Midas FX – Are They Safe?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Midas FX - DO NOT TRADE WITH THIS PROVIDER
2.6/10
$100
Minimum Depositupdated 2023
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
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://midasfx.com
Founded: 2011
Regulations: No Regulation
Languages: English
Deposit Methods: Cryptocurrencies – Bitcoin, Stellar, Tether, USDC, Bitcoin Cash, Instacoins, Ethereum, Litecoin
Minimum Deposit: $1
Free Demo Account: Not Available
Number of Assets: Unspecified
Types of Assets: Metals, Forex, Energies, Stocks, Indices, Cryptocurrencies
Trading Accounts and Conditions
Midas FX seems to offer two types of trading accounts:
- ECN: The spreads start from 0 pips. Commissions are $5 per $100,000.
- STD: The spreads start from 0.7 pips. There are no commissions.
Each of these account types are available on both the MetaTrader 4 and the MetaTrader 5 platforms, therefore, there are actually a total of 4 trading accounts offered.
For all the account types, the leverage is 1:1000. The account currency is USD/EUR/JPY/GBP/CAD. The minimum trade size is 0.01 standard lots. The order execution method is market and the stop out is 40%. The minimum deposit requirement is supposedly only $1.
Midas FX – Advantages
The biggest advantage that we have found with Midas FX is that this broker actually keeps their promise about offering their clients the use of both the MetaTrader 4 and the MetaTrader 5 trading platforms. These are top two trading platforms in the world. They are easy enough to use that new traders will not struggle to navigate this software, and they have so many functions and tools that even the pickiest pro trader will be happy with these platforms.
However, having good platforms does not hide the fact that there are too many serious issues with this broker – enough that we would still brand them a scam.
Midas FX – Disadvantages
Listed below are the disadvantages that tell us that Midas FX is a scammer and not to be trusted:
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Unregulated Broker
The first disconnect we have with Midas FX is their regulation status. This broker is registered in St. Vincent and the Grenadines. This means this broker is unregulated.
The SVG Financial Services Commission has only one law in place for forex brokers (and this law was instituted only recently due to the proliferation of forex scammers in their jurisdiction) – all forex brokers who are registering in SVG need to be regulated and authorized by another financial regulator. This means that a broker registered in this country is not regulated by the SVG FSA, and getting authorization for any regulator is enough for them to set up business here.
With Midas FX, since they registered in this country well before this law was put in place, and they do not mention any other regulation or license, we can assume that they are not regulated at all.
Added to this, we do not have much corporate information about this broker. We do not know their contact information; the only way that we can get in touch with them is by emailing them. And since you are not required to have a physical presence in SVG, this broker could actually operate from anywhere in the world. This means that this broker is practically anonymous!
What we have uncovered means that this broker has been operating illegally for some time – and that makes Midas FX a scammer.
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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Issues with Trading Conditions
While Midas FX’s platforms may be excellent, their trading conditions certainly are not.
First, the broker claims to offer stocks, however, when we checked their trading platform, we found out that Midas FX only offers currencies, cryptocurrencies, indices and commodities for trade. So, there is a discrepancy in what they promise and what they deliver.
While the minimum deposit of $1 was wonderfully affordable, there are many reputed brokers who offer the same account opening option and they are more reliable than Midas FX.
The spreads look very advantageous at first glance (the EURUSD spread is just 0.1 pips), but then this broker charges a hefty $5 commission per standard lot. While not over the top, there are many excellent brokers that can do better.
The biggest issue with have with this broker is their maximum leverage, which is at a whopping 1:1000. Such a massive leverage means huge risk. We need to point out that such huge ratios have been banned in most regulated markets due to the extremely high risk attached to them. So, in the UK, Europe and Australia, that leverage cannot be more than 1:30. Other countries such as the US and Canada only allow a leverage of up to 1:50. Japan, Hong Kong and Singapore allow for a 1:20 leverage. So, the kind of leverage that this broker offers tells us clearly that they are not bound by laws and is a clear indication of their scam.
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Single Payment Option
The only way to make payments with Midas FX is through cryptocurrencies: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Stellar, USDC, Tether, and Instacoins.
This is massive red flag that tells us that Midas FX is not to be trusted at all. Regulated and legitimate brokers will ensure that there is a wide variety of payment methods available to their customers – credit cards, debit cards, bank wires, e-wallets and so on. Cryptocurrencies are only one of the many options they present.
When a broker offers only cryptocurrencies as a payment option, it is a sign that things are not right. Cryptocurrency transfers are permanent and anonymous, which means that there is no way you can get your money back. And this is exactly what scammer rely on. So, with Midas FX offering only a crypto payment option, their scam becomes even clearer.
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Issues with Information on Withdrawals
And finally, Midas FX does not mention what their withdrawal conditions. We do not know much except that you can only withdraw once a day. We do not know what the minimum withdrawal amount is, how much fee are charged, whether you need to meet any other requirements before you can withdraw your funds.
Conclusion
Midas FX is a scammer and they are not a safe broker to do business with.
Midas FX
Pros
- MT4 and MT5 Platforms Available
Cons
- Unregulated Broker
- Issues with Trading Conditions
- Single Payment Option
- Issues with Information on Withdrawals
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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