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Forex

OD Markets Review - is it scam or safe?

OD Markets Review - is odmarkets.com scam or good forex broker?

RATING: 1.9 / 0 REVIEWS
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Trading Accounts

 

Account Type   Minimum Deposit Minimum trade size Maximum leverage Average Spreads (& Commission)
Standard $100 0.01 1:500 1.7 pips + $30 / lot

 

OD Markets offers a single account type with leverage up to 1:500 and variable spreads on the most widely used forex trading platform, MetaTrader 4.  MAM and PAMM accounts are also available with this broker.

 

The Company. Security of Funds

 

Company

Country

Regulation

OD Markets Ltd.

New Zealand

FMA

 

OD Markets is a New Zealand-based broker that offers trading in forex, spot gold & silver, crude oil, and natural gas. It also offers binary options - 30 seconds trades (they call it “gold options”).

 

The company behind the brand OD Markets Ltd. is registered in the New Zealand Register of financial services providers and as such, is regulated by the Financial Markets Authority (FMA). The broker, however, warns that it does not accept customers who are New Zealand residents.

 

While financial regulation in NZ is not as strict as in EU countries, Forex brokers in the country must comply with certain regulations regarding financial reporting, client money rules for segregation of all retail client funds from their operational ones, etc.

 

When we checked OD Markets in the Forex Peace Army forum, we found that there is an FPA Traders Court guilty verdict against this company and that the FPA recommends caution dealing with it. There are complaints by traders that successful accounts are disabled by the broker, claiming abuse.

 

Trading Conditions

 

Minimum Initial Deposit

The minimum initial deposit required by OD Markets is $100, which average for the forex market. However, some major brokerages also licensed in NZ, like IG, have not set any minimum deposit requirement.

 

Commission & Spreads

On its website OD Markets claims to offer variable spreads, averaged 0.4 pips on EUR/USD, which sounds like a good offer. However, when we tried out the broker’s demo MT4 platform, the spread for this pair was floating around 1.7 – 1.8 pips, and what is worse, salty commission fees apply. OD Markets charges $30 per standard lot for the EUR/USD pair, which means that trading costs for this pair are as high as 4.7 pips per standard lot. Most brokers provide spreads within the range of 1 – 2 pips per lot on EUR/USD and some even lower. By comparison, IG’s average spread on this pair is 0.8 pips.

 

Leverage

The maximum leverage level provided by OD Markets is 1:500, which is considered high, yet many FX brokers offer leverage up to 1:500 or higher.

 

Keep in mind, margin trading is very risky, especially if you do not understand how leverage works. This is the main reason why some regulators have limited the maximum leverage provided to retail clients to 1:50 or 1:100.

 

Trading Platforms

 

OD Markets offers its clients the industry’s standard platform, MetaTrader 4 (MT4), available as desktop and mobile versions.

 

MT4 is developed by Russian software company MetaQuotes and is preferred by most traders, because it is easy to use and yet equipped with professional features: solid charting, a number of built-in technical analysis indicators, a wide range of Expert Advisors (EAs) and extensive back-testing environment. Traders can download ready-made or create their own trading robots (EAs), scripts and custom indicators in the MQL programming language. 

 

 

OD Markets’s desktop MT4. Click for a larger image.

 

Methods of Payment

 

OD Markets’ clients are offered the following modes of payment: bank wire transfers, credit cards or China local interbank transfers.

 

Keep in mind that withdrawal requests are subjected to withdrawal processing fees depending on the requested amount.

 

Conclusion

 

OD Markets is a NZ broker that provides trading in forex and bullion on a single account type through the popular MT4 platform. What bothers us with this broker is that it charges very high commission fees and although it is registered with the FMA, its reputation is not that good. Besides, it has not indicated its real spreads on its website, nor the applicable commission fees. To sum up the above:

 

Pros Cons
Regulated in NZ Very high commission fees
MT4 available FPA’s Traders Court guilty verdict
  ack of transparency on trading conditions
Forex
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Spread

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Slippage

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Cons

 

 

Requotes

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Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Traders` reviews for OD Markets

Forex
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