Is Olympus Markets Regulated? Olympus Markets Licensing and Regulation
Olympus Markets Broker Warning! BaFin Warns Against CFDPremium…
BaFin financial regulator from Germany has warned that the Forex broker Olympus Markets by Next Trade LTD is not regulated. The regulator has also ordered Olympus Markets to cease all activities in Germany.
Olympus Markets – Should you Trust this Broker?
If you want to be a forex trader, you have to find a broker first. How will you trade unless you have a broker providing you their services? This doesn’t seem too difficult to do because there are many options out there. But, you should be aware that scams are also part of the trading industry and not every broker is reliable. No matter how well-designed their website may be and how tempting their offerings are, you shouldn’t choose a broker without proper research. Olympus Markets is an offshore forex and CFD broker that comes off as a good option for you to sign up with when you want to trade forex currencies. But, should you trust it?
This broker is owned and operated by Next Market Ltd., an offshore company, which is registered in Vanuatu. It is the easiest jurisdiction for anyone to open a brokerage because you have to submit a register online, show initial capital, which is just $2,000, pay a fee and then the firm is registered within 2 to 3 months. Therefore, a number of shady forex broker have chosen to use Vanuatu for registering themselves and Olympus Markets has done the same. Technically speaking, this registration doesn’t provide any protection to investors.
Olympus Markets – Trading Accounts and Conditions
You will notice a total of five account types, each of which has been named after a precious stone. While this seems appealing, the problem occurs when you notice that Olympus Markets has not provided any key trading specifics regarding these accounts. Their website states that they provide more than 200 trading instruments, sophisticated and easy-to-use trading indicators and tools and fast market execution. But, there is no detail provided about any of these elements. Likewise, the minimum deposit requirement has also not been mentioned.
Olympus Markets – Regulation
As mentioned above, Next Trade Ltd. is the parent company of Olympus Markets and is registered in Vanuatu. The payments of the brokerage are managed by a Bulgarian company called R S Marketing Ltd. However, the problem is that the requirements of the Vanuatu Financial Commission are quite lax and it doesn’t exercise any rights over its ‘licensed’ organizations. Since it is not subject to any regulatory oversight, it is not possible to be sure about the company behind the operation and whether they will fulfill the obligation they have to their clients. Thus, you will be putting your money at risk when you invest in Olympus Markets.
Olympus Markets – Trading Platform
Unlike most forex brokers, Olympus Markets has chosen to forgo the MetaTrader 4 (MT4) or the MetaTrader 5 (MT5) platforms, which are the popular choice of traders in the market. Instead, they have chosen to provide their clients with their own web trading interface. The MetaQuotes’ software have been in use for users and have proven their reliability and effectiveness over the years, which traders are going to miss because Olympus Markets is not offering it to them.
Other than that, the functionalities of the MT4 and the MT5, their charting capabilities and their automated trading bots called Expert Advisors are also something that traders will not get. This is a major downside because forex trading requires these tools and not having them can lead to ineffective trading.
Olympus Markets – Spreads
One of the biggest issues that you will have with Olympus Markets is that they have not provided a clear picture of the spreads they are offering. No reference spreads have been indicated, which gives a bad impression because it demonstrates their lack of transparency and commitment. Moreover, the spreads they have shown are also quite high, which is not going to appeal to traders as it will increase your cost of trading. The benchmark spread for the EUR/USD currency pair was stated as 3 pips. This is considerably high because in contrast, other brokers are offering 2 pips for the same currency pair. In fact, some brokers may go even lower.
Olympus Markets – Cost of Trading
If you go over the terms of service that are published on the Olympus Market website, you will realize that the broker has a number of high and unusual fees and charges mentioned on their website. Any withdrawals that you make from your trading account will be subjected to a fee of 3.5%. Apart from that, the broker also applies a clearance fee on every trade, which is 0.5%. This fee is applicable on losing trades and winning ones as well and you can be charged as high as $1,000.
Furthermore, Olympus Markets has stated that they will charge a dormant fee of $200, if you leave your account inactive for two months on the platform. Typically, brokers charge this fee after 12 months of inactivity. In addition to this, the broker also charges a 0.5% monthly maintenance fee and a 5% Swap fee is applicable on any cryptocurrency trades. This can increase the cost of trading considerably.
Olympus Markets – Welcome Bonus
If you take a look at Olympus Markets’ website, you will notice that the broker is advertising its Welcome Bonus, which is from 40% to 100%. This is also an attempt to attract traders to deposit as much money as possible in order to take advantage of the bonus. However, the problem is that when you opt for the welcome bonus, your money is usually locked in the account until you meet the minimum trading volume requirements of the broker. The problem is that Olympus Markets has not provided details about their requirement so you could get stuck later on.
Olympus Markets – Conclusion
While the offerings of Olympus Markets may come off as impressive to a lot of people, it is a fact that they are an unregulated forex broker. Plus, when you take a close look at the broker, you will realize that their offers are not that attractive because they have very high fees associated with their services. Hence, you will not get any protection from the brokerage and you are not offered the best market rates or trading platform either.
Should You Stay Away From Olympus Markets?
Yes. Don’t sign up with any unregulated brokerages or firms such as Olympus Markets. If a brokerage is not regulated by a trusted financial watchdog your money is not safe with them!
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