September 9, 2020

MegacoinFX Review

Overview

Megacoin FX is an online trading platform that deals in many CFDs, but primarily focuses on Crypto. The company doesn’t seem to showcase it’s leadership or a lot of it’s company information online. However, it seems that it is owned and operated by a Bulgarian company. Unlike most trusted trading platforms, it doesn’t employ Meta Trader 4, rather it has a web based platform. And this fact itself, makes MegaCoinFX a bit inconvenient, as it lacks a lot of features from Meta Trader 4. MegaCoinFX suggests on it’s website that it offers leverage as high as 1:1000. Obviously with such high rewards come high risks, and if you are not a seasoned trader, you could lose out on big money. Read the review of MegacoinFX here.

About MegacoinFX

MegaCoinFX offers a variety of forex currency pairs, and has an average spread of 0/9 pips. Their basic account however asks for a very high minimum deposit of 2500USD to start. This could be a red flag for some beginner traders. Given that the company is based out of Bulgaria, it falls under the jurisdiction of the European Union. However the company doesn’t seem to have any licences from either Bulgarian local regulator bodies or a EU license. This itself is a huge red flag for any potential trader. There have been reports of many scamster crypto companies setting up shop in Bulgaria this year, and MegaCoinFX does seem to fit the description.

Another potential red flag one is bound to encounter is the fact that there is no clear mention of payment methods. For a trading platform, this information is crucial and seems to be missing. Also, apart from the high minimum deposit, there seems to be a myriad of unconventional fees like – a half yearly management fee of 3.25% of whatever volume you might trade in; a 3,5% trading commission, that is due every 3 months. The worst of these fees is a shocking 25% ‘early withdrawal’ fee,  which seems ridiculous, especially when you consider that ‘early withdrawal’ hasn’t been explained on the site.

Is MegaCoinFX a scam, or legit?

While trying to offer a variety of CFDs, cryptos at a high leverage, MegaCoinFX falls short on various parameters. Starting from the lack of standardized information, to the extraordinarily high fees, it is safe to say that MegaCoinFX does seem to have the traits of a scam company, and we urge potential traders to be vary of them.