Beware! MagKing 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.
In this review, we are going to review another domain and trading name of a controversial FX company. They offer MetaTrader4 trading accounts with tight spreads, but there are some notable issues, so we can’t recommend this broker to anyone. Find out what these are in the full MagKing Forex review.
MagKing Forex REGULATION AND SAFETY OF FUNDS
MagKing Forex and its domain kfforex.com belong to MagKing Global Limited, purportedly a Hong Kong company. They falsely claim to be FCA, ASIC and Belize regulated and even abuse the credentials of a genuine FCA (Britain) regulated broker. However, the authentic company faced some troubles with their Australian license recently. Anyway, MagKing Forex isn’t associated with any licensed and regulated financial business. Your funds are not safe if you deposit with MagKing Forex because it’s a clone firm and a scam.
Avoid them and look at the legit EU brokers and the British brokers we recommend. Europe is a safe environment where customer protection is a top priority. Most importantly, there are deposit insurance funds laid down to protect investors’ money in case of insolvency or fraud. If this happens, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British protections are up to 85 000 GBP per person. The protections aside, the absence of a license is a major red flag and evidence of a scam. Scammers can’t carry out fraudulent activities in strictly regulated jurisdictions, so it’s risky to deposit with shady entities like this one.
MagKing Forex TRADING SOFTWARE
MagKing Forex provides MetaTrader4 accounts for their customers. It was easy to download and access the platform, but it’s possible to fund the trading accounts without identity proof, showing that MagKing Forex doesn’t follow AMC and KYC procedures. That makes them unreliable because they do not abide by the international financial laws.
Considering platforms, see the MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular Forex platform, which traders and investors prefer for its reliability. It’s featuring sophisticated trading tools such as Expert Advisors, Algo trading and plenty of complex indicators to choose from. Traders can also benefit from the MetaTrader marketplace offering more than 10 000 trading apps.
The EUR/USD spread is 0.2 pips, which is a favourable Buy/Sell difference. However, as already explained MagKing Forex is a shady broker and a scam, so do not even consider opening an account with them. The spreads form part of the trading costs, so lower rates are beneficial to the traders. The industry standard is 1 pip and below, and you can find the best broker for you by following the links provided throughout this review.
The maximum leverage is 1:888, which is too risky for retail traders. If misused, 1:888 leverage might cause severe losses and utterly destroy trading accounts. Moreover, it’s a ratio prohibited in the UK, which once again proves that MagKing Forex is a scam.
To reduce losses caused by leverage misuse, many financial authorities restricted the leverage on the regulated markets. The European, British and Australian brokers (to come in effect later in 2021) are limited to 1:30, while the Canadian brokers and the US brokers can’t provide higher levels than 1:50. The Swiss brokers aren’t limited, but the 20 million francs capital requirements certainly keep scammers away.
MagKing Forex DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with MagKing Forex is $5. The fundings methods are Credit/Debit cards, Wire Transfers and some e-wallets, but they do not specify which ones are accepted. We’d like to notify traders and investors that the bank card transfers are by far the safest because it’s possible to file for chargeback within 540 days from the deposit. On the other hand, Wires and Bitcoin payments are final and non-refundable, so we do not recommend these methods.
However, if you have a preferred payment system, see our lists with legit Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers and Bitcoin brokers. The selected brokers are strictly regulated, so it’s unlikely to experience fraud.
There is no information about withdrawal requirements, fees and the request processing time. In fact, MagKing Forex presents the Union Standard International Group Ltd’s legal documents. As it was impossible to link this business with MagKing Forex, we consider the trading provisions irrelevant in this case.
Overall, MagKing Forex is a clone firm, so stay safe and avoid this shady scheme.
HOW DOES THE SCAM WORK
The Forex scam is run by seasoned manipulators who set up schemes to defraud as many people as possible. They publish adds about their fraudulent products and services on the Internet and social media. They would also post loads of positive reviews about their deceitful enterprise on consumer websites such as Trustpilot or Sitejabber to make it look legit and trustworthy.
At a later stage, the scammers would call the target victims to manipulate them and push them to start investing. The con artists would usually introduce as representatives of government agencies, banks or other fictitious businesses to make things seem legitimate. Unfortunately, during the phone call, people with little or no investment experience might quickly believe in the falsehood and the big promises. The scammers make offers that sound too good to be true, promise guaranteed profits and give away bonuses to motivate people to put money in their scheme as soon as possible. However, urgency is a treacherous sign. It’s most likely a scam if someone pushes you over the phone to start investing.
But the first deposit is only the beginning because the scammers will continuously ask for more money from their victims, no matter what. If the trader is seemingly making money, the con artists would ask for money to guarantee more profits. If the trader lost some money, they would ask for additional deposits to recover the losses. The problems begin when the trader wants to pull out some or all of their funds. Then the scammers would say that traders have to send more money if they want to withdraw. At this point, it should be obvious that it’s a fraud, and the scammers would usually cut the communication with the victim.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. 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, 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!