SpaceMarket.pro is an offshore forex broker that has garnered significant attention, but not for the right reasons.
Widdershins Group LTD owns and operates this brokerage business – a company registered and regulated in the Commonwealth of Dominica.
However, this region is known for lacking stringent financial regulations, which means that SpaceMarket.pro operates without proper oversight. This lack of regulation poses a risk to investors, as there are no guarantees for fund security or compensation in case of issues.
In this TRU Insight, we’ll walk through the regulation and credibility of SpaceMarket in providing fair financial services. Explore whether you can trust your hard-earned investment to SpaceMarket.
What Is SpaceMarket.pro?
SpaceMarket.pro is operated by Widdershins Group LTD, a Dominican-based company.
The SpaceMarket’s minimum deposit is USD 250, which you can use to open its basic account. Other accounts include the following:
- Optimal: USD 2000 minimum deposit
- Individual: USD 10,000 minimum deposit
- Strategic: USD 25,000 minimum deposit
Its in-house trading platform – SpacePlatform – is advertised to provide the convenience of accessing the platform without the need for multiple software. According to them, it’s the platform that has all the traders’ needs.
Through the platform, you can access over 100 tradeable assets, including 60+ currency pairs, stocks, indices, and precious metals. Additionally, you have access to up to 300:1 leverage with variable spreads and zero commissions.
However, the platform’s inferiority was revealed upon our investigation. Compared to MT4 and MT5, SpacePlatform significantly lacks advanced trading tools and features needed to analyze charts and execute trades.
Is SpaceMarket.pro Regulated?
According to SpaceMarket’s website, the online brokerage firm is owned by Widdershins Group Limited (LTD).
Upon checking the company registry search, Widdershins Group’s existence was confirmed valid.
However, the issue here goes beyond the existence of SpaceMarket’s mother company. Instead, the main concern lies in the degree of financial regulation SpaceMarket is under.
The Dominican government has little to no regulation regarding brokerage operations – any brokerage companies regulated by it run wild in the financial markets.
This makes SpaceMarket.pro’s traders vulnerable and unprotected from unethical broker practices.
Is Widdershins Group LTD Legit?
No, SpaceMarket’s mother company is exposed by different authorities as a scam.
On the 28th of April 2021, the Italian financial authority Consob issued a public warning against Widdershins Group LTD.
Through the Consob Resolution No. 21822, the Italian regulator ordered the cessation of infringement of Article 18 of the Consolidated Law on Finance by the website www.finlay.capital and related domains. The regulator confirmed the involvement of Widdershins Group as the main entity behind the website.
According to Consob, the website provided unauthorized financial and investment services within the Italian borders.
How to Avoid Forex Broker Scams?
The forex market offers immense opportunities for traders, but it’s also a space where scams and fraudulent brokers lurk.
Remember, protecting yourself from these scams requires a combination of knowledge, vigilance, and due diligence.
Here are the three must-do before you commit to one broker.
Check Regulation
Before committing to a broker, verify that it is licensed and regulated by a reputable financial authority.
Regulatory bodies such as the U.K. Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the U.S. Commodity Futures Trading Commission (CFTC) impose strict standards to protect traders.
For South African traders, the Financial Sector Conduct Authority’s (FSCA) FSP search is a valuable tool to confirm the brokers’ compliance with the regulator.
Check the broker’s registration number and confirm it on the regulator’s official website.
Avoid offshore brokers operating in jurisdictions with lax or no oversight, like SpaceMarket. Remember that these broker companies often exploit loopholes to evade accountability – leaving you vulnerable and unbacked when a dispute arises.
Research Reviews
Take time to research the broker online.
Look for unbiased reviews from credible sources, forums, and trader communities. Be cautious of overly positive testimonials on the broker’s website, as these may be fabricated.
Pay attention to common complaints, such as withdrawal issues or unethical practices, as they can be warning signs of trouble ahead.
Independent user experiences often reveal insights that official websites intentionally omit.
Avoid Unrealistic Promises
Be wary of brokers advertising guaranteed profits, minimal risk, or extraordinary returns. Forex trading inherently carries risk, and no legitimate broker can promise consistent gains.
Similarly, offers of high leverage ratios, like 300:1, can lead to significant losses if not managed carefully. If a broker’s claims seem too good to be true, they likely are.
Trustworthy brokers emphasize risk management and transparency, not unrealistic profits.
Read More: What Is Investment Ponzi Scheme in South Africa?
Should You Trust SpaceMarket.pro?
At first glance, SpaceMarket.pro seems to present a promising financial service with competitive features. But a deeper look reveals significant red flags that cannot be ignored.
Its registration in a jurisdiction with minimal regulatory oversight makes it a risky choice for traders. Aside from this, its association with Widdershins Group LTD further confirms its unreliable service.
Remember, it’s crucial to prioritize brokers that are transparent, regulated by reputable authorities, and committed to protecting traders’ funds.
While the allure of quick profits may be tempting, safeguarding your investments and trading with trustworthy brokers is the smartest decision you can make.
