Valuta Markets review
Valuta Markets is a very questionable offshore broker that gives us plenty of reasons to believe it is actually nothing more than a scam. The lack of any regulation is reason enough to avoid this website, but let’s take a look at what other worrying signs we found.To get more news about
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The company behind Valuta Markets is called MVE Holdings Limited and, according to its website, is “authorized by the Republic of the Marshall Islands” to provide brokerage services.
This claim is misleading to say the least. The Marshall Islands is an offshore zone that not only has no regulations for brokers, but in fact does not even have a financial regulatory body. There, the company could be incorporated entirely online without setting foot on the territory of the country. This makes the Marshall Islands one of the favourite bases of financial fraudsters.
Valuta Market is not subject to any regulatory oversight and does not provide any guarantees to its customers. There is no way to be sure that it is really a broker.
It is highly recommended that you invest only through licensed brokers, especially if you are a novice trader. Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds. In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.
On the website, we see a claim that Valuta Markets offers the two most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5), as well as a web-based platform. But in fact, Valuta Markets only uses the older version of the software, MT4. Here’s what it looks like:
The availability of a trading platform should not reassure us – many fake brokers use platforms like MT4 to deceive their victims that their money is really being invested.
There are more than enough licensed brokers offering clients the MT4 experience and/or the newer version of the software MT5. These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
Valuta Markets claims to offer trading in six major asset classes, but does not provide comprehensive information on trading conditions. Valuta Markets offers two types of trading accounts, Classic and VIP, but their descriptions lack data on basic parameters.
Valuta Markets promises a spread of 1.5 pips with no additional commissions, which is in line with industry averages. But, as noted, we have no reason to believe that the trade pledged by Valuta Markets is real.
The website homepage promises leverage up to 1:500. This is not a level that you see with regulated brokers. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders. In the EU, UK and Australia the maximum permitted level is 1:30 and in the US it is 1:50. This maximum level only applies to trading major currency pairs, with even more limited leverage for more volatile assets.
The information about the minimum deposit is contradictory. The homepage states 50 USD, the account descriptions 100 USD, the FAQ section 250 EUR, and the deposit menu has a set minimum of 100 EUR.
Such inconsistencies are one of many red flags that we are dealing with fraud and not just an unregulated broker. It is much wiser to work with licensed brokers which also allow you to start trading with a very low minimum deposit.
VALUTA MARKETS DEPOSIT/WITHDRAW METHODS AND FEES
According to the website and legal documentation, the Valuta Markets accepts credit cards and wire transfer as payment methods. But in the deposit menu we see an option to pay by credit cards through the unknown providers lion-pay.com and vaultspay.com, as well as various cryptocurrencies. Since cryptocurrency transactions are not mentioned anywhere, we don’t know what terms apply to them. Cryptocurrencies are the favorite payment method of fraudsters because they do not allow refunds.
Under the terms and conditions, Valuta Markets charges a substantial withdrawal fee of EUR 10 if the amount is less than EUR 250 by bank transfer or EUR 20 by credit card. Most licensed brokers do not charge transaction fees at all.
Valuta Markets reserves the right to charge you an administrative fee of 60 EUR if you request a chargeback. If the account has been dormant for more than 90 days, Valuta Markets charges 10% of the balance each month, but not less than 25 EUR. Again, these are fees that legitimate brokers either don’t charge or charge much less.
