Beware! MagKing 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.
MagKing is a Forex broker that says to offer low spreads, more than a thousand trading instruments and an exotic leverage level of 1:888. They also claim to be regulated by ASIC in Australia, which creates a paradox, because in Australia the Forex brokers are not allowed to offer a ratio higher than 1:500. They also claim to be regulated by FINTRAC in Canada, but that’s actually nonsense, and you will understand why later in the review. This Forex broker claims to be owned and operated by a Hong Kong company called MagKing Global Limited, which actually holds a few other companies bearing the name of MagKing. All of these were found to operate many websites that are similar in appearance; some even identical with the domain changed only. The list includes magkingfx.com, zcforex.com, mk-forex.com and585680.com! Beware, it’s a solid scam sign.
MagKingFX REGULATION AND SAFETY OF FUNDS
MagKing claims to be ASIC, CySEC, and Belize regulated. In fact, all of this is a plain talk, because they fail to give any substantial evidence, which can irrefutably prove that it’s a legit Forex broker. Have a look at their claims.
FINTRAC registers MagKing, that’s true, but it doesn’t mean that it’s authorised to sell financial products or services to the public. This government agency is not the financial regulator in Canada and does not authorise Forex brokers to operate and collect deposits. Our research in the registers of the financial regulators in Australia, Cyprus, Belize and Hong Kong didn’t produce any results whatsoever. We can conclude that MagKing is an unlicensed, unauthorised and unregulated Forex broker thаt’s misleading the customers. Stay away and report immediately if someone from them reaches you on the Internet or over the phone.
Our sincere advice is to pick EU(mostly CySEC), or UK(FCA) regulated broker because Europe created the safest financial environment for the traders’ funds and not surprisingly hosts the leaders in the retail FX industry. Most importantly, money protection schemes were developed in Europe, such as ICF in Cyprus and FSCS in the UK, which is laid out to guarantee the deposits made by traders and investors. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in the UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are considered to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
MagKing TRADING SOFTWARE
MagKing offers MetaTrader4 accounts to its customers; MetaTrader5 is not available. It’s an obvious choice, however, because Metatrader is the most popular Forex trading platform in the world, which is actually used by a variety of banks and other financial institutions. It’s highly renowned for its stability and reliability and also offer trading features that you can hardly find in any other retail Forex trading platform. Metatrader has generated its own programming language- MQL, which helps create profoundly sophisticated trading tools such as Expert Advisors, Automated Trading Robots and other complex indicators. Metatrader has even established its own marketplace where you can find loads of other useful tools, developed by third-parties, as well.
The EUR/USD spread is considerably competitive and most of the time floats between 0.1 and 0.2 pips. The spread is part of the costs for the trader, and the lower the spread, the bigger the potential profits. We do not recommend to our readers to trade with MagKing, no matter the favourable trading conditions, because it’s an anonymous fishy broker.
The maximum leverage level is said to be 1:888, but in their MT4 platform, you cannot create such an account, because thMetaTrader5e highest possible ratio is 1:500. That’s yet another red flag and an information discrepancy which is strong evidence of a scam.
The leverage makes the world’s financial markets available to everyone because by using it, you will need to pay only a fraction of the price of the asset that you want to buy or sell. But it comes at a cost, the risk increases and you might easily record quick loss by misusing this tool. We do not recommend levels such as 1:100 or 1:500 because these ratios are way too risky for the traders. EU and UK, however, capped the allowed leverage that the Forex brokers might offer to 1:30 because it’s considered that higher levels are inadequate for the retail traders. Australia is going to match, and from the spring of 2021, a leverage cap of 1:30 will be forced, as well. It would be best if you stopped looking for brokers offering raised leverage because you will most likely end up trading with scammers and losing your money.
MagKingFX DEPOSIT/WITHDRAW METHODS AND FEES
Warning! MagKing does not present Terms and Conditions, Client Agreement or other forms of a document that will give comprehensive information to the traders about the real conditions that apply when using the products and services of this Forex broker.
The minimum deposit is said to be 5 USD, but that’s not true, because they will not accept less than $100. What’s more, you can make a deposit without proof of identification, which raises a red flag. It confirms once again that MagKing is a sham unregulated broker that’s misleading the customers, and most probably trying to defraud them!
No minimum withdrawal amount and no withdrawal fees specified. It’s actually in line with the rest of the industry because most of the trustworthy Forex brokers will let you withdraw any sum that you want.
No dormant policy found and no fees for inactivity specified, as well. That raises a red flag because it’s an essential condition that the traders should be aware of. It deals with the accounts that have become inactive, which is a crucial matter for the traders. Most of the legit Forex brokers will not charge more than $20 per year, while the scammers will either impose unbearable fees or miss to specify the conditions.
No bonuses offered at the moment, and we do not know if there is such a possibility. You should avoid brokers that offer bonuses because the trading incentives are not free money but a leverage tool that increases the risk significantly for the traders.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they will rely on the quantity; they will publish tens or hundreds of websites and will wait for traders and investors with little or no experience to bite. Nowadays, it’s really cheap to create one, and it looks like a profitable strategy, as they carry on doing it. At times they are so arrogant that the only thing that they change will be only their domain name. Beware, and always do thorough research before making a deposit, it will save you a lot of money and stress!
The fraudsters will also actively work in social media to attract new customers. Facebook and Instagram are full of scam pages and groups showing a lush lifestyle and promises for big, guaranteed profits. The scammers will downplay the risks associated with trading, making the prospective traders believe that it’s a market that’s suitable for everyone. In reality, the opposite is true. Then, at some point, the scammers will push the traders to open an account with a scam Forex broker and make a deposit. The end is always the same, a defrauded trader that failed to recognise the scam, trying to get back his funds. You need to understand how to detect scammers and avoid them. Stay safe and always do thorough research before you decide to deposit with a Forex broker.
WHAT TO DO WHEN SCAMMED
No one is immune to scam; anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience; it is essential to protect others, as well. Be responsible!