A New Scammer in the Market
AM Broker is a new Forex trade broker which is established in 2018. As this is a new business in the market, users are concerned about its authenticity and whether it is safe or a scam. So, to answer this question, I conducted a thorough review of AM Brokers in which all the aspects of this business were involved and investigated. Following are the findings of the above-mentioned review, these may help us to conclude the fact that either it is safe to trade with AM Brokers or not.
AM Brokers offer three types of accounts the details regarding which are as under:
|Account Type||Minimum Deposit||Leverage|
In retail account type, Straight Through Processing (STP) is adopted in which transactions and trade are done without any manual intervention. These transactions are handled by the online system which is regulated by the broker. Keep in mind that the broker will gain profit if the client faces a loss so this type of transaction system may not be trusted.
ECN and DMA trade systems are available in Professional and Institutional account types which are similar to the STP system and hence can not be highly trusted.
There is no option of an Islamic account which makes it not a feasible option for Muslim users who prefer to avoid interest rates and commissions as per their religious guidelines.
A demo account is available which provides the user with a glimpse of facilities provided in Retail package for fourteen (14) days.
Trade Spreads and Leverages
For retail package, the spreads are 0.6 pip but unfortunately, there is no information about the trade spreads of Professional and Institutional packages which makes it difficult to choose between the offered account types as some information is not provided properly.
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The ratio of leverage is 1:500 for all the accounts and is a little high as compared to the brokers working in the market. The leverage remains the same when the amount being invested is up to 1,500, 000$, after that it drops to 1:200 and then keeps on falling until it reaches to as low as 1:10 when amount invested is over $3,500,000. This is alarming for the traders who want to invest a huge sum of money as such low leverage makes them vulnerable to a huge loss.
The trading platform offered by AM broker is MT5 which is the updated and modified version of MT4, a trading platform that is used by almost 80% of the forex broker and is highly appreciated in the community.
MT5 is an all in one, state of the art trading platform. It can cover both centralized and non-centralized markets and is popular for its analytical tools.
Security and Regulation
AM Broker is operated by AM Global limited which is situated in St. Vincent and Grenadine and is registered by the local Financial Services Authority (FSA). The location of the company raises certain concerns about their ethics as this area is known as the ‘Safe Heavens’ for organizations involved in money laundering, corruption, and scams. So, it is of great concern for any potential client whether they do have a clean conscience or are they just fishing for new fish in the pond.
Moreover, FSA claims not to regulate an organization related to financial transactions hence AM Brokers has no legit license. This is a huge red flag as if they are not regulated then the safety of their funds is in question. Moreover, they also have to impose high additional charges from their customers to maintain a specific financial standing which is expected of every unregulated broker.
High Initial Deposit
The initial deposit required to trade is $100, $1,000 and $100,000 for three different packages which are very high when compared to other well-known and better-doing brokers in the market, some of which have a minimum deposit as low as $250 and even some don’t even have a minimum range. So, this high minimum deposit makes it a very expensive choice for the users.
Deposit and Withdrawal
Traders may use credit cards, debit cards, wire transfer and online money transaction services such as PayPal, Neteller, and Skrill but the option of Bitcoin is not yet available.
There are certain issues with money withdrawal, where some of the clients complain that they had to wait for as long as five (5) days for their withdrawal request to process. This is a very long time and creates huge problems for their clients who might just choose any other business and withdraw their amount in the blink of an eye.
AM Broker Review: Conclusion
In the light of facts that we encountered during this AM Broker review, we suggest that AM Broker is not a safe business to work with. Its false claim about having FSA regulation alone is enough to prove that they are not legit and if they can lie about one thing, which is so important, they may also lie about another. The other reasons are their extensively high minimum deposits, their location which is notorious for fraudulent activities, the prolonged time required to make a withdrawal and at last the receding leverages with increasing amount.