Digital assets are an unpredictable and uncertain territory. The “regulations” for crypto coins and trading aren’t as well-established as for more traditional assets.
But when you deal with an offshore crypto brokerage, you’re playing with fire. We’ll be discussing those risks in the Margex Review.
Margex Trading Solutions LTD, the company behind the Margex broker, operates from the offshore domain of Seychelles.
This domain is not exactly “safe” in terms of funds security, regulation, compensation, etc. Seychelles is pretty cheap when it comes to establishing businesses there. The Margex regulation is not worthwhile.
You should have that in mind, especially since this broker engages in crypto trading. A brokerage such as Margex is thus not allowed to provide services onshore. Yet, Margex violated that rule, which consequently landed our little crypto scammer on three blacklists.
Our suggestion is that you find a licensed broker, preferably one that operates under the jurisdiction of the European Securities and Markets Authority (ESMA). A Tier 1 regulation (FCA, CNMV, BaFin, FINMA, etc.) is always a safe bet.
Margex is an unregulated Seychelles crypto broker that has been blacklisted by the Spanish CNMV, Norwegian FI, and Belgian FSMA. Margex has scammed traders from the UK, the US, Spain, Australia, and Pakistan.
As mentioned, Margex has been flagged as an illicit entity by three European regulators. That means that the broker has been providing services to onshore clients without the necessary permit.
It seems that Margex tried to win over traders from various parts of the world. The financial swindler was mainly interested in heavily regulated domains.
So far, only the Spanish regulator has issued a warning against Margex. If you’re a victim of this scam, please let us know so we could report Margex to the other regulators.
From our experience, scammers such as Margex use cunning disguises to present themselves as legitimate entities online.
Google ads, Facebook & Instagram posts, YouTube videos, fake LinkedIn ads, fraudulent crypto marketing campaigns, etc. Those are some of the methods for attracting victims.
Others include private WhatsApp & Telegram chats, dating apps such as Tinder or Bumble, or direct phone calls and emails.
Traders seem to be dissatisfied with Margex’s behavior. They have been writing complaints against the broker.
From what we gathered, Margex was meddling in their trading by manipulating their accounts and platforms. This one complaint does point to a suspicious setup:
The funding rates are pretty ridiculous compared to other platforms, these need to be reduced to be a valid competitor… It constantly logs you out so too make any quick changes like adding a stop loss you have to log back in again… Will be moving my funds to a different platform.
Margex offers WebTrader. This browser-based platform is certainly not “powerful” as Margex has described it. On the contrary, WebTrader is a lackluster platform with some basic charts and tools.
We got to see it and we weren’t impressed. The shady broker doesn’t support any legit third-party platform such as MT4, MT5, or cTrader.
Since WebTrader is browser-based, it doesn’t require an app. It can be accessed via any device with an internet connection.
Still, Margex included an Android and iOS mobile app, which essentially gives you access to your account and a shortcut to the trading platform. We wouldn’t trust it given Margex’s lack of regulation.
Crypto. Margex offers exclusively crypto trading against the US dollar and nothing else. Here’s an overview of the available crypto coins:
Margex has its own trading fee system. According to the broker’s website, the broker charges two types of trading fees:
The former is charged on “limit orders placed below the current price for a BUY order or above the current price for a SELL order.”
As for the latter, Margex says it is charged “when removing liquidity from the order book by placing an order that is matched immediately against an order already on the order book.”
Margex doesn’t offer different account types. There’s only a live account, which requires a minimum deposit of just 10 $.
The issue here is Margex’s controversial leverage cap. Namely, the broker offers a leverage of 1:100. Due to the fact that the crypto market is a volatile one, regulators have imposed a 1:2 cap on leveraged crypto trading.
Trading crypto at extremely high leverage can easily result in you losing all your money lightning-fast.
There’s a live demo option on Margex’s website. However, don’t mistake this for a proper demo account. This link just leads you to see the trading platform.
It doesn’t allow you to trade. For that, Margex requires you to first register and deposit funds. Therefore, the unscrupulous broker didn’t include a free demo account.
Margex entices you to refer friends, i.e. invite them to join in on the broker’s crypto platform, by offering a 40% commission from trading. Smells like a Ponzi scheme.
By that, we mean that the one on top, in this case, Margex, is going to profit from defrauding you and your friends. Margex promises a hefty reward for each “victim” you bring. The more victims you draw into this scheme, the better for the scammer, so don’t do it.
The only way you can deposit money onto your Margex account is via Bitcoin. If you don’t own a BTC, the broker offers you the possibility to buy one on the Hong Kong-based exchange Changelly.
The Margex withdrawal process is the same, i.e. only BTC, which is shady. Expect withdrawal issues if you invest in the Margex trading platform.
Scammers love crypto transactions because they can remain anonymous, plus the transactions are really hard to trace.
If the broker violated any terms and conditions, please write a complaint. We can help you by reporting the scammer to financial market authorities.
The more pressure we put on the regulators, the greater the chances of finally shutting down this foul crypto trading scam.
Global Fraud Protection can also help you get your hard-earned money back. Our experts are skilled crypto tracers, specializing in advanced software such as CipherTrace.
If this broker steals your money, please let us know. Unsure what to do? Book a free consultation with us using Online Chat, it’s the easiest and fastest way.
No. Margex is unregulated and blacklisted. Don’t invest, it’s really risky. If you did, call us as soon as possible.
Not really. Margex allows you to see the trading platform but not to trade for free.
Yes. Margex included a mobile app for both Android and iOS, despite the broker’s platform being web-based.
No. WebTrader is an ineffective trading platform without any advanced tools.
No. Margex is unregulated and blacklisted. Don’t invest, it’s really risky. If you did, call us as soon as possible.
Not really. Margex allows you to see the trading platform but not to trade for free.
Yes. Margex included a mobile app for both Android and iOS, despite the broker’s platform being web-based.
No. WebTrader is an ineffective trading platform without any advanced tools.
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