Beware! Marginelite 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.
If you look at Marginelite website, you will be amazed at the promise for your future getting better and better. The symbols of some famous brands imply a sense of ‘running with the big guys’ and your ‘personal success manager’ is out there waiting for you the take you step-by-step and teach you some trading strategies. Is it too good to believe? We are about to find out!
Marginelite Regulation and safety of funds
The Financial Conduct Authority (FCA) that regulates forex brokers in the UK has issued a warning not to trade with Marginelite. Marginelite is an unauthorised broker and it is not safe to trade with it as per the FCA warning (see the screenshot below). This is proof enough that we are dealing with scammers and investing funds into their schemes will put your funds at risk.
One of the first things you need to check when considering a forex broker to trade with is to see whether it is licensed or not. Only licensed brokers from well-established jurisdictions can provide protection against scammers and guarantee the safety of your funds. We want to suggest that you look up brokers from the jurisdictions of the EU, the UK, the US and Australia. The regulatory authorities in the US and Australia have set high initial capital for licensed brokers which among other things serves as a prevention against scammers. In the US, it is the highest in the world – $20 million! Only genuine brokers will invest this huge amount of money. In Australia, although not so high, an initial capital of 1 million AUS is required from legit brokers and also serves as a wall against scammers. Although in these two jurisdictions there are no traders’ compensations schemes, being well-capitalised is also a form of protecting investors from unfavourable events.
In the EU and UK the initial capital required from brokers is 730,000 EUR and in addition to that, brokers must contribute to local compensation funds from which investors will be compensated. In the UK, if the broker is licensed by the FCA, investors will be compensated by up to 85,000 GBP per person and in the EU, if the broker is regulated by the CySec, then the investors will be compensated by up to 20,000 EUR per person in case of bankruptcy.
These are excellent conditions to benefit from and we advise our potential forex traders to look up those brokers in the links we provide above.
Marginelite Trading software
Marginelite offers the MetaTrader 4 trading platform. Unfortunately, due to broken links on the company’s website, we were not able to open a trading account. However, we must say that having the MT4 trading platform is an excellent choice. This is one of the most reputed trading platforms in the forex trading world and around 80% of the brokers swear by it. This is not surprising as the platform comes with an excellent package of trading tools and instruments unmatched by other platforms, except perhaps by its ‘younger brother’ the MetaTrader 5. Both platforms have auto trading options, an app market, VPS, code base with customs scripts, trading signals that can be obtained for a subscription fee, etc. The charting options are also out of this world and offer a lot of analytical indicators to choose from and that serve to facilitate transactions and predict the direction of exchange rates.
However, having an excellent platform cannot turn a non-legit broker into a legit one and we find the proof in the high leverage that this broker offers to its investors – 1:500. Offering such high leverage is like leading lambs to slaughter – luring with the promise of a big win that most probably will result in disaster having in mind that around 70% of traders lose money in transactions. Don’t forget that the bigger the leverage, the bigger the loss! It’s not by chance that licensed brokers in the EU have a cap on leverage that cannot exceed 1:30, and in the US, cannot exceed 1:50. Compare with the leverage this broker offers and draw your own conclusion how safe it is to trade with Marginelite.
Marginelite Deposit/Withdrawal methods and fees
To its traders, Marginelite offers 5 different account types – Basic, Bronze, Silver, Gold and Platinum. There is no minimum initial deposit indicated on the company’s website and traders must contact their ‘dedicated’ support office to find out.
While looking at the deposit and withdrawal methods, we noticed that this broker charges a lot of fees. For example, there is the clearance fee which is $5 from every trade. The withdrawal fee is 3.5% but don’t panic, the maximum withdrawal fee is ‘only’ $3,500!
If your account stays inactive for 2 months, then you’ll be charged $500 fee! And there is also 5% swap fee if you trade in cryptocurrencies.
My, my, my! This broker doesn’t joke around. We hope you have enough funds in your account to pay so much money in fees! Of course, licensed brokers won’t charge you like this one when it comes to fees, so the choice is yours!
How does scam work?
No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.
What to do if scammed?
You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!
Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.
Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.
Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!