Abstract：Neomarkets, a Kazakhstan-based brokerage firm, is facing some allegations of fund scams and unfair charges. These charges were reportedly on both deposits and withdrawals. As negative Neomarkets reviews became prominent on broker evaluation platforms, it was important to inspect these allegations and understand its regulatory scope. We have covered these in this article.
Neomarkets, a Kazakhstan-based brokerage firm, is facing some allegations of fund scams and unfair charges. These charges were reportedly on both deposits and withdrawals. As negative Neomarkets reviews became prominent on broker evaluation platforms, it was important to inspect these allegations and understand its regulatory scope. We have covered these in this article.
ContentsNeomarkets Broker Market Access
Neomarkets is a multi-asset brokerage unit with trading opportunities for users across:
- CFD
- Exchange Traded Funds (ETFs)
- Derivatives
- Eurobonds
- Stocks
How Can Users Access These Trading Instruments?
Traders can access these instruments using any of these two methods: Over-the-Counter (OTC) and Direct Market Access (DMA).
What is the OTC Market?
On OTC platforms, traders bet against their broker's price. Sometimes, a broker will hedge the trade straightaway in the underlying market. However, the b-book will largely handle the retail order flow. OTC markets suit retail traders not requiring enhanced liquidity for smaller orders.
What is DMA Trading?
DMA trading refers to dealing in on-exchange contaracts and trading on prices determined by several multiple brokers and market makers quoting their orders into a central exchange. It is likely to suit larger traders seeking to trade in size or with enhanced frequency.
Top User Allegations Against Neomarkets
Unprofessional and Scammy Behaviour
A user from South Africa labelled the broker as unprofessional and scammy while sharing the Neomarkets review. The trader accused the broker of stealing funds. Read the review below to learn more about the incident.
No Liquidity Claim
Making a similar claim, another user from South Africa accused the broker of being unprofessional. The trader added that the broker has zero liquidity, making it difficult for its clients to withdraw funds.
Charges on Both Deposits & Withdrawals
A user from South Africa claimed that Neomarkets charged him 4% on deposited funds and 10% of the fund withdrawal amount. This led to an effective loss of 14% of the deposited funds for the trader. On a more serious note, the trader alleged that the broker offered him the option to deposit through bank transfer or card and withdraw it through USDT. Later, according to the user, the broker accused him of money laundering. Finding the entire incident suspicious, the user shared this critical Neomarkets review.
Along with some negative reviews, some users have praised the broker for ensuring seamless trading across forex, cryptocurrencies and other brokerage products.
Neomarkets Regulation Status Check: Is it Real or Fake?
Despite mixed user reviews concerning Neomarkets, it was critical to inspect its regulatory status. Upon investigation, the WikiFX team found it to be devoid of any credible license, raising serious questions about the broker's operation. This information contradicts the disclosure made by the company. According to Neomarkets, it has a license number - AFSA-A-LA-2023-003. Due to this questionable Neomarkets regulation status and some bad user reviews, WikiFX gave it a score of just 2.32 out of 10.
So, is Neomarkets Trustworthy? Here's the Conclusion
While user reviews can vary from one trader to another, the absence of an unquestionable regulatory license arguably does not make Neomarkets a recommended broker to deal with. It's in your best interest to conduct a detailed evaluation of the broker to decide whether it is fit for your trading needs.
