Unregulated Broker with High Risks and Less to Offer
MaxiMarkets is an unregulated forex trading company owned by the Maxi Services Group. It is based out of Kingstown, Saint Vincent, and the Grenadines.
The Caribbean land is popular among scam companies for its ideal operations as an offshore office location for any company. The governing body for financial institutions, the Financial Services Authority of the Saint Vincent and the Grenadines itself is very flexible while providing a license to the operators. It has set up easy to fulfill conditions, a very simple process to follow, no basic requirement of owning an office in the region of Saint Vincent and Grenadines. Also, the initial investments mandatory to be kept are very low, no strict rules and regulations to be followed, makes it a shady area for offshore trading companies to persist.
While the SVG FSA has issued an alert on its website, companies even regulated by the same are found to be flouting the basic norms. The companies do not maintain regulatory reporting and no handbook. The SVG FSA extends no protection to the customers and has no jurisdiction in imposing fines over the malicious services by the companies.
While MaxiMarkets is not directly regulated under any governing body, MaxiMarkets review can find its association with the Financial Commission as under. On contrary to this, the disclaimer on the company’s website claims its association with Russian bodies but it has no confirmed regulation under any Russian federation for financial companies.
It is thus concluded to be an offshore un-regulated company. There are high risks involved while proceeding your trading with an unregulated firm. Here is no security of funds, no setup for rules and regulations, and no clarity over jurisdiction in case of issues arising, etc. Despite attractive offers and bonuses, it is better not to take the chance of dealing with an unregulated offshore broker operating from a notorious area. You do not have any guarantee of your funds being used properly and no SOP’s set up by the company.
Services of MaxiMarkets
The company is into indices/ shares, commodities, forex trading, cryptocurrencies, etc. Providing offers and bonuses is another tactic of unregulated brokers to attract investments. The company claims to be providing “a 100% free bonus” and limited period offers for new customers.
These claims soon fade away while you start entering your details as the policy of bonus is only when you have maintained a fixed deposit, that too under terms and conditions. So there is no “free practice account”. Various trade spreads with no profits associated with bonuses are another concern faced by the account holders.
Traders from the U.S. which are likewise also, least interested in working with the offshore unregulated company are barred from trading.
Although your money is not safeguarded in segregated accounts, MaxiMarkets provides its customers with a variety of choices in trading accounts. Needless to say, the company does not provide any demo account.
- Mini Account: The customer has to shed $500 as a minimum fixed deposit which is way too high considering an unregulated offshore broker.
- Standard Account: In the standard account, the minimum fixed deposit increases to $5,000 with a minimum deal of $10,000.
- Gold Account: You get entitled to special attention from the company side by investing $10,000 as minimum investment and trading with a minimum deal of $50,000
- Platinum Account: It is the most costly account of the company with $35,000 initial investment and trading size starting from $1,50,000
The high initial investment with less return along with average spread starting from 2.5 pips for the basic mini account with a leverage ratio of 1:400 is not at all good for the customers. Many regulated forex players are providing much more in their trading accounts. The absence of demo accounts with an unregulated company is a sheer case of profit eccentric account opening strategy of the team.
Not sailing beyond the traditional waters, MaxiMarkets provides MT4 as the trading platform to its customers. There is no social trading platform provided.
While MetaQuotes Software Corporation has revolutionized the trading markets with its MetaTrader 4 platform, it is undoubtedly the best in the game. The forex market, mobile trading, trading signals are some of the benefits of the software which is free of cost.
While the platform is easy to use, problems faced while trading with MaxiMarkets is the delayed execution time which can rise to 10-15 seconds and the execution issues as well. In addition to that, the platform freezes while abnormal trading conditions are also observed.
Available Payment Options
Funds are accepted through bank transfers, credit cards/ debit cards, internet banking, Yandex money, RBC money, Webmoney, Monetaru, etc.
Withdrawing funds usually takes an average time of 1.5- to 2 weeks.
Social Media Presence & Website
The company’s website is filled with promotional offers. The offers are too good to be true and also fake. Let us take an example of the company’s offer of a 100% free bonus. You will get the bonus credited which is less than 30% only, that too after investing. Nothing comes free.
There is no authentic account of the offshore trader on Facebook and Twitter also. Absence from social media creates strong suspicion over the online reputation of the company.
The availability of the support team on chat, Skype, emails, and phone can’t be superseded by its nature of being weak and delayed help to the customer. Most of the time, customers are not able to reach the live manager, and any error in the server is considered as an internet error from the customer side only regardless of the nature of the issue.
Too Many Disadvantages
Trading with an offshore unregulated company puts you in troubled waters. Setting up of high initial investment amounts with no facility for demo accounts is very risky. Unregulated players are answerable to no one in the market, so least can be drawn about the right usage of your funds.
Offers and promotions are attractive only if the customer is enjoying the basic services as committed at the time of opening of the accounts. While the spreads are low starting from 1.4 pips as committed by the company, it actually rises to 3 pips at any normal trading hours. The spreads are thus far different as per the commitment.
Customers face fake trading signals, which when followed lead to loss of funds.
The platform of MaxiMarkets is relatively complicated to use and is not systemic as per the requirements of a competitive investor who has to keep a strict vigil at the market.
The server of MaxiMarkets keeps on disconnecting and the investors end up losing complete deals as well.
Final Thoughts on MaxiMarkets Review
MaxiMarkets disappoints us on every scale. Be it a high initial investment and fake bonus to the investors, customers feel very cheated when something else is delivered against the commitment.
Different leverage and spreads on a specific trading day with server tripping every time make it worse to use. Investors are advised not to risk their money and to go with the online reputation of the company.
All in all, my MaxiMarkets review doesn’t recommend doing business with them. Chances are, you’ll lose all the funds you give to these people.This review (MaxiMarkets) was originally published at The Skeptic Tank. To read the full review, go to – www.skeptictank.org/maximarkets-review/