MFM Securities – Are They Scammers?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
MFM Securities - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2020
MFM Securities offers you the following trading accounts:
- Micro: The minimum deposit to trade on this account is just $15.
- Standard: The minimum deposit to trade on this account is $25. The spreads start from 1.8 pips.
- Prime: For this account, you need to make a minimum deposit of $200, and you get a raw spread as well as a commission of $3.5 per lot.
The maximum leverage offered by this broker is 1:500, and MFM Securities also offers their clients the option of using Islamic accounts.
Try these regulated brokers if you want to start trading cryptocurrencies
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.
Website URL: https://www.mfmsecurities.com/
Founded: 2020
Regulations: Not Regulated
Languages: English
Deposit Methods: Unknown
Minimum Deposit: $15
Free Demo Account: Yes
Number of Assets: N/A
Types of Assets: Stocks, Indices, Forex, Commodities, Cryptos
Trading Accounts and Conditions
MFM Securities offers you the following trading accounts:
- Micro: The minimum deposit to trade on this account is just $15.
- Standard: The minimum deposit to trade on this account is $25. The spreads start from 1.8 pips.
- Prime: For this account, you need to make a minimum deposit of $200, and you get a raw spread as well as a commission of $3.5 per lot.
The maximum leverage offered by this broker is 1:500, and MFM Securities also offers their clients the option of using Islamic accounts.
MFM Securities – Advantages
Here are the advantages of trading with MFM Securities:
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High Leverage Ratio:
MFM Securities offers their users a maximum leverage of 1:500, which means that traders of all types of trading strategies will be able to trade on this broker’s account.
However, while this can be advantageous, it is also a double-edged sword. Trading with high leverages may give you high returns, but the risk of losing all your investment is also that much higher. Because of this risk, most financial authorities have put a cap on how much leverage they allow brokers. For example, the Financial Conduct Authority (FCA) of the UK is 1:30. Australia is one of the few jurisdictions where such high leverages are still allowed.
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MetaTrader 4 and MetaTrader 5 Platforms Offered
A big plus about this broker is that they offer both the MetaTrader 4 (MT4) and the MetaTrader 5 (MT5) trading platforms to their customers.
The MT4 platform is by far the most popular trading interface in the world, with over 80% of traders and brokers using it. This is because this platform is very easy to use, even for novices. And it also offers a range of tools such as charting options, technical market indicators and even trading bots, all of which make trading for the more advanced traders much easier.
The MT5 platform is the latest offering by the creator of the MT4 platform, MetaQuotes. It is the upgraded version of the MT4 software, and it has a lot of the same features, and a few new ones too.
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Very Low Minimum Deposit Requirement
MFM Securities only needs to you make a deposit of $15 to trade on their account. This is much lower than the market average, which stands in a range of $100 to $250.
MFM Securities – Disadvantages
Despite the fact that MFM Securities seems to have some great advantages, we would recommend you read through this section of our review before you invest with this broker. There are some very serious issues we have uncovered about this broker.
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Unregulated Broker
The first major issue with have with MFM Securities is that this broker is completely unregulated, i.e., it is operating outside the bounds of the law.
MFM Securities claims to be registered in St. Vincent and the Grenadines (SVG), which makes them an offshore broker. SVG’s financial authority has issued a notice to the public that it does not offer regulation for forex brokers, which is what MFM Securities is.
Since this broker does not have a license to operate from any other regulatory authority, the only conclusion we can come to is that MFM Securities is completely unregulated.
Dealing with a broker that operates outside the law is a risky proposition, since no trader’s money is safe with them.
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.
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.
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High Spreads Offered
On its website, this broker claims that the spreads they offer start from 1.8 pips. However, when we checked the EURUSD currency pair on their demo account, we found the spread to be at 2.2 pips, which is much higher than the norm. The market average for spreads is usually between 0.5 pips to 1.5 pips.
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Unknown Payment Methods
Despite looking through the entire website, we could not find any mention of the types of payment methods offered by this broker. This is suspicious considering that most brokers clearly state how their clients can make deposits and withdrawals.
Most brokers offer their clients standard payment methods such as credit and debit cards and bank wires. There are also many brokers who offer additional payment methods in the form of e-wallets such as Skrill, Neteller, PerfectMoney and so on. And finally, another form of payments is becoming increasingly popular, and that is cryptocurrencies.
We do not know which of these options is available with MFM Securities.
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Bonuses Offered
Another red flag that we have found with this broker is that they offer their clients trading bonuses. This is a very controversial promotional offer since it usually comes with unfair provisos such as a trading volume target that is very difficult to achieve. And if you don’t achieve that target, you cannot withdraw your funds.
This is a tactic that is normally used by scammers in a bid to divest unsuspecting traders of their hard-earned money.
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Bonus Amounts Cannot be Withdrawn
While MFM Securities offers their clients bonuses, you are not allowed to withdraw the initial bonus amount. According to the broker, that amount is only for trading. You will be allowed to withdraw the profits, but the bonus amount will be deducted from the total.
This is a very unusual practice, one that is not used by legitimate brokers.
Conclusion
Despite the fact that MFM Securities offers very attractive minimum deposits and leverages, there are too many issues with this broker that leads us to believe that they are actually scammers and that your money is not safe with them
MFM Securities
Pros
- High Leverage Ratio
- MetaTrader 4 and MetaTrader 5 Platforms Offers
- Very Low Minimum Deposit Requirement
Cons
- Unregulated Broker
- High Spreads Offered
- Unknown Payment Methods
- Bonuses Offered
- Bonus Amounts Cannot be Withdrawn
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
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.
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.
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