Beware! MottoFX 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.
MottoFX seems to hold its grounds once you open its impressive looking website. Upon your very first visit, you might be impressed to the point of deciding that this will be your next go to broker. Yet, we couldn’t help but have a feeling that lingered throughout our visit. We, of course, being who we are, had to scratch this itch. This revealed another side of MottoFX, one that is not as bright as the broker’s glistening facade suggests. Read the review before doing anything that you might regret later.
This broker suggest professionalism and expertise, but this was all shattered when on our 10th registration attempt, we gave up. For some reason, the broker did not allow us to create an account. This might be due to the fact that we do not provide credible log in details, or that MottoFX is one of those company’s that specifically pick their own customers trough the act of online phishing. What ever the case may be, we did not have access to a user dashboard, and as such have to rely on the website for sensitive trading and payment info.
Even so, MottoFX has no trading information revealed anywhere on its website… The trading graphs that one might encounter are third party owned, meaning that they do not represent MottoFX’s own trading terms, if any. There is no leverage value as well, and the legal documents do not reveal spreads, or a leverage either. Furthermore, even the trading assets have been kept in secrecy. This broker is slowly turning on its head.
Users have bee given the choice between 3 different languages. These are English, Spanish, and German.
MOTTOFX REGULATION AND SAFETY OF FUNDS
For a brokerage firm with such a cool look, MottoFX sure has been quite the letdown so far, and will continue to be.
The next aspect in question, is the most important one by far- the regulation. After searching and searching through, we can safely say that MottoFX has included absolutely no licensing information anywhere on it website. The legal documents keep mentioning that users are bound by laws and regulation, but that is how far these claims go; there is no discrete legitimising info that would make MottoFX legal and safe for users.
Usually, illicit brokers at least try to convince its clients that it possesses a license, but MottoFX hasn’t even attempted at that, making this broker not only UNREGULATED, but also lazy! Such entities should never be trusted, and any investment made in them is at risk of being lost!
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.
MOTTOFX TRADING SOFTWARE
As we previously said, the registration process was for some reason made impossible to complete for us. Thus we cannot say if he trading platform is a decent one.
However, MottoFX yet again fails to meet the lowest of expectations, by not mentioning at least once its trading software’s name. We were set on finding any details, but failed completely. We have no choice but to assume that this so called broker does not even have a trading software, where, by the way, all the trading is done… Therefore, what is the real point of MottoFX, we ask?
We think, based on our experience of dealing with similar scammers, that MottoFX utilises phishing ads to lure unsuspecting traders in, who are then led to believe that MottoFX is legit and a good investment option. Bear in mind that representatives of the firm are good persuaders, and will not let you go without at least a minimum deposit. The scam will continue, until a user starts feeling cheated, by which point the broker will close the account, which technically is theft. This has happened before to many people, which is why we think that it may happen to users of MottoFX!
Please be ware that MottoFX has the right to select and manage a user’s assets, and change the list without prior notice to the client.
MOTTOFX DEPOSIT/WITHDRAWAL METHODS AND FEES
The minimum deposit is €250, and $500 for Wire Transfer. Payment methods include Credit/Debit Cards and Wire Transfer. We do not affirm this to be accurate, for these details were taken from the website, which as we have seen is not to be trusted.
There are two base currencies, EUR and GBP. There is no option to deposit and hold an account in USD, which is very rare, because the dollar is the most widely spread currency in forex.
The withdrawal methods are as ambiguous as the depositing ones. The minimum withdrawal via Bank is €500, and €50 for Credit Cards. The processing times range from 5 to 10 days. Also, there is a small withdrawal charge of €20 for each transaction.
A client that has not had any transactions in his or her account for three months or more, will be issued a dormant account fee of €50.
There is mention of other fees, such as commissions, registration fees, and administration fees, including one applied to charge-backs, but MottoFX has left these completely without value.
The company gives itself the right to share client personal info with third party sources, including business partners, service providers, affiliates, etc. Who these comapnies and people are is not made clear.
Here is a very typical but also crucial indemnification clause, that not only absolves the broker from legal responsibilities but also charges the user for any fees that arise from a legal dispute.
What’s more is that the broker grant itself the right to change some very crucial aspect of the entire trading experience. Here is the entire list:
The withdrawal of bonus funds is achievable only when the trading volume requirement of 30 * every dollar of bonus is complete. Furthermore, the maximum auser can withdraw as winnings from a bonus is $50.
After three months of an account being inactive, i.e not logging in 3 months or more, the user will be levied a monthly charge of $50.
The broker will close an account if it detects that a user has issued a chargeback. This is a common defense mechanism used by illicit brokers.
Furthermore, the broker will launch a chargeback fee equal to the chareback should the user file for one.
All this payment information we label as completely useless, because we absolutely do not recommend users to deposit any amount at MottoFX.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
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.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.