try to acquire more licenses and UMarkets is the complete opposite. No information is provided about the negative balance protection apart from the broker’s feature of closing out all trades to prevent a negative balance. Unless the broker is a market maker it is impossible to always close all trading positions without getting into minus when there is a high volatility in the market. Potential scam alert here!
UMarkets Fees and Spreads
The broker claims that on the mini account, the spreads start from 2.5 pips on major pairs. This is much higher than the industry average and will make it extremally difficult to make money trading Forex. We were not able to find information regarding other commissions including the inactivity fees even after digging through the documents provided by the broker on their website. High spreads and lack of transparency regarding fees only add to the red flags found so far.
UMarkets Accounts, Deposits, and Withdrawals
When it comes to trading accounts and conditions, UMarkets broker does not bring anything revolutionary to the world trade scene. The broker explains trading accounts but does not provide a clear and informative explanation of each of them. The website is unprofessional and lacks transparency. UMarkets offers five different trading accounts called Mini, Standard, Silver, Gold, and Platinum. All of the accounts have super expensive spreads starting from 2.5 pips. The spreads are lowest for the Platinum accounts at 1 pip which is the industry average and nothing amazing, to say the least.
The lowest amount you will need to deposit to start the Mini account is $500, which is a very high number and such a demanding requirement will deter most beginners. Also, UMarkets offers an Islamic account, as well as a demo account for training and practice. Depositing 500 USD with the broker who lost or canceled its license recently is a huge risk. We would not recommend our readers open an account with this broker.
Deposits and Withdrawals
Every professional trading company should provide efficient payment protocols, and when it comes to deposits and withdrawals with UMarkets Forex broker, you can choose between credit cards or e-wallets. You can transfer the money using your VISA or MasterCard, or you can opt for an account on Neteller. Allegedly, all the transactions are protected with SSL encryption, but this safety measure is not enough to convince us that your funds will be safe and secure with this unlicensed trading provider.
UMarkets broker Trading Assets and Features
UMarkets provides access to FX pairs, indices, commodities, cryptos, and share CFDs. Well, all their instruments are CFDs as with many other brokers. 67 currency pairs are provided for trading which is a decent number.
Software platform
Another important element of our negative UMarkets opinion, besides the lack of license, is hidden in the fact that this broker uses two versions of their trading software. The broker offers two platforms called xCritical web trader, and mobile platforms. the lack of advanced trading software for desktops is yet another red flag about this broker.
UMarkets broker bonuses and trading benefits
Of course, to further increase the data that we used to form our UMarkets opinions, we had to explore the bonuses and trading incentives that this broker offers to their clients. For example, they will give you a 30% welcome bonus, but this campaign is time-limited. However, UMarkets offers other gifts and promotions, and you could make a profit by using their Refer-a-Friend feature.
Customer support
However, it seems that their teams can be reached 24/7, and they are accessible via phone, Skype, e-mail, or live chat.
Lack of the live chat is a huge downside as it is the most effective and comfortable way to connect with the broker. Other than that other forms seem fine and the broker offers plenty of phone numbers and online forms.
UMarkets Education
The lack of educational material is a major drawback when it comes to the quality of user experience that we had with the UMarkets broker, and that is also one of the reasons why our UMarkets FX broker review is not painted with more positive colors.
Should you consider UMarkets? The final verdict
UMarkets is still a young company, and it could still improve the quality of its services in the upcoming period. But, we do not encourage you to invest in an unreliable off-shore broker since this can be a very dangerous endeavor for your overall financial situation.
Is UMarkets a legitimate and trustworthy broker?
What are the fees and spreads offered by UMarkets?
What are the account options and deposit requirements with UMarkets?
