Beware! Elite Market is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Warning! Elite Market is a Forex broker that was officially blacklisted by the Spanish financial authority, confirming that it’s a scam broker that should be avoided. This entity, however, claims to offer a safe and secure environment and Metatrader platform but fails to deliver any of the promises given. There are other red flags that we were able to detect, too, which you can find in the full Elite Market review.
Elite Market REGULATION AND SAFETY OF FUNDS
CNMV– the Spanish financial regulator issued a warning against Elite Market. The warnings issued by the financial authorities are the ultimate scam proof, and you should never trade with blacklisted brokers!
Elite Market is allegedly owned and operated by the offshore Astrica Ltd, which was also blacklisted by CONSOB- the financial regulator in Italy back in October 2020, as well, with another trading name of theirs- Market4FX. The company is said to be registered in the infamous Trust Company Complex in the Marshall Islands, which hosts many other fishy and proven scam Forex brokers. We can safely say that it’s a scammers hub and you should avoid any broker that’s somehow connected with this address! It’s possible because the Marshall Islands poorly regulate their financial sector and doesn’t control the Forex brokers operating there in any way.
Your funds are in danger if you make a deposit with Elite Market because it’s an unlicensed, unauthorised and unregulated blacklisted scam Forex broker which aims to defraud the customers!
If you are looking for a Forex broker you should go for the EU or UK regulated ones, as these are the leaders in the retail FX industry, and also the governing regimes in Europe are the strictest, providing the safest environment for your funds. The health of the system is guaranteed by the compensation funds that protect the deposits made by the clients of financial institutions.
The Investor Compensation Fund in Cyprus guarantees the clients deposits of up to 20 000 EUR per client, while the Financial Services Compensation Scheme in the UK allows you to claim even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar deposit insurance funds, which are considered to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Elite Market TRADING SOFTWARE
Elite Market claims to offer MetaTrader4 accounts; MetaTrader5 is not available for trading. However, upon download, we were unable to register neither demo nor real trading account to test their MT4 distribution. On top of that, we were unable to sign-up because there was a mandatory field Promocode, and we didn’t have one at our disposal at the time. It makes us believe that they are using some non-conventional method to attract customers, probably through unsolicited approaching online or over the phone.
As a result, we have no information about their real spreads and leverage levels. They claim to offer a maximum leverage of 1:400 on their website but doesn’t specify the spreads available. The leverage is a financial tool that allows the traders to amplify the profits, but at the same time, the risk escalates. If misused, the leverage might utterly destroy the balance of the trader within a few minutes. Moreover, EU, UK, USA and recently Australia imposed a leverage cap of 1:30 for the regulated brokers, which means that it’s highly likely that you might end up being scammed if you look for brokers that are offering higher ratios.
The spread is the other fundamental aspect of trading, which forms the trading costs for the clients. The rule says that the lower the spread, the bigger the potential profits.
Elite Market DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is said to be $250 if you read their legal documents but at the same time the lowest account that they offer require at least a $1000 deposit! It’s information discrepancy and another warning sign. The industry standard is $100 on average, but some brokers will ask for no more than 5 to 10 dollars to start trading.
The funding methods are said to be Credit/Debit cards, Wire Transfers and e-wallets (not specified).
No minimum Credit/Debit card withdrawal amount specified, but the minimum of $100 for Wire Transfers apply. Each withdrawal will be subject of 3.5% charge for bank cards or $30 for Wire Transfers, which is a robbery. The licensed Forex brokers do not pillage the traders’ accounts so ruthlessly and will process the withdrawals for free!
No dormant account policy was found, which is yet another warning sign that confirms the scam nature of Elite Market. It’s a set of rules and requirements that deal with accounts that have stopped being active- no login, trading or deposit/withdrawal occurring. The lack of information points that Elite Market might on their sole discretion freeze the account after a month of inactivity and pocket the funds of the trader!
No bonuses offered at the time. The traders should know that the bonuses and the trading incentives are not free money, but a leverage tool that further increases the risk for the traders. You should avoid brokers that are offering bonuses, because these benefit the broker, not you!
HOW DOES THE SCAM WORK
The scam is a criminal activity, and the scammers are trying to defraud people by making them believe that they can make easy money. In most of the cases, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. There is no or very light FX regulation in the offshore jurisdictions such as Vanuatu, Marshall Islands or St. Vincent and the Grenadines, making them some of the most popular destinations for shady and illegitimate enterprises. Regulation means customer protection and safety, financial authorities such as CySEC or FCA will make it impossible for a scam Forex broker to conduct illicit activities and harm the traders.
The fraudsters will also actively work in social media to attract new customers. Facebook and Instagram are full of scam pages and groups showing a lush lifestyle and promises for big, guaranteed profits. The scammers will downplay the risks associated with trading, making the prospective traders believe that it’s a market that’s suitable for everyone. In reality, the opposite is true. Then, at some point, the scammers will push the traders to open an account with a scam Forex broker and make a deposit. The end is always the same, a defrauded trader that failed to recognise the scam, trying to get back his funds. You need to understand how to detect scammers and avoid them. Stay safe and always do thorough research before you decide to deposit with a Forex broker.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
It’s also important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!