Markets belongs to the category of financial services companies and is a trading broker. However, its website went offline on 12/04/2022. In addition, the FCA issued a warning notice about Markets on 10/08/2022.

Especially for clients currently active in online trading with Markets or for those considering investing money in a timely manner, the following considerations are definitely essential:

  1. Can the company Markets be rated as reliable?
  2. Is the financial provider Markets licensed by an official European financial supervisory authority?
  3. What can you as a customer of Markets possibly do in the event of losses?
  4. Are there any experiences of other investors with Markets?

The lawyers of the Herfurtner law firm have addressed these points and compiled the answers in this article on Markets.

Table of contents

  1. Markets: Trading Broker without a licence?
  2. Markets website
  3. Contact details of Markets
  4. Markets Licensing
  5. Regulatory warning from financial regulators about Markets
  6. Online trading advice
  7. Lawyers to assist with disputes

In addition to the question of whether Markets offers a suitable offer, it is important to deal with the principles for promising trading. We will also explain how Markets compares to other financial services. In addition, we will assist and support you with any questions or disputes you may have in connection with Markets.

Markets: Trading Broker without authorisation?

Although the website http://markets.online/ was offline on 12.04.2022, our lawyers will provide you with relevant information that will help you to better assess Markets. In addition, the lawyers respond to a warning notice issued by the FCA.

Markets on the web

The language of the online presence could not be determined at the time of writing as the website was offline.

Legal notice

According to §5 of the German Telemedia Act (TMG), there are basic obligations to provide information and mandatory details for the imprint in Germany. Accordingly, this obligation to “identify the provider” applies to all commercially operated websites. This is because the data should inform the visitor to a website who he is dealing with.

In addition, the address of the website operator that is capable of being summoned plays a role here, if legal claims are to be enforced against him. In this context, it is also important to note that the obligation to maintain an imprint applies equally to providers based abroad who carry out their business activities in Germany.

It is uncertain whether http://markets.online/ has an imprint, as the website was not accessible in April 2022.

Background to the domain

Some service providers use their years of practical experience to suggest trustworthiness. Nevertheless, such statements are often contradicted by the date on which the domain was registered. Consequently, it is necessary to investigate who the domain holder is and at what time the domain was registered.

At the time of writing, the Markets website was offline. Therefore, no information on the domain could be determined.

Management

According to §6 of the State Media Treaty (MDStV), the name of the person responsible for the content of the website must be stated in the imprint. In many cases, this is a member of the company’s management. Disclosing the names of the persons responsible is not only an obligation, but also a sign of transparency.

No information is available on the persons responsible for the content, as the website was not accessible at the time of writing.

Operating company and trademark

The name of the website, platform or offer is not necessarily the same as the operating company. In the past, it was not uncommon for companies to operate in parallel with different trademarks.

It is also common practice for certain operators to deactivate the websites of “burnt” trademarks and to return to the market shortly afterwards with a new trademark. Therefore, when researching news and facts about a service provider beyond the trademark, it is always a good idea to include the operating company.

The relevant information can be found either in the imprint or often also in the footer of a website. On 12.04.2022 the homepage was not accessible. Therefore, no statements can be made as to whether there are any discrepancies between the trademark and the operating company.

Market’s contact information

As the website was not accessible at the time of writing, no contact information for Markets could be determined.

Markets Licensing

The existence of a valid licence from a European state financial supervisory authority can be an important criterion for determining whether a provider is reputable. This is because issuing a licence requires a great deal of economic effort on the part of the company.

Nevertheless, it does not necessarily have to be a case of fraud if a broker omits information about its licence or its regulatory status. The following financial supervisory authorities, among others, are responsible for issuing authorisations and supervising financial service providers such as Markets:

  • Malta Financial Services Authority (MFSA, Malta)
  • Cyprus Securities and Exchange Commission (CySec, Cyprus)
  • Federal Financial Supervisory Authority (BaFin, Germany)
  • Finansinspektionen (FI, Sweden)
  • Financial Conduct Authority (FCA, United Kingdom)

Whether Markets has regulatory licensing is uncertain, as its internet presence was not accessible in April 2022. Interested investors can discuss what this issue entails by speaking to a lawyer at our law firm.

Warning notice from the FCA on Markets

On 10 August 2022, the FCA published a warning notice on Markets. According to the warning notice, it was suspected that Markets was offering financial services in the UK without authorisation.

Before you start trading with Markets and others – trading tips

Trading on an internet platform such as Markets is the extension of traditional trading in financial instruments to the internet. Here, as there, investors act with the aim of generating profits through the buying and selling of assets. Trading is no longer limited to shares. Rather, customers can also choose from these alternatives, for example:

  • Fixed Deposit
  • Contracts for Difference Trading
  • Investment funds
  • Forex Trading
  • Real Estate
  • Commodities
  • Platinum
  • Cash

Online trading is realised via intermediaries such as brokers (like Markets) or banks, which provide their clients with a professional trading solution. Above all, far-reaching technological advances have made online trading fast and convenient nowadays and therefore as accepted as it is popular.

Advantages of online trading

Digitalisation also has a considerable influence on the world of finance, especially when it comes to trading like Markets. Because as a result of the technical possibilities, trading above all has gained considerably in speed.

Whereas in the past investors and traders had to place their orders by telephone, fax or post, this can now be done at the click of a mouse and with considerably less effort.

Aspects such as the duration and type of trade, pricing and quantities or the key account data no longer have to be discussed personally between the broker markets and its client. In this respect, the opportunity for online trading has brought numerous advantages:

  • The product range of tradable assets is broader and deeper.
  • Online traders have several tools and various indicators at their disposal.
  • The speed of transaction execution has increased noticeably.
  • Transaction fees have dropped significantly because personal telephone advice is no longer required.
  • The trading platform executes the booked orders, you only need an internet connection.
  • Surpluses are achievable even with a low stake.
  • Numerous tools can be used automatically and immediately.
  • Learning documents on online trading, knowledge pools, analyses or trading courses are provided by default in many places.

Moreover, there are not only advantages in online trading with regard to the easy-to-understand use of the platform. Primarily through analysis options, indicators and the many different tools, the investor has significantly more comfort. The times when you had to draw your own price trends or make your own calculations are over.

Today, online traders find a large selection of order types in their system, which they execute themselves when day trading with their favourite broker of choice.

Novel assets: crypto trading with digital currencies

However, digitalisation has not only significantly changed trading as such, such as with markets. Because the unstoppable technologisation has provided online traders with a new field of action: trading with digital assets. The most popular cryptocurrencies include Bitcoin and Ethereum.

Bitcoin was the first cryptocurrency ever, which is why all other digital currencies are called “alt-coins”, i.e. alternative coins. There are now a large number of tradable crypto-assets and the landscape is extremely volatile. As a result, new coins are constantly entering the market and many disappear just as quickly as they appeared.

For investors, this entails opportunities as well as risks, which, however, are noticeably amplified in comparison with traditional investments due to the lack of consistency. Freshly issued cryptocurrencies are basically like a game at the roulette table for investors. With a little luck, you can multiply your stake significantly.

At the same time, the possibility of losing the entire capital is extraordinarily high. Therefore, it might be a more advantageous choice for cautious traders to focus on the top 10 crypto stocks that have been traded for quite some time and have a comparatively large market capitalisation.

Next Generation Crypto: Alternatives to Bitcoin and Ethereum gain in attractiveness

In addition to Bitcoin and Ethereum, the Binance Coin, Solana, Cardano or Ripple should be mentioned here. Cardano and Solana in particular can be classified as more modern and future-oriented than Bitcoin and Ethereum.

While the former are criticised for their energy-intensive “proof of work” mechanism, the latter are based on the less energy-intensive “proof of stake” mechanism. Moreover, the blockchain-based projects Cardano and Solana allow the use of so-called smart contracts.

Furthermore, additional projects are emerging in the respective ecosystems, such as Solanart, a marketplace for so-called “non-fungible tokens”, or NFTs for short. These can be used in decentralised finance, for example.

There, they help to implement security mechanisms that assure the authenticity of transactions and the correctness of each submitted order. Ultimately, investors will find an extraordinarily wide range of cryptocurrencies to invest in.

However, crypto trading is particularly recommended for those investors who do not shy away from greater risks. On top of that, the following also applies to crypto trading: be careful when choosing a service provider.

Unfortunately, there are countless documented cases of fraud and cybercrime in which crypto exchanges, i.e. stock exchanges for cryptocurrencies, have played a decisive role.

Disadvantages of online trading

Where there is light, there is also shadow, this statement also applies to online trading. Accordingly, apart from the advantages, there are also a number of disadvantages that interested investors should include in their considerations:

  • Private investors should already be experienced in trading and pursue resilient strategies.
  • If wrong decisions are made, there is a risk of high losses.
  • Compared to classical trading, it is rather hasty.
  • Investors should keep a constant eye on price trends.
  • The emergence of fraudulent trading platforms has led to immense risks of loss.

Risky day trading in particular is not recommended for investors who are dealing with the topic of trading for the first time. This is because the risk of not correctly forecasting the development of prices is considerable, and in view of the time pressure it is difficult to make adjustments.

Accordingly, this orientation of trading tends to be worthwhile for particularly experienced or particularly risk-affine investors. If you fall into this category, day trading is a way to generate results quickly. In addition, one benefits from the elimination of fees for overnight positions, for example.

Finally, such costs should also be included in the overall consideration of an investment. Moreover, one is literally spared the rude awakening in the morning if there have been rapid and drastic price changes. Such “gaps” develop quickly due to damaging reporting about a company.

On the other hand, one quickly sees successes if one can report a profit at the end of a trading day. Furthermore, it is important for day traders to compare the trading fees of the different brokers. Here it can pay off to opt for a flat rate in the form of a fixed rate.

This pays off especially if you trade with a high frequency and separately charged order fees would significantly reduce your profit.

Recognising dangers

In order not to unnecessarily increase the risks and dangers of online trading, it is recommended to check through what kind of company you want to trade on the markets. From the experience of our law firm, a number of questions have emerged which can be used to identify potential risks.

Applied to the Markets example, these would be as follows:

  • Can I find official warnings about Markets?
  • Is there an imprint on Markets’ website and can you find credible information about the company’s place of business?
  • Are there experiences of other investors, what is the opinion expressed in forums?
  • Are there any warnings from lawyers or law firms who support clients who have suffered losses in connection with Markets?
  • Did the contact with Markets result from an unsolicited telephone call?
  • Does Markets promise unusually high profits and conceal or downplay the dangers?
  • Is Markets controlled by a European financial regulator and is the company subject to official supervision?

How to react in case of losses

As soon as you suspect that you have been defrauded in trading, it is advisable to stop further payments immediately. This is especially true if the provider recommends additional payments to compensate for losses.

Moreover, one should try to recover the lost capital. In doing so, affected investors can seek investor protection and contact the lawyers of our law firm.

Our law firm examines civil law as well as criminal law options and possible claims for damages against the service provider and against involved payment service providers such as financial institutions.

“It is far from being an isolated case if a private investor loses his capital in online trading. Many investors are deceived by the professional appearance of the providers and do not register in time that they are not responsible for their loss.”

Our advice is therefore not to resign, but to act promptly and actively. Because the prospect of recovering the lost money is often greater than the aggrieved investors suspect. Would you like to talk to one of our lawyers about the topic of markets? Then click here to go straight to our contact area.