Beware! Mayhemfinancial 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.
Once getting on the website of Mayhemfinancial you are probably going to notice some significant details leading to the fact that this site is a scam. First of all, this broker doesn’t mention anything about its regulation or at least the jurisdiction that oversees its activities. And here’s why – in fact Mayhemfinancial isn’t authorized to offer financial services and operates outside the law.
And that’s not all. From missing some major information to presenting misleading one, this so-called “broker” is nothing more than a fraud. It gives unrealistic promises like “from zero to crypto in minutes”, as well as some really basic statements that every other scam broker uses. If this isn’t enough to thumb you down, then keep reading the full review for more facts and details.
Regulation and safety of funds
Taking a closer look at the Mayhemfinancial “About us” section, we can’t help but detect some really disturbing facts that just don’t make sense. First of all, the company claims to be situated in the United Kingdom, a country that has impeccable rules and requirements to all brokers that wish to operate on the market. However this broker doesn’t mention anything about it’s regulated which seems rather suspicious. After we searched the registers of the local watchdog – the Financial Conduct Authority (FCA) it turned out that Mayhemfinancial isn’t licensed and is operating against the law. See for yourself:
This leads to the conclusion that its address is fake as well as the photos and names of its employees. To top it off, there’s no corporate name, so we don’t know who exactly stays behind this website. If you want to invest in forex pairs, cryptocurrencies, stocks or shares choosing Mayhemfinancial is certainly not a good idea. This broker bears all signs of scam possible and we are pretty sure it’s only after your money. Keep in mind that if you decide to trade with an unregulated broker it would be at your own risk, as these firms are not supervised by any financial authority and you can’t get any client protection.
For reference, regulated brokers in the UK must meet some very strict requirements in order to be granted a license. First and foremost, every legitimate broker must have at least 730 000 EUR of minimum net capital, which serves as a guarantee for its financial stability. Moreover licensed brokers in the United Kingdom are obligated to take part in customer protection schemes, which aim to protect your funds in the unlikely event of broker’s insolvency. In this case a client can be compensated with up to 85 000 GBP. Last but not least, genuine brokers must keep their clients’ funds in segregated trusted accounts apart from their own capital.
Mayhemfinancial claims to offer its own “powerful web-based platform” which is easy-to-use and with user-friendly interface.
After we registered however we were asked for some additional personal information in order to proceed. Moreover this broker claims that you have to make your first deposit before you can open an actual trading account, which sounds ridiculous at least to say. For this reason we simply couldn’t see Mayhemfinancial’s trading platform.
However given the fact that this broker is absolutely under-the-counter we doubt that it can provide any useful software. If you happen to open an account with it (which we don’t advise you to do), prepare to see a very plain and insufficient platform, which certainly can’t compete with more sophisticated trading software like MetaTrader 4 or MetaTrader 5.
MT4 and MT5 are appropriate even for both advanced traders and beginners. You can be assured that the safety of your funds and personal information is granted as all transactions are encrypted as well as your IP address.
You can also choose between a wide range of educational resources, forex news and technical analysis tools. Most of the customers consider the trading bots to be the best part however. These bots, also called Expert Advisors, analyze the forex market in a search of certain conditions and then perform trading operations once they find them.
MT5 and MT4 can be easily downloaded on PCs, smartphones and tablets and have regular updates. Unfortunately, since Apple removed both MetaTrader 4 and 5 from its AppStore, these platforms can’t be downloaded any more from iPhone/ iPad users. All of you that have already installed the apps can continue using them, but without the above-mentioned updates. On the contrary you can still download MT4 and MT5 from Google Play Store.
Mayhemfinancial doesn’t say much when it comes to its trading conditions. It seems to offer four different account types – Silver, Gold, Platinum and Diamond. Take a look at the information displayed on its website:
As you see there’s barely any useful information. The minimum deposit of 10 000 USD that this broker requires seems insane, given the fact that most reputable brokers usually ask for around 250 USD in order to start trading. Moreover sometimes you can benefit from micro accounts which request around 10 USD. Obviously it’s pointless to invest such a high amount especially with an unlicensed broker like Mayhemfinancial.
As for the spread, as we couldn’t see the trading platform and the website lacks any useful data, we are completely unaware what amounts to expect. Just beware that any spread higher than 2 pips is certainly going to be more costly, so better stick to legitimate brokers who offer tight spreads less than this limit.
The leverage that Mayhemfinancial offers is also a mystery, so it’s for the best to steer clear of this broker. In addition, remember that there’s a leverage cap of 1:30 for the UK, so don’t expect a regulated broker based there to offer more. In case you want to trade with higher levels of leverage we suggest choosing some of the offshore subsidiaries of reputable forex brokers.
Deposit/Withdrawal methods and fees
Taking a closer look at the website, we couldn’t find any info about the payment methods as well. After we registered the situation didn’t change much, as there was an error occurring every time we tried to add funds. In fact the payment form was very plain and seemed suspicious at first glance. Take a look at it:
As you can see, you can only choose the currency and the amount you wish to deposit, but there are no payment options listed.
Bear in mind however, that any broker, offering a crypto payment as the only option, is possibly about to deceive you. The reason hides in the fact that using a crypto currency payment allows the deposit to be anonymous and irreversible at the same time, thus making it impossible to retrieve your money.
How does the scam work
Be very careful to whom you provide your personal information like email or phone number. The moment scammers have your number they will start calling you in an attempt to make you invest right away.
They will most certainly assure you that trading with them is risk-free, which is highly doubtful at least to say. Also be prepared to hear that you can get a fast and incredibly high return on investment – this is also a shameless lie of course. Scammers tend to sweet-talk traders into making a deposit and then vanish like thin air.
Before that however they might try to manipulate their trading software so it looks as if your money is being invested. They might also fool you into believing that your results are very profitable. This is done with one specific purpose – to make you invest even more before you find out that everything is a lie.
Expect all kinds of hidden fees the moment you try to withdraw even a cent and what is the worst part – to find out that a withdrawal is declined no matter what you do.
What to do when scammed
If you have been scammed, the first thing you can do is to turn to the bank that issued your credit or debit card and ask for a chargeback. If you have paid with your Visa/ Mastercard, a chargeback is eligible within 540 days.
Wire transfers are more difficult to return, and the best thing you can do in this situation is to change your online banking username and password as soon as possible.
Using payment methods like Neteller, Paypal or Skrill also gives you the opportunity to open a dispute in case of online scam.
Unfortunately crypto transactions are irreversible as we already stated and therefore your money can not be returned. All in all we advise you not to trust brokers that use only crypto coins such as Bitcoin or Ethereum.
Last but not least, certainly don’t trust people on the internet offering to return your funds only after you pay a certain fee. They might also be scammers so don’t risk losing more money than you already have!