Beware! MFM Securities 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.
MFM Securities is an offshore broker that, despite its status, is quite decent looking. However, brokers should focus on trading conditions, and not on looks. The leverage is maxed at 1:500, a common offshore broker value, while the EUR/USD spread was 2.1 pips on the demo platform. Such a spread is not really very lucrative for traders.
MFM SECURITIES REGULATION AND SAFETY OF FUNDS
The company has not said where it is regulated, if at all. It has revealed that it operates from St. Vincent and the Grenadines (SVG), an offshore location where many illicit brokers reside. Be aware that the island nation does not have a FX financial regulator operation. And seeing that there are no other mentions of a location, we conclude that MFM Securities is UNREGULATED and therefore a risk to all. Too bad… this broker has potential, as it’s very well put and offers a decent amount of options, not to mention that it brings on a fresh look that not many SVG brokers posses.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
MFM SECURITIES TRADING SOFTWARE
We got the aforementioned spread from a demo account with the MT4 terminal, which is available on mobile as well. Furthermore, users can also chose from a bunch of account types, each with their own spreads. Surprisingly, the MT5 is also an inclusion here.
The functionalities of the MT4 terminal are the most useful from all other platforms, including drag and drop charts, user friendly accessibility and pending order types. With MetaTrader 4 you can set automatic trading bot to do your deals for you while you preoccupy your time with different activities.
The MT5 retains some great features even if it is still shadowed by the immensely popular MT4. MT5 is certified by many stock exchanges and allows for a centralized market trade. Improvements have been made with the chart time frames, there are better charting tools to further otpimize the trading experience, and there are more pending order types.
Prime Accounts are taxed with $5 per standard lot. However, there is no clarification whether this commission is per side or one way. If per side, then the user will have to add an extra 1 pip to any spread that the tax applies to.
MFM SECURITIES DEPOSIT/WITHDRAWAL METHODS AND FEES
The minimum deposit is $15. This is with the Mini user account. The other account have higher fund requirements. We could not get a hold of any payment methods. Most unlicensed brokers offer bitcoin deposits, because crypto payments are still very unregulated and untraceable.
Withdrawals, according to the legal documents are processed within a day. There seem to be no withdrawal fees of any sorts. This should not be taken lightly; most illegitimate brokerage firms will find a way to tax you with unnecessary charges.
We strongly advise traders to only deposit the minimum deposit, or better yet- not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
The most common type of scamming is in fact a very simple scheme that involves multiple level of commitment from both the victim and the fraudulent broker. In the following section we will dive into the individual elements that make up this scenario.
Users of the net will be lured or intrigued by the countless ads that float around the internet, mostly on popular websites such as social media hubs. These ads promise fast money, and are accompanied either by images of luxury or made up testimonials. Clicking on them redirects users to a so called robo-scam website such as Profit Revolution or Bitcoin Revival, where a simple registration process will require from you a telephone number and email address. We assure traders, that once these details have been shared, they will shortly get a call from the broker or brokers, on whose ad you just “stumbled”; this is when the game begins. The voice on the other end of the line will urge you to deposit in their broker some $250 (approximately), by reassuring you of the possibilities of profit, and the like.
Should you deposit, the initial scammer has just earned a hefty commission from this deposit. Now it’s time for the senior scammer to talk you into depositing more, by claiming that the only way to increase profits is to deposit more and larger sums. These second level frauds are great talkers, charismatic and influential, twisting their lies to sound like the absolute truth.
At some point or another, the trader will inevitably start suspecting something, and will want to withdrawal his/her funds. At this point, the con artists will delay the withdrawal process by persuading you to wait, or by referring to their legal documents that cover specific withdrawal clauses- excuses vary from broker to broker. This delaying process is crucial to them, for trader have a limited time to file for a chargeback with their respective bank. Once the chargeback time frame runs out, traders will have lost their money for ever.
What to do if scammed?
VISA and MasterCard users will be happy to know that have extended their charge back request period to 540 days for when online scams occur. In case a chargeback is unavailable for some reason, the next immediate route is to cancel your credit card ASAP.
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
If any bank details have been shared, like banking pass or security code, traders should be aware that scammer will most certainly attempt to drain your account. In such a case, immediately block the account or change the password.
We also urge users to be very careful with the so called “recovery agents” that promise to recover lost money from unlicensed broker. They charge a fee for their alleged services, and will unquestionably not recover any previous deposit, basically scamming you a second time.