Beware! McGregorTrade is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
We are reviewing McGregorTrade, a broker we have already written about. However, they are now working under a new domain, and there are some notable changes we need to note down. Their services are pretty expensive, and the company can’t actually deliver anything substantial for their client. In fact, the so-called broker is a scam scheme, and we are going to show you why in the full McGregorTrade review.
McGregorTrade REGULATION AND SAFETY OF FUNDS
First off, we are assessing the new domain of McGregorTrade, namely mcgregortrade24.com. However, the website is largely identical to the one we encountered some time ago when we initially wrote about McGregorTrade. By following the link provided, you can see the earliest review but bear in mind that the domain .com has already expired.
McGregorTrade allegedly originates in the Marshall Islands, and that’s a fundamental problem for their potential clients. The islands are infamous tax haven without financial authority, let alone a regulatory framework. So, traders and investors would be vulnerable if they deposit money with Marshall Islands’ brokers. In fact, the companies operating there can do whatever they want to do without bearing any consequences for their actions. Not surprisingly, the jurisdiction is bustling with scammers precisely because of the regulation deficit.
But things aggravate as the Austrian financial regulator FMA already detected McGregorTrade and issued a warning against the broker, exposing it as a scam scheme. Your funds are in danger if you make a deposit.
Avoid this scam and better consider the high-rated EU brokers and British brokers instead. The European markets offer high-grade security, and the member states are compelled to operate deposit insurance funds that guarantee clients’ money in case of insolvency or fraud. Hence, CySEC brokers’ traders can claim up to 20 000 EUR, while the British protection is up to 85 000 GBP. If you are eligible to open an account with a European broker, you can safely do so; it’s a no brainer.
McgregorTrade TRADING SOFTWARE
McGregorTrade provides with MetaTrader4, but as of now, the platform is actually dysfunctional. We don’t know why, but it doesn’t really change anything because, as you already know, McGregorTrade is an exposed scam.
That said, the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists are safe and proven to deliver upper-class software. The MT distributions are packed with advanced trading features such as Expert Advisors, many complex indicators and sophisticated charting tools. There is also a marketplace where clients can benefit from more than 10 000 apps and third-party trading solutions. MetaTrader is the best option on the market, so do not hesitate if you are eligible to open an account with some of those brokers.
The maximum leverage possible is 1:50, which isn’t so risky a ratio, but it’s still prohibited in many jurisdictions worldwide. As it’s so dangerous, many financial authorities enforced regulations to decrease leverage-related losses among traders. For example, EU, British and Australian brokers limit their clients to 1:30, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
McgregorTrade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit requirement for Debit/Credit cards is 250 EUR/GBP, but for Wire Transfers is 3000 EUR/GBP, which is a ludicrous requirement. That’s 30 times more than the regulated brokers’ standards. The funding methods are said to be Credit/Debit cards, Wire Transfers, Skrill and Neteller, but we can’t validate this because the sign-up page was broken at the time, and it was impossible for us to test their deposit system. Nevertheless, bank card funding is seen as considerably safer because clients can dispute transactions and get a refund within a year and a half after the transfer of money.
While discussing deposit methods, see the Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated companies on both lists are stringently regulated, and you won’t face scammers among them.
McGregorTrade determines minimum withdrawal requirements for Wire Transfers only- 3000 EUR/GBP. That’s laughable and a scam sign itself. The broker can always refuse withdrawals of less than 3000, stating that they only transfer money via Wire Transfers. Anyway, the request is said to be processed within 5 days free of charge, but we can’t take their word for it because it’s an exposed scam. In fact, no withdrawals should be expected at all.
The inactivity fees are also pretty adverse. According to the provisions, after 6 months of inactivity, an account becomes dormant and will be subject to a 10% deduction per month. That’s a scam clause one can see included in the Terms and Conditions of many other fraudulent Forex brokers.
McGregorTrade offers trading incentives, but when there is a bonus accepted, the “Non-deposited funds” provisions apply. According to the clauses, traders can’t withdraw non-deposited funds under any circumstances. Usually, brokers would introduce additional requirements such as minimum trading volume, but McGregorTrade doesn’t do so.
Overall, McGregorTrade is an exposed scam, so you should avoid this broker. Make sure to contact the authorities if brokers’ representatives approach you in any possible way.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s effectively a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; that’s the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the trading results to show victims massive profits and ask for more money, promising to generate a fortune in no time.
However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!
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