Libramarkets review: Can you trust it or is it another scam?
Trusting a broker with the money you made by spending your time and energy is a decision that requires serious consideration. The internet is an incomprehensibly huge place with lots of good meaning people and lots of people seeking to hurt you in one way or another. Be it disinformation or outright fraud.
Nowadays, there’s more great information than ever on the web. The internet has become the single greatest repository of human knowledge and assets in our history. With that, also comes the increased risk. With that, come the vultures. As a modern-day trader, you need to be able to identify both vultures and the eagles of the industry. We’re here to offer assistance with that.
How much truth and how much fiction are there to the reports of the Libramarkets fraud? The brokering firm has been under the fire of controversy lately. But is there any truth to the accusations of Libramarkets betrüger or is just an attempt to blacklist a newly created, ambitious company? We want to give the broker the benefit of doubt and offer it a due process before we pass judgment.
So, follow along with our journey in the depths of the Libramarkets offerings and make up your own mind.
What is Libramarkets? A closer look at the company
How do we accurately discern is Libramarkets legit or a scam? Well, we go step-by-step. Libramarkets is a broker that has a wide selection of services and tools that it offers to traders experienced and not so much. The company offers investment management services and a large platform to an international audience of customers of all backgrounds and levels of expertise.
The broker offers its own trading software, as well as the tools developed inside of it. Operating with the Web Trader platform, Libramarkets offers risk management, customizable watchlists, charts, and other tools in order to create a comprehensive toolset for effective trading.
In short, the Libramarkets online platform looks diverse and sophisticated on the outside. It looks seemingly complex, full of information, and operated by a team that has evidently put a lot of effort into creating this company. Now, let’s get to the inside.
Does anything suggest that the Libramarkets fraud allegations are true? We visit them to find out. We began with the most evident of all – the website. At first, the design looks alright, compelling even, with its pleasing color palette and large wallpapers. However, for the same reason, we think that the interface looks a bit overcomplicated.
One of the pieces of common knowledge among the website developers is the simpler the website, the easier the visitors can navigate in it. This is the main goal every company or individual should have for their website because if the customer cannot easily find what they’re looking for, why would they spend time just gushing around a beautiful website design when they can definitely do other valuable things?
Unfortunately, our libramarkets.com review didn’t exactly show signs of simplicity and ease of navigation. As mentioned earlier, the design looks quite okay but when it comes to getting various pieces of information about the broker, it takes a little while to adjust to the interface and then get to that task.
However, one thing to admit is that the broker outlines all the important details regarding trading in its Trading Conditions sub-section. There, traders can find information about swaps, trading hours, commissions, etc. Therefore, we conclude that the informative side of the website is quite sophisticated.
The accompanying platform
The trade section will take you to the WebTrader-powered page with extensive live charting and informative sidebars. This is where you perform your trading. First things first, the Libramarkets WebTrader software is a proprietary mechanism developed by the broker for its own exclusive use. This means that the system is closed to outside observers.
This is the main reason why we are suspicious of this software, even though it has long become the industry standard. Other pieces of trading software such as MetaTrader or cTrader have a much larger consumer base and are monitored much more vigorously. That means that any scam or scheme can be detected in no time.
That’s not the case for WebTrader, though. The closed system doesn’t allow third parties to monitor the software, yet the Libramarkets’ client base isn’t too extensive to make scam detection as instant as in other platforms. That’s why we’re a little suspicious of it.
Next is the markets section. This part of the menu will transport you to a number of pages with information about each of the asset classes you’re allowed to trade on the platform and also the website’s terms in doing so.
The third part of the menu is reserved for the education-oriented part of the website. This is introductory data for beginner traders to help them get started. The education section has information on online trading, Forex trading, technical and fundamental analysis, etc. The broker also offers educational webinars for more extensive education. The company says it’s to ensure that their customers grow as traders, as they believe that their success is partly their achievement. This also helps them better utilize the various tools Libramarkets offers.
Yet, while this section looks bulky with various articles or webinars, we cannot help but notice that the actual content is written in a poor language and contains very little valuable information about Forex, stocks, commodities, and other markets.
Libramarkets accounts review
Libramarkets offers the standard 3 choices when it comes to accounts. There’s also an option to create a customized account personally for you. That could come in handy if you’re a trader who requires specific terms and services. The company seems quite open to fulfill its clients’ specific wishes if it means they turn into loyal customers. This type of attention to the users on a personal level certainly influences our Libramarkets rating positively. But if you’re not searching for anything unusual, here are the three kinds of accounts you can open with the company.
- The regular account – with which you’ll gain access to all the tools and systems the broker employs for trading in various markets. You will do your trades at predetermined terms at your convenience. This is the basic account that will work for most of the traders seeking a new broker.
- The Robo-trading account – which allows you to take advantage of the automated trading AI that opens and closes positions for you once received such command. Trying out the effectiveness of the automated trading bot was not possible for the purposes of this review. However, the overall Libramarkets reviews describe the system as satisfactory. Naturally, no program that we can currently design will substitute and experienced human trader. But the complicated AI is reportedly very good for automating certain processes.
- The social trading account – last on the list is the account for those who want to imitate the trades of some of the best investors in the business. If you want to get confirmation from professionals on your opinions or just want to delegate the decisionmaking to someone more experienced and successful than you, this is the account you should choose.
Depositing and withdrawing funds
Next up, let’s talk about the financial platforms and how you can deposit/withdraw your funds to/from the Libramarkets account. To the consternation of the users, Libramarkets only supports credit cards and bank wire for its deposits. This means that your transactions are under the risk of various cyber-attacks, which happens quite often in this hacker-steeped online community. Not only that, there are other limitations such as slow transfers and limited deposit amounts.
For instance, the minimum deposit you can make on your account is 250 euros or pounds. While this isn’t an enormously large demand, it certainly is big for many beginners who want to minimize risks and gain knowledge.
As for the Libramarkets withdrawals, you first need to file a request and wait for the confirmation. The reviews we found online claim that this process often takes several days to complete which, as you can imagine, isn’t the most comfortable proposition.
Please also note, that the broker doesn’t give you the option of changing the preferred currency of your account. Therefore, only choose it after deliberate consideration.
Last, but certainly not least, let’s talk about the leverage and other trading conditions. Libramarkets offers a 1:500 maximum leverage to its clients which, in our opinion, is an outrageous offer. Don’t get us wrong, being able to increase your position size five hundredfold is quite amazing and promises even larger profits.
However, this feature does the same to your losses. And if you were to lose 100 euros without the leverage, you’d lose 50,000 euros by using it. Therefore, every trader that knows what this feature is and how it works, treads carefully and chooses the most reasonable ratio. For Libramarkets, however, caution apparently isn’t as paramount as for its clients. By offering a 1:500 leverage, the broker puts traders into a dangerous position where losing money is as easy as never before.
What does the 0% stop out level mean?
Then there’s the stop out level. Stop out happens when traders use leveraged funds. Basically, when the available funds on the account are far fewer than those taken by the broker in order to keep leveraged positions open, the broker starts closing positions automatically. This happens because the broker wants to protect its client from a negative account balance – the position where traders need to actually pay for their losses.
The majority of brokers initiate this process at a 50% margin level. That’s when the available equities are half of the locked-up funds. However, Libramarkets uses a different approach and starts to stop out at a 0% margin level. This means that only when a trader gets into the negative balance will the broker initiate emergency measures. This once again proves the consumer-oriented approach – or rather the absence of it – on Libramarkets.
The summary of our Libramarkets opinions
At first glance, it’s easy to believe that Libramarkets is a trustworthy brokerage that has what it takes to compete with companies operating in its region. Yet many aspects, starting from leverage, ending with withdrawal options seem to be quite exaggerated and drawing a lot of attention.
Another key issue with Libramarkets is that they don’t have a license. Because of this, we simply cannot recommend this brokerage to anyone aspiring to be a Forex trader in the future or those who are already involved in the industry.
It’s best to simply avoid this company before they apply and receive a proper regulatory license.