Makani Corp review – 5 things you should know about makanicorp.com

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

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Makani Corp will not serve you as a good broker through which to invest in financial instruments. The reason is that this website is actually a scam. Let’s take a closer look at how you could distinguish fake brokers like Makani Corp from legitimate investment intermediaries.

Makani Corp Regulation and safety of funds

Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.

Makani Corp does not provide clear information about the legal entity behind this website. No company name is given in the text of the Terms and Conditions.

The website lists office addresses in the United Kingdom, Poland, Estonia and Cyprus, but according to the Terms and Conditions the applicable jurisdiction is that of Sweden.

A check of the financial regulators’ databases in these jurisdictions shows that there is no licensed broker using the Makani Corp brand and domain.

The website is also available in Russian, which has attracted the attention of the Russian financial authorities. They have issued a warning that Makani Corp is not an authorised financial services provider.

The only thing we can be sure about Makani Corp is that it is not a licensed broker and that it is trying to deceive us. 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 Cyprus Securities and Exchange Commission (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.

Makani Corp Trading software

After registering an account, we get access to a pretty basic web trading platform that doesn’t feature extensive customization options or advanced functionality. We’ve seen the exact same platform being used by multiple fake brokers we’ve encountered. Scammers are using rigged trading software to fool their victims into believing that their money is really being invested and even turning a profit.

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.

Makani Corp Trading instruments

Makani Corp advertises trading in all major asset classes, including cryptocurrencies. This could also serve as evidence that this is not a licensed broker with office in the United Kingdom. The FCA prohibits brokers licensed in the country from offering crypto derivatives trading to retail customers.

Makani Corp Spreads and cost of trading

Makani Corp does not provide information regarding the price paid by the customer. In the trading platform we see a zero spread, which means that the broker charges some kind of commission. But it is not clear what the amount of this commission is.

When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc.

Makani Corp Maximum leverage

In the trading platform we see a set leverage of 1:200. This also constitutes evidence that Makani Corp is not a broker licensed in the jurisdictions in which it claims.

High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.

Another such piece of evidence is the claim that Makani Corp offers bonuses. Regulated brokers are prohibited from offering bonuses and promotions. Scammers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms.

If you are nevertheless willing to take the risk of high-leverage trading and want to take advantage of bonuses, promotions and prize games, the best option is to use the services of offshore brokers operating under an established brand.

Makani Corp Deposit and withdrawal methods

Makani Corp  claims to allow funds to be deposited via credit/debit cards and wire transfer, but the deposit menu redirects to an account manager.

Experience has shown that fake brokers routinely advertise conventional payment methods, but actually steer their potential victims towards cryptocurrency transactions. This not only guarantees them anonymity, but also deprives the defrauded of the option to request a refund or chargeback.

While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.

Makani Corp Minimum deposit

Makani Corp specifies a minimum deposit of 250 EUR, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

Makani Corp Withdrawal requirements

The minimum withdrawal amount is 250 USD and the withdrawal fee goes up to 50 USD depending on the payment method.

Legitimate brokers do not normally charge transaction fees. Separately, there is a withdrawal levy of 10% if the customer has not traded “200 in turnover” – presumably 200 lots, or 20 million currency units. These are typical scam traps designed to block any withdrawal request.