MEX Atlantic – Are They a Scam?

Website URL: https://mexatlantic.com

Founded: 2022

Regulations: None

Languages: English

Deposit Methods: Bank Transfer, Credit Cards, Skrill, Neteller, POLi, PaymentsAsia, Globepay, Cryptocurrencies

Minimum Deposit: $50

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Forex, Metals, Shares, Indices, Commodities, Cryptocurrencies

Trading Accounts and Conditions

MEX Atlantic offers its clients the following trading accounts:

• Standard: The initial deposit is $50. Spreads start from 1.5 pips and the leverage is a maximum of 1:500.
• Pro: The initial deposit is $1,000. Spreads start from 0.8 pips and the leverage is a maximum of 1:500.
• ECN: The initial deposit is $5,000. Spreads start from 0 pips and the leverage is a maximum of 1:500.

MEX Atlantic – Advantages

One of the big advantages of trading with MEX Atlantic is the solid range of trading platforms they have on offer. This broker offers its customers both the MetaTrader 4 and the MetaTrader 5 trading platforms. Both of these platforms are available in multiple versions – Android, iOS, Windows, and a web-based version.

Both these platforms are among the world’s best, with a wide range of functionalities that make trading much easier and more effective. Therefore, this is a huge plus for this broker.

Unfortunately, despite the fact that this broker offers excellent trading platforms, MEX Atlantic is not a broker that we would recommend to any of our traders. Read on to find out why.

MEX Atlantic – Disadvantages

Here are all the disadvantages of trading with MEX Atlantic:

• Poor Regulation Status

MEX Atlantic claims to be owned and operated by MEX Atlantic Corporation. The broker also claims to be a part of the MultiBank Group, supposedly a company that offers brokerage services in many locations across the globe. The broker hints at the fact that its parent company is strongly regulated. Here is where we have issues with this broker. MEX Atlantic itself is only regulated by the Cayman Islands Monetary Authority (with the license number 1811316), which makes this broker an offshore entity.

The Cayman Islands regulator is not known to be a strong regulator. It only asks that brokers maintain a paid up capital or minimum operational capital of $120,000 (or 100,000 Cayman Islands Dollars). Measures taken by stronger regulators to protect traders from being scammed are not imposed here. Therefore, being regulated by this offshore location is not enough for brokers to operate in other jurisdictions such as the UK, the US, Europe, etc.

We need to point out that there are many leading brokerages that are registering their subsidiaries in offshore locations so that they can compete in the emerging (and relatively unregulated) markets in Africa and Asia. However, these companies come with solid credentials and are very strongly regulated as parent companies. That is not the case with MEX Atlantic’s parent company.

Thus, we would not recommend such a poorly regulated broker to any of our traders.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

Start Trading

Read Review

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Unclear Trading Conditions

The trading conditions seems rather favorable at first glance – a $50 minimum deposit requirement and spreads that are as low as 1.5 pips (for the Standard account). However, when you look closer, you realize that they have not mentioned anything about the fees and commissions they charge – things that will impact the overall cost of trading.

Furthermore, the leverage ratio offered by this broker is dangerously high. A leverage of 1:500 offers traders a chance to make huge profits, but it is also a massive gamble. Most traders tend to lose money on their trades, and such high leverages can lead to severe losses. Which is why most strongly regulated jurisdictions have banned the use of high leverage ratios. Brokers in the UK, for example, can only offer leverages of up to 1:30. It’s the same in the EU and Australia. In the US and Canada, that number is 1:50. In Hong Kong, the leverage ratio is just 1:20, as it is in Japan. Therefore, this kind of leverage is just a red flag of danger.

• Unfair Withdrawal Conditions for Bonuses

MEX Atlantic offers its clients bonuses, and this is a big red flag for us. Such bonuses are illegal, and as expected, these bonuses come with some pretty unfair withdrawal conditions. If you avail of their bonuses, then you will need to have traded at least 80 standard lots (which equals about 8 million currency units) for every $200 bonus you have taken. And if you don’t reach that trading volume in 90 days, then you can say goodbye to your money. This, unfortunately, tells us that this broker is most likely a scammer.

• Unclear Policies for Withdrawal and Deposit Fees

We cannot find any information on the kinds of fees that this broker charges its customers for withdrawals and deposits. Nowhere does the broker mention the fees it charges for transactions carried out on your account. There is only a glancing mention that you will be charged a rather large monthly fee of $60 if your account has been inactive (i.e., you have not traded on your account) for 3 months or more.

This lack of clarity once again suggests that this broker might not be completely honest and is probably running a rather smooth scam. 

Conclusion

MEX Atlantic has a great looking website. Added to that, the trading conditions look good, the broker seems to be regulated and it is associated with a larger company that is also supposedly strongly regulated. However, when we dig deeper, we realize that there isn’t much substance in this broker’s offers. The trading conditions are not quite clear, the regulation status is very weak and the terms of service are not very fair. This broker is much more polished than other scams that we have seen, but all the evidence definitely points to the fact that this broker is less-than-honest. We would not recommend this broker to anyone.

MEX Atlantic

2.6

User Experience

3.5/10

Payment Options

2.4/10

Security

2.6/10

Support

2.1/10

Reputation

2.2/10

Pros

• MetaTrader 4 and MetaTrader 5 Platforms Offered

Cons

• Poor Regulation Status
• Unclear Trading Conditions
• Unfair Withdrawal Conditions for Bonuses
• Unclear Policies for Withdrawal and Deposit Fees