Beware! MBInvest 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.
At first, we took to MBInvest’s interface rather seriously and we even thought it to be a legit firm. But as we went on with the broker it was slowly but surely revealed to us that this company is yet another on the list of a whole plethora of new unlicensed brokers. MBInvest is just more advanced and it comes with a very good website that is a whole illusion created to lure in users. Other than that, everything about MBInvest is pretty standard unregulated broker stuff.
The registration process was suspiciously simple and fast to complete. Once we entered the user area we knew that we were dealing with an unlicensed broker. Everything about the user area and the trading software reminded us of previously reviewed scammer firms. The only difference here is that MBInvest comes with a different name.
The trading software, a web trader, reveals that the EUR/USD spread is 3 pips, making it very unlucrative to users. The available trading assets are forex currency pairs, indices, commodities, cryptocurrencies, and stocks. The leverage is maxed out at the most common offshore brokerage value of 1:500.
The website is available in English and Italian.
MBINVEST REGULATION AND SAFETY OF FUNDS
The broker says to be operated by a company based in Dublin, but in order for it to actually legally function it must hold a license from Ireland’s Central Bank, otherwise, it would be illegally soliciting. We of course had to make sure if the broker was indeed licensed, and we found out that it wasn’t. So, MBInvest offers services that are not licensed, if it really is located in Ireland.
The terms and conditions claim the broker to be operating under English laws, but it comes down to whether the company is licensed as an FX business in the UK by the FCA. The answer is no, MBInvest is not regulated by the FCA.
All MBInvest does is lie and deceive. This company is not licensed in the UK, nor is it licensed anywhere for that matter. MBInvest is unregulated and a risk.
Perhaps the most crucial move a user can make in the process of deciding what broker best suits her needs is to ascertain that the broker is regulated, properly, by a legitmate license issuer (there is a rise in fake regulators). Make sure your broker of choice is a UK, EU, US, or Aussie-licensed entity; there are other perfectly fine jurisdictions where a firm can be authorized, it’s just that these ones are the most developed in terms of providing the best possible trader security. Moreover, some specific regulators also allow for their regulated brokers to participate in compensation schemes which add a very sturdy extra layer of defense. The FCA guarantees up to £85 000, while CySEC guarantees up to €20 000 per person.
MBINVEST TRADING SOFTWARE
This is a popular web trader used by many unlicensed brokers, and there is number of reasons why. First off, the look and feel of the web trader makes it feel like a pro trading software, and it really isn’t; there are just enough features to go around to satisfy the newer kind of traders and because of this they think that this web trader is advanced. And second, it;s easy to include and it creates the illusion that MBInvest is a pro.
Users can also download a desktop version of the webs trader.
Some of the main features here include chart customization tools, pending orders, stop-loss, take-profit, and more.
MBINVEST DEPOSIT/WITHDRAW METHODS AND FEES
The official payment methods, as seen in the user area, are credit cards and debit cards. The minimum deposit requirement is $100. There is nothing to take from the withdrawal area. Consider the depositing details to be accurate as they are taken from the one place on the broker’s site that one cannot manipulate these.
There is a withdrawal policy that we don’t really trust, but we will nevertheless quote from it because there is no other source of withdrawal information. Withdrawal requests are processed within 5 day. The minimum withdrawal amount via $50, and wire transfer withdrawals will be available only after profits exceed $100. There are no withdrawal fees issued by the broker, but the payment institutions might levy charges.
All in all, MBInvest seems to be another broker for the unregulated pile. Nothing on it is trustworthy, and everything points to it being a risk to all investments.
How Does The Scam Work
We can easily reverse-engineer the scammer process by looking at the whole thing as a series of contained events.
The first of these is falling for one of the thousands of online ads that lead to any number of fraudulent investment websites. The most obvious aspect of such ads is their ability to attract the eye gaze of users since they include glamorous content that we have all dreamed of owning.
Giving in to one of these ads will lead the user to one of two sources: either a so-called intermediary website or the scammer brokerage itself. The former works to introduce the latter, so the principle remains generally the same. The second step ensues once the user provides the crucial contact details that will be used by the firm to solicit funds. Because they are crucial to the scheming process, the broker will put a lot of input into this effort.
The third event is establishing grounds for communication, and a pivotal point for recruiting the user as a depositor. The first deposit is the hardest to sell, and that is why most scammer brokerages have dedicated internal departments whose only job is to entail a preliminary investment.
The fourth even is up to the retainers, or the expert scammers – account managers-, whose job is to keep the user invested as long as possible and to drain as much money out of her. Here is where many, unbeknownst to the user, psychological tricks are used by the scamming experts to really deplte funds from accounts.
The final step is containing the damages, or to put it in the lingo of the perps- to keep the stolen mon ey with minimal collateral damage. Here is where the scammers get cheap. Many will simply ignore the requests of withdrawals- or simply stall them-, or can shut down accounts and even entire websites for the purpose of keeping what they have stolen.
What To Do When Scammed
Fiel for a chargeback! It’s the surest way to get your money back, although not many scammer brokers allow for credit/debit card deposits. They are aware that users can file for a chargeback, and therefore condemn it by either not including cards payment gateways or by penalizing the client when she files for one. Note that, VISA and MasterCard have extended their cash-back period to 540 days.
A popular payment method is bank transfer, and here is where things get tricky. Users should contact the bank to help them out if they get scammed, but there is no real guarantee that the banking institution will be able to help them out. Moreover, change your bank account user name and password ASAP should you get defrauded.
Crypto payments are untraceable and are therefore non-refundable. For these reasons, crypto wallets are the favorite means for investing for scammers.
The last point to make concerns recovery agents whose promises will tempt many a victim. Agents or agencies promising some magical way to recover your stolen funds are separate fraudulent entities.