Beware! MGX100Asia is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
MGX100Asia is a forex and CFD broker that says to be based in the U.S., but also to run an office in Hong Kong. The broker supports the MetaTrader 4 platform, which we tested with a demo account, revealing spreads starting as low as 0,5 pips and leverage as high as 500:1.
And although such trading conditions might look tempting, when deciding whether to invest with a given broker you should always check if the broker is properly licensed and authorized by the relevant financial authorities.
MGX100Asia regulation & safety of funds
Obtaining a legit U.S. forex license is quite a challenging tack, so we were not surprised when it turned out that MGX100Asia is not regulated there. And besides it also turned out that they are not regulated in Hong Kong either. On the contrary, Hong Kong’s Securities and Futures Commission (SFC) has blacklisted MGX100Asia for targeting customers without proper authorization and for allegedly running a scam.
Hong Kong’s SFC is a reputable financial watchdog, which requires all forex brokers to maintain a minimum paid up share capital and liquid capital of no less than 5 million Hong Kong dollars (640 000 USD), as well as to keep adequate accounting and control systems.
For comparison the minimum operational capital requirement with all brokers regulated in Europe, by institutions such as the Financial Conduct Authority (FCA) in the UK or the Cyprus Securities and Exchange Commission (CySEC) is 730 000 EUR.
In any case no matter what trading conditions a broker offers, you should always check its regulatory status, including by comparing its domain address and other relevant information in the registers of the respective financial authority.
MGX100Asia deposit/withdrawal methods and fees
The information on MGX100Asia website is rather scarce so we do not know what is the minimum deposit requirement they ask for or what payment methods do they accept. Just have in mind that most brokers accept payments with major credit and debit cards like VISA and MasterCard, bank wire and e-wallets like Neteller, PayPal and Skrill. As for the minimum deposit requirement it should not exceed 250 USD for a standard account.
An intriguing detail in MGX100Asia Terms and Conditions is that they want their clients to agree “not to file a claim against MGX100ASIA and third party content providers for claims, losses, liabilities, costs, expenses incurred as a result of your use of MGX100ASIA or your breach of these Terms.” Bear in mind that no legit broker would ever put such a clause in its client agreement.
How does the scam work?
If you are a victim of a scam, chances are high that you have been hooked up through one of the so called robo scam websites like Bitcoin Evolution or Crypto Revolt. Those websites are especially created as gateways to feed scam brokers with new victims. Usually there is a nicely cut video ad and a simple registration form, which you will be urged to fill with your e-mail and phone.
And than you will be transferred to the website of a scam broker and you will be asked to deposit about 250 USD. Bear in mind that at first trading with your scam broker might seem like a lot of fund – all your trades will be in green and pretty soon the money in your account will almost double. That however will all be fake. Scammers will simply manipulate your trading results so that you will be more susceptible to the idea of investing more – like 10 000 USD or so. At least that is what your “senior account manager” will suggest on the phone. Forget to mention, but by then you will be receiving a lot of phone calls and attention in general, and you might be left with the impression that the whole company is working especially for you.
And you might be surprised but most people do note realize they have been scammed until the very moment they attempt to withdraw some of their funds. Than all of a sudden it turns out that all of their withdraw requests are canceled, because they have not reached some minimum trade volume requirement, linked to their welcoming bonus. The excuses might be various, the end result always the same – scammers will not give you a single dollar back.
What to do if scammed?
Do not hesitate, but immediately file for a charge back with your credit card company – this is your only chance to get your deposit back. The good news here is that since last fall both VISA and MasterCard extended the period in which you will be allowed to do that to 540 days.
And if by any means scammers have managed to trick you to tell them your banking details like credit card number and online banking password, immediately block your credit card and change the password.
And one final piece of advice – do not trust the so called recovery agencies, as some of them might even work with the scammers that have stinged you already. The point is, those agencies will not recover you anything, but will simply ask for some payment in advance, basically leaving you even deeper in to the red.