Updated on February 2, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding Umarkets due to the issues we've identified.
Is Umarkets Scam or Legit Broker? ▲
In the course of our extensive investigation, we have come to the conclusion that Umarkets should not be considered a secure and trustworthy broker. Owned by Market Solutions Ltd., Umarkets is incorporated in the offshore locations of St. Vincent and the Grenadines, and has recently made a transition to the Marshall Islands as of 2022. The minimal regulatory requirements and virtually non-existent forex trading oversight in St. Vincent and the Grenadines have made it a haven for questionable forex brokerage services, including known problematic entities like Millennium FX and Brokerz. This lack of strict regulation and oversight significantly increases the risk factor, suggesting Umarkets might not be a legitimate broker.
Our findings reveal Umarkets as a brokerage firm claiming registration with the Financial Commission (FinaCom) under the number 24310 IBC 2017. Despite FinaCom's positive reputation, it functions as a self-regulatory organization, which unfortunately falls short of providing a secure trading environment or day-to-day operational regulation, leaving traders without adequate protection. The cost for a broker to become a member of FinaCom is reportedly €24,000 annually, yet there are no clear guidelines or operational standards for brokers, resulting in negligible trader security.
Umarkets proclaims its establishment in 2008, aiming to serve both retail and institutional investors with opportunities in Indices, Commodities, and Forex trading. Despite its claimed success in European markets and intentions to expand into Latin America and Asia, our research did not uncover any regulatory compliance in these regions. This discrepancy raises serious concerns about the legality of its operations and services.
Given the regulatory concerns and safety issues surrounding UMarkets, our evaluation places it unfavorably in comparison to other brokers. With an overall ranking of 2 out of 5, UMarkets falls significantly short when weighed against the standards set by our comprehensive review of over 1000 brokers. This low score reflects our expert opinion, derived from a decade's worth of experience in Forex trading, and underscores the reasons why traders should exercise caution.
UMarkets Deposits and Withdrawals ▲
Umarkets provides an assortment of deposit and withdrawal mechanisms, including Bank Transfer, Credit/Debit Cards, and e-wallet options like Skrill, Neteller, and Webmoney. However, the broker's unregulated status means there are no stringent safeguards over payment processes, which raises concerns about the reliability and security of financial transactions.
Regarding withdrawals, the lack of regulation means there is no assurance of the successful processing of withdrawal requests. While regulated brokers typically process such requests within 1-2 business days, Umarkets, being unregulated, offers no such guarantees, making the withdrawal process uncertain and potentially problematic.
Umarkets claims to offer a variety of trading platforms, including MetaTrader4 (MT4), the xCritical online platform, and mobile trading applications compatible with both Apple and Android devices. Although MT4 is widely recognized for its user-friendly interface and robust market analysis tools, the overall effectiveness and reliability of Umarkets' platform offerings remain questionable due to the broker's unregulated nature.
The available trading instruments reportedly cover Forex, Cryptocurrencies, Indices, Shares, and Commodities. However, the lack of clarity regarding access to actual markets and whether CFD trading is genuinely available further complicates the assessment of Umarkets' trading environment.
In light of our exhaustive review and analysis, we strongly advise investors and traders to steer clear of Umarkets and other brokers operating out of St. Vincent and the Grenadines. Despite the seemingly appealing range of platforms and instruments, the absence of regulation and oversight poses significant risks. For those seeking a secure, reliable, and regulated trading experience, it is far more prudent to choose brokers that are regulated by reputable authorities such as the FCA in the UK or ASIC in Australia. Our overall assessment of UMarkets is decidedly negative, underscoring the importance of choosing well-regulated brokers for a secure trading experience.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
Umarkets Review 2024
