Is Core Liquidity Markets Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with Core Liquidity Markets try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Core Liquidity Markets is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker Core Liquidity Markets
Core Liquidity Markets (also CLMForex) is a brokerage company that has been providing retail and institutional clients with a full range of financial services for Forex trading since 2013. The broker is focused on traders from Latin America but also serves clients all over the world. CLMForex offers favorable terms for active trading, as well as many investment solutions for generating passive income. It is registered and regulated by the SVGFSA 24750 — Financial Services Authority (Saint Vincent and the Grenadines).
| 💰 Account currency: | US$, €, £ |
|---|---|
| 🚀 Minimum deposit: | From $100 (Standard); from $500 (ECN) |
| ⚖️ Leverage: | Up to 1:500 |
| 💱 Spread: | From 1.3 pips (Standard); from 0.1 pips (ECN) |
| 🔧 Instruments: | Currency pairs (54), stock CFDs (10), indices (11), commodities (10), and cryptocurrencies (6) |
| 💹 Margin Call / Stop Out: | Stop-out: 50% |
Pros and cons of Core Liquidity Markets
👍 Advantages of trading with Core Liquidity Markets:
•The minimum deposit available on a standard account is $100.
•Availability of two types of accounts (Standard and ECN) with different spread levels and transaction processing models.
•Possibility to make trades using desktop and mobile terminals, as well as MT4 and WebTrader.
•Average trading commissions on standard accounts and virtually zero spreads on ECN.
•Free access to the DupliTrade social trading platform.
•High leverage — up to 1:500 on all types of accounts.
•Demo account availability, the operations of which completely track the functionality of the real accounts.
👎 Disadvantages of Core Liquidity Markets:
•The broker doesn’t provide Cent accounts, and use of the Demo is limited to 30 days.
•Access to the copy trades service of successful traders is possible only after depositing $2,000 to the account.
•Only a few training materials and analytics are available.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is Core Liquidity Markets Regulated? Broker’s license
Security (Protection for Investors)
Core Liquidity Markets is a tradename of CLMarkets Ltd., which is registered as an International Business Company (IBC) by the Financial Services Authority of St Vincent & the Grenadines ( SVGFSA) under number 24750-IBC-2018.
The SVGFSA doesn’t issue licenses to provide brokerage services, but only registers brokers and provides them with a corresponding certificate with a number in the general register. The responsibilities of the department include monitoring and regulating companies that are registered in Saint Vincent and the Grenadines in the financial sector. Also, SVGFSA deals with the consideration and resolution of conflicts arising between brokerage companies and their clients.
👍 Advantages
- The company stores customer funds in segregated bank accounts and separately from equity capital
- Each client of a broker registered with SVGFSA can file a complaint with the authority
👎 Disadvantages
- The broker is not a member of any compensation fund
- The company requires you to provide copies of your passport and a document confirming residence
- No protection from a negative balance is provided.
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by Core Liquidity Markets, which you can see below.
The experts from the Traders Union have carefully analyzed Core Liquidity Markets' terms and conditions. The study of the information presented on the company's website was focused on identifying all possible commissions, both trading and non-trading, hidden and transparent. The broker only holds the spread as a trading fee on its Standard accounts. In addition to the spread, a commission of $3.5 per lot is charged on ECN accounts, each way. The broker doesn’t apply non-trading commissions, but banks and EPS do. Deposit fees can be paid via e-wallets, at 1-5%; via bank cards, at 5%; and by bank transfers, at $20-45. The client pays the system 3% for withdrawal to the card, 1-2% for EPS, and $15 to the bank account. The minimum withdrawal fee is 5 US$/€/£ or ₿0.0005. Account inactivity is free of charge.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard account | from $13 | Commissions are charged by the payment systems |
| ECN account | from $1 | Commissions are charged by the payment systems |
Brokers that are similar to Core Liquidity Markets
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of Core Liquidity Markets conditions with its closest competitors.
Comparison of Core Liquidity Markets with other Brokers
| Core Liquidity Markets | RoboForex | Pocket Option | Exness | Vantage Markets | FreshForex | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MobileTrading, WebTrader |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, WebTrader, Mobile Apps |
MT4, MobileTrading |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$50 |
No |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$30 |
Cent accounts |
No |
Yes |
No |
No |
No |
Yes |
Core Liquidity Markets positions itself as a universal broker, but the lack of cent accounts and quality training suggests that it is focused on more experienced traders rather than novice ones.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
Vantage Markets is a broker that is a real catch for traders who prefer ECN trading.
FreshForex is a reliable Forex broker providing a standard set of trading tools. The company is a good option for traders of all levels, from beginner to professional traders. It is mid-range in terms of size and number of registered traders and they are reliable based on our research and analysis.
Conclusions
Core Liquidity Markets cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.