Beware! MigoTrade 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.
MigoTrade is a forex company that is not safe to trade with! The company deals in trade with forex, commodities, indices and stocks. It is easy to register and open one of the 4 accounts – Bronze, Gold, Platinum and Diamond.
MigoTrade Regulation and safety of funds
From the disclaimer on the company’s website, we understand that MigoTrade is operated by Smart iSolution LLC registered in St. Vincent and the Grenadines. One of the things that you should know is that St. Vincent and the Grenadines (SVG) is an offshore zone where the Financial Services Authority does not regulate forex brokers. The possible implications are two – first, if you choose to trade via this broker, your funds won’t have any safety guaranteed in case the company goes broke, second, you might be dealing with scammers here who can just shut down their site and disappear with your money.
In any case, we want to warn you not to choose a company that is not regulated! Instead, we advise you to select brokers from the well-established jurisdictions, such as EU, UK or US. These jurisdictions have very stringent rules for registering and regulating forex company which allows only the genuine ones operate there. For example, these company must have an initial capital of no less than 730,000 EUR if they are operating in EU and UK. For US, the initial capital is much higher – $20 million. We can say with confidence that scammers will not go to such trouble to meet the regulation standards. In addition to that, to provide safety of clients’ funds, forex brokers must contribute to compensation funds which in case of bankruptcy will compensate the clients with 20,000 EUR per person if the broker is regulated by CySEC or 85,000 GBP per person, if the broker is regulated by FCA. Also, to avoid shady deals and scamming, brokers must report their deals on a regular daily basis. You can’t wish for better conditions than those! So, why choose a unregulated broker such as MigoTrade from an offshore zone?
MigoTrade Trading software
The trading platform that MigoTrade offers to its clients is SIRIX. On the screenshot below you ca see what the platform look like – on the left, you have the menu with the currency pairs and their bid/ask price. In the middle you see the chart for EUR/USD currency pair with its bid/ask price resulting in 0.6 pips spread.
Also, from the margin calculator on the company’s website (screenshot below), we see that the leverage for the above mentioned currency pair is 1:100 with margin $1,172.68. We must say that leverage of 1:100 is rather high which may result of traders taking risks with their funds. For your information, regulated brokers in EU have leverage cap of 1:30 and those in US, a leverage cap of 1:50 which are aimed at preventing traders from taking high risks with their funds.
And another thing we want to warn our readers about – SIRIX, the trading platform provided by MigoTrade, also offers social trading which consists of connecting traders with each other and allows them to copy the transactions of someone experienced in forex trading. However, it also contains risks as it is ‘mirrored’ trading – if the trader you are following gains a profit, the same applies to you but if the trader loses in some transactions, it means you also lose. We want to warn you to be cautious of trading platforms, such as SIRIX, offering social trading.
On the other hand, you should look up brokers who offer trading platforms, such as MetaTrader 4 and Metatrader 5 which are by far the best trading platforms preferred by around 80% of the brokers for their many advantages. They include auto trading options and come with VPS, an app market, a financial calendar, trading signals (for a subscription fee), code base with customs scripts, etc.
MigoTrade Deposit/Withdrawal methods and fees
The account listed on the company’s website do not provide information about the minimum deposit amount for each account, nor is it found in the Terms and Conditions document. This lack of transparency regarding such an important information should put you on red alert.
If you register and open an account, you can find out that the payment methods for deposit are VISA, MasterCard or Migopay which do not provide potential clients with many choices.
Again, there is no information about the minimum withdrawal amount. However, we find more withdrawal methods, such as, Neteller, credit card, wire transfer, MoneyBookers and Migotrade Mastercard.
On the other hand, we are informed in a very clear way that the company may charge fees for making deposits or withdrawals and the fee may vary from 25 EUR to 50 EUR for every wire transfer and reserves the right to introduce additional fees and charges at any time. Good luck trading with such company that is trying to rob you in any possible way!
MigoTrade also gives bonuses whether you want it or not! This is what we got in an email after we registered an account (screenshot below): And no, we didn’t ask for a bonus!
Conditions for receiving a bonus are that to be able to withdraw the bonus amount, first you must trade 1 lot per every $5 of the bonus amount. Do some maths and see how many lots you need to trade if, for example, you receive $100 bonus! If, before you achieve your target of trading lots, you decide to withdraw your deposit funds, then you will forfeit the bonus amount and the profits you have made.
Offering bonuses is a typical scamming techniques where scammers try to mess up the funds in your account and keep you in their clutches for as long as possible. It’s not by chance that legitimate brokers do not offer bonuses to their client.
Another stipulation in the company’s Terms and Conditions document that shouts loud ‘scammers’ is the inactive trading account policy. It doesn’t really determine the time period after which a trading account is considered ‘dormant’ (it’s as per the company’s discretion) but will charge administrative fees of 5% or 25 EUR.
As you can see, the deposit/withdrawal and fee policy is clearly not working to the client’s advantage but benefits financially this bogus company.
How does scam work?
Actually, it’s quite simple and users often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for chargeback.
What to do if scammed?
Our advice is to immediately file for chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.