Beware! Prize Markets 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.
Frankly speaking, Prize Markets is no prize at all – there is a lot of information missing from its site which makes us doubt the reliability and legitimacy of this broker.
Prize Markets Regulation and safety of funds
There is no information whatsoever about the whereabouts of this broker or its registration. If such crucial information is missing from its website, then we have all the reasons to consider this broker non-legit, non-licensed and most probably a scammer. We advise you not to undertake any dealings with it for the sake of your funds.
If you are looking for a legit forex broker to trade with, we can help you by providing some information about forex brokers in some of the well-established jurisdictions, such as the US, Australia, the EU and the UK. We consider that the best conditions for forex trade and the safety of your funds can be found there. Here it is why. First of all, forex brokers operating in these jurisdictions are strictly regulated by the relevant financial services authorities and to get their license, brokers must be well-capitalised. On top of the list is the US where brokers must deposit the staggering amount of $20 million in the form of initial capital, followed by Australia where the initial capital is 1 million AUD. Asking for such huge amount is well justified as in these two jurisdictions there are no compensation funds or schemes from which clients can be protected in case of unfavourable events.
On the other hand, in the EU and the UK, the amount of the initial capital that must be provided is far less, only 730,000 EUR. However, licensed brokers must contribute to compensation funds or schemes from which their clients can be reimbursed in case of insolvency. If the broker is regulated by FCA in the UK and deducts funds towards the local Financial Services Compensation Scheme, its clients can get a recompense of up to 85,000 GBP per person. Similarly, brokers licensed by CySec must participate in the local Investor Compensation Fund which will repay its clients with up to 20,000 EUR per client if the broker goes bankrupt.
Prize Markets Trading software
When we tried to open a trading account with this broker in order to check the trading platform parameters and advise you, we got a warning (image below) that our personal information could be at risk from attackers. This is another proof that you should stay well away from Prize Markets that has all the markings of scam!
From another link on this broker’s website, we managed to download the trading software which happens to be MetaTrader 4. However, due to the broken link we mentioned above, we managed to open only the demo account which does not show the real trading parameters. However, it gives a good idea about the platform and its features (image below). Despite its ‘old’ age of 15 years, MT4 is still very popular among forex brokers thanks to the excellent package of trading tools and instruments. The platform comes equipped with auto trading option, VPS, trading signals, an app market, code base with customs scripts, etc. In addition to that, its charting options are simply amazing and contain a lot of charts to choose from, time frames and colours. In combination with the array of technical analysis indicators that help traders predict the future direction of exchange rates, it enhances traders’ experience and helps them make a profit.
However, you should be aware that a platform is as good as its broker is reliable. A very important thing is to check how the parameters of spread and leverage are set. For example, for forex pairs, the industry average for the spread is 1.5 pips. If the spread is above, it means that the cost of transactions will be high which is not beneficial for the traders. Also, we want to warn you that unlicensed brokers tend to offer high leverage which may tempt some traders because it gives the impression that it will add more trading power and amplifies the chance of winning big. However, if you take into consideration the fact that around 70% of traders lose in transactions, then the chances are that clients may suffer serious financial loss because the risk of losing big time will be amplified.
Prize Markets Deposit/Withdrawal methods and fees
From the scant information on this broker’s website, it looks like Prize Markets offers one live and one demo account.
As the Terms and Conditions document, as well as any other information regarding deposit and withdrawal methods and fees, is missing, we are not able to advise our readers. We can only say that any self-respecting and licensed broker will make such information visible and readily available. Only scammers will hide it!
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers’ schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Rich Snippet Data