Monecor Limited review – 5 things you should know about monecorlimited.com

Monecor Limited review – 5 things you should know about monecorlimited.com

Rating: 1

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

RECOMMENDED FOREX BROKERS

Forex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

At first glance, Monecor Limited’s website may look credible, but the reason for this is that most elements are “borrowed” from genuine brokers’ websites. However, Monecor Limited is not such a broker. We are dealing with one of the most brazen types of scammers who illegally use the details of legitimate companies to fake credibility. Monecor Limited is a good reminder that we should always do careful fact-checking before putting our money on the line.

MONECOR LIMITED REGULATION AND SAFETY OF FUNDS

Monecor Limited says it operates globally through a group of companies licensed by financial regulators in the UK, Cyprus, Dubai, as well as offshore areas such as the Cayman Islands and Saint Vincent and the Grenadines.

Experience shows that such statements should not be believed blindly. 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. Such verification reveals that the information on the Monecor Limited website is false.

The company “Monecor Limited (UK) Limited ” mentioned on the website does not exist. There is a company with a similar name, Monecor (London) Ltd, in the Financial Conduct Authority (FCA) database, but it operates through a different domain – ovalx.com. However, the registration number mentioned by Monecor Limited belongs to another company – Hycm Capital Markets (Uk) Limited. It also uses a different domain name, hycm.co.uk. The British regulator warns that the details of these two legitimate companies are being used by multiple clone sites. Apparently this is also the case with Monecor Limited.

A check of the Cyprus Securities and Exchange Commission (CySEC) records gave an identical result. The company “Monecor Limited (Europe) Ltd ” mentioned on the website does not exist. However, there is a company with a similar name, Monecor (Europe) Ltd, which operates through the domain etxcapital.com. The licence number given by Monecor Limited does not belong to this company, but to HYCM (Europe) Ltd, which offers its services via the hycm.eu website.

We found no trace of Monecor Limited in the databases of the other regulators listed on the website. Monecor Limited is also not among the brokers licensed by the German regulator BaFin, although the website provides a contact address in the country.

Monecor Limited’s Customer Agreement makes no mention of any jurisdiction, regulatory body or specific legal entity. It should also be noted that a few years ago we came across another fake broker using the same brand – Monecor.eu. It is very likely that the same scammers are behind both websites.

You should only use the services of brokers you are sure are licensed by regulators such as CySEC or  FCA. As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.

MONECOR LIMITED TRADING SOFTWARE

Monecor Limited’s effort to simulate credibility wore thin when it comes to trading software. Registering an account gives us access to a very rudimentary platform where the charts are taken for free from the data provider TradingView. We’re pretty sure it’s actually just an imitation of the trading platform.

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.

MONECOR LIMITED TRADING CONDITIONS

Monecor Limited claims to offer three account types with spreads and commissions that are comparable to industry averages. But like most of the elements on the website, this is simply stolen from real brokers and doesn’t correspond to the truth.

The website lists a minimum deposit of 100 USD, but the deposit menu accepts a minimum of 250 USD. For a considerably lesser amount, you could open a starter account with multiple licensed brokers.

In the trading platform we see a leverage of 1:200 – another proof that Monecor Limited is not a real broker operating in the UK or 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 FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

In the Client Agreement, we see statements that Monecor Limited offers a variety of bonuses – a practice that is completely prohibited to regulated brokers.

MONECOR LIMITED DEPOSIT/WITHDRAW METHODS AND FEES

The deposit menu includes three options, wire transfer, credit/debit card or Bitcoin. But only the latter is actually active. 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 Skrill, PayPal, Sofort.

The legal documentation states that the minimum withdrawal amount is 100 USD by credit card and 500 USD by bank transfer, but does not give any information on the conditions for cryptocurrency transactions.

But it is clear from the text that any withdrawal of money from an account will be very difficult. Firstly, any non-deposited funds, including any profits from trading, are not considered client money. And second, if an account has received a bonus, it can only withdraw after meeting high minimum traded volume requirements – 25 times the bonus amount plus the deposit. These are typical scam traps.

HOW DOES THE SCAM WORK

While browsing the interwebs there is a significant chance you will come across comments, videos, social media pages that promise easy ways to passively make money. If you follow the links you will be taken to websites claiming to be legitimate brokers or investment firms. And if you take the next step and make contact with the people behind these websites, you will be contacted by slick and experienced scammers who will lure you in with promises of easy profits. For a while they will convince you that your investment is generating impressive returns and you need to pour in even more money to make sure you don’t miss out on this once in a lifetime opportunity

However, the attitude towards you will be changed if you want to withdraw your money. Suddenly, it will turn out that your investment makes losses and you even owe money to the fake broker for unexpected fees and expenses. They will show you clauses hidden in the Terms and Conditions, according to which you can only withdraw money after you have traded an impossible minimum volume, or that you will have to pay withdrawal fees of 20%, 30% or even more. When you try to hold them accountable you will find they are using fake names and shell companies in shady offshore jurisdictions without any regulatory oversight.

WHAT TO DO WHEN SCAMMED

Your options to recover your money are limited. If credit/debit cards were used for the transactions, you have the possibility to request a chargeback. But most scammers insist that you send them proof of identity and address with which they can dispute that the transactions were legitimate. Fraudsters also predominantly use cryptocurrencies, where refunds are impossible.

You should also be aware that there are many scammers who offer to recover your money for an upfront fee. You should not trust such offers. It is better to contact the relevant authorities in your country and warn them about the activities of the scammers.

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US4.99/5$50 Click for a special offerWebsite
UK, Cyprus, Belize4.94/5$5 Click for a special offerWebsite
Australia, Cyprus4.93/5$100 Click for a special offerWebsite
Cyprus, SVG4.8/5$100 Click for a special offerWebsite
Cyprus4.75/5$5 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *