A reliable and professional online broker can make a big difference in your trading experience and the outcome as well. Yes, your success depends mostly on your experience, your strategy and your luck, but the broker you choose also plays a key role because they have to provide you the trading software. In addition, they are also responsible for the trading conditions that affect your profits. Suffice it to say, you cannot underestimate their importance in your online trading success, but this MONEXUS review will show that not every broker is going to be a good fit.
It is natural that a company will tout its services as the best and make some big promises to draw your attention in order to convince you to give it preference over its competitors. But, this does not mean that you should be blinded by their claims and open an account right away. Why? This is due to the phenomenon of scam brokerages that has become quite widespread in the market. Since it is not that difficult to set up a website, these criminals create fake platforms to get people to deposit their money and can then disappear with your funds.
Many people have had to suffer at the hands of these fraudulent companies because they did not look beyond the promises they made. This is a mistake you should not repeat if you do not want to lose your money to these scammers. No matter how impressive a brokerage sounds, you should always ensure there are no problems. A closer look will always pay off, as you will learn in the case of MONEXUS that claims to be a multi-regulated brokerage offering its services to traders all across the globe.
The MONEXUS is also quite impressive and it seems to offer you all information you could possibly need in an orderly manner, but a closer look will show you plenty of warning signs. The story begins to fall apart in the case of MONEXUS as well. Let’s take a look:
Lies about regulation
The regulatory status of an online broker is of the utmost importance because you do not want to deal with an unlicensed firm. Those that are regulated are required to comply with laws and regulations and provide good quality services. They can also be held accountable in case of a dispute and you can expect transparent, fair and secure services on their platform. Moreover, unregulated companies are the ones that turn out to be scams, so when you choose a regulated one, you can mitigate this risk as well.
However, there is a difference in a broker claiming to be regulated and being actually regulated. According to the MONEXUS website, it is a multi-regulated brokerage, which means that it is regulated in multiple jurisdictions. It claims to have its offices in the UK, Europe, Australia and more and this sounds great on paper. But, you should never take anything for granted and always verify the license of a broker.
It is good that you decide to do the same with MONEXUS because you will discover that it is lying about its regulation. Running its name in online registers of the Australian Securities and Investment Commission (ASIC), the Financial Conduct Authority (FCA) in the UK, or the Cyprus Securities and Exchange Commission (CySEC) does not give you any results. The company is not licensed anywhere and this is also apparent from the fact that it is going against the regulatory framework of these jurisdictions in terms of bonuses and leverage.
When a broker is outright lying about its regulatory status as MONEXUS is, you should consider it a big warning.
Malicious bonus policy
One of the most prominent offerings that are advertised on the MONEXUS website is the trading bonus they offer to their clients. Who does not want to get something for free? It sounds great, especially when it means you can trade more, but when something sounds too good to be true, it usually is. The same applies to trading bonuses that come with strings attached. The policies associated with them were found to be exploitative, resulting in them being banned in many jurisdictions.
Therefore, MONEXUS should not be offering trading bonuses, given that the EU, UK and Australia all have banned trading bonuses. Yet, it is offering them to clients, complete with a malicious policy. It dictates that traders are only permitted to withdraw profits that are generated via their own funds and not through their own deposits. The problem is that all profits go in the same account and there is no way to physically distinguish the funds that you generate through your deposit and that from your bonus.
What does this tell you? It shows that the bonus policy of MONEXUS is only meant to ensure that you are unable to withdraw your funds, allowing the brokerage to keep your money. This is yet another warning sign you should pay heed to.
Leverage is one of the key trading conditions that an online broker offers and you want to enjoy good levels that can help you increase your profits. The problem with MONEXUS is that it is promising leverage ratios as high as 1:100. Even though they sound attractive, you should remember that these levels are quite dangerous.
Most importantly, regulatory bodies in the UK, Australia and EU have capped leverage ratios at 1:30 and this means that MONEXUS should not be offering such high levels, as it claims to be operating in these regions.
Only crypto payments
The last warning sign that you will find at MONEXUS is that it only supports crypto payments for deposits and withdrawals. Given that they tend to be anonymous and are not eligible for a chargeback, they are a favorite of scammers because it helps them steal your money and you cannot do anything about it. Genuine companies will always offer you multiple payment options for your peace of mind.
These warning signs that you find at MONEXUS all make it evident that the broker is trying to fool you, so you need to look for a different option altogether.