Beware! Metadaxglobal 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.
Metadaxglobal presents itself as an established, regulated broker based in Europe. But it did not take much effort to establish that it is not a legitimate financial services provider. At the time of writing this review, Metadaxglobal’s website is apparently incomplete – standard placeholder text is visible in many places, and an attempt to register a new account ends with a technical error message. But the available information is enough to judge that we are dealing with yet another scam website trying to cash in on the buzz around cryptocurrencies.
METADAXGLOBAL REGULATION AND SAFETY OF FUNDS
Metadaxglobal claims to be based in Luxembourg, a jurisdiction where strict European Union regulations apply. It is therefore very strange that Metadaxglobal is virtually anonymous – neither the website nor the rather limited legal documentation states the name of the company that owns and operates this alleged broker.
The lack of any specific information about the company is indicative enough that the Luxembourg address is fake and the anonymous owners of the website do not have a financial intermediary license. It was therefore no surprise that we found nothing on “Metadaxglobal” in the database of the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).
If you are looking to invest in financial instruments, first make sure your chosen broker is licensed and regulated by an EU regulator such as Cyprus Securities and Exchange Commission (CySEC).
There are many advantages to working with such brokers 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. When clients deposit money in their trading accounts, they are 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.
METADAXGLOBAL TRADING SOFTWARE
Metadaxglobal promises “intuitive, scalable trading platform”, but does not provide any information on exactly what software it uses. As stated, account registration was not possible at the time of writing this review. But given the low quality of the website, we suspect that Metadaxglobal does not actually have any trading software.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard 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.
METADAXGLOBAL TRADING CONDITIONS
Metadaxglobal claims to offer trade in stocks, metals and cryptocurrencies, but gives no specific information about the trading conditions. That’s not surprising considering we’re dealing with a low-effort scam. Metadaxglobal is aimed at people with no experience in financial markets who don’t know what to expect from a genuine broker.
When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc.
In the description of the three types of accounts supposedly offered by Metadaxglobal, only a minimum deposit of 250 USD is indicated. Elsewhere on the website it states that the minimum investment is 100 EUR. In any case, it would be a wiser choice to use the services of a licensed broker, many of which allow you to start trading with amounts below 100 USD.
Metadaxglobal also claims to give out bonuses. This is another clue that Metadaxglobal could not be a genuine broker based in the EU. Regulated brokers are prohibited from using bonuses and promotions to attract clients.
METADAXGLOBAL DEPOSIT/WITHDRAW METHODS AND FEES
Metadaxglobal also does not provide information on deposit and withdrawal methods and associated fees and terms. But the FAQ section clearly states that Metadaxglobal uses only cryptocurrencies as the base currency for the accounts. This is typical of financial scammers who prefer cryptocurrencies because these transactions do not allow refunds.
Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, QIWI, Neteller and Sofort. If you are interested in licensed brokers that also accept cryptocurrencies as a means of payment, take a look at this list.
HOW DOES THE SCAM WORK
With all the buzz surrounding skyrocketing prices of cryptocurrencies, many people are starting to consider investing in the financial markets as a bid to improve their fortunes. Scammers on the internet have taken notice of that and take advantage of the ignorance of the general public by creating countless websites posing as brokers. These websites offer no real brokerage services and only deceive people into believing that their money is really being invested.
If you come across such a scam website and give out your contacts, you will be contacted by experienced scammers who will convince you that they can take on all the frighteningly complex aspects of investing for you. But you will never get any real profits, nor will you be able to get back the money you deposited. The terms and conditions of these websites are riddled with clauses that make withdrawing funds from your account unfeasible – for example, extremely high minimum trading volume requirements or hefty fees of 10%, 20% or even more of the amount.
Scammers hide behind fake addresses and names and operate through offshore companies that are not subject to regulation and scrutiny. So even if all the withdrawal requirements are met, they may simply disappear and move on to their next fraudulent scheme.
WHAT TO DO WHEN SCAMMED
It is very important not to rush into trusting people on the internet who offer to magically refund your money for a fee. These are also scammers, and they may even be the same ones who scammed you in the first place.
If you have made the transfers using credit or debit card, you can claim a chargeback. Visa and MasterCard allow this to be done within 540 days. However, such a request may not be approved if you have given the fraudsters documents such as a copy of an ID and proof of address. This will allow them to claim that the transaction is legitimate and approved by both parties.
