Beware! Mynetcoin 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! Mynetcoin is a Forex broker that refuses to introduce itself as it should. In fact, there is no comprehensive information about their legitimacy that the traders can find, anywhere on their website or Internet in general. Other worrying aspects were spotted, as well, which you should know before making a deposit with such a broker. Find out everything you need to know about this entity in the full Mynetcoin review.
Mynetcoin REGULATION AND SAFETY OF FUNDS
Mynetcoin is so surreptitious a broker that it doesn’t even point an address or a contact number, let alone other pieces of information that can prove it’s a legit enterprise which you can trust. We barely unearthed that the agreement between the parties is governed by the Estonian laws, shown on the picture above, which doesn’t verify in any way that it’s a European regulated entity. Our search in the register of the Estonian financial regulator- FI didn’t produce any results, as expected. The trading features offered include bonuses and leverage levels of up to 1:500, both of which prohibited in the EU and UK, meaning that Mynetcoin has nothing to do with European regulation.
Your funds are not safe if you deposit with Mynetcoin because it’s an unlicensed, unauthorised and unregulated Forex broker and you should stay away! Choose one that’s legit and decently regulated instead, because such an entity makes the difference for the traders and investors. In the EU and UK, for example, the brokers have to comply with many strict rules and regulations, which are put in place for the benefit of the traders. Most importantly, however, there are money protection schemes in operation which guarantee the deposits of the clients. In EU (mostly CySEC regulated brokers) you can claim up to 20 000 EUR in compensation, while in the UK (FCA regulated brokers) you are guaranteed even of up to 85 000 GBP per client.
Mynetcoin TRADING SOFTWARE
MetaTrader4 and MetaTrader5 accounts are not available for the clients. We mention these distributions because Metatrader is the most popular Forex trading platform in the world, highly renowned for its stability, reliability and the features included- Expert Advisors, Automated Trading, Complex Indicators, and even the marketplace that the platform created and maintains.
Instead, Mynetcoin provides the traders with some web-based trading platform, but it’s, mildly said a disaster. Warning! No demo trading available! The demos are training accounts, and it’s a must for the brokers to provide the traders with such an opportunity! Also, it’s a must for the traders to test the system offered by the broker risk-free before they put money in the real account!
Warning! No spreads available! The spread is the price for a trade, but Mynetcoin doesn’t show a price difference on the chart. It’s the ultimate scam sign that we were able to detect, and it confirms that Mynetcoin is a scam broker!
The maximum leverage is said to be up to 1:500, which is an extremely risky ratio. In fact, the account that we registered came with some default leverage which remains undisclosed! That’s yet another warning because we weren’t able to adjust it to our own preferences, as well. The leverage is a powerful financial tool, which gives the chance to increase the size of the position opened. However, the risks involved, become extreme, the higher the ratio is. A level of 1:500 might quickly annihilate the balance in your account if the price happens to make a move in the wrong direction!
Mynetcoin DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit required is $250, which is slightly higher than the rest of the industry, where the minimum deposit is $200 on average. The funding methods are said to be Wire Transfers and Credit/Debit cards.
The minimum withdrawal allowed is $100 for Credit/Debit cards and $250 for Wire Transfers. In contrast, most of the legit brokers will let you pull out as much as you want, usually for free. The fee for Wire Transfers is $50, while the fee for bank cards is $25, plus additional $10 processing fee. That’s a midday robbery! The withdrawal request processing time is said to be within 2-5 days, but up to 14 days, depending on the withdrawal method. It’s longer if compared to the legit broker, which will deal with the matter within 3 days.
An account becomes dormant after 6 months of inactivity and will be subject to a deduction of 10% monthly. It’s a scam clause whatsoever, because the regulated Forex brokers will never deduct percentages from your balance, but will introduce a monthly administrative fee of 5 to 10 dollars at most.
There are deposit bonuses that might apply to your account, but the clauses that come with it are unfair, making the trading even riskier. A minimum trading volume of 25 times the bonus plus the deposit will apply if you want to make a withdrawal. Find out more about the bonuses in the next paragraph.
Warning! Mynetcoin allows indebted account, but doesn’t specify how the Non-deposited will be handled further on!
HOW DOES THE SCAM WORK
The scammers and the offshore brokers are crazy about bonuses, promotions and other trading incentives. Everyone loves gifts and candies, and the scammers are taking advantage of that in their attempts to entice the people! It’s a warning sign that many traders are searching for brokers that offer bonuses or promotions because they might end-up trading with scammers. EU and UK disallowed the regulated brokers to offer trading incentives, because of the risks involved. At the same time, the scam brokers went in love with the bonuses, as they saw a great opportunity to rip off the clients more efficiently, especially if the trading incentives are combined with increased leverage such as 1:500.
The bonuses are not free money, but a leverage tool that significantly increases the risks for the traders further. The sham brokers, however, will not explain this to the clients but will let them believe that they’ve hit the jackpot. Precisely the opposite is true though because the trading incentives entirely benefit the brokers, not the traders. Moreover, the scammers will not miss the chance to introduce additional provisions and requirements that are way too challenging to meet and often block the funds in the account, making it impossible for the traders to make a withdrawal.
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 essential 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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