Universe Markets Scam
Interested in forex trading? Or maybe you want to trade CFDs (Contracts for Difference) on some other instruments? It is a fact that putting your money in financial instruments has the potential of giving you solid returns. If you want to increase your income within a short period of time and with minimal investment on your part, online trading is the way to go. There are tons of markets to be invested in and each of them has their own unique features and profit potential, which can make them an excellent choice for everyone, regardless of their risk tolerance.
If you have made up your mind to invest in currency pairs or start CFD trading, your top priority should be choosing a broker. These days, it is easier said than done, not because you cannot find a broker, but because there are too many options. When you have so many choices at your disposal, it is easy to be overwhelmed. To make matters worse, there are also rumors about scam brokerages. A number of such brokers also exist in the market and they have taken advantage of many people who didn’t know better. The Universe Markets scam is one of the best examples of such a broker.
The purpose of scam brokerages is to exploit their clients as much as possible and Universe Markets has done exactly that. Owned and operated by White Square Trading Ltd, Universe Markets claims to be a Forex and CFD broker located in London, United Kingdom. In reality, the broker’s headquarters are located in Belfast and it also has its offices in Norway, New Zealand and Austria. It is offering more than 50 currency pairs for trading on the MetaTrader 5 trading platform. However, if you are thinking about opening an account with them, you should know about Universe Markets scam because the Financial Conduct Authority (FCA) in the UK has already issued a warning about them.
The problem is that many people are unable to figure out Universe Markets scam due to its impressive offerings. It does have some appealing features, which often confuse people and they are unable to realize that it is actually a scam broker. Some of these features include:
- Numerous trading instruments
According to Universe Markets, those who sign up on its platform can trade more than 50 currency pairs, which include some exotic currencies as well as crypto CFDs on Bitcoin, Litecoin, Ripple, Dash, Bitcoin Cash, Ethereum and Ethereum Classic. Apart from that, the broker also offers CFDs on spot metals, such as silver and gold, commodities, oil, indices and shares. The ability to invest in such a variety of assets is a big draw for traders.
- Impressive leverage
The maximum leverage given to traders on Universe Markets is 1:300, which is quite substantial. It is enough to accommodate even the most aggressive and ambitious trading strategies. Most professional traders typically opt for a leverage of 1:100, but Universe Markets is offering them the opportunity to go higher if they wish.
- The ability of trading on MetaTrader 5
One of the most impressive offerings at Universe Markets is that traders can use the popular MetaTrader 5 platform and even a web-based platform if they wish. It is a well-known fact that the MetaTrader 5 is a well-developed trading software that boasts all functionalities of the MT4, which has been the industry standard for the last decade. There is an algorithmic trading option available for both platforms and this allows traders to run automated trading sessions by making use of the especially designed and customized Expert Advisor robots.
The only disadvantage of the MT5 is that most of the trading robots are compatible with the MT4 and since the former has a different scripting language, it can be a problem.
- An array of cards are accepted
Universe Markets appears to be very accommodating as it allows traders to deposit and withdraw funds with a wide array of debit and credit cards, including Visa, Visa Electron, Maestro, Maestro Switch, MasterCard, Delta, Solo and Diners Card. The broker also enables clients to make payments via bank transfer, but there is no option to use e-wallets for making payments.
- Multilingual customer support available
Another important thing to note about Universe Markets is that it claims to provide customer support in Deutsch and English, as the broker aims to target the English and German markets.
While these perks do attract traders, there are some warning signs that they should be aware of because they point to Universe Markets scam. What are they? Let’s check them out:
- Absence of license
As a broker based in the UK, Universe Markets should be licensed by the FCA, but it turns out that neither Universe Markets nor its parent company is registered with them. This prompted the FCA to issue a warning against Universe Markets since it is providing financial services in the country without proper authorization. Working with unregulated and unlicensed brokers means that you are not covered by the Financial Ombudsman Service and the Financial Services Compensation Scheme, which can reimburse you in case something goes wrong with the broker.
- Trading conditions not as advertised
If you go through the Universe Markets website, you will notice that they claim to offer fixed spreads beginning at 2 pips, which are high, but can be accepted if all else works out. But, if you try out the broker’s demo account, you discover the Universe Markets scam. It offers a generic version of the MT5 and the trading conditions offered on it completely different from what has been advertised.
- Deposit requirement is a bit high
The minimum deposit asked by Universe Markets is $250, which is quite high as compared to numerous other brokers and is another red flag as it doesn’t come off as reasonable. Scam brokers usually ask for a high deposit upfront in order to make as much money as possible.
The Universe Markets scam is an unregulated broker that makes tall claims, doesn’t live up to them and lacks in several other areas, making it highly untrustworthy.