Beware! Mira Capital Markets is an offshore broker! Your investment may be at risk.
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Mira Capital Markets is an offshore broker advertising trading in Forex, Stocks, Commodities, Indices and Bonds. They have three types of accounts – Classic, Standard and VIP – differing in the minimum deposit requirement and the trading conditions (spreads and leverage) offered. All of the accounts offer bonuses too, although their amount / percentage is not specified.
The registration form asked for our first and last names, email address, phone number, city and country, but it contained a captcha field which did not accept our input no matter how many times we tried. As a result we were not able to create a Live account, but only a Demo account for the trading platform.
Mira Capital Markets Regulation and Safety of funds
Mira Capital Markets has an address in London, UK and Dubai, UAE, and a UK phone number on their website. They are registered in Saint Vincent and the Grenadines (SVG) and regulated by the Financial Services Authority of SVG under Number: 23447 IBC 2016, however. SVG is an offshore jurisdiction in the Carribean where registration procedure for forex brokerages as International Business Companies (IBC) is simple and inexpensive and they face limited regulatory supervision, if any.
Actually, the SVG FSA itself states that IBCs are not regulated, but duly registered entities, and forex trading is not regulated by them – see below:
That is why we generally advise traders to avoid offshore companies and to invest with brokers regulated by reliable authorities such as the UK’s Financial Conduct Authority (FCA), or the Cyprus Securities and Exchange Commission (CySEC). These watchdog agencies impose strict rules on the brokers they license – Client Account Segregation requires that clients’ funds are kept separate from the broker’s operating funds. while Negative Balance Protection ensures that traders cannot lose more money than what they invested. Other policies include a Minimum Capital Requirement of 730,000 EUR in order to guarantee the broker’s good financial standing and participation in Compensation Schemes, which provide additional assurance for investors’ funds up to a certain amount (85,000 GBP in the UK and 20,000 EUR in the EU).
Because of the UK address we did check the FCA database but there is no Mira Capital Markets registered with them. Checking the entity further we discovered that the Spanish regulator, Comisión Nacional de Mercado de Valores (CNMV) has issued a warning that the broker is unregistered and not authorised to provide investment services:
The URL in the warning is different but as it turned out this is Spanish URL that is accessed when you click on the language link “ES” in the top right corner. The broker also has a payment agent, Mira Markets F.Z.E., which operates in the Ajman Free Economic Zone, UAE.
We notice here that the broker is trying to instill confidence in potential investors that their funds will be safe, but they do it in a very sloppy way – they do not name the European bank, so we regard this as an empty claim. Overall, Mira Capital Markets is an unregulated, offshore broker and they are not bound by the rules and policies imposed by recognized regulatory bodies. We advise our readers not to invest with them as there is no guarantee for the safety of their funds.
Mira Capital Markets Trading Software
The broker offers the MetaTrader 5 (MT5) platform as a desktop, web and mobile (Android and iOS) application. MT5 is one of the most functional and powerful trading platforms on the market. It offers a large number of instruments from various asset classes with different settings, all tradable from the same interface and the same trading account. It boasts advanced features such as auto-trading bots, custom indicators and a built-in e-mail service in which it surpasses its predecessor MetaTrader 4 (MT4).
MT4 platform is also available for download at the website.
Mira Capital Markets Trading Conditions
The brokerage claims to be a No Dealing Desk, ECN processing broker, meaning that they execute client orders with no dealing desk intervention. Unlike market makers, which profit from the Buy/Sell difference (spread) they offer to the traders, putting them in a conflict of interest with their clients, NDD brokers usually advance lower spreads, but these are not fixed and the brokers often charge commission on transactions.
In the MT5 screenshot above we see a 0.8 pips spread for EURUSD, which is quite competitive. We have to note, however, that this is a Demo account and the spreads can vary. On the website the EURUSD spread advertised is 1.6 pips – regulated brokers generally provide spreads between 1 and 1.5 pips for this most traded currency pair.
Mira Capital Markets offers leverage of up to 1:1000. Offshore brokers enjoy no restrictions on leverage, but leveraged trading entails significant risks, especially to inexperienced traders. High leverage provides huge profit potential, but also presents great risks to the traders because any losses incurred will be multiplied. That is why, most regulatory authorities impose leverage caps for non-professional traders: in the USA it is 1:50, while for brokers licensed in the EU and the UK it is 1:30. The Australian Securities and Investments Commission (ASIC) will also start restricting leverage for major currency pairs to 1:30 from March this year.
Mira Capital Markets Deposit/Withdrawal Methods And Fees
The brokerage claims to provide a number payment methods for deposit and withdrawal transactions. Although not advertised on their website Mira Capital Markets also offers Bitcoin as a deposit option – cryptocurrency is a method preferred by con artists as it is completely anonymous and untraceable.
The minimum deposit for bank transfer is $500, which is a little excessive, but for other methods it is $10. The broker also claims they do not charge any fees for both deposit and withdrawal, but we could not verify this as we were not able to open an account.
As a whole, we have to note that although the trading and payment transaction conditions presented are tolerable, Mira Capital Markets is not a regulated broker and investing money with them is a huge risk!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.
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Mira Capital Markets