MT5EXPO review – 5 things you should know about mt5expo.com

MT5EXPO review – 5 things you should know about mt5expo.com

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Beware! MT5EXPO is an offshore broker! Your investment may be at risk.

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MT5EXPO claims to be a representative of a regulated broker operating in the European Union. This is in fact a scam known as cloning – anonymous fraudsters are behind this website, which misuses the name of a legitimate company.

MT5EXPO is an excellent example of why we should not blindly trust the claims we see on the internet and why we should carefully check the credibility of information before investing our money.

MT5EXPO REGULATION AND SAFETY OF FUNDS

The website claims that MT5EXPO is a trademark of TopFX Ltd, a broker registered in one of the main European financial centres, Cyprus:

There is indeed such a company in the Cyprus Securities and Exchange Commission (CySEC) database, but MT5EXPO is not listed among the domains it uses:

The Cypriot regulator explicitly warns that the MT5EXPO website does not belong to a company authorised to offer financial services. The name of this legitimate Cypriot broker is also used by other scam websites we have reviewed.

MT5EXPO claims to have another registration in Seychelles. This is an offshore zone with no significant regulations for brokers, so a license there would not mean much in terms of investment security. But on checking the Seychelles Financial Services Authority database we find not a registration but another warning that MT5EXPO are fraudsters:

When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.

There are many advantages to working with brokers that are truly regulated by institutions such as CySEC, because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА).

They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. Whenever clients deposit money in their trading accounts, it is kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy. All brokers licensed in Cyprus are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. Cypriot forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.

MT5EXPO TRADING SOFTWARE

The website claims that MT5EXPO uses a trading platform called cTrade, which is available in desktop, browser and mobile versions. After registering an account, it becomes apparent that MMM has no trading software at all. In the client portal we only see a simple chart with the current price of Bitcoin, which has no trading features:

Legitimate brokers usually offer clients the most widely used platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as standard among brokers because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

MT5EXPO TRADING CONDITIONS

According to the information on the website, MT5EXPO offers only one trading account with raw spreads of 0.0 pip and a commission of 2.5 USD per lot. For trading volumes over 50 lots there are fee reductions of up to 30%.

However, these values don’t really matter given that MT5EXPO doesn’t even have a trading platform. Like all such scammers, MT5EXPO does not offer real trading – your money is not invested, they just disappear into the scammers’ pockets.

The website claims there is no minimum deposit, but MT5EXPO’s deposit menu has a set limit of 300 USD. By comparison, with 100 USD or even less you can open an account with many genuine and regulated brokers.

The stated leverage is 1:500, which is also a clear indicator that this could not be a licensed broker operating in the EU. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.

The European Securities and Markets Authority (ESMA) and accordingly all EU regulators like CySec limit leverage to 1:30 for major currency pairs, 1:20 for non-major pairs, gold and major indices, 1:10 for other commodities and non-major indices, and 1:2 for cryptocurrencies.

MT5EXPO DEPOSIT/WITHDRAW METHODS AND FEES

MT5EXPO uses only Bitcoin as payment method for deposit and withdrawal. Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Skrill or Neteller.

As mentioned, the minimum deposit amount is 300 USU. MT5EXPO does not have Terms and Conditions or any other legal documentation. It is therefore unclear what traps the scammers may have set for customers trying to withdraw their money.

HOW DOES THE SCAM WORK

Many people have a desire to invest in the financial markets but lack the necessary knowledge and experience. This makes them a potential victim of the many internet scammers posing as brokers and investment intermediaries. These types of scams have exploded alongside the cryptocurrency boom.

If you trust such a website and give them your personal information, you will be contacted by experienced scammers who will entice you with promises of easy profits. The scammers usually offer to take over all aspects of investing for you, sometimes even prompting you to install remote access software on your personal computer. After investing an initial low amount, they will convince you that you are already making incredible profits and urge you to invest more.

But you will never get the promised profits, nor will you be able to get your money back. If you want to withdraw funds from your account, you will find that you have suddenly lost everything in the market, or that you have to meet impossibly high traded volume requirements, or that you have to pay huge fees. It is also possible that fraudsters simply disappear because they hide behind fake names and shell companies in offshore areas that are not subject to any control and regulation.

WHAT TO DO WHEN SCAMMED

One of the few options to get at least some of your money back in such a situation is to ask for a chargeback. But this is only possible if you have used a credit or debit card for the transaction. Scammers typically use cryptocurrencies or dubious e-wallets that make it impossible to get your money back.

Under no circumstances should you trust people and websites that promise to magically refund your lost money for an upfront fee. This is also a well established scam. You may even fall victim to the same scammers again.

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