Limit Prime is an interesting broker because it is based in Montenegro, a country in the Balkans, where forex trading is the last association one can make with it. We have reviewed several other brokers that claim to be in Montenegro, all of which turned out to be illicit or scams. Limit Prime looks as if it attempts to draw some distance between it and the rest by giving users a very friendly website and, what look like, relevant trading conditions and tools. Will it deliver, or is this yet another brokerage firm that is set to fail? Read the review to find out all about it.
Limit Prime gave us a very easy access to its client dashboard, which turned out to be very decent, with a lot of options to choose from, and it even looks great! Furthermore, the broker required of us additional details for fully completing our registration, a very good sign showcasing that it wishes its users to be fully committed to its services.
The good news is that the client area revealed a fully functional desktop MT5 platform, with fluid spreads and a leverage capped at 1:100. The trading instruments are Forex Pairs, Commodiies, Indices and Shares.
Users can switch the website between an English and a Montenegrin version.
LIMIT PRIME REGULATIONS AND SAFETY OF FUNDS
Here we arrive to the interesting part of the review, and the most important one for that matter.
First of all, Montenegro is not in the European Union, meaning that the broker can jump over some rules without hesitation. The most obvious one is that the leverage offered is 1:100, and as you might know in the European Union the leverage for retail forex trader was capped to 1:30. Any broker offering a higher value than that is definitely up to something suspicious.
Second of all, the website, specifically the footer, claims the broker to be regulated by the Montenegrin Capital Market Authority. This agency is in fact fictitious. There is no such authority, meaning that Limit Prime lied to us and to to other traders. And anyway, Montenegro is a very unpopular location for forex brokers, and thus we might assume that it relies on this to attract some illicit ones…
And thirdly, there is no other mention on the website that this broker is regulated by any other financial watchdog. Thus, we can easily conclude that Limit Prime is UNREGULATED. No matter how much we liked Limit Prime, the fact of it being unlicensed breaks the entire experience for us.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
LIMIT PRIME TRADING SOFTWARE
Limit Prime offers the MT5, which we confirm to be true, since the download link provided opens the platform.
The MT5 comes equipped with a seemingly unlimited number of new and old features: improved chart options, a live calendar, increasing time frames, MT5 is certified by many stock exchanges, centralized market trading, more pending order types, and the list goes on and on. This trading terminal builds on the major success of the MT4, yet is still incapable of surpassing it in the race for number one. Technically and visually the MT5 is far more superior to its previous version, yet people still cling to the MT4.
And also, the website makes it clear that there are no commissions on spreads, which is always a good thing.
LIMIT PRIME DEPOSIT WITHDRAWAL METHODS AND FEE
Without properly a login, we could not access the payment area. Thus the payment info is taken from the website.
However, the website here offers close to no information disclosure. There is no indication on the minimum deposit, no details on methods for funding. The only real thing that is shown is that withdrawal requests take 2 days to process. This is always a negative thing, not to include this important information. Without it, users will have a hard time choosing between Limit Prime and other brokers.
Before we move on to the Scam part of the text, we just want to say that Limit Prime posses qualities of a legit broker, although not a quite finished one. For example, the website has a section with all verified and signed financial statements for the past couple of years, all in the local Montenegrian language.
Yes, there are certain elements that must absolutely be fixed, but there are others whose addition and/or presence are indicative of a solid forex broker base. We cannot ignore the fact that it is not licensed by any major financial overseer, but the fact of the matter is that we see some potential here if invested in can produce a stable forex brokerage.
The following scam section introduces readers to the most popular forex scam, around which all others are built on. We are not implying that Limit Prime is necessarily a scam, but it does not hurt to be prepared and well informed.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard wil be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.
The post Limit Prime review – 5 things you should know about limitprime.com appeared first on TheForexReview.com.