Warning! MegaCoinFX is an offshore company! Your deposit may be at risk.
RECOMMENDED FOREX BROKERS
MegaCoinFX is yet another alleged broker that works only for its own financial benefits. Read more to see the true face of this company.
The broker claims to be operating from Bulgaria.
The entity that regulates the financial market in Bulgaria is the Financial Supervision Commission (FSC). This agency’s mission is to maintain the stability of the market industry through legal and administrative means. There is a compensation scheme that covers 90% of the clients funds in the event the brokers becomes insolvent. The reimbursed sum cannot surpass €20 450.
We searched the FSC for any sign of MegaCoinFX, and found no hint of it ever being regulated. Since the broker gives no other information on a location (or license), we are left to conclude that MegaCoinFX is UNREGULATED. All illegitimate brokers present a risk to investors!
We strongly advise traders to trade only with regulated brokers that hold a license from renowned and severe institutions such as the FCA or CySEC. Not only do these agencies oversee operations and require regular reports from brokers registered with them, but those under their jurisdiction are members of compensation funds that cover victimized clients’ losses of up to £85 000 (FCA) and €20 000 (CySEC)
The broker offers on the website a leverage of 1:1000 which is exceptionally high, and can have a devastating effect on the investment of users. Furthermore, in Europe the leverage has been maxed out at 1:30 for all regulated EU brokers, so one that offers anything higher than that is clearly operating according to it own illicit set of rules.
We easily registered and were given the immediate chance to start using the live platform. The EUR/USD spread that we got from the trading platform was 1 pip on average.
The trading terminal gave us the option trade with the following assets: Forex Pairs, Indices, Stocks, Commodities, and Crypto.
MegaCoinFX offers its services exclusively in English.
The platform included here is nothing more than a reminder of the illicit nature of the broker.
This platform offers some options for optimizing the trading experience overall, but these aspects do a bad job at concealing the awkwardness that lingers here. And this awkwardness is exemplified by the fact that most of the terminal is a chart from a third party chart provider.
This problem renders everything else irrelevant; the traders is simply not worth it.
The EUR/USD spread here is 1 pips which is a very good cost of trade, as it is beneficial to traders, but not so much to the broker.
The leverage as we mentioned is the dangerously high 1:1000.
There are several commissions mentioned in the Terms and Condition, that are nevertheless left without much of an explanation.
There is a 0.04% Quarterly Trading Commission, from what we think are all the assets traded with.
There is also a commission for trading with bitcoin. It’s also 0.04%, probably per single trade.
MEGACOINFX MINIMUM DEPOSIT
According to the Deposit Funds section, the minimum amount for deposits is €500.
The banking section of the website reveals to us the following deposit methods: Credit Cards, Wire Transfer, bitcoin, and e-wallets. The T/C reduce these methods to Wire Transfer and Bitcoin. It’s very typical for scammer brokers to feature contradictory claims.
All signs point to the obvious: that this broker is not to be trusted due to its lack of regulation. It’s only logical that we advise traders against it. Brokers with proper licenses from the FCA and CySEC (among others) operate in ways that put the trader’s security of funds and personal information as a pivotal priority. These agencies are the top non-US financial license issuers, which should give you an idea of the brokers working under their oversight.
DON’T PROVIDE YOUR CREDIT CARD CVV CODE
Never give away your CVV code without first making sure that the broker is regulated by an efficient agency. By giving away your Card info with the CVV code to some unconfirmed person you are literally giving access to your funds, and if these details fall into the wrong hands, rest assured that your bank account will be promptly emptied.
DON’T PROVIDE ACCESS TO YOUR COMPUTER AND BANK ACCOUNT VIA ANYDESK OR TEAMVIEWER
Here the broker explicitly offers traders help via the AnyDesk app, as seen on the right corner of the screen when visiting the website.
Be sure to never give AnyDesk or TeamViewer access to your PC to unverified agents. These 2 platforms allow for your PC to be taken over by a second party, often times for help or guidance, but in the case of these brokers for the sole purpose of looting your bank account(s) and personal information. However, in order to do so your consent is needed, and this is the only thing standing in the scammers’ way.
MEGACOINFX WITHDRAWAL TIME AND FEES
The minimum withdrawal is $100.
The confusion gradually expands and become complete nonsense. For a bitcoin account (first mention of such a thing), a client must wait a whole year before withdrawing. There is also a limit on the withdrawal itself. Take a look:
Those that withdraw within the first month will be fined with 25% of the entire sum. This is unheard of and is a complete sham.
ADDITIONAL FEES AND TAXES
The fees don’s stop here. There are more to come.
If someone withdrawals without trading, he or she will be fined with 17.5% or $35.
Further down below, the broker adds another fee that is applied if a user withdrawals without having traded first. This time it’s 25% of the deposited fee.
If an account stays inactive for more than a month, the company gives itself the right to fine it by 5%. If an account stays like this (dormant) for more than 12 months all the funds in the account will be forfeited.
Last but not least, there is a clause that warns traders that should they withdraw without “taking into account” all the fees, the company can reject the withdrawal request and still apply all appropriate charges.
What the broker means by “taking into account” is beyond our comprehension.
The presence of such charges point out the true scammer nature of this broker. With so many commissions and charges, it’s in the broker’s own interest to keep you invested for as long as possible. For this reason they will deny your withdrawal request, for certain. The most popular excuses for denying your withdraw requests are usually smart and for the most part scripted. These include but are not limited to loopholes in the T/C, asking for more deposits in order to withdraw, or just prolonging your pending withdrawal by claiming that the market will suddenly propel, multiplying your winnings by unrealistic proportions.
If a broker is unlicensed, never give you ID and personal details to it, because the broker will use these details against you once you file for a charge back. Furthermore, any allegation held against the brokerage will be easily refuted if they have in their possession a copy of your ID and proof of address.
We are positive that this so called broker will not return your funds; the evidence we have laid out before you work in sync against it. The sound thing to do is to direct your attention and investment to an FCA or CySEC licensed broker where the law is integrated in every aspect of their operations.
HOW TO RECOVER
The most sound advise we could give you is to immediately file for a chargeback with you credit card company.
Any details you might have shared with the broker, most notably the CVV code, are sure to be used against you, thus you should swiftly cancel your credit card ASAP.
Victimized traders will have their guards down looking for every opportunity to get their money back. This is where the fake recovery agents come in, seeing an opportunity in your desperateness. First of all, they will promise to recover all your money, but they will ask a fee to cover their services. Once this fee is paid rest assured that you will never again hear from them.
The last line of defense for these indecent folk is more like a desperate cry: often times they will comment on reviews and cite the whole ordeal as a conspiracy initiated by competitive brokers against them; at times even claiming that reviewers are anything but objective, and that no one writes good reviews. The absurdities are limitless!
MegaCoinFX has the bad case of overdoing it with the fees; aside from the lack of a license, this is the most obvious sing that this alleged broker is up to no good. Keep away from this one if you value your money.