Beware! MFG-Forex 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.
MFG-Forex is nothing more than your common shady and offshore broker. There is nothing special about it, nothing attractive about its site nor its trading conditions. Its best addition, the MT5, is not nearly enough to save it from itself. As the review will reveal, users will pay dearly should they invest in it. If you want to know why we urge you to read the review.
In order to register here, one is supposed to complete a relatively simple form. We were the recipient of a verification code that was required to be filled in order to complete our registration. However, soon we stumbled upon our first major obstacle. Once we created an account, we were unable to log in. We received an email congratulating us on our registration, but once we tried login in the broker produced an error message stating that the account does not exist! We tried changing our password, and when we provided our email address, the broker stated that the email was wrong! We have no idea what was going on, but we can suppose why it happened. Usually, scammer brokers pick their customers based on how susceptible they are to being scammed. Therefore, MFG-Forex thinks not of us as an easy target, and as a result, has blocked our account. There is no other logical explanation!
Without being able to log in, we must rely on the website for all trading and payment information, and as the previous paragraph suggests, we cannot fully trust the site with these details!
While creating an account, we had no other choice but to pick a leverage capped at 1:100. According to the website, the tradeable financial instruments are supposed to be stock indices, commodities, FX currency pairs, gold, silver, and crude oil, although some sections of the website claim that commodities are not available. The spread for any of the assets has not been detailed.
The website of the broker is available in English and Japanese.
MFG-FOREX REGULATION AND SAFETY OF FUNDS
Unfortunately for us and our readers MFG-Forex turns out to be one of those brokers that lays completely under the radar of discovery.
The broker is completely anonymous due to its complete absence of any regulatory information. The entire website has nothing to claim on a location or a license. MFG-Forex is a company that is hard to find unless it tries to find you!
It’s worrying how many brokers have started doing this. We have been witnessing an increase of scammer brokers who do not reveal anything, not even a false address or a fake regulation. They have become lazy which means that their scams are effective and thus the brokers don’t need much to convince their victims.
The lack of regulatory information as well as the sloppy conditions present by MFG-Forex can mean only one thing. That the company IS OPERATING WITHOUT A LICENSE and is, therefore, a risk to all investments!
Never invest in brokers that do not have a license or claim to have one without any evidence to support it. We recommend to all our readers to invest in FCA or CySEC regulated entities for these are some of the top FX overseers working today! These licensors, alongside others, employ scrutinizing rules and demands from their registered brokers. These prerequisites are very taxing, and that is why unregulated brokers are what they are; they simply cannot meet them! A good example of a requirement from most regulators is a specific starting capital that ranges from $50 000 to $20 million! Furthermore, the FCA and CySEC, specifically, offer compensation schemes to users of brokers under their gaze. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
MFG-FOREX TRADING SOFTWARE
The MT5 is supposed to be available here, and it actually is, as evidence by the true-to-the-broker download link.
Some of the main features of the MT5 are the VPSs, time frames, EAs, pending orders, stop/loss and take/profit, an economic calendar, One Click Trading, Level2 Plugin, and more. This is truly the best way to trade Forex!
MFG-FOREX DEPOSIT/WITHDRAW METHODS AND FEES
According to the website, the minimum deposit requirement is $1000. This is way too high of a requirement and is four times the average minimum deposit! The website reveals that the payment methods are USDT (tether), credit and debit cards, bank transfer, and UnionPay.
The minimum withdrawal amount is $100 for wire transfer and $50 for UnionPay transactions. For the other methods, the broker has not talked about. The processing times range from 1 to 5 days. There is a $20 fee for wire transfers.
Overall, MFG-Forex is a common scam, and one broker to be ignored if possible. Do not invest here!
How does the scam work?
The most common scammer scheme is also the easiest one to apply. It requires a sort of hierarchal structure within the scammer community, but the structure is the same in most illegal brokers. The only differences here are observable when brokers add their small twists to it.
The scam starts when users are baited by one of the thousands of investment ads that are scattered throughout the internet. These are mostly found in popular websites, such as social media outlets and similar sources. The ads are very colorful and convincing, most utilizing some sort of a lure, be it a beautiful woman, luxurious houses or/and cars, or a rich lifestyle where money is easily made through online FX investing. The fulfillment of these dreams is just a click away!
Once clicked on these ads, the user will be sent over to the broker’s site or an intermediary website. In any case, users will be required to give away their contact details in order to continue. If one gives these away, then he or she will definitely start receiving calls or emails from the first wave of fraudsters, the so-called “openers”, whose job is to guide you through your first deposit.
Once deposited for the first time, the second wave of the scammers hit. These are high-level fraudsters who are after the big money. They will push users to deposit more and higher amounts while promising unrealistic returns of profit. Their methods of conviction are not to be underestimated, for they are as charming as they are dangerous.
Sooner or later, the investor will want her money back, either due to suspicion or just because. It is then that the final step of the scam is activated. During this step, the criminals will do whatever it takes to stall or withhold all withdrawal requests. Other extreme measures include closing down a user account, blocking it, or completely shutting down the website.
What to do if scammed?
Probably the first thing one should do after being defrauded by a scammer broker is to file for a chargeback. Credit card and debit card companies allow for this option mainly because of similar cases. It’s probably the best option! MasterCard and VISA have a chargeback period of 540 days.
Money lost through a bank transfer should induce the user to immediately change her bank account password and username, to reduce any further damage. Furthermore, the user’s bank may have a specific plan in motion for such cases, so it’s always a good idea to contact the bank directly.
Never invest in fake brokers through whatever currency they offer. Crypto deposits are untraceable and as such are forever lost once processed.
One last thing to remember is to stay away from recovery agencies or agents. You will stumble upon people who claim to be able to return all your lost funds, but what they don’t tell is that they are scammers as well. They will ask for a fee in return for their “services”. If you pay them, the money is lost, for they will disappear.