Beware! McGregor Trade 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 assess McGregor Trade, an offshore broker that’s offering Forex and CFD trading on MetaTrader4. It’s a demanding broker asking for a hefty sum to use their services, which isn’t typical for retail Forex companies. Also, we detected some issues, making them a broker we can’t recommend. Find out what these are in the full McGregor Trade review.
McGregor Trade REGULATION AND SAFETY OF FUNDS
McGregor Trade is an offshore broker based in Majuro, the Marshall Islands, a jurisdiction that doesn’t regulate its financial sector. There isn’t even a regulator on the island, meaning the Marshall Islands companies providing Forex and CFD trading are not following any rules whatsoever. The lack of regulation makes these entities risky for traders, and not surprisingly, the islands are bustling with scammers. Your funds are not safe if you deposit with McGregor Trade because it’s an unlicensed and unregulated offshore broker.
Avoid them and see the legit EU brokers and the British brokers we recommend. The European Forex market is strictly regulated and safe for traders and investors. Financial authorities in the EU and UK impose various customer protection regulations to guarantee fair and ethical business conduct. Most importantly, there are money protection schemes laid down to guarantee traders and investors’ money in case of bankruptcy or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR, while the British protections are up to 85 000 GBP per person.
McGregor Trade TRADING SOFTWARE
McGregor Trade provides MetaTrader4 accounts to their clients. We downloaded their distribution, but unfortunately, it was impossible to sign-up due to some unknown error. So, we can’t show you their real-time spreads. The currency pairs Buy/Sell difference forms part of the trading costs, so lower rates make trading more affordable and improve profit potential. You can find regulated brokers offering favourable conditions by following the links provided throughout this review, so don’t hesitate.
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 maximum leverage possible is 1:50, but we can’t verify this either. In fact, there was an option to open a 1:200 trading account, but it wasn’t active. Anyway, it’s a ratio risky for traders and might cause significant losses if used improperly. The leverage risks motivated many financial authorities to restrict the leverage offered on the regulated markets.
So, 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 restricted, but there is a 20 million francs capital requirement, which drives scammers away.
McGregor Trade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with McGregor Trade is $500, which is 5 times more than the industry standards- $100 on average. The funding methods are supposedly Credit/Debit cards, Wire Transfers, Skrill and Neteller. We advise funding trading accounts via bank cards only because it’s the safest method, regardless of the broker. In case things go wrong, traders can file for a chargeback for an extended period. On the other hand, the Wire Transfers are final and non-refundable, therefore not recommended.
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.
The minimum withdrawal amount possible is 3000 USD, which is an insane requirement. At the same time, McGregor Trade doesn’t allow refunds by stating that the sales of their products are strictly final. So, whenever traders deposit less than 3000 USD, it’s impossible to ask for a withdrawal or a refund. This is solid evidence of a scam, so beware.
The inactivity fees are equally unfair. After 6 months of inactivity, the account becomes dormant and will be subject to a 10% deduction monthly. As a comparison, the regulated brokers deduct 5 to 10 dollars per month at most from the dormant accounts.
There is no information about bonuses at present, but McGregor Trade indicates that such campaigns are possible in the future.
Overall, McGregor Trade is a costly and unfair offshore broker, which is an argument enough to stay away from this business.
HOW DOES THE SCAM WORK
New types of investment scams come about literally every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.
Scammers usually find their victims through ads on social media or other websites, which is the latest trend. Classical tactics, such as cold calling, became less widespread as the Internet is prevalent nowadays. The offers look legit and present exciting opportunities to invest money in the Forex market. Traders are reassured that the people behind the broker have an excellent track record, promising high returns or seamless trading. They claim there are no problems when trading with them, concealing that the FX market is exceptionally risky.
What usually happens is that scammers just pocket traders and investors money letting them believe they trade in a real environment. Sooner or later, clients would ask for a withdrawal, but scammers would delay or straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or send a tiny amount of money. It’s also a common manoeuvre for scammers to ask for more money to sort the withdrawals out. Either way, traders are likely to lose some or all of the capital invested. At some point, when the fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
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!