Who is FM Trader?

FM trader was a broker that offered the opportunity to trade in crypto and binary options by opening a range of different account types. The minimum deposit required to open a new trading account was $250; the minimum trade size was $25, and the maximum was $10,000. This broker also used the name FM Financial, and was established in 2012; it had its offices in Belize. The broker’s website has now been shut down.

In the wake of a multitude of online complaints from former investors, alleging that the platform was a scam, the FM Trader review below seeks to ascertain whether this is the case and, if so, the recourse that’s available for traders who have lost money to this broker.

Is FM Trader a Licensed Broker?

FM Trader was operating without a license or regulation, which means that it was offering its financial services illegally. This is a clue that this broker was not legit and that any funds placed with it were potentially at risk.

A robust external regulator acts in an ombudsman capacity and is effective insurance – your funds have a level of protection where a broker is properly licensed and regulated. Making sure that any broker you are considering trading with has these things in place will give you the peace of mind that the company you’re dealing with is unlikely to be a scam.

So – is FM Trader a licensed broker? Unfortunately no, FM trader was unregulated and unlicensed.

Is FM Trader a Scam or Legit?

Its unregulated status and the plethora of online complaints regarding this broker (more on this below) are highly suggestive of an FM Trader scam. The lack of detail that the company provided regarding the trading conditions and general processes is also a major red flag – legit trading platforms will always be clear and upfront about their trading conditions and withdrawal mechanisms, and provide a demo account, too, so that potential new investors will understand exactly what they’re signing up to and how the system works; looking out for these things when considering a new broker is another good way to protect yourself from scam concerns.

Further to this, the regulator in the UK, the FCA, has issued a public warning regarding this trader, advising investors that they have not issued a license to FM Trader and therefore advising traders that any funds placed with this broker could be at risk.

Biggest Complaints Against FM Trader

The bulk of the FM Trader complaints are from investors claiming that they have been scammed out of their funds, with allegations of being persuaded to deposit larger and larger amounts to cover past losses:

This modus operandi is typical of that deployed in Ponzi schemes; this type of fraud is where the platform is a front, with no actual trading going on at all. Instead, the only revenue stream is the investment into the company from current members, who are therefore pushed to put in more and more money, or from the recruitment of new members, either through existing traders (who are given a bonus for new members they recruit) or the aggressive sales tactics of the broker’s representatives, used in a bid to get new traders to invest.

Typically, in a Ponzi scheme, once these sources of funding have dried up, the platform owners will shut down the website and disappear, taking all the remaining money in the pot with them, and leaving investors often massively out of pocket.

Can I Get My Money Back From FM Trader?

It is possible to get an FM Trader refund. For the best chance of success, instruct a professional chargeback company to act on your behalf and fight the case for you. Have a look at your options online, taking time to read through the reviews from past clients and paying attention to each company’s success rates.

There is the option of pursuing the matter yourself, although this may not be as likely to result in getting your FM Trader money back; be aware, too, that tracking down your lost funds and the perpetrators of the scam can be time-consuming, costly, and stressful, too, which are other key reasons that many people prefer to have a chargeback team handle matters on their behalf.

What is the Chargeback Process?

Once you’ve made contact with your chosen chargeback team, a member of the staff will discuss your case with you; if it’s deemed to be a winnable one, then it will be taken on and the process of evidence and document gathering will begin. The chargeback team will then use all of the experience they have of dealing with scammers to find and confront all of the entities – both individual and corporate – that were involved in the fraud, to retrieve your lost funds. The process usually takes about six months, although this timeframe is often considerably less, depending on the complexity of the case.

If you have lost your investment as a result of an FM Trader scam, then getting this money back is possible. Your best option is to make contact with a reputable chargeback team as soon as possible, to get the ball rolling.