Beware! MDX500 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.
MDX500 is one of those brokers that cannot really be labelled anything, until you spend some time with it. Only then can you start forming an opinion. Our initial thoughts were positive ones, as we thought that this brokerage would be a licensed and efficient firm. After all, the website is packed with details, it is considerably easy to interact with it, and it seems, that all the necessary elements are all there. Yet, once we started getting familiar with it, our real opinion started taking form. Read on to find out what we really think of MDX500 in the end.
To register, we had to complete a fairly simple process. The resulting dashboard was an incredibly simple thing, and we almost labelled it a joke. Nevertheless, we did open a trading terminal, which gave us a EUR/USD spread of 0.7 pips, a super value. The leverage was capped at 1:100, which is quite low for an offshore broker.
A big let down, and proof that MDX500 is shady, is the fact that the website uses Google Translate. So technically, the website can be translated into over 20 languages.
MDX500 REGULATION AND SAFETY OF FUNDS
The Terms and Conditions did mention that users must familiarise themselves with the law of Estonia, which should suggest that the broker is located in Estonia, and probably regulated there.
In Estonia, the job of regulating the FX market falls into the hands of the Estonian Financial Supervision Authority. This independent government agency looks after the integrity of the local FX market industry. Its website has a list of regulated entities, in which the name of MDX500 does not appear.So MDX500 is not licensed in Estonia, even if, allegedly, located there.
Clearly, the following clause is evidence that MDX500 does not care for the user’s funds. The broker can transfer funds belonging to the user to different bank account, and it will not be liable for any mistakes that they make, even mistakes tat lead to loss of funds.
And furthermore, we found a classic unlicensed broker clause revealing the true nature of MDX500. In the provision, it is said that users are bound by the laws of the country in which they currently reside in. This is an easier and smarter way to say that MDX500 is NOT REGULATED
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.
MDX500 TRADING SOFTWARE
The broker gives the Activ8 trading software the spotlight here, which isn’t saying too much. This terminal is often used by scammer brokers, so it isn’t much of a compliment that it is used by MDX500.
The Activ8 trading office is an attractive trading software. Each asset has its own dedicated box, which gives the basic information one needs to be informed. Aside from a decent interface and a somewhat stylised visual aspect, the only two other elements worth mentioning are copy trading strategies and pending orders. That’s all there is to the Activ8, and its lack of functionality is why most scammer brokers use it.
MDX500 DEPOSIT/WITHDRAW METHODS AND FEES
As per the user area, the minimum deposit is $250. The payment gateways are XChange Pro and PayCent. The former is a bitcoin buying website, which seems to have no connection to funding an account.
The maximum time that MDX500 processes funds in is up to 5 days. Withdrawals are subject to fees, that have not been disclosed. So, there is clear info that there are fees, yet the broker has not given them any value.
There is a dormant account fee of 10% each month. It is activated should a user’s account be inactive for more than three months.
Bonuses have to traded with at least 25 times over if the user wishes to withdraw them. Note that the trading volume requirement is equal to 25 time the bonus +the deposit.
Non-Deposited Funds are not available for withdrawal. Please be aware that Non-Deposited Funds are mainly profit made from trading, which means that MDX500 does not allow its clientele to withdraw profit! Furthermore, in case a user does withdraw, the broker will proceed to reclaim all these funds for itself. If this isn’t the mark of a complete fraud, we don’t know what is!
Here is a double trouble clause, our humorous take on a clause that contains two troubling elements. The first being that the broker does not verify nor regulate any of the info that is published on the website. The second, is that MDX500 will not be held accountable for any user fund losses, or the classic limited liability provision.
To further keep MDX500 away from harm, all legal claims against it will be nullified in 12 months, after their initial rise.
There is no need of further proof that this broker is not to be trusted with your deposit at all. This company is undoubtedly a well structured scam. It’s enough that it is not regulate, and that it forbids and even punishes the withdrawal of profit. There is absolutely nothing worth your time and money at MDX500.
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.