ZumaMarkets review – 5 things you should know about zumamarkets.com

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

We are reviewing ZumaMarkets, a broker primarily targeting Latin American countries. It’s allegedly owned and operated by a licensed company we lately mentioned in another review. However, their license doesn’t actually deliver much customer protection, and we consider ZumaMarkets insufficiently regulated. At some point, this may become an issue for traders because the regulator that granted the authorisation faced fraud-related problems in the past. Find out the rest you need to know about this broker in the full ZumaMarkets review.

ZumaMarkets REGULATION AND SAFETY OF FUNDS

ZumaMarkets is introduced as a brand name of Red Pine Capital (Pty) Ltd, a company licensed by the South African financial authority FSCA. The same entity apparently runs Trade245, a broker we recently reviewed, but there we faced the same issues we have today. FSCA does publish information about the companies but mentions nothing about their trading names, which is a problem worthy of attention. This makes the FSCA regulated businesses vulnerable due to the fact that scammers may take advantage and create fraudulent clone firms. Nevertheless, if ZumaMarkets is genuinely licensed, it doesn’t make them without a doubt trustworthy as the FSCA license isn’t reliable enough. So, your funds are not safe if you deposit with ZumaMarkets.

We consider South African regulated brokers a bit risky because the local regulator evidently lags behind in customer protection. As already mentioned, they don’t even provide the public with the trading names of the companies, but there are other aspects making things even worse. For example, FSCA doesn’t even impose designated capital adequacy requirements, doesn’t operate deposit insurance funds and doesn’t insist on following strictly predefined internal procedures. As there aren’t detailed regulations enforced, we can’t recommend South African brokers. 

So, see the high-rated EU brokers and British brokers to find adequately regulated brokers. We recommend those because the companies licensed in Europe are covered by deposit insurance funds laid down to guarantee clients’ funds. As a result, CySEC brokers’ traders can claim up to 20 000 EUR in compensation, while the British protections are even up to 85 000 GBP per person. Europe offers high-grade security, so it’s safe to trade with EU and UK regulated FX companies. 

ZumaMarkets TRADING SOFTWARE

ZumaMarkets provides MetaTrader5, which is a leading Forex platform. It’s stable and reliable, featuring sophisticated tools such as Algo trading, Expert advisors and many other advanced charting tools. MetaTrader also maintains a marketplace with more than 10 000 trading apps you can benefit from. The EUR/USD spread is relatively favourable- 1.5 pips, but there are better-regulated brokers offering spreads as low as 0.1 pips. To find them, check our lists by following the links provided throughout the review.

Now, see the high-rated MetaTrader4 brokers and MetaTrader5 brokers. As already mentioned, MetaTrader is the leading FX platform and the obvious choice for traders.

The maximum leverage possible is 1:500, which is a ratio too risky for retail traders. If not carefully deployed, this level may cause heavy losses in a matter of minutes, and if the market is volatile, you can blow your accounts even within seconds. Fortunately, ZumaMarkets allows adjusting so that traders can choose various levels between 1:1 and 1:500.

In fact, leverage is so risky that many financial authorities enforced regulations to restrict its usage. As a result, EU, British and Australian brokers are limited to 1:30 for FX majors, while the Canadian brokers and the US brokers can’t offer more than 1:50 for retail clients. Most of the high-leverage FX companies are poorly regulated, so be cautious. 

ZumaMarkets DEPOSIT/WITHDRAW METHODS AND FEES

The minimum deposit with ZumaMarkets is $100, which is more or less the standard sum required to open a real account with a regulated broker. The funding methods are supposedly Credit/Debit cards, Skrill, Neteller, AstroPay, PayRetailers and LetKnow. Still, we can’t actually verify this information, for we weren’t able to access the Client Area due to account validation issues. Nevertheless, bank card deposits are considered safest because it’s possible to chargeback for up to 540 days.

Now, see the high-rated Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have preferred payment systems. The brokers on top of the lists are strictly regulated, so you wouldn’t end up trading with scammers.

There are no withdrawal restrictions, and the request is allegedly processed within 2 business days free of charge, and that’s in line with the regulated brokers’ practices. 

The dormant account policy is also appearing favourable. After 12 months of inactivity, an account becomes dormant and will be subject to an annual fee of $25, which is the average for the industry. However, after the first year, the 25 dollar charge become semi-annual (every 6 months), but that’s also not too bad.

ZumaMarkets offers trading incentives, but the additional provisions are not favourable. If traders get a $100 bonus, they need to reach $10 million in turnover to withdraw profits. Still, withdrawals are possible, but if the required volume isn’t executed, ZumaMarkets will cancel the bonus deducting the sum given plus the profits generated. That’s generally not too bad because many brokers use trading incentives to lock the account, making it impossible to withdraw.

Overall, ZumaMarkets is not sufficiently regulated, so we suggest that traders should find a more reputable broker.

HOW DOES THE SCAM WORK

Internet is plagued by scammers’ fraudulent ads and deceitful social media profiles, promising get-rich-quick schemes, and it’s tempting to at least have a look.

If you click on and provide your e-mail and contact numbers, they’d ring you at once. You’ll be offered bonuses, managed accounts, risk-free deals, guaranteed profits and so on. Most scammers are seasoned manipulators, and while trying to strike a deal, they would inevitably ask for your bank card details so that you can start investing straight away. However, their actions would indicate urgency, and that’s a treacherous sign and evidence of a scam. So if someone pushes you over the phone to start trading ASAP, then it’s most probably a scam.

Nevertheless, the first deposit is just the beginning. Gradually they’d ask for more money from you no matter what. If you lost on the market, they’d persuade you to put more money and recover the losses. If you traded well, they’d convince you to put more money and increase the profits. The troubles start when you ask for a withdrawal. The scammers would do anything to discourage you and would even ask you to deposit even more funds if you want to withdraw. The scammers’ mantra is “give me your money”, they’d demand from you to fund your account over and over again for no obvious reason. Reputable companies wouldn’t push you to make deposits, so if you feel pressurised, that’s apparently a scam.

WHAT TO DO WHEN SCAMMED

Unfortunately, no one is immune to scam. If you get scammed, the first thing you need to do is to protect yourself from further risk. Deactivate your card immediately, contact your bank and ask for advice.

Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!

Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!

Share online your experience; it’s important to protect others, as well. Be responsible!

Rich Snippet Data

Reviewer

TheForexReview

Review Date

2021-04-08

Reviewed Broker

ZumaMarkets

Broker Rating

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