MidasFX Review – Old Broker That Blurs The Line Between Legit And Scam
MidasFX is a SVG registered company but without any kind of authorisation. The twelve years old domain could have at some point been legally verified by the jurisdictional regulator. That time is long gone though, especially because SVGFSA doesn’t regulate brokers as of March 2018.
Without a license to dictate and direct their operation, MidasFX turns out to be nothing more than another Forex trading scam. Their limited liability company could have applied for a license anywhere else, but it doesn’t seem like they did. It is always easier to remain in the gray area and scam victims out of their money to earn a living. How exactly MidasFX does it and what shiny baits they use to lure targets into the vicious net of lies, find out from our MidasFX review.
|Regulated by:||Not regulated|
|Is This Company Safe?||Unregulated entities are not trustworthy|
|Have Warnings from:||N/A|
|Trading Platforms:||MT4, MT5, Webtrader|
|Deposit Bonus:||Up to 100%|
|Trading Assets:||Forex, Cryptos, Indices, Metals|
|Free Demo Account:||Available|
|How to Withdraw from This Company?||Do not trust the fancy facade – seek legal help for withdrawing!|
Is MidasFX a Legit or a Scam Broker?
MidasFX LLC has been established in St. Vincent and the Grenadines, and is legally registered to this day. This is where the problem starts – The SVG’s main financial regulator, an agency called FSA, no longer regulates online brokers. It is quite questionable whether MidasFX had a license to begin with, since this broker does not provide any license, or registration number for that matter.
Of course, there are many brokers worldwide who have chosen an offshore tax haven nation for their main HQ. The vast majority of these companies have turned to various Tier-1 regulators for a license instead. It is extremely important that a broker is authorized by at least one strict regulator. Should you decide to start trading, you should seek a broker that is also based and regulated in your nation of residence.
There are many inherent risks when it comes to trading Forex, Cryptocurrencies, or other CFDs online. BEcause of this many regulatory bodies have established certain risk mitigation measures. In the US, for instance, brokers are overseen by a unique twin entity authorization system. An agency called CFTC defines the regulatory standards, while another, NFA, monitors the brokers and their behavior.
The CFTC requires at least US$20 000 000 of liquid capital from their prospective brokers. A leverage restriction of 1:50 is imposed on FX and CFDs, and 1:5 for Cryptocurrencies. All transactions must be reported regularly, and client funds must be kept in Segregated Bank Accounts. Traders operating through a US-regulated broker can enjoy various bonuses.
Regulatory framework is different in other jurisdictions, however. Financial regulators in the EU are bound by the MiFID agreement, which is enforced by ESMA. This guarantees exceptional financial transparency, and allows brokers to trade in the entire EEA even if they have only been regulated in one EU nation.
Initial capital in the EU is €730 000, but brokers must provide a compensation scheme of €20 000. There are further constraints for the EU-based brokers, and the maximum leverage for FX and CFDs is 1:30, and only 1:3 for Cryptocurrencies. Clients in the EU enjoy Negative Balance Protection, but there is a ban on bonuses. Segregated Bank Accounts are mandatory, however.
MidasFX does not adhere to many of these safety standards, as they offer leverage as high as 1:1000 for instance. We have searched the databases of many Financial Regulators for any info on MidasFX. This included CySEC, CONSOB, CNMV, BaFIN, NFA, CBR, ASIC and FSCA. MidasFX was not on the list of regulated entities in any of these registers, which is firm proof that they are an unregulated entity!
MidasFX Victims: Who Are They?
MidasFX exists in a gray area when it comes to public trust. This broker has been operating for a very long time, since 2011. They also enjoy a somewhat good degree of public confidence, but as we’ve found out, they do not have a trading license.
Here are the nations where the majority of MidasFX clients live:
- United States
- South Africa
The brokerage has a number of profiles on different Social Networks. MidasFX can be found on Facebook, Instagram and Twitter. They use these profiles to advertise their services, and bring more people into the scheme. With the many apparently lucrative opportunities on the MidasFX website, people are naturally attracted to the platform.
We couldn’t help but notice that many other shady companies and would-be influencers openly advertise MidasFX on their social network profiles as well. This sort of viral marketing is quite commonplace with fraudulent companies today.
Because MidasFX is not a regulated entity, we do not recommend trading with this broker. If you have already invested money with MidasFX, you should consider withdrawing immediately with the help of one of our legal experts. People behind MidasFX are only waiting for the right moment to pull the rug under your feet!
Which Leverage, Spreads, Fees and Taxes are On Offer?
Leverage available on MidasFX goes up to astonishing 1:1000. While this may be an attractive offer for professional investors, with highly developed risk-controlling methods, it doesn’t serve any practical use to retail trades.
MidasFX advertises this extremely risky way of trading to motivate clients to invest quickly and then lose all their capital just as fast. What the broker fails to mention is that such high exposure to the instrument also brings a huge chance for failing, not just winning ridiculous sums. And guess what happens in most cases? The worst scenario you can imagine.
The spreads, or trading costs at MidasFX, depend on the account type you buy. The ECN accounts require a commission of $5 per turn for spreads from 0 pips. The other package brings the possibility to trade with spreads starting from 0.7 pips with no commission. Trading environment that sounds so attractive is quite possibly fake, as the broker in question is.
The MidasFX website only vaguely mentions the transfer fees. The only depositing method is Crypto and the withdrawals are supposedly only possible via the same transaction channel. The only thing that the company says about the MidasFX withdrawal fees is that the fees are determined by the network. Very suspicious and untransparent.
Fake Bonuses With MidasFX
Notoriously known as a luring strategy, bonuses are virtual amounts added to the users trading account’s total balance. After signing up, you have to deposit and depending on your investment amount, you can get a bonus reward from 10% up to 100%.
All of that would be fantastic if true. And not in the least profitable for the broker. So, MidasFX cannot be easily trusted to make your trading and earning that easy and lucrative. Even though they do not explicitly state anywhere, swindlers usually impose terrifying conditions that follow bonuses.
Firstly, none of the bonuses are treated as deposited funds. In accordance to that, you could be asked to reach the trading volume requirement before bonuses become eligible for withdrawal. These conditions are absolutely out of anyone’s reach, no matter your talent or luck. But that’s so for a reason. And that is not to allow you to ever make a withdrawal.
MidasFX Trading Features
If we neglect the fact about operating without authorization, MidasFX has invested a significant effort into enriching their offer. Firstly, trading is available on several platforms, out of which MT4 and MT5 have been the market leaders for decades.
Following that, a palette of other baits exist everywhere. Whether that’s a deposit bonus or the affiliate program, you can pick your poison. Bonuses are allegedly available up to 100% of the deposit amount and the affiliate scheme guarantees you 25% affiliate commission on all commissions paid by your clients.
Just about any technique that you can commonly recognize in a scammer is what MidasFX casually displays. There are also several types of trading accounts, including the corporate and demo account option.
Which Trading Platforms Are Offered?
The Trading Platforms at MidasFX are the current industry standard programs, MT4 and MT5. This doesn’t mean your assets are safe when trading through MidasFX! The incredibly high leverage may prove to be a pitfall for traders, because of the high market exposure.
The Web Trader is also available with MidasFX. Other scam companies, like Cryptofonix for instance, offer the Web Trader exclusively because it allows them to manipulate the market information, and in turn, make the client lose money on bad trading outcomes.
MidasFX has no need to use their Web Trader in such a way – they get you with the high leverage and pricey fees and costs instead.
Which Mobile Trading Apps Are Available at MidasFX?
All of the MidasFX Trading Platforms are available on Mobile Devices as well. This includes the Web Trader, MT4 and MT5. MidasFX doesn’t do this because it’s practical for traders, however.
Because you can access MidasFX trading with your phone or tablet, you can effectively speculate on the go. That means you can lose money due to the MidasFX high leverage at any time.
Four Account Types
The Trading Accounts at MidasFX mimic those of their legitimate counterparts very well. Different Account Types are separated by the Market Execution Technology, as well as the Trading Software they can be used on. Besides that, they have identical parameters when it comes to pricing and trading strategies they cater to.
MidasFX offers these trading accounts to their clients:
Can I Use a Free Demo On MidasFX?
As we’ve seen earlier in our MidasFX Review, this scammer tries very hard to appear legitimate. They have even created a Free Demo for their clients, unlike other illicit companies like Gammaron who don’t bother with such an account.
Again, you should take great caution when using a Demo from an unregulated broker like MidasFX. More often than not trading through these Demos show unrealistic market shifts, and make it seem like profiting on the market is much more simple and easy.
Can I Claim My Money Back From MidasFX?
The only deposit methods that MidasFX accepts are Cryptocurrency Transfers of different Crypto Coins. These kinds of payments are very difficult to track without the use of specialized software like CypherTrace. Furthermore, any Cryptocurrency can be placed in a so-called “cold” wallet which is disconnected from the internet, making it inaccessible.
If you have deposited funds with MidasFX and now the scammers won’t accept your withdrawal requests, consider seeking legal help. It’s no secret that we’ve been contacted by people who have become victims of the MidasFX scam. Our legal experts are on hand to help you start a chargeback, and recover your investment.
Final Words about MidasFX
MidasFX lays low, doesn’t attract much attention, and in turn avoids all the bad publicity online. Don’t let this lack of internet presence deceive you. This company is an unlicensed offshore scam company that has been in business for a very long time. They know exactly what to do in order to appear legitimate, and rob their clients blind.
If you have invested money with MidasFX, you should consider starting a chargeback process as soon as possible. Speed is of the essence, as with every passing moment the swindlers become more difficult to pin for their crimes. Don’t give up your money without a fight! Book a free consultation through the Live Chat on our website, and contact our Recovery Experts today.
What is MidasFX?
MidasFX is an offshore forex trading scam that has managed to fly under the radar for a very long time. These people try very hard to cover up their bad intentions, but when you look at their website in more detail you will notice telltale signs of fraudulent activity.
Is MidasFX Regulated?
MidasFX lacks any license or authorization to provide the services they are offering. The country in which MidasFX is based, St. Vincent and the Grenadines, does not regulate brokerages anymore, and MidasFX has failed to obtain a license elsewhere.
Can I Have Help If I Was Scammed by MidasFX?
Of course! Our team of experts is one of the most experienced in the world, and we would like to hear your story and lend a helping hand in recovering your lost assets. Book a free consultation through the Live Chat, and start your chargeback today!