Are you interested in trading currency pairs? Maybe you want to invest some money in the stock market? Do you wish to try your hand at cryptocurrency trading that seems to be trending? No matter what financial instrument you wish to trade, you will first require the services of a broker to make it happen. The broker provides you access to the trading platform, tools and other features you need for trading the asset of your choice. A quick search on the internet will give you a ton of options to choose from, but you have to know that not every broker is the right fit.
The trading market has been riddled with brokerage scams and many people have lost their money to them. The primary issue is that it is difficult to distinguish between legitimate and scam brokers as the latter have gotten quite good at hiding their flaws. One such broker you will find is Exen Markets. This is a UK-based forex broker that provides you the option of trading a selection of forex currency pairs and different CFDs on spot metals, commodities, indices and also crypto coins like Litecoin, Bitcoin, Ethereum, IOTA, Bitcoin Cash, Ripple and many others.
The broker gives access to five account types, which are Start, Standard, Gold, Platinum and VIP, a web based trading platform and leverage as high as 1:200. The fact that you can find a wide range of assets to trade with Exen Markets is one of the top reasons why the broker has succeeded in gaining the attention of traders. The other positive aspect of the broker, as mentioned above, is the leverage it offers to its clients when they decide to trade. With this kind of leverage, it is possible for people to multiply their profits. The only downside is that it also multiplies your losses.
But, these positive aspects are not enough to cover the flaws that you will find when you take a close look at Exen Markets. It is true that the broker’s website displays a UK address, but there is no information provided when it comes to regulation. All financial service providers based in the United Kingdom have to be licensed and authorized by the Financial Conduct Authority (FCA) or any other European financial regulator. However, if you search the FCA’s register, you will not find Exen Markets mentioned anywhere, which means it is not registered. The broker is not registered by the Cyprus Securities and Exchange Commission (CySEC), BaFin in Germany or any other European regulator.
Choosing to use unregulated brokers is a serious risk for traders because it means their funds will not be kept in segregated accounts. If the broker goes bankrupt, you will end up losing your money and not be compensated. Moreover, unregulated brokers are scams and they can just disappear with your money without a warning. This is one of the top reasons why not having a license is a huge disadvantage when it comes to Exen Markets. The trouble doesn’t stop here either. Another problem with the broker is that they have not disclosed any information about the trading conditions they offer to their clients.
You will not find anything about leverage levels, spreads or any other detail about trading costs. Lack of such information is a negative because you could be hit by unexpected costs that can eat into your profits. It is also more of a worry because the broker is unregulated. It is also a disadvantage that Exen Markets does not offer a demo account to you so you cannot test drive and take a look at the features. Thus, the broker cannot be called transparent when it comes to pricing and trading conditions.
Moving on, the trading platform is another issue that doesn’t work in favor of the broker. A web-based platform is offered by Exen Markets, which seems to have gained popularity amongst traders who are interested in crypto trading. The platform is easy to use and simple, but the analytics and charting that it has to offer cannot be compared to what you can find on MetaTrader 4 (MT4). In addition, Exen Markets’ trading platform doesn’t offer any automated trading options that you can find on the MT4, which are known as Expert Advisors (EAs).
It is true that the security of your investment is more important that what the cost of trading may be, but this doesn’t mean that you will not pay attention to the spreads being charged by the broker you are considering. As stated above, Exen Markets has chosen not to disclose any information about trading costs. Nonetheless, the spreads that it has displayed on its platform are considerably higher than the industry average. The spreads for the EUR/USD pair are around 3.5 pips. Most brokers offer spreads for this currency pair between the range of 1 and 1.5 pips and most of them are licensed and regulated.
Therefore, the fact that Exen Markets is offering such high spreads for this currency pair is a major red flag. When it comes to the deposit and withdrawal options offered by Exen Markets, you will find methods such as bank wire transfer as well as credit and debit cards including both MasterCard and Visa. However, it is worth mentioning that there is no mention of e-wallets, such as Skrill. This is worth mentioning because the money transfer company has introduced a new anti-scam policy and so it is only partnering with brokers that hold legitimate licenses.
This is confirmation of the fact that Exen Markets is not a legitimate broker. It should also be noted that the broker is processing withdrawal requests between 7 and 10 business days. This is regarded as highly unusual because most brokers take only 24 hours to process the request. With all the negatives piling up against Exen Markets, it is better to look for regulated and licensed brokers for your trading needs. Signing up with them could lead to losses that you may want to avoid.