Beware! MexFund 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.
MexFund is one of those brokers who put their Incorporation Certificate trying to make people believe it’s the license authorising them to sell financial products and services. Well, the certificate they provide doesn’t grant them the freedom to operate as a broker. That’s fraudulent claims, so we need to raise a red flag immediately. Find out the rest of the details you need to know about this shady entity in the full Mexfund review.
MexFund REGULATION AND SAFETY OF FUNDS
MexFund is allegedly owned and operated by Multi Exchange Fundamental Ltd, a Marshall Islands company. That’s a big problem for the traders because the islands are notoriously famous for the lack of financial regulator, let alone a regulated FX market. The absence of regulator makes Marshall Island brokers risky to trade with. They may vanish any time soon, stealing your money, and virtually no one can stop them.
At their contact page, MexFund indicates the headquarter office is located in Central London, meaning they need an FCA license to operate as a broker. We researched the British regulator register but didn’t find anything. Your funds are not safe because MexFund is an unlicensed and unregulated broker, pretending to be e legit company. It’s not, that’s yet another fraudulent assertion and evidence of a scam.
Consider our lists with European brokers and British brokers we recommend. The best FX companies in the world hold European licenses, so traders have plenty of choices. These brokers are covered by the money protection schemes laid out to safeguard the clients’ deposits. When trading with Cyprus licensed broker, you can claim up to 20 000 EUR in compensation, while in the UK the guarantees are of even up to 85 000 GBP per client. Each EU member state is compelled to operate similar insurance funds, considered the last resort for traders if brokers, unfortunately, go bankrupt.
MexFund TRADING SOFTWARE
MexFund offers MT5 accounts to their clients, but they fail to deliver a functional platform. We downloaded a modification which doesn’t allow to execute a trade or register demo/real account through the platform. In fact, upon subscription MexFund provided with a demo account only, yet another warning sign to note. Such a flaw is an argument enough to avoid this broker.
We found no information about spreads whatsoever. It’s the fundamental element in trading, forming part of the trading costs for the clients. The lower rates benefit traders and make trading more affordable, but also improve the profit potential. There are loads of legit brokers offering spreads as low as 0.1 pips with their micro accounts, so it’s not a problem to find a better option.
The leverage MexFund provides is up to 1:500, a hazardous level that may destroy a trader’s account very shortly indeed. It’s a financial tool increasing the size of the traders’ positions, but at the same time boosting the risks. Precisely the risks involved made EU, UK and Australia (coming in effect later this year) force a leverage cap of 1:30 on the markets as a customer protection measure. The US brokers and the Canadian brokers are not allowed to provide more than 1:50, so we do not recommend brokers offering higher ratios for the lack of adequate regulation, as well. The Swiss brokers are not leverage restricted, but Switzerland asks for 20 million francs in paid-up capital (more than 22 million US dollars) to issue a license, and that certainly keeps the scammers away.
See the regulated MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular retail Forex trading platform globally, which traders prefer for its reliability and ease of use. It features sophisticated trading tools rare to find elsewhere for free such as Expert Advisors, Algo Trading, Complex Indicators, reliable Strategy testers and even a marketplace with more than 10 000 trading apps available by the time.
MexFund DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is either $200 or $1000; conflicting information is shown in various places throughout their website. Still, it’s at least twice higher than the regulated brokers’ standards- $100 on average to let the traders begin.
The funding methods are said to be Credit/Debit cards, Wire Transfers, PayTrust, Help2Pay, PaymentAsia and MegaTransfer. We advise using only payment systems traders are familiar with because there is also a risk of fraud. By far, the best method is bank card funding for it’s allowed to chargeback within 540 days from the deposit date.
The minimum withdrawal amount is $50 for Wire Transfers and $5 for other methods of payment. MexFund claims to pay the banking fees incurring, and that sounds promising. However, it’s an unlicensed shady entity, as we already know, so there aren’t guarantees MexFund will keep its promises. The withdrawal request is said to be processed within 1-5 days, depending on the withdrawal method.
We found no information about dormant account policy and inactivity fees, and that’s another red flag we have to raise. It’s mandatory for brokers to clearly define the way they handle accounts that have become inactive. As a comparison, the reputable brokers charge the dormant accounts with 5 to 10 dollars per month at most.
MexFund offers welcome bonuses, but there is no further information about it. Still, you’d better not accept trading incentives because it’s not free money but a leverage tool further increasing the risk. The European regulators banned bonuses and promotions because of the misunderstanding and the dangers involved.
Overall, MexFund is a shady offshore broker with a dysfunctional platform that falsely claims to be a legit company. Keep your money safe and avoid this broker; there are too many issues with it.
HOW DOES THE SCAM WORK
Anonymous offshore companies are standing behind many fraudulent brokers. Jurisdictions such as the Marshall Islands, the Commonwealth of Dominica or St. Vincent, and the Grenadines are notoriously famous for not regulating their financial sectors adequately. The three mentioned do not even issue Forex broker licenses. It’s easy for scammers to quickly incorporate companies there and unlawfully sell Forex products and services on regulated markets such as the European, American or Australian ones. Lack of regulation equals lack of customer protection and safety, so even if the broker is not ill-intentioned, the traders remain vulnerable. That’s why you should always avoid offshore brokers, no matter the promises they make.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to fraud. In case you got scammed, you need first 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, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!