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StartMarkets Review - is it scam or safe?

StartMarkets Review - Is startmarkets.com scam or good forex broker?

RATING: 1 / 0 REVIEWS StartMarkets
StartMarkets is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


Trading Accounts

 

Account type  Minimum deposit  Maximum leverage Spread
Standard $250 Unknown Average of 2 pips

 

StartMarkets is a forex broker, which offers access to the global currency markets via a web based platform. The company’s website also mentions binary options and an “options exchange” system, although they don’t appear to be active at the time of writing of this review. 

 

StartMarkets Advantages

 

Nice charting –  while the rest of the platform, provided by StartMarkets, isn’t that special, the charting is nice. The one thing we noticed, is that with the default colour scheme, right-cliking pops up a black menu on the black background which is literally unreadable. 

 

 

StartMarkets Disadvantages

 

Unregulated broker –  StartMarkets does not provide much information on the company’s legal status. We are not certain from where they operate, let alone affiliation with any regulatory agency. This immediately makes them an undesirable trading partner.

 

Warning by AMF – the company has probably had a marketing campaign in France, as the local regulators issued a warning against them (and several other shady brokers) in September 2017. This warning is only indicative of the aforementioned fact,  StartMarkets is not regulated. The French authorities have probably received complaints about this broker.

 

 

Trading conditions not specified – This company does not give information on a lot of details. Nowadays, most credible brokers give an accurate presentation of their service on the website. That being said, StartMarkets does not even offer demo accounts. We went trough the hassle of creating a real account, just see what they have to offer.

 

High spreads – the first thing we noted was the EUR/USD spread of 2 pips, during the middle of the European session – one of the most liquid times of the day. This level is a bit wider than the current offers by other brokers. Be sure to check out our real-time comparison tool.

 

>>Compare forex spreads<<

 

Basic platform – The trading platform provided by StartMarkets, is rather basic, despite offering nice charts. Here is a preview:

 

 

>>Top-rated Meta Trader4(MT4) brokers<<

 

We would much rather trade with MetaTrader4, the current industry-leading platform. Other than the web version it also has dedicated desktop and mobile applications. It’s main benefit is the support for automated trading systems and custom technical indicators.

 

$250 minimum deposit – one the few trading conditions mentioned by StartMarkets is the minimum initial investment. That being said, this is a relatively high level, which some people will not be comfortable with. Most brokers nowadays require $100, with some going even lower. As an example, you can open an account with FXCM.

 

 

Conclusion

 

 

StartMarkets is an unregulated forex broker, which allegedly also has a binary options offer. The company does not provide clients with even the most basic information about the trading conditions. The ones we managed to find about were not very impressive – spreads were higher than the industry average, while the platform felt slightly clunky, despite the good charting.

 

The legal status of this broker is still the major red flag, which is far more important than anything else. Dealing with unregulated brokers is not something we will recommend. The reason for this is quite simple – such a company is not obliged to provide a fair trading environment. In other words – they may simply steal your money. 

 

In order to prevent such scammers, special agencies are created in most countries. Their stringency varies a lot by jurisdiction. The United Kingdom’s Financial Conduct Authority (FCA) is one of the more reputable ones, which we like to give as an example. They regulate a lot of brokers, like IG and HYCM and enforce strict rules upon them. We will tell you a little bit more about the two most important ones.

 

>> UK FCA regulated brokers<<

 

First of all, clients deposits are held in segregated accounts. This is a special banking term, which means the broker doesn’t have complete access to the funds. In essence, this prevents them from withdrawing your money to another account (i.e. stealing it). Additionally, participation in the Financial Services Compensation Scheme (FSCS) is mandatory. In essence, this is an insurance pool, which guarantees traders’ accounts against their broker going bankrupt. Coverage is capped at £50,000 per account.

 

Dealing with an unregulated company, like StartMarkets will not grant you any of the aforementioned protection measures. Here is a summary of the stong and weak sides of this broker:

 

Pros Cons
Nice charting Unregulated broker 
 
Warning by AMF
  Trading conditions not specified
  No demo accounts
  High spreads
  Basic platform
  $250 minimum deposit

 

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Traders` reviews for StartMarkets

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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