Megainvestco review – 5 things you should know about megainvestco.com

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

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Megainvestco presents itself as a regulated forex and CFD broker offering very favourable terms to its clients. But a closer inspection of this website exposes these claims as a lie. Megainvestco in fact has neither the legal authorization nor the technological capacity to offer the services it claims. In this review, we will show you how to tell the difference between this type of scam and legitimate financial service providers.

Megainvestco 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.

Here we find numerous red flags regarding Megainvestco. The website is anonymous – nowhere is the name of the owning company mentioned. Registering an account requires agreeing to Terms and Conditions, but nowhere is there a link to this or any other legal document.

Megainvestco claims to be based in Switzerland:

But also that it is licensed by the Cyprus Securities and Exchange Commission (CySEC):

Such an anonymous website could not legally operate as a forex broker in Switzerland, the EU or any other regulated jurisdiction. A check of the records of the relevant financial regulators confirms that there is no authorised broker using the trade name and domain of Megainvestco. Another European regulator, the Belgian Financial Services and Markets Authority has blacklisted Megainvestco.

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.

Megainvestco Trading software

Megainvestco promises a choice between three popular trading platforms – MetaTrader 4 (MT4), MetaTrader 5 (MT4) and WebTrader. But after registering an account we don’t get access to any trading software.

There are plenty of legitimate, regulated brokers who enable their clients to take advantage of MT4 and MT5‘s capabilities. These platforms have established themselves as leaders because they offer a wide range of features, including a wide variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

Megainvestco Trading instruments

Megainvestco advertises trading in forex, CFDs, indices, stocks, commodities, Mattel, digital currencies and bonds. But as we have seen this shady website has neither a licence nor software that would allow it to facilitate trading in financial instruments.

Megainvestco Spreads and cost of trading

Megainvestco  promises very low spreads, but for the above reasons this has no real meaning – this is not a real forex broker.

Legitimate forex brokers offer a variety of trading account types tailored to the needs of clients with different capital and investment intentions. These brokers also provide clear and detailed information on trading parameters – leverage, spread, commissions, order execution method, etc. The descriptions of the account types offered by Megainvestco do not contain any specific information about the trading conditions.

Megainvestco Maximum leverage

The website mentions a leverage of 1:400. This is also proof that Megainvestco could not be a legitimate broker based in the EU or Switzerland.

Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses.

Higher levels of leverage are only offered to professional clients who trade entirely at their own risk. If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

Megainvestco Deposit and withdrawal methods

At the time of writing this review the deposit menu was not active. We were therefore unable to ascertain what payment methods were available.

Scammers generally prefer cryptocurrencies because these transactions are not subject to refunds. Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

Megainvestco Minimum deposit

Megainvestco requires a minimum investment of 10,000 USD. This is a ridiculously high amount considering that real forex brokers allow you to open a trading account with amounts of 5 or 10 USD.

Megainvestco Withdrawal requirements

The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet  withdrawal terms.