Beware! Monecor.eu 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.
Warning! Monecor.eu is a blacklisted Forex broker, which conclusively means that you should stay away from this entity. They claim to be a licensed and secure company, but that’s far away from the truth. We registered with them to take a more in-depth look at the products and services offered by Monecor.eu, but the verification mail hasn’t arrived yet. On top of that, there aren’t T&Cs or User Agreement accessible, which is another major red flag!
Monecor.eu, in fact, copies the name of a legit UK company that was incorporated back in 1965! It’s a firm cloning attempt, and you can find out more details about this type of fraud in the full Monecor.eu review.
Monecor.eu REGULATION AND SAFETY OF FUNDS
It’s as easy as pie to expose Monecor.eu, because CySEC issued an official warning against them, implying that you should avoid this broker and report promptly if they contact you.
They list a headquarter address in Cyprus and falsely claim that Monecor.eu is a CySEC regulated entity that’s guaranteed by ICF of up to 120 000 EUR. That statement is utter nonsense because the deposit protections in Cyprus differ in value, but we are going to explain the matter further in the next paragraph.
Your funds are in danger if you make a deposit with Monecor.eu because it’s an unlicensed, unauthorized and unregulated scam Forex broker.
We strongly advise the traders always to pick proven to be trustworthy EU (mostly CySEC regulated) or UK (FCA regulated) Forex brokers, as Europe created the safest financial environment for the funds of the traders and not surprisingly hosts the leaders in the retail FX industry. Most importantly, money protection schemes were developed in Europe, such as ICF in Cyprus and FSCS in the UK, established to guarantee the deposits made by traders and investors. Under CySEC (Cyprus) supervision, you can claim up to 20 000 EUR in compensation per client, while in the UK under FCA you are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Monecor.eu TRADING SOFTWARE
As mentioned in the introduction, we haven’t received the account confirmation e-mail, so we are helpless to access their platform if any. It’s a major red flag, no matter the reason for the unsuccessful sign-up.
MetaTrader4 and MetaTrader5 accounts are not available for the traders. We suggest these because Metatrader is the most popular Forex trading platform in the world, and the traders widely acclaim it! Metatrader comes with sophisticated trading features and tools such as Expert Advisors, Algo Trading, Complex Indicators, Strategy Tester and even its own marketplace. We recommend that the traders should stick to MT brokers.
There is no information about the spread available. It’s one of the most critical components in trading. The spread is the price to execute a trade, and it has a direct impact on the potential profits. Lower spreads mean lower costs and that benefits the traders.
The leverage is the next component that’s of utmost importance for the traders, and Monecor.eu says to offer a maximum ratio of 1:100. That further proves it’s an entity that’s either unregulated or breaching the rules that CySEC impose on the brokers. The leverage allows the traders to amplify the profits but comes with proportionally increasing risk. Ratios such as 1:500 are dangerous for traders and investors with little or no experience and might inflict losses that are very difficult to recover. The tremendous risks were the reason that made the EU, UK and Australia (coming into effect from the spring of 2021) to force a leverage cap of 1:30. The USA capped the ratio at 1:50. We recommend that the traders should stop searching for brokers that offer increased leverage levels because they’ll most probably lose their money to scam.
Monecor.eu DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is $250, which is higher than the requirements in the legit Forex industry- $100 on average, but a standard for the offshore brokers.
The possible funding methods include Credit/Debit cards, Wire Transfers, Exmo-Code and Bitcoin, but again, we cannot verify it’s true because we don’t have access to their Client area. Popular payment systems, such as Skrill or Neteller, are not available.
No minimum withdrawal amount requirement and no withdrawal fees specified, but the transfer is said to be completed within 5 business days. It’s slightly longer if compared to the regulated brokers, which will generally process the requests within a day or two.
No information about their dormant account policy or fees for inactivity apply. It’s a policy that defines how the broker handles the accounts that have become inactive- no login or trading occurring. The regulated Forex brokers will usually charge the account with an administrative fee of no more than 5 to 10 dollars per month.
No bonuses are available at the moment. You should know that the bonuses are not free money but a leverage tool that further increases the risk for the traders. The trading incentives were banned in the EU and UK precisely because of the risks involved and the deceptive nature of this marketing tool.
HOW DOES THE SCAM WORK
The scam is a criminal activity- the scammers are trying to defraud people by making them believe that they can make easy money. In most of the cases, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. There is no or very light FX regulation in the offshore jurisdictions such as the Commonwealth of Dominica, the Marshall Islands or St. Vincent and the Grenadines, making them some of the most popular destinations for shady and illegitimate enterprises. Regulation means customer protection and safety, financial authorities such as CySEC or FCA will make it impossible for a scam Forex broker to conduct illicit activities and harm the traders.
Firm cloning is a type of investment scam that’s becoming increasingly popular lately. The scammers use the names, registration numbers, address etc. of businesses and individuals, which are duly registered, regulated and authorized to sell financial products and services. By doing this, the fraudsters are trying to gain the trust of the customers and trick them into believing that the broker is a genuine and distinguished, renowned company. It is an effective way to take off the guard of the wary investor, who can easily fall in the scammers’ set up.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will 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. Seek help actively!
It’s very important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!
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