MottoFX is an online forex and CFD broker that is not registered with any financial regulators. They operate from St. Vincent and the Grenadines, a familiar offshore haven for brokers looking to avoid regulation. This offshore address makes it incredibly challenging to make any concrete contact with the broker. Their parent company is Capiteus Global Ltd.
Broker Claims Absurd Rights
On their website, MottoFX explicitly states that they “reserve the right to change any of the charges applicable to your dealing with us” and that they can “reject or delay the processing of any withdrawal requests from your Account(s).” These are their terms and conditions. If you place a deposit with this broker, they state they are not obligated to process any withdrawal to you, ever. Further, they can charge you any fee they want. They are an unregulated broker, meaning you would have no effective recourse against these actions.
Trading with MottoFX
MottoFX has four account types, Starter, Advanced, Expert, and VIP. The minimum deposit to open an account is $250, higher than with most other brokers. They offer leverage of up to 1:100, much higher than the ESMA mandated 1:30. They don’t have any demo account, so you can’t try anything or evaluate the broker before making a deposit. Their spreads are generally unfavorable, with a EUR/USD spread of 2.8 pips.
A Warning from the Financial Conduct Authority
The FCA issued a specific warning against MottoFX in July 2020. They say the broker has no authorization to offer services within the UK but is actively targeting residents of the UK. It’s always unwise to invest with an unregulated broker, and this warning drives that point home. The activities of this firm have been enough for the FCA to notice and condemn them. The Italian regulator CONSOB later issued a similar warning for the residents of Italy.
Poor Platform Options
MottoFX doesn’t give their users access to MetaTrader 4 or 5, as countless other brokers do. Instead, they have their web-based platform with almost none of the features traders have come to expect. It features little more than a price chart and large BUY and SELL buttons.
Efficient Fund Recovery Services
Going against the warning of the FCA to avoid this broker seems like an unnecessary risk for most traders. Dealing with an unregulated broker, let alone an unregulated, offshore broker, always presents a risk. Traders should take their business to regulated brokers, whose financial regulators can help any potential victims. If you’ve already lost funds investing with an unregistered broker, call our team today for a free consultation. We can find the most expedient method to recover your funds.