Beware! M-Success FX 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.
M-Success FX is a Forex brokerage presumably registered in the US. It purports to provide the MT5 trading platform but further trading conditions remain unclear. The required minimum deposit is absurdly high at $1000 and quite unfavorable for traders.
Asset Capital Business regulation & safety of funds
We discern from the website that the company behind the brokerage is registered in the USA or at least gives us an American contact address.
We remind readers that brokerages operating in the US have to be registered as an NFA-member and abide by very strict restrictions which is why there are only a handful properly licensed by the American authorities. M-Success is not among them but neither does it claim to be. Quite oddly, the brokerage states on its website that it regulated by the Financial Conduct Authority in the UK which is obviously not true as well. However, just to be diligent, we ran a search on the online registry of the Financial Conduct Authority in the UK and did not come upon any relevant results relating to the company but we did find out that the British authorities have issued an official warning against the brokerage which is a major red flag in Forex trading.
It appears that M-SuccessFX is actually a clone firm of the legitimate and FCA-registered company Equiti Capital UK Limited which isn’t surprising since using the corporate info of a regulated firm is a popular trope with scammers.
We also find no terms and conditions on the website which is another worrisome sign. It’s safe to assume that the company behind the brokerage, irrespective of its legitimacy, does not fall under any regulatory oversight.The lack of crucial corporate information regarding the company behind the brokerage and the lack of credible regulation highly incline us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
M-Success FX Trading Software:
Putting that aside, the brokerage states that it provides the MetaTrader 5 trading platform, including a web version which we always view as an advantage due to the advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). However, the brokerage simply redirects us to the main page MetaQuotes Software and does not provide a downloadable version of the platform. We were not able to register for a demo account and it turns out that M-Success FX does not offer the platform but only falsely claims it does. Thus we were unable to gather what the trading conditions of the broker is which is crucial in Forex trading.
M-Success FX deposit/withdrawal methods and fees
Usually in Forex trading traders may deposit or withdraw via at least the standard Visa, MasterCard, as well as bank transfer, however, M-Success does not inform us of the available payment gateways.
We did not find provisions worth noting in the terms and conditions. We also did not find any withdrawal fees, however, this does not mean there aren’t any withdrawal fees necessarily. This is why we always advise traders to put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Unfortunately, the possibility of a scam looms over almost every trade in forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!