MegaTradeFX is a Forex and CFDs broker offering 4 different types of accounts including plus Platinum & VIP. These premium accounts require an abnormal deposit of $25,000 and above. We know that you must be wondering whether or not it is safe to trade with MegaTradeFX. Thankfully, this review will shade some light on the broker’s service so you can make up your mind.
As with any other Forex and CFDs broker in the market, there are certain perceived advantages and disadvantages of trading on their platform. With this particular broker, there are only 2 advantages. These include solid leverage and a wide variety of assets for trading. The broker does not explicitly announce then maximum leverage that they are willing to give their traders. However, in the promotional content of the site, they cite that traders can have up to 1:200.
The reason why we are saying that this leverage is solid is because it will suit the needs of most traders since it is not too high and too low. Having said this, it is important to note that high leverage often brings a lot of risks to the trader. Statistics show that high leverage is the top reasons why traders lose money.
MegaTradeFX also provides a wide range of Forex pairs, CFDs, commodities, stocks, Bonds, ETFs and even Crypto currencies. This wide array of assets to trade is a plus because different traders need different types of assets for trading. Apart from these two advantages, there are no other advantages that can be associated with MegaTradeFX.
Therefore, at this point in time, one may wonder whether these two advantages may warrant traders to sign up, and our answer is no, do not sign up yet because this broker doesn’t appear to be reliable and credible. If you need the services of an established and professional broker, we are asking you to sign up with these brokers instead. They have been carefully vetted and found to be safe and secure for all types of traders.
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This broker is operated by a company known as Vital Resources LTD. This company is based in an offshore destination called Marshall Islands. On the other hand, the website of Mega Trade FX is developed and maintained by another entity called Guide Universal LP. Now, it is important to note that none of these two entities are registered to provide any form of Forex trading services to members of the public.
This simply means that MegaTradeFX is not allowed to provide brokerage or investment advice to all people living in countries like the US, UK, Australia, Japan and so on. But on their official website, they seem to target people from all over the world since there is no disclaimer to indicate that they are only working with traders from a few countries.
Recently, the FCA warned the public that MegaTradeFX was not licensed by them and was a potential scam. Such clear cut warnings should be taken seriously because if the public ignores these alerts, it would result in traders losing their funds as a result of sending funds into the accounts of brokers who want to break the law.
MegaTradeFX does not mention their trading conditions on their website. On the other hand, decent and professional brokers should be transparent with their clients since it is often the right of the customer to know what it will cost them to trade with that particular broker. In this case, MegaTradeFX does not disclose their trading conditions. This is a common trend that is often used by scam brokers out there.
Therefore, in terms of trading conditions, the most important things that traders want to know are the kind of spreads which they are offering, speed of trade execution, leverage that is offered among other things.
MT4 trading platform is popular among brokers who have a reputation in this industry. On the other hand, brokers who do not have a reputation tend to provide a strange web based trading platform that is not MT4. Shady and unregulated brokers such as MegaTradeFX only provide a web based trading platform that lacks useful analytics tools, automated trading among other tools. When we look at this strange trading platform, we find that it is similar to a very infamous software that is used by dubious binary options brokers.
Now, most traders want to use MT4 as opposed to any other trading software. No trader wants to use a strange software that does not provide what MT4 offers. These include support for all kinds of automated trading software, comprehensive charting packages among other features.
Some times it forces us to test the trading platform offered by these brokers in order to establish what the spreads are. This happens when we come across brokers who lack transparency such as MegaTradeFX.
We discovered that a pair such as EURUSD was attracting spreads as high as 3.6 pips. If you trade the same pair with established brokers who have nothing to hide, you will find that spreads are up to 1.5 pips on the higher side. So clearly this is one way through which MegaTradeFX is intending to steal from unsuspecting victims. You should not give them the chance to steal from you.
Having said this, we believe that this broker is characterized with many red flags. It is impossible to trust this broker due to the negatives that have riddled their reputation.
First of all, you should take note that their trading conditions are not attractive. That can be seen in how they hike spreads to 3.6 pips for a pair like EUUSD. The other issue of concern is that this brokerage is not regulated by the FCA. There is a warning from the FCA alerting the public that this broker is not regulated. And we don’t think that traders want to invest with such a broker. For that reason, we are advising that traders should only use regulated brokerage services.
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