Beware! MondialFx 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.
MondialFx is not the kind of broker you should consider opening an account with – it is evident that this is just a common scam. The fact that the broker has been blacklisted by a respected regulator is proof enough – but this is far from the only problem with MondialFx. Read the review below to find out more.
MondialFx REGULATION AND SAFETY OF FUNDS
MondialFx is supposed to be based in the UK – at least, they provided a UK address on the website. However, when looking through the broker’s Terms and Conditions, we discovered that they are actually based in St. Vincent and the Grenadines. There are a few reasons why so many scam brokers have chosen this specific country as the base of their operation. First of all, the local financial regulator only monitors the banking sector and does not impose laws in the sphere of forex trading. This means that locally regulated brokers are not obligated to meet any specific requirements. Moreover, they are not obligated to report financial transactions and that enables all sorts of illegal activities such as money laundering and tax evasion.
MondialFx is among a few brokers the websites of which have recently been blacklisted by the Italian regulatory authority CONSOB on account of recent fraudulent activities:
It is obvious that this broker is far from legitimate – CONSOB would not have taken action against them otherwise.
If you just take a look at the rules UK, EU, and Australia-licensed brokers have to follow, you will understand why it is much easier to set up an offshore company. A license comes with a huge degree of prestige and signals to clients that the broker is trustworthy and conducts business in a transparent manner. Such licenses are, however, not so easy to obtain. All regulated brokers must keep client funds separate from their own in segregated accounts – this proves that the broker would not be able to reinvest your deposits elsewhere, and also speeds up withdrawals. Before obtaining a license, a broker must prove that they hold a certain minimum operational capital – €730 000 in the UK and the EU, and A$1 million in Australia. This shows that the broker is financially stable – the money cannot be used for other financial operations. Transactions must be reported on a regular basis to ensure transparency. Negative balance protection is a must – you could never lose more money than you have in your account.
Such protections are simply not available with shady offshore brokers – always choose a reliable, licensed broker over such enterprises.
MondialFx TRADING SOFTWARE
MondialFx claims that it offers an advanced web-based trading platform – which we were not allowed to try since the broker would not let us trade before our account has been verified. And while all brokers will ask you to verify your account at some point, very few of them would ask that you do before you have even seen what sort of software you are being offered. Scammers will surely find some way to use the fact that your account has been verified against you at some point – they will claim that the losses that you have suffered were the result of your own bad decisions and not of their fraudulent schemes. Some might even attempt to steal your identity – so be careful who you provide with copies of your personal documentation.
Better look up brokers who offer the well-known MetaTrader 4. This platform has been around since 2006 and has remained one of the most popular – only MT5 surpasses it in a number of clients. However, MT4 is still the biggest platform when it comes to trading volume. It is easy to see why the software is beloved by many – it offers a ton of amazing tools such as Expert Advisors that track the markets and trade automatically, customizable signals, possibilities for creating custom scripts, or trying out strategies through back-testing, or in a demo account. Don’t hesitate to see what else the platform has to offer – but make sure the broker you choose to work with is reliable, and not just a scammer trying to benefit from MT4’s good reputation among traders.
MondialFx TRADING CONDITIONS
We could not see what sort of trading conditions MondialFx actually offers because we decided against providing scammers with copies of our personal documents. The broker did not give a lot of information on the subject on their website – we just learned that we would be able to open an account for $200. This is a completely acceptable price for a basic account – but that money, and all other deposits, will be lost if you choose to leave it in the hands of such scammers. Many legitimate brokers offer very affordable trading accounts – sometimes even for as little as $1.
MondialFx DEPOSIT AND WITHDRAWAL METHODS AND FEES
MondialFx only accepts deposits made with a credit or debit card (through different payment systems), and in crypto. Do not deposit with this fraudulent broker since you are sure to end up losing money. Moreover, if you have deposited in crypto, you would not be able to retrieve your deposits – such payments are completely irreversible. If you have used your credit or debit card, on the other hand, you might still be able to get your money back – both Visa and MasterCard allow such chargebacks within 540 days of transactions.
The broker also imposes an inactivity fee – of $50 after a period of 30 days in which there has been no trading activity. This fee seems a bit too big and comes a bit too fast – most brokers will only ask for a few dollars after a few months.
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.