Omega Markets Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this Omega Markets Review.
Omega Markets Review
Omega Markets is a forex broker, which offers multiple account types, as described in the table above. As you can see, the difference in trading conditions, based on your initial deposit is quite serious. Shariah-compliant (swap-free) accounts are also offered.
The Company. Security of Funds
Company Country Regulation
Omega Markets Ltd. Marshal Islands N/A
Omega Markets is owned and operated by Omega Markets Ltd., which is registered on the Marshal Islands. The company is not regulated by the local (or any for that matter) agency. The combination of an off-shore registration and a lack of oversight is usually quite dangerous.
As we mention in most of our reviews, financial regulation should be the number one thing you look for in a forex broker. An unregulated company can manipulate the prices of trading instruments (i.e. take out your stop-loss orders), or even deny you the ability to withdraw your finds at all. For this and a some other reasons, most countries have created regulatory agencies, who focus specifically on the financial services sector. Let take Australia, for instance, the Australian Securities and Investment Commission (ASIC) enforces the rules on forex brokers registered down-under. The Commission requires companies to place client funds in the so called segregated accounts – accounts, which the broker itself doesn’t have indiscriminate access to. This rule prevents the most basic version of fraud, the broker simply taking your money. Another ruling, which stops many potential scammers is the minimum capital requirement in order to register a forex broker. Currently the level set by ASIC is AUD 1 million, which is more than what most small-time crooks can afford as an “investment”.
Judging by their Twitter feed and the website versions, differing from English, Omega Markets is targeting mostly Arabic clients.
Trading Conditions
Minimum Initial Deposit
The minimum initial deposit at Omega Markets is $100, which is average, when compared with current offerings by other brokers. Some go even lower, with the sole purpose of attracting new clients. When it comes to lowering the entry bar, you can’t go lower than zero, which the FCA-regulated broker and spreadbetting provider IG has done. You can essentially open an account for as low as you want.
Deposit minimums are important for new traders, who are still learning, as well as traders willing to test a company’s trading environment. On the other hand, experienced traders will tell you – it is not worth wasting your time with such small account balances.
Average spreads & Commissions
Spreads at Omega Markets vary drastically for the different account types. Most of them are higher than today;s industry standards. Brokers nowadays often offer something in the 1.0-1.5 pips range, as the spread on EUR/USD, the most liquid financial instrument. That being the case, only the VIP account at Omega Markets is worth considering, but depositing $10,000 with an unregulated company is a huge risk, which we would not recommend.
Have you ever wanted to compare the spreads offered by the top-tier forex brokers, in real time? If you have, you are in luck – take a look at the interactive comparison we have set-up here.
Leverage
Omega Markets offers 1:400 leverage. A level as high as this may seem absurd to someone who has trading experience with other asset classes, but is quite standard, when it comes to FX. Some brokers offer 1:500 or even high levels. One broker even uses its leverage offering as a marketing trick – XM offers 1:888 leverage. This is so catchy, you are bound to remember it.
All of this may sound great, but do remember leverage is a double-edged sword. While it amplifies your profit potential, taking substantially bigger positions, than you initial investment is very risky. Relatively small market moves can lead to a margin call, if your account is fully “geared” at these high levels. Be sure to fully understand the risks involved in forex and CFD trading before you participate in them.
Trading Platforms
Omega Markers offers its services through MetaTrader4(MT4). The platform is the preferred choice of a lot of brokers and thee are several reasons for that. For one, it is probably cheaper than creating an in-house solution, from scratch. Furthermore traders already know it and most of them like it and last but not least, it is actually good. The charting potential is great, lots of instruments can be loaded before it starts running slowly (this depends on the user’s hardware, of course) and the MQL marketplace offers lots cool add-ons.
If you are not familiar with it, MetaQuotes, the company behind MetaTrader runs an on-line store, where you can test, buy and sell your own pieces of extra software for the platform. They are divided in several categories, the most prominent two of which are technical Indicators and Expert Advisors. While the first should be pretty much self-explanatory for anyone with an interest in trading, Expert Advisors are automated trading systems. If you are interested in such things, you can check some of our reviews on Expert Advisors here.
The one weakness of MT4, which will frustrate veteran day traders is the lack of detachable modules – the platform is essentially one application, which can be resized, but not broken into several segments. This, of course, limits the support of multiple monitors. On the other hand the platform does have a web-based version, as well as apps in both major stores. In essence, you being away from your main trading PC is not an excuse for mismanaging your position anymore.
Methods of Payment
Payment options at Omega Markets are few, and some of them are rather unpopular. The traditional Bank Transfer and Credit/Debit Card are accompanied by solutions such as Solid Payments and YuuPay. Other more widely accepted e-wallets, such as Skrill are not supported.
The Broker is not safe, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
Omega Markets Review Conclusion
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