Is LibraMarkets a Scam or Legit Broker? Find Out
Libramarkets seems to be a typical broker that offers a variety of trading instruments and a proprietary trading platform. However, it is an unregulated broker, and that should raise a red flag immediately. It isn’t too difficult to get a tier 4 license, but the fact Libramarkets doesn’t even have that should caution traders to look for another broker.
However, at Trader Defender, we decided still to take a closer look at this broker to provide information to people who want to research financial services carefully before they make their decision. At Trader Defender, we make it our business to investigate brokers and to determine whether they are legitimate or not. If you have questions about a broker, contact Trader Defender experts.
|Product Types||CFD, Forex, Currencies, Indices, commodities, cryptocurrencies, stocks|
|Products Offered||More than 200 products to Trade, proprietary web-based platform|
LibraMarkets is a new broker, founded in January 2019. Not all new brokers deserve to be suspected, but it is usually better to work with a broker that has a more established reputation. The main issue with LibraMarkets is that it has no license. It is owned and operated by Yield Enterprise Currency Software Company which is an Estonian company based in Latvia.
It should be noted that there is an Estonian regulator that gives licenses to brokers. It isn’t the highest caliber regulator, but it is more reliable than St. Vincent and the Grenadines. However, LibraMarkets does not even have a license from this regulator or any other. That means by definition, they are operating illegally. Nothing can be good about this situation, but we will continue our evaluation of LibraMarkets.
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It cannot be stressed enough the dangers of working with an unregulated broker. One should ask themselves, “Why would a legitimate broker not bother to get a license?” It is very easy to get at least a license from a Tier 4 regulator, just some paperwork and a fee and almost no oversight. To not even get the minimum requirement to work as a legal broker should be a reason to cross Libramarkets off your list.
LibraMarkets says they take clients from all over the world. The problem with this claim is that it is an illegal one. It offers CFD trading, but CFD trading is prohibited in the United States and other areas. Having said this, it offers CFD trading on forex, commodities, crypto, cannabis shares and market indexes.
Fees and Commissions
Accounts are charged a swap fee every day at a certain time. Clients can choose which currency they want this fee to be charged in, but it should be noted that this currency can’t be changed later on. The amount of commission charged varies according to the kind of account clients hold and can be between 0 to 60 units per lot.
LibraMarkets also offers a 30% stop loss mechanism supposedly to protect client funds. It should be noted, however, that LibraMarket’s stop-out level begins at the 0% margin level. This means that the broker will close out your positions until your available funds increase. This is intended to protect traders from losses they can’t pay back. The fact LibraMarkets only stops at 0 and not before can cause traders to lose and to owe a lot more.
LibraMarkets has a proprietary trading platform rather than Meta Trade 4 or 5. Not all proprietary platforms are problematic, but there is little protection against fraud. If traders use Meta Trade 4 or 5, they can contact the company if there are problems. A proprietary platform means that the trader relies fully on the broker.
LibraMarket’s web-based trading platform was designed by PandaTs. It is described as “plain, simple and easy to use,” but it also lacks the protections and features of other trading platforms.
LibraMarket provides email and phone numbers of customer service staff and says it is available to answer questions and to provide guidance. However, those who used this broker said there were poor communication and customer service, both in quantity and quality. There was a long delay before replies and precious little support given.
Although both negative or positive reviews may not all be authentic, if there is an overwhelming number of negative reviews and the statements seem consistent with other things noted about the broker, it is worth paying attention to them.
Repeatedly reviewers said that the broker did not communicate with them when they asked to withdraw money. This is a hallmark of broker scams and is usually the point at which people know for certain they have been created. Others said the broker disabled their account with no explanation when they tried to withdraw money.
The saddest part about reading these reviews is that people did not lose small amounts, like a few hundred or a thousand, but tens and even a hundred thousands as well as savings. When investing large amounts of money, it is always important to deal only with a regulated broker with a verifiable reputation.
Always check with experts, such as Trader Defender, before you sign a contract with a broker or send them any money. Finding a broker should be more like a major life decision rather than a crapshoot or a trip to the casino. Take the decision to trade with a broker seriously and choose only reputable and regulated brokers.
Is LibraMarket a Scam or Legit?
It is clear from the very fact that LibraMarket is not regulated at all that it is a scam. By definition, the service they provide is illegal. In addition, they offer only their own trading platform, which has received no validation and reviewers repeatedly say that they do not allow clients to withdraw their funds and they cease communication.
LibraMarkets is an unregulated broker that has a track record of mistreating clients and taking their money. LibraMarkets is a scam.
What To Do If You Have Lost Money with LibraMarkets?
If you have lost money to LibraMarkets or want to know more about brokers, consult with Trader Defender experts today. We investigate, detect and report fraudulent brokers. Our professionals offer due diligence services and protect clients with our in-depth investigative reports. Schedule a consultation with us and we can guide you on the road to making successful trading decisions.