Beware! Monafoli 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.
Monafoli states that its platform comes equipped with the most important trading tools clients need to elevate their success rate as traders. Of course, it won’t say that its software is a piece of scrap, but the Webtrader we encountered certainly can’t deliver reliable trading tools. However, the platform isn’t the most significant downside in this case. Find out what it is in the full Monafoli review.
Monafoli REGULATION AND SAFETY OF FUNDS
Monafoli is allegedly headquartered in London, so to call itself a legit brokerage, it needs a license issued by the British regulator FCA. Well, it doesn’t have one, so it’s unregulated, meaning that your funds will be at risk if you deposit.
Regulation proved to be the most crucial aspect of Forex trading, so we strongly advise against depositing with unlicensed brokers like Monafoli. Why so, you’d ask. First of all, Forex brokers are not typical financial institutions like banks or other investment firms, but they collect deposits and provide financial services. That being so, regulation becomes mandatory as it guarantees that clients will be treated fairly and they won’t lose money to scam. So, to improve transparency, reduce risks and prevent fraud, the trustworthy financial authorities regulate its local Forex market and impose numerous rules and restrictions Forex brokers should comply with.
Now, as you probably guess, Monafoli neither operates transparently nor follows any rules whatsoever. In fact, the absence of regulation implies that it’s anonymous and unaccountable. And indeed, it’s unknown where the brokerage actually operates from as we couldn’t find any such firm registered at the address displayed on the website. In other words, once you deposit, your money will be handled by people with undisclosed identities who bear no responsibility while carrying out their business from an undisclosed location. Needless to say, if Monafoli wants to defraud you, it can easily do so, getting away with its crime.
That’s why you’d better find brokers authorised by financial authorities like CySEC (Cyprus) and FCA (Britain) if you are genuinely interested in trading. Both regulators require account segregation, ensuring that clients won’t lose their funds if a broker gets insolvent as deposits are not commingled with its own money. The segregated accounts improve transparency, speed withdrawals up, make chargebacks easier and generally help prevent fraud. On top of all that, European companies are covered by deposit insurance funds laid down to reimburse clients in case of unforeseen events- CySEC brokers’ clients can get up to €20 000 in compensation, while the British guarantees are even up to £85 000.
Monafoli TRADING SOFTWARE
Monafoli indeed provides the most necessary trading tools- charting and indicators. However, all the features available are simply unreliable as the Webtrader we accessed is anything but trustworthy, and it’s miles behind the industry leaders- MetaTrader 4 and MetaTrader 5. The latter two not only provide the most crucial trading tools but also comes with sophisticated features like Expert Advisors and a marketplace with more than 10 000 apps.
The trading costs revealed by the platform are seemingly favourable- 0.6 pips spread for the EUR/USD pair, which is pretty much in line with the industry standard (traders pay $6 on average per lot traded). However, both the absence of regulation and the poor platform obliterate the good trading conditions provided. We still can’t recommend Monafoli to anyone.
The trading software also reveals that Monafoli’s services are risky as the leverage provided is 1:200 fixed- a level that can cause massive losses if not carefully used. On top of all that, the British regulator FCA imposes a leverage cap of 1:30, which additionally proves that Monafoli isn’t legit. Avoid.
Monafoli DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $10 000– an insanely high demand 100 times greater than the industry standard of $100. Also, too many brokers offer their services for as little as $5, so it’s anyway worthless dealing with the otherwise illegitimate Monafoli.
As to funding, the brokerage claims that Credit/Debit cards, Wire Transfers and other e-wallets are accepted for depositing, but we can’t confirm all of these are available. The deposit system was broken at the time, which is indeed a red flag that shows how reliable Monafoli actually is.
Withdrawals or fees are not introduced, which surely comes as another red flag as Monafoli probably intentionally wants to hide critical information about its services. The number of red flags is disturbingly high!
HOW DOES THE SCAM WORK
Monafoli is a shady unregulated brokerage we proved to be illegitimate, and that’s more than enough for you to avoid it. In fact, the absence of regulation makes Monafoli a suspected scam, so we’ll show you what scammers usually do to defraud unfortunate customers.
When fraudsters get hold of your contact numbers, you’ll be approached immediately, promised the moon and the stars. Also, to gain trust, those criminals usually pretend to work for governments, financial authorities, banks, reputable companies etc. Scammers will be confident in what they are saying, and if you don’t see the warning signs, you may end up depositing. However, the fraudulent process actually begins after you send the scammers money. Once they have the desired deposit, the cons will distort prices and forge fake reports to make you believe you are on the winning side, manipulating you to start thinking big and consider more deposits.
Then, the fraudsters will gradually ask you to increase the size of the investment and invent stories to make you deposits again and again. Sooner or later, though, you’ll get determined to withdraw some money, and then scammers will ask you to deposit again because, according to their words, there are taxes and fees that you should pay. At this point, you’ll probably realise something wrong is happening, and when the scam becomes too apparent, the fraudsters will simply cut the communication and disappear. Later, the whole website will be brought down, replaced with a new one so that the scammers can carry on with their criminal activities.
WHAT TO DO WHEN SCAMMED
It would be best if you first call your bank to inform it and deactivate your card to avoid getting exposed to additional risks, as the scammers may as well have obtained your details.
Then, call the police, inform the financial authorities, file complaints and don’t forget to spread the word online so that other people can find out about the fraudulent scheme. Still, it’s crucial not to rush trying to reclaim your funds as numerous scams are disguised as chargeback agencies set up to double-scam victims.
Finally, we know it’s an awful experience to get scammed, but please share your story to help protect others!