Beware! DigitalMarketXchange 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.
DigitalMarketXchange is a scam! The Financial Conduct Authority in UK issued a warning against them, published on 18 August 2020. FCA states that this firm has been providing financial services or products in the UK without authorization.
Avoid DigitalMarketXchange, it is a confirmed scam!
DigitalMarketXchange REGULATION AND SAFETY OF FUNDS
DigitalMarketXchange is said to be a trading name of Master Point Ltd., a company incorporated in London. However, the Company Number provided is assigned to a company named Titan Point Ltd. that has been dissolved on 7 April 2020. In fact, their Marshall Island address confirms it’s an offshore broker.
The first picture shows an excerpt from their T&C regarding the company details, on the second is our check of the company in the UK Companies House.
DigitalMarketXchange is an anonymous entity, not decent and in no way trustworthy. Such forex brokers abuse the regulations and conduct activities that are illegal. DigitalMarketXchange is the perfect example, they offer binary options in the UK, a long ago banned by FCA.
The problem with the offshore brokers is that they are undisclosed and unidentified entities that might disappear before you know it. And they are not going to bear the consequences of their actions, because they aren’t held responsible by any authority. Avoid brokers that are not licensed and not regulated. Forex trading is a challenging enterprise, and the last thing you need is to see your broker disappear with your hard-earned money.
Always confide in brokers that are proven to be legal and truly regulated by a certain financial authority such as CySEC in Cyprus or FCA in the UK. The jurisdictions cited built solid reputation among the titans in the industry because of their well-established financial infrastructure including banks, chambers, government agencies, payment service providers, legal professionals, exchanges etc. Also, the leading fintech companies such as MetaQuotes Software Corp. are based there.
Your funds are not in safety if you deposit with DigitalMarketXchange. Stay away!
DigitalMarketXchange TRADING SOFTWARE
DigitalMarketXchange offers only its own online trading platform. Metatrader and MT4 or MT5 accounts are not available. The platform itself consist of TradingView chart and a trading panel.
Only cryptocurrency pairs are offered, such as ETH/BTC or LTC/BTC. Standard forex pairs such as EUR/USD or GBP/USD are not available.
Demo trading not allowed!
Again, as a reminder, binary options are prone to fraud in their application and are banned throughout EU and UK. This form of financial exotic option is considered gambling and can’t be a subject of regulation by the financial authority in the country. It is a doubtless scam if a broker claiming to be headquartered in London is offering to its client binary options trading.
DigitalMarketXchange is a scam, avoid it!
DigitalMarketXchange DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with DigitalMarketXchange is 250 EUR and is subject to a bonus varying from 20 to 100 per cents of the amount deposited. There is no spread, which is typical for binary options trading, there isn’t leverage as well. The payout varies from 80% with 0% return to 45% with 35% return.
The only funding options are bank cards or wire transfers. There are plenty of e-wallets listed on their website, such as Skrill or Neteller but in reality they are unavailable for funding. It is a distinctive scam feature, the e-wallets are very strict in their policy and in order to provide services for a certain entity they require security checks to be passed, confirming the credibility of the financial agent. DigitalMarketXchange obviously failed!
You can fund your account even if you didn’t provide a proof of identity! A colossal red flag!
DigitalMarketXchange withdrawal policy is totally obscure. There isn’t any withdrawal procedure disclosed in their T&C, methods are unknown, the handling time unknown, documents required unknown. Stay away!
DigitalMarketXchange fees and commission policy is perplexing, as well. The only visible fee is on their main page- 10% to 15% performance fee, which isn’t actually mentioned in their T&C. Also there aren’t any other specific in size and scope fees detailed in the T&C, but they reserve the right to deduct charges and fees incurring, without further reference to the client.
No dormant account policy in existence! Very unlikely for a broker, those who aren’t concerned with the inactive accounts are extremely rare to be found. Another piece of conflicting information!
DigitalMarketXchange claims to offer bonuses on the deposits but actually the T&C of these bonuses are nowhere to be found. We have no idea how their bonus scheme works, instead our interest fell on their ridiculous e-shop. It seems that when you trade, you earn points which can be used for the purchase of freebies. A 128 GB flash drive costs only 710 points, while a FIFA World Cup 2018 ticket is a bit more expensive- 2580 points.
Funny, but also a gargantuan evidence of scam, because similar incentives are banned in the UK!
HOW DOES THE SCAM WORK
The scam is a criminal activity. Scammers are aiming at your money and their only purpose is to make you deposit with them. Their targets are usually individuals who would easily believe in a get-rich-quick scheme. Scammers will promise you everything, they will manage your account, will send you free trading signals, will have the best software, will give away bonuses and promise hundreds or thousands of percents weekly gains and profits.
Be extremely careful when you choose your agent! Trust only highly renowned forex brokers, well-known to the broad public, which are transparent and subject to strict regulation by financial authorities. They put in place various regulations which are for the benefit of the traders, such as segregated trading accounts. DigitalMarketXchange claims to hold its accounts segregated but there is no proof that such a statement is true.
Other measures taken are the money protections schemes operating in EU and UK. Under CySEC supervision the forex accounts are guaranteed of up to 20 000 EUR by the Investor
Compensation Fund(ICF). In UK the guarantees are almost five times higher- of up to 85 000 GBP.
WHAT TO DO WHEN SCAMMED
If you were scammed there are certain things you should do. The most important is to protect yourself from further risks. Contact your bank and explain your situation to them, they will give you important 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 institutions that have something in common with trading and investing. Seek help actively!
Share online your experience, it is important to protect others as well. Be responsible!
Avoid DigitalMarketXchange, it is a confirmed scam!
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