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MegaTradeFX Review - is it scam or safe?

MegaTradeFX Review - is www.megatradefx.com scam or good forex broker?

RATING: 1 / 1 REVIEWS MegaTradeFX
MegaTradeFX is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Trading account Min. deposit  Max. leverage Spread
Basic  $250 1:200 3.6 pips
Standard  $2 500 1:200 N/A
Silver  $5 000 1:200 N/A
Gold  $10 000 1:200 N/A

 

MegaTradeFX is an offshore provider of online forex and CFD trading. It offers its clients the account types listed above, plus Platinum & VIP ones (which we skipped because of the high initial deposit required of morethan $25 000). If you are wondering whether it is safe to invest with MegaTradeFX, read the below review where you can find all the details regarding this broker.

 

 

MegaTradeFX Advantages

 

An array of tradeable assets

MegaTradeFX offers trading in many forex pairs, CFDs on indices, commodities, stocks, many cryptocurrencies, as well as bonds and ETFs. Such rich and diversified product portfolio is definitely a plus, as clients of such a broker have a lot of assets to choose from.

 

Solid leverage

Although the broker has not announced the maximum leverage it offers, we saw in its platform that its clients can use up to 1:200. This is a solid leverage level, which will suit the needs of most traders, and besides, it is not extremely high. That being said, high leverage levels bring along significant risk, and statistics show that the exessive use of leverage is among the top reasons why beginner traders suffer losses.

 

 

MegaTradeFX Disadvantages

 

No license, blacklisted by FCA

The broker says it is operated by Vital Resources LTD, a company registered on the Marshall Islands. Its website is allegedly developed and supported by Guide Universal LP. None of these companies holds a valid forex broker license. This means that MegaTradeFX is not entitled to offer or provides financial services and/or advice on regulated markets, such as Europe, USA or Japan, for example.

 

 

Click to view larger.

 

However, it appears that MegaTradeFX does exactly this. The broker seems based in Scotland, UK, and obviously targets local investors, as the local Financial Conduct Authority has warned investors that MegaTradeFX is not authorized by it, and could be involved in scam.

 

Trading conditions not announced on website

The website of MegaTradeFX fails to mention any essential trading conditions, which is yet another worrisome sign regarding this broker. All decent forex companies show their commitment and transparency by announcing reference spreads, execution speed, leverage provided, and so on.

 

No MetaTrader

The platform of choice of MegaTradeFX is a web-based interface that is especialy popular among shady and unregulated brokers. It is simple, but lacking any useful analytics, as well as other advanced features, such as automated trading, for example.

 

 

MegaTradeFX’s web platform. Click to view larger.

 

Most traders prefer using the MetaTrader4 or the MetaTrader5. MT4 has proved its reliability and ease of use over the years. Besides, it is highly praised for its advanced functionalities, such as the top-notch charting and automated trading bots (a.k.a. Expert advisors).

 

 

>> Looking for a good MT4 broker? <<

 

 

High spreads

Furthermore, when we tested this broker’s platform, we found the benchmark EUR/USD spread way higher than what we are used to seeing offered by most forex providers. As you can see in the image above, MegaTradeFX’s spread for this pair is 3.6 pips, while most brokers provide spread in the range of 1.0 – 1.5 pips for this pair. Below, you might take a look at the pricing of some top forex brokers.

 

 

>> Real-time spread comparison page <<

 

 

Conclusion

 

While MegaTradeFX’s offer is not clear from its website, we found out that the broker’s trading conditions are not that attractive. What is worse, it is not overseen by any financial authority and the UK’s FCA has included it in its warning list. This makes it very probable that MegaTradeFX is one of the many con artists operating on the forex market, so you’d better not risk your hard-earned money with this broker, nor any other unregulated financial services provider.

 

It is always best to keep it safe, investing only with brokers licensed by reputable governmental agencies like the UK’s FCA or Australia’s ASIC.

 

 

>> Trade with a FCA-licensed forex broker <<

 

 

To sum up the negative and positive sides of MegaTradeFX in a few words:

 

Pros Cons
An array of tradeable assets No license, blacklisted by FCA

Solid leverage

Trading conditions not announced on website
  No MetaTrader
  High spreads

 

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Traders` reviews for MegaTradeFX

Spread

Pros

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Slippage

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Requotes

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Price feed

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Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Megatradefx a big fat fraud

Just after I opened an account in Megatradefx, I found out that it is blacklisted by Financial Conduct Authority and I decided to close my account. Another reason was it has 100% negative review. And then my so called account manager tells me to deposit 3 times my original deposit to get my refund. He said it's a company policy and if I didn't do it I won't get my refund. I did a gamble and deposited and then he disappeared. After a while, this sick bastard calls me back and says to deposit more money. Although my deposit is in Megatradefx live account, I can't withdraw. I'm 200% sure now this company is a fraud.

Amrit Subba 04/15/2019
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