Beware! MDR Broker 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.
MDR Broker is generous in making promises that it will keep clients’ funds safe and provide lower costs and high revenue on transactions which combined with the many awards shown on its interface may really look convincing to some potential traders. However, joining this broker will be a huge mistake and will inevitably put your hard-earned money at risk. Here it is why.
MDR Broker Regulation and safety of funds
The company appears to have an address in the UK and we searched the register of the Financial Conduct Authority (FCA), the official regulator of forex brokers in the UK. Unfortunately, the FCA register did not contain the name of this broker. Next, as the broker claims to be licensed by the International Financial Services Commission (IFSC) in Belize, we searched the register of this agency and again our search came back blank. This is proof that MDR Broker is not registered in any of the jurisdictions mentioned on its website. Furthermore, we found out that the Monetary Authority of Singapore (MAS) that regulates forex brokers has issued a warning against MDR Broker saying that it is an unregulated company (image below). We think that this is sufficient proof that this broker is non-registered, non-regulated and potentially a scammer planning to fleece you should you entrust your money to it.
We must tell you that UK brokers are strictly regulated by FCA and they must jump through various hoops in order to get their license. For example, they must invest no less than 730,000 EUR initial capital which among other things serves as a barrier against scammers as they will never invest so much money for the benefit of looking legit. In addition to that, UK brokers must keep their clients’ funds segregated from their own, provide negative balance protection, report transactions on a regular basis for the sake of transparency, keep low leverage and conduct internal and external audits. One of the biggest advantages in trading with UK brokers is that they must participate and deduct funds towards the local Financial Services Compensation Scheme from which in case of bankruptcy clients can be refunded up to 85,000 GBP per client.
MDR Broker Trading software
It appears that MDR Broker offers the MetaTrader 4 trading platform. However, after registering an account with this broker and getting an email with the login information and password, we discovered that there was no link from which to download the platform.
MetaTrader 4 happens to be one of the best platforms in forex trade despite being launched over 15 years ago. Maybe for this fraudulent broker, this was another creative way to lure unsuspecting potential traders with good quality software. But, as we always say, a platform is as good as its broker is reliable and sadly, this is not the case. It suffices to just look at the trading accounts information in the image below and see that the leverage offered to the traders is sky-high. For the Micro account, it is 1:300, for the Standard account, it is 1:600 and for the Premium account, it is individual which means it can go even higher. This high leverage is another proof that this broker is trying to scam its clients because FCA regulated UK brokers cannot offer leverage higher than 1:30 for forex currencies. Having a cap on leverage is a measure to protect clients’ funds as the high leverage amplifies the scope of financial loss that traders may suffer in unsuccessful transactions.
We do recommend finding a licensed and reliable broker that offers the MT4 as it is equipped with an excellent package of trading tools and instruments that are of great help to the trader in predicting the future direction of exchange rates and making a profit. We want to mention the auto trading option, trading signals, the app market, VPS, code base with customs scripts, etc., in addition to the plethora of charting options and technical analysis indicators that can truly enhance a trader’s experience.
MDR Broker Deposit/Withdrawal methods and fees
MDR Broker offers 3 trading accounts, as we already mentioned and the minimum initial deposit for the Micro account is 500 EUR. To some of you, this amount of money may not look too high, however, it is good to know that some legit brokers would ask for as little as $1-5. The other accounts start at 10,000 EUR and 50,000 EUR respectively.
To find out what the deposit and withdrawal methods are, first, you need to open a trading account. To make a deposit, clients can use only payments made in Bitcoin. For withdrawals, they can use Yandex, credit card or wire transfer.
The next two pieces of information are really important. Similarly to other fraudulent brokers, MDR Broker offers bonuses which are non-deposited funds belonging to the broker. Such bonuses are always accompanied by hard to meet conditions. In this case, to be eligible to withdraw the first deposit, the client is required to execute a minimum trading volume equal to 10,000 for each $1 from the bonus amount. This is something not easily achievable and accepting a bonus under such conditions will create a real mess in the client’s funds and withdrawal options. It is good to know that legit brokers in the UK are banned from offering bonuses or other incentives.
The second piece of information concerns the client’s rights for filing for a chargeback. The company will charge a $150 research fee if the client decides to file for a chargeback. If you read carefully the last section of this review, you will see that a chargeback is the only option of recovering money from fraudulent brokers and scammers.
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!