Beware! Mfxoptionmarket 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.
The Mfxoptionmarket website looks like a specially created example of a fake broker. There are so many clues that this is not the legitimate financial services provider it claims to be that it would be an inexcusable mistake to trust Mfxoptionmarket with your money. Let’s take a detailed look at why it’s in your best interest to stay away from Mfxoptionmarket.
MFXOPTIONMARKET REGULATION AND SAFETY OF FUNDS
The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.
From the very front page of the Mfxoptionmarket we see irregularities with the way legal information is presented. An incomplete contact address in the United States is given, but it is claimed that the Mfxoptionmarket Limited company is regulated by the Cyprus Securities and Exchange Commission (CySEC). However, the link to the alleged licence leads to licensing information for FXTM, one of the world’s leading brokers, which has nothing to do with Mfxoptionmarket. There is no authorised broker using the Mfxoptionmarket domain or trade name in the CySEC database.
The Terms and Conditions claim that behind Mfxoptionmarket is in fact the company Thorntons Global Ltd which is based in an offshore zone – Saint Vincent and the Grenadines (SVG). We do not find this company among those registered in SVG, but even if it is the real owner of Mfxoptionmarket, this does not give any guarantees for the safety of your funds.While this country has a financial regulator, unlike other offshore areas, it does not regulate the activities of forex and CFD brokers.
In the same document we find another contradiction – another completely unregulated offshore area, the Marshall Islands, is listed as an applicable jurisdiction.
In other documents on the Mfxoptionmarket website we find further different versions. The Risk Disclaimer, for example, mentions another brand, SwissCapitalFX. This is another scam website we have reviewed. There are links in the documents referring to the website of the offshore broker 10tradeFX , which again has nothing to do with Mfxoptionmarket.
Regarding Mfxoptionmarket, we can only be sure that it is trying to deceive us and that it is not a licensed and regulated forex broker.
Under no circumstances should you trust your money to such anonymous websites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like CySEC or Financial Conduct Authority (FCA) in the UK. 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.
MFXOPTIONMARKET TRADING SOFTWARE
Mfxoptionmarket promises a cutting-edge trading platform, but we were unable to establish whether the website has any trading software. The reason for this is that at the time of writing this review it was not possible to register a new account.
If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading 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.
MFXOPTIONMARKET TRADING CONDITIONS
Mfxoptionmarket claims to offer different types of trading accounts, but their descriptions specify a single parameter, a minimum deposit of 500 USD. You should know that for a much lower amount you could start using the services of a licensed broker.
Elsewhere on the website it is claimed that Mfxoptionmarketoffers leverage up to 1:500. This is further evidence that Mfxoptionmarket could not really be a licensed broker based in Cyprus.
Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. The European Securities and Markets Authority (ESMA) and accordingly all EU regulators limit leverage to 1:30 for major currency pairs, 1:20 for non-major pairs, gold and major indices, 1:10 for other commodities and non-major indices, and 1:2 for cryptocurrencies.
MFXOPTIONMARKET DEPOSIT/WITHDRAW METHODS AND FEES
On the homepage of the website we see a statement that Mfxoptionmarket accepts credit cards, bank transfer and popular e-wallets such as Skrill and Neteller as payment methods.
But we have no good reason to believe this. Experience shows that financial scammers of this type advertise conventional payment methods but actually steer their potential victims towards cryptocurrency transactions. The reason for this is that cryptocurrencies do not allow the defrauded to claim a refund. If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.
Since Mfxoptionmarket does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.
HOW DOES THE SCAM WORK
With all the buzz surrounding cryptocurrencies and NFTs, 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.
