Beware! MegaCoinOptions is an offshore broker! Your investment may be at risk.
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The first impression MegaCoinOptions’ website leaves on its viewer is very poor. The site has plenty of broken links on it and questionable design choices. What is staggering as well is the inability to make an account on the website – after filling out a form you are prompted to move to a WhatsApp group. This just reeks of unprofessionalism. If a broker is legitimate, as MegaCoinOptions pretends to be there is no reason client accounts cannot be verified via the website alone.
MegaCoinOptions regulation and safety of funds
MegaCoinOptions tries its best to appear as a US based broker. Unfortunately, it is almost certainly not. First off, they have the following contact information listed on their website
There is no such location anywhere in Orlando, Florida. Of course it could be a really popular location among Floridans, but would it really be professional to use local slang on your official webpage? The answer is a resounding “no”. The given phone number is almost certainly fake as well. The 407 area code is actually only still used in the Volusia county of Florida, and not in Orlando. The phone being as real as the address would not be surprising – often times scammers fake both to pretend they operate from a first-world country. This is because such countries have much higher standards for investment brokers – the US in particular is draconian in its regulations. Their regulatory agencies, the CFTC and NFA has imposed a minimum capital requirement of $20 million. This is to ensure only big and established brokers can participate on the market. Companies licensed by the CFTC and NFA are also subject to strict supervision and are required to report certain transaction data to their customers. Finally, there is a leverage cap on the trade of commodities of 1:50. All of these regulations have made the US broker niche very slim and populated by highly professional participants. MegaCoinOptions just does not seem to fit in this environment.
MegaCoinOptions trading software
There is no mention of any trading platform on the broker’s website and since there is no way for us to make an account we cannot know what kind of software MegaCoinOptions uses. The only guess we can make is based on this image from the homepage:
However that could very well be a stock image, and even if it is not, we cannot judge the platform based on it alone. Reputable brokers usually provide the Metatrader 5 platform, which has proven itself as the leading one on the market for a variety of reasons – first off, its ease of use – the software is designed with the retail trader in mind and gives access to plenty of charting tools, for example indicators and the ability to draw trend lines. Secondly, the platform hosts a large community of developers of what are known as “expert advisors” – sophisticated algorithms that can trade autonomously. These algorithms are sold on the marketplace the platform provides. Metatrader also offers trade alerts in real time and has an extensive blog which covers plenty of trading related topics.
Of course, there is no good reason to assume MegaCoinOptions uses the software.
MegaCoinOptions deposit/withdrawal methods and fees
We were asked to agree to the company’s Terms of Service before getting redirected to WhatsApp to verify our account. However the link to the Terms was broken and so we were unable to go through them. They are nowhere to be found on the website either. It is shady, to say the least, being made to agree to terms you cannot have read.
Because of this lack of any concrete legal document, we can only speculate as to what the deposit and withdrawal policies are.
There is a minimum deposit amount of $500. We know this from the following screenshot
Now, 500 dollars is a lot more than what most reputable brokers require as a minimum – in fact FXTM only requires $5 to open an account – a hundred times less.
As can be seen on this screenshot, the company offers more than 10% profit per day. This is a ridiculous amount and certainly an empty promise to trick people into depositing money with them. Such high returns are simply unrealistic, even with the most volatile trading instruments out there – cryptocurrencies like Bitcoin and Etherium.
The company claims that it gives its customers a $15 signing bonus. That might seem generous of them, but keep two things in mind. Firstly, it is a mere 3% of the minimum deposit. Secondly, it is also a common tactic for scammers to assign membership bonuses. In the case of such brokers there is often a clause in the Terms of Service that makes giving up on an already assigned bonus impossible. These bonuses are then used against the trader – often times they are prohibited from withdrawing any money with an account accredited with a bonus unless a very large trading volume is executed – often times more than 25 times the deposit amount and the bonus amount. By binding you with two such clauses scam brokers practically ensure that you cannot get your deposit back. Given MegaCoinOptions’ general lack of competence and the myriad of suspicious details on their website, this seems to be exactly the case here.
Other than that we cannot know if there are any additional fees, or how long the withdrawal process takes. We cannot stress enough that the lack of a way to view the TOS is a huge red flag.
How does the scam work?
It is unfortunate, but the world of Forex trade is full of people that try to take advantage of others. Such scammers operate using a relatively simple, yet very profitable for them operation. They start by running some ads on a popular social media platform, say Instagram or Facebook. The ads are similar, with all of them promising the viewer a new way to get rich, or some sort of insider intel on the markets. When someone follows up on the ads they are taken to a similar website. The website will typically make them give their private information away, things like a phone number and an email. If they do so the scammers execute the next part of the plan – they start trying to get the victim to deposit money. How they do it is they call unceasingly, write email upon email presenting themselves as “Account managers” or other such authority figures. When the deposit is made they usually start running the account at a loss, hoping the victim will deposit more money. As you can probably guess they care very little about the trades themselves – they are only focused on the deposits, from where their profits actually come.
What to do when scammed?
Sadly, there aren’t a lot of options for someone that has fallen victim to this scam. You could file a chargeback on your credit card if the transaction was done up to 540 days ago, which is a considerable time frame. If you have used cryptocurrency to pay, however, your money is as good as gone.
There are two important steps to take to ensure you do not get scammed further and lose more money. The first thing you absolutely must do is to uninstall any desktop sharing software the scammers had you put on your computer. This includes programs like TeamViewer and AnyDesk that they will often use without your consent. This first step also includes changing any credit cards the scammers had access to.
The second step is being vigilant against further scams – often the final stage of the scheme consists of passing your phone number to another group of scammers which will then present themselves as a recovery agency of some sort. This agency will promise to restore some of your losses, but it will demand a fee in advance. Rest assured that they intend to do no such thing – they are just after your fee.
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