Managing people’s money is a huge responsibility that should not be taken lightly. Brokers that engage with their clients on this level should definitely recognize that responsibility and be more open to the clients. However, many of them take a different path. A path that leads to scams and Ponzi schemes.
To avoid such brokers, traders must check every little detail about them and make correct decisions. Yet this is not an easy task by any stretch of the imagination. Nowadays, brokers have become awfully good at concealing the dark spots and showing only the surface.
However, it’s not to say that getting the right broker is impossible. Today, we’ll help you make that decision by offering the Libramarkets review. In it, you’ll find out all the offerings and trading conditions and decide for yourself, whether Libramarkets is a credible broker or not.
A quick glimpse
Libramarkets, the new broker operating in the industry has seen some rough publicity lately. The allegations of the Libramarkets fraud have been hitting the web in a suspiciously well-coordinated manner recently. With new companies like this, people are always wary. One of the main reasons for this is the fact that the investment possesses inherently high levels of risk to those willing to funnel money into it. In addition to this, a large number of companies and individuals make it their mission to rob people of their money.
This isn’t to say that the number of companies with transparent, secure practices is insignificant. Not at all. But the nature of the game and the hordes of fraudsters force traders, both new and experienced alike to think twice before trusting an unknown company with the money they spent time and energy earning. We think that’s a good practice that needs to be encouraged. However, not at the expense of the truth. With that being said, is there any truth to the claims of the Libramarkets is a scam brokerage? Is this a company dedicated to upholding your best interests or is it another in a long series of scams originating on the Internet?
On the one hand, we see negative reviews on the internet. On the other hand, though, there are also some positive reports about how the broker offers competitive features and takes its clients’ interests very seriously. Such a mixture of positive-negative reviews compels us to do our own research.
Libramarkets review: How does the company operate?
So what does Libramarkets do, really? The company has a wide selection of functions it tries to tackle. It manages people’s funds, provides them with a platform to conduct their trading on and offers them a large number of tools and mechanisms to help them accomplish their goals. They’re equipped with risk management systems, customizable charts in 9 time-frames, Fibonacci lines, equidistant lines, 30 technical indicators and everything else you as a trader might be looking for. They have around 250 assets to choose from in your trading endeavors. Those are divided into categories. The trading is pretty much non-stop during the workweek. The broker operates from 00:00 on Monday to 23:59 on Friday every week. The standard schedule for a trader.
The international broker conducts its operations using the globally famous Web Trader system. The platform houses nearly all of the functions a trader might require in his everyday dealings. This means that as a new user you won’t be required to download any programs or subject your computer to any third-party software at all.
However, the proprietary WebTrader has its own shortcomings. You see, the broker is the main distributor, as well as the moderator of the software. What this means is that it can pretty easily put various tools and schemes necessary for a scam. And there will be no third-party body that will make sure things like that don’t happen.
If, on the other hand, the broker were to use MT4/MT5 or other software, the whole MetaTrader community would be in check of the ecosystem because they constantly write new scripts and codes for the program. In short, they stay in touch with the platform and can easily detect if something’s wrong.
What does the website look like?
Without rushing to judgment, we wanted to see for ourselves is Libramarkets legit or not. So we embarked on a mission to take a closer look at this ambitious new player in the field of investments. Our investigation of the alleged Libramarkets scam begins as soon as we open the website.
And what we’d expected turned out to be true: we opened up a website that seemed like a poorly constructed scam platform. The interface was stuffed with unnecessary wallpapers that, granted, had a pretty pleasing color palette, but was totally overwhelming, making the navigation through the website one big hassle.
In short, this libramarkets.com review reveals one thing: the broker has certainly overdone its website and made itself even more suspicious.
Optimization and availability
Alright, to give the devil its due, the Libramarkets platform is accessible in any part of the globe. The company services people of different nationalities, financial means, and education in trading. It’s meant to be universally accessible and easy to use. Our Libramarkets rating takes this factor into account as well. The experience of using the website is excellently transferred to different devices. Whether you want to trade using your Smartphone, PC or tablet, you’ll find that your Libramarkets erfahrungen is equally smooth and well-optimized on all of those platforms.
What are the instruments and terms of trading on Libramarkets?
As we have already mentioned, Libramarkets Forex broker offers its clients a vast collection of trading assets ranging from Forex pairs all the way to CFDs.
The website also uses Fill or Kill, the instant trade execution system that applies to instruments with fixed spreads. This means that if the price is changed, instead of the order passing through at a different rate, you’ll just receive a requote.
The Click & Deal system means that your order will be seen through for all instruments with a floating spread. It also means that if the price of the position changes while that position is opening, your order will be executed using the new price instead of the one you ordered. This is pretty standard practice with brokers that allows them to protect their funds.
As far as the useful and really positive offerings go, this is what we can say about Libramarkets. Now, let’s examine some of the shady aspects on the platform. The broker offers a standard 1:100 leverage to its clients. However, that’s nothing compared to the maximum leverage that ramps up at 1:500.
One essential thing that every trader should realize about the leverage is that it acts as a double-edged sword. On the one hand, it increases the profits by a given amount (500 times in our case). Yet, on the other hand, it does the same for the losses – multiplies them by FIVE HUNDRED times. This means that if you lost 100 dollars in a trade, you’d lose 500,000 dollars if you used a 1:500 leverage.
Clearly, Libramarkets doesn’t worry about that and still offers this leverage. That’s why the traders should think twice before using that feature!
Fees and commissions
The provider charges you the swap fee every day at 24:00 GMT +2. But it’s standard practice at some of the World’s leading brokering firms. All of the Libramarkets broker’s operations are conducted using the GMT + 2-time zone. This makes for a more easily manageable system. Swaps are calculated using the base currency of your choosing. You get to pick your preferred currency once – when you register your account. Choose deliberately, however, as the company currently doesn’t allow that setting to be changed later on.
Commission rates for the company’s service are different, depending on what account type you choose to register. The commission rates will be anything from 0 to 60 units per lot in your base currency. Since the company offers individually customizable account types, the fees are therefore calculated using complex algorithms for each account independently.
The company employs a 30% stop-loss mechanism presumably to protect its clients’ funds. A lot of brokers, especially in highly volatile markets or dealing with cryptocurrencies will abolish stop-loss altogether. However, we’re still unsure that the broker is actually trying to protect its clients from losing their funds. This next chapter will explain why.
A very low stop out level
As the broker mentions in its Trading Conditions section, the stop out level initiates at 0% margin level. But what does that actually mean?
Well, stop out is the process where your available funds are much fewer than the funds taken by your broker for opening and maintaining your leveraged positions. Every time you open a new position, the locked-up funds increase as well; and every time you lose money, your available funds decrease.
If this process continues for a while, the broker will initiate the stop out, which basically means closing your positions until the available funds increase. The majority of brokers initiate this level at a 50% margin level because below 0%, the traders go full-on into losses and are obliged to pay for them. Stop out is created to protect them from it.
However, Libramarkets initiates that level at 0%. This means that only when traders get to the negative balance will the broker start automatically closing their positions. Not exactly a customer-oriented policy in our opinion.
Customer support
Whether you’re not remembering your credentials, requiring assistance in learning the functions of the website or trying to deal with some sort of an issue – Libramarkets department of customer support is supposedly ready to assist you. At least, that’s what it seems on the outside.
It’s an old marketing mantra that a good review brings in 10 people, while a bad one keeps away 100 potential customers. Therefore, in this new digital world of ours, it’s more important than ever to manage the customer’s expectations and experiences correctly. Having a customer service department itself further adds to our Libramarkets rating.
However, when we tried to actually contact the department and get some help, it took ages to the specialists to respond to us. Maybe the broker does have a professional team in its customer service department, yet their promptness – or the lack of it – certainly doesn’t convey their professionalism.
The bottom line in our Libramarkets review
As a conclusion to the Libramarkets review, we’d like to say that good conditions on the outside – more than excellent leverage (even dangerously so), fixed spreads, or the diversity in tradable assets – do not excuse a skimp on a legitimate regulatory license. The fact that Libramarkets is able to offer very competitive features to its European customer base does not necessarily make them the best choice to go for.
This is simply derived from the fact that multiple cases have been noted in the past where fraudulent companies would entice new customers to deposit with overwhelmingly positive features, only to steal their funds in the end.
We have reviewed the broker’s trading platform and have deduced that its proprietary WebTrader isn’t as safe or reliable as MT4/MT5 would’ve been. As for the website itself, it looked overly amateurish with its unnecessary visual effects and the lack of information.
One of the biggest dangers we found with this broker is its 0% stop out policy. Other brokers are actually trying to protect their clients from negative balance, while the Libramarkets FX brokerage waits until they reach that point to start closing their positions automatically.
We can’t necessarily say that Libramarkets is a scam, but we can’t say that they can be trusted either. At this point in time, it’s best to simply avoid them completely.