Beware! Mancard-Inc 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.
Mancard-Inc surprised us by presenting us with a quite good-looking website. However, it quickly becomes obvious that this website lacks a lot of essential information. The broker claims to be licensed by various authorities when it is in fact completely unregulated and anonymous. Moreover, Mancard-Inc’s trading conditions are not that good and their platform is, quite frankly, barely functional. Investing with such a broker would be a complete waste of time and money. Read the review to find out more.
Mancard-Inc REGULATION AND SAFETY OF FUNDS
Mancard-Inc has provided an address in Switzerland and claims to be licensed by quite a few financial regulators. In the footer, they provide license numbers for the registers of CySEC (Cyprus), IFSC (Belize), and the FSC of Mauritius while in the “Accreditation and licensed” section of the website, they mention every regulatory body you have ever heard of – the FCA (the UK), ASIC (Australia), DFSA (Dubai), FSCA (South Africa) without providing any license information. When we checked the registers of CySEC, IFSC, and the FSC of Mauritius we did not find any matches for a broker with that name and license numbers.
What we did find is an official warning issued on the broker by the Swiss financial authority FINMA stating that the broker is not even registered in Switzerland as a company.
And while we were looking through Mancard-Inc’s Terms and Conditions, we found a clause stating that they are governed by the laws of Vanuatu.
But as it turned out, the broker is not even regulated in this small South Pacific country which only requires the bare minimum to isuue a license – that a broker maintains a minimum capital of $50 000.
Laws regarding forex brokers are much stricter in the UK, the EU, and Australia – brokers licensed in these countries have to answer to some of the most merciless financial authorities in the world. That is why you can always be sure that your rights will be respected and that you would be able to rely on certain protections. The minimum capital requirements are pretty high – A$1 million for Australia and €730 000 for the EU and the UK. Client money must be kept in segregated accounts separate from the broker’s own funds – which basically makes it impossible for your broker to reinvest your deposits elsewhere, and speeds up withdrawals. UK and EU brokers are obligated to participate in compensation schemes so if such a licensed broker becomes insolvent, their clients would receive compensation – up to €20 000 in the EU and £85 000 in the UK. Negative balance protection is also worth mentioning – this means your losses can never exceed the amount of money you have in your account.
For all of these reasons, for transparency and security to be guaranteed, you should choose a licensed broker over scammers like Mancard-Inc.
Mancard-Inc TRADING SOFTWARE
Mancard-Inc did not provide us with the efficient platform they promised to grant access to. What we got with the broker was a simple web-based platform with close to no charting and analysis tools that actually created a bit of a problem for us. If you want to see what the buy and sell prices of an asset are, you have to switch constantly between the buy and sell menu. This is quite inconvenient because prices change all the time and more often than not, it would be very hard for you to actually track them if you have to keep clicking around.
Platforms like MetaTrader 4 and MetaTrader 5 are a much better option – not only is their interface more intuitive and easy to figure out but they are full of great tools for analysis and trading. You can use the software’s own Expert Advisors or develop your own trading bots and indicators with the MQL4/MQL5 languages, purchase VPSs that keep your trading bots functioning even when your computer is not on, set signals for prices going up or down, or subscribing to signals created by other successful traders. A lot of licensed brokers offer one or both platforms so you will have no trouble trying out the software with a demo or real account.
Mancard-Inc TRADING CONDITIONS
Mancard-Inc offers the choice between three account types, the minimum deposit for the Beginner one being $150. This is not too expensive but considering the fact that the broker is extremely unreliable, we would advise you to check out these brokers who would gladly set up an account for anywhere between $1 and $100. Additionally, Mancard-Inc does not allow for metals and cryptocurrency trading unless you invest far more – $1000 – and even then, you would not be getting the so-called “protection of deposits” (the broker fails to elaborate what that exactly is) – that is only available for clients who have invested more than $10 000.
The leverage Mancard-Inc provides varies between 1:100 and 1:500 depending on the account. However, no CySEC-regulated broker can promise such high leverage to retail clients because of the leverage restrictions that exist in both the EU and the UK. The permitted ratio is up to 1:30 on forex majors and even less on more volatile assets. Leverage has often been called a “double-edged sword” – because it can lead to both bigger profits, and to bigger losses. That is why beginner traders should always be careful with their leverage settings.
As we mentioned, it was a bit hard for us to determine the broker’s spreads because we had to keep clicking around on the buy and sell buttons constantly. But, even so, we could see that the spreads varied tremendously – between 0.1 pips and more than 3 pips on EURUSD. No legitimate broker would allow such huge fluctuations. You should also keep in mind that any spread wider than 1.5 pips is considered less than profitable.
Mancard-Inc DEPOSIT/WITHDRAWAL METHODS AND FEES
The only way to deposit money with this broker is via Bitcoin.
You should not get the wrong impression here – there is nothing wrong with crypto transactions themselves, they are actually very secure and transparent which is why many licensed brokers have started accepting this payment method. However, scammers don’t adore crypto for its convenience – the reason why they prefer cryptocurrency payments is for the lack of possibility for the transaction to be reversed. This completely destroys your chance of getting a chargeback.
Additionally, we found some clauses in the broker’s Terms and Conditions that are worth mentioning. First of all, the broker does not allow withdrawals in the first 20 banking days after you have first deposited – which is more than enough time for them to disappear with your money.
Secondly, Mancard-Inc does not take responsibility for any violations of regulations that happened because of circumstances beyond their control.
This clause is a convenient way for the broker to avoid responsibility for any illegal activities they might want to perform – after all, who is to say what is and is not in their control.
HOW DOES THE SCAM WORK?
Such scams are rarely very elaborate so it is quite surprising that they manage to trick so many people. It seems that scam brokers are not going away any time soon so it would be good to know how to avoid them.
It all starts innocently enough – you see some impressive ad on the Internet promising to make you rich in a matter of months. And you would not have to do much – just invest a small amount of money with broker X. You are tempted so you provide the scammers with your email and phone numbers. After that, they won’t leave you alone before you deposit. Some scammers disappear right after you have transferred any sort of money but most of them are greedy – they will keep asking for more and more money. And you will be transferring because you will see that you are turning huge profits soon enough – it is very easy for scammers to manipulate platforms to make it look like you are doing great. Keep in mind that such people are well-versed in the arts of smooth-talking and convincing – they will charm you into transferring thousands before you know it.
But once you want to get access to all this money you have won, you will have trouble. The scammers will keep making up additional fees and clauses that prevent you from withdrawing – yet. At some point, they will just stop answering your calls and emails altogether.
WHAT TO DO WHEN SCAMMED?
Such stories rarely end well so prevention is key – always do your research, check registers of different regulators, and read Terms and Conditions carefully.
If you have already gotten scammed, there is still hope. Change any passwords you have provided the scammers with – that includes cases when you have given them remote access to your computer. Notify the responsible authorities and contact your bank or credit card provider to let them know you have been scammed. If you have used Visa or MasterCard to transfer money, you can try asking for a chargeback – this is possible within 540 days. Don’t trust any so-called “recovery agents” that offer to retrieve your money for a fee – this is just another type of scam and it would only lead to you losing more money.
Finally, sharing your story with others is important – this way, fewer people will fall into the same trap.