FXMegaTrade Review – 5 things you should know about fxmegatrade.com

FXMegaTrade Review – 5 things you should know about fxmegatrade.com

Rating: 1

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

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FXMegaTrade is just another scam broker that barely put any effort into looking legitimate – establishing that we are dealing with a fraudulent enterprise did not take us long. Read the review below if you are curious about or discoveries. Your main takeaway should be this – do not deposit with FXMegaTrade since you will certainly end up scammed.

FXMegaTrade REGULATION AND SAFETY OF FUNDS

FXMegaTrade did not provide any sort of address which prevented us from establishing where the broker is based. In fact, this company did not provide any sort of contact information other than an e-mail – even their contact form just said “FORM GOES HERE” which basically means that their website is not even fully completed.

The broker did provide some sort of supposed Certificate of Registration supposedly issued by the Australian Securities and Exchanges Commission (ASIC) – one of the best and most respected financial regulatory bodies in the world. However, that certificate looked a lot like a forgery – actual ASIC licenses do not look like that. In fact, when we checked the regulator’s register for a company with the name OliNo Energy B.V. (which is behind the broker) or for a broker called FXMegaTrade, we did not get any matches – which means that this broker is lying about being regulated. Needless to say, this is a trick any legitimate broker would ever try to pull off.

Avoid trading with unregulated, anonymous brokers since you will surely get robbed. Better turn to a legitimate UK or EU broker – such companies are usually reliable because they answer to strict authorities and have to do things by the book if they want to obtain their license. Companies have to maintain a minimum operational capital of €730 000 to prove that they are financially stable and have a long-term approach to doing business. The sum can go into multiple million euros for brokers with many clients. All UK and EU brokers are obligated to participate in compensation funds – if such a broker goes bankrupt, you could receive compensation of up to £85 000 in the UK and €20 000 in the EU. Client money must be kept separate from the broker’s funds in segregated accounts – you can be sure the broker could not use your money for their own purposes. Negative balance protection is a must – this means you cannot lose more money than you have in your account, at least as a retail client.

FXMegaTrade TRADING SOFTWARE

FXMegaTrade did not exactly offer functional trading software – when we opened an account with the broker, all we got was a TradinView chart. This free market tracking software can definitely not be used for any sort of actual trading. This means that opening an account with FXMegaTrade is completely pointless – you would not be able to trade and providing access to the financial markets is the whole point of forex brokers.

If you were actually expecting to find a platform that is fairly easy to use but still offers a ton of useful tools and features, we would recommend you to look up these brokers who offer MetaTrader 4. When it was first introduced in 2005, the platform revolutionized the trading industry and quickly became the most popular option out there. It is still the platform with the largest trading volume although it recently got surpassed by the newer MT5 in terms of the number of clients. However, many still prefer MT4 because it is more beginner-friendly and still provides access to countless indicators and analysis tools, Expert Advisors, Strategy Testers, customizable signals, a market for add-ons, and much more. All in all, a much better choice than what most scam brokers can offer you – and a lot more than what EcofxGlobal specifically can provide you with.

FXMegaTrade TRADING CONDITIONS

FXMegaTrade does not provide a functional platform – that is why all their talk of amazing spreads and leverage as high as 1:500 becomes pointless. It is also worth noting that no legitimate Australian broker could legally offer such high leverage to its retail clients – leverage caps exist in Australia as well as in many other countries such as the UK, the US, and all EU member states. Trading with such high rates could turn out to be quite dangerous – which is why authorities only allow up to 1:30 on forex majors. If you would like to trade with higher rates, make sure you can handle it – and open an account with a legitimate broker regulated in a jurisdiction where higher leverage is legal.

In order to open an account with FXMegaTrade, you would have to be willing to invest at least $200 – when many great brokers would be willing to make you their clients for as little as $10.

FXMegaTrade DEPOSIT AND WITHDRAWAL METHODS AND FEES

FXMegaTrade only accepts deposits in crypto – in Bitcoin, Ethereum, Litecoin, or Tether. This means that if you have already deposited with the broker, retrieving your money would be impossible. All crypto transactions go into a ledger that can never be changed – the whole principle of the blockchain is that all previous transactions validate and confirm the ones that come after. That is why they can never be reversed. And while crypto is an innovative, convenient technology, we would recommend that you only use this payment method if you are sure you can trust the recipient completely – as stated, chargebacks would not be possible.

HOW DOES THE SCAM WORK?

Scams like this one are becoming more and more prominent – they rely on people’s desire to make fast money without putting a lot of effort in. That is why it is important to know how you can tell apart a fully legitimate broker from a scammer and learn more about how such scams generally function.

All brokers promise certain things and try to advertise their services to their best capabilities – but all legitimate companies also provide statistics on how many people have lost money while trading with them. Scammers, on the other hand, promise guaranteed fast profits and a life of luxury. You will probably stumble upon the scam broker’s website randomly – or you might be pursued via phone or e-mail and asked to open an account. Maybe you have heard of people earning a living by trading – so you decide to set up such an account. The moment you provide the scammers with your phone number or email (if they have not already obtained it somehow), they will not leave you alone before you make an investment. These are professional smooth-talkers who scam people for a living – which means that they can be very convincing. Once you have made your first deposit, the scammers will ask you for bigger and bigger sums. You might even be happy to deposit more money because at this early stage, you will be turning a profit – scam brokers are good at manipulating results to make it seem like you are doing great.

The problems will start the moment you try to withdraw those profits – the broker will start making up reasons why this is impossible. – Usually, new, shady clauses in the Terms and Conditions will appear – you might be asked to reach some unattainably high turnover threshold or pay a high withdrawal fee. At some point, you will figure out something is wrong – and that is when the broker will stop answering your calls and e-mails and just disappear.

WHAT TO DO WHEN SCAMMED?

We should warn you that the chances of you getting your money back if you have already been scammed are slim -prevention is key in the world of online brokers. Choosing a legitimate company that holds an official license and has proven its reliability is essential. There are, however, still some things you can do if you have already been scammed.

Make sure to notify your bank that you have been scammed. Change all the passwords you have provided the scammers with. If you have given them remote access to your computer, remove the software immediately. Scam brokers usually claim that you need to install such software so they could help you with software set-up – or even help you trade – but their actual objective is to get access to your banking systems and steal even more money.

If you have deposited with Visa or MasterCard, ask for a chargeback immediately – both card providers allow such chargebacks within 540 days.

Notify the responsible authorities, and share your story with as many people as possible – this way, more people will know about such scams and learn how to avoid them.

Finally, don’t trust any “recovery agents” promising to retrieve your money for a fee – this is just another type of scam targeting scam victims. Often enough, the recovery agency is run by the same people who scammed you in the first place.

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