FOTM-Overview of Minimum Deposit, Spreads & Leverage

WikiFX | 2021-11-19 18:14

摘要：FOTM is an online broker saying it is registered in China, with the founding time, actual office address, and the company behind it unknown to all. There is no regulatory license details displayed on the FOTM website, which means this broker is an unregulated one, and the safety of client found cannot be guaranteed.

General Information & Regulation

FOTM is an online broker saying it is registered in China, with the founding time, actual office address, and the company behind it unknown to all. There is no regulatory license details displayed on the FOTM website, which means this broker is an unregulated one, and the safety of client found cannot be guaranteed.

Market Instruments

Tradable financial instruments available on the FOTM include some currency pairs only. Other popular trading assets like indices, commodities, stocks, metals are not available.

Minimum Deposit

In terms of minimum initial deposit, FOTM does not make this part clear. In most cases, brokers would ask traders to deposit at least $100 or even less to start trading. Since FOTM is a scam broker, it is meaningless to discuss its account opening amount here.

Leverage

With respect to trading leverage, the maximum leverage level for forex trading is up to 1:1000, absurdly high for an unregulated broker. Since leverage can amplify gains as well as losses, inexperienced traders are not advised to use too high leverage in case of fund losses.

Spreads & Commissions

FOTM advertises that it offers super low spreads, but it does not specify spreads on particular instruments. This is the widely used tactic by unregulated brokers, trying to attract new traders and then scam them.

Trading Platform Available

What FOTM offers to its traders is not the MT4 or MT5 trading platform. Maybe some web-based or mobile app platform, we have no clue about it.

How does scams Work？

The scam really works when the reps of the broker contact the user, either through a phone call or an email address. They will start asking for deposits all the while promising super profit gains. Those that deposit might even get a taste of false gains, whose true purpose is to compel the client to deposit more. These scammers know very well how to manipulate users. Their catalogue of psychological trickery is vast, and their patience is unbreakable.

FOTM