Margex is a website for trading that came out in 2020. Their office is in Seychelles, an island off the coast of Africa that is known for being a place where online scams are common.
You can trade coin pairs like BTCUSD, EOSUSD, YFIUSD, ETHUSD, and many more on Margex.
Even though the company says it is a global platform, it is not offered in many places, including the US, where there are rules.
The company also says it has a $10 minimum deposit and a Margex app for people with smartphones. But customers have sent in a lot of comments about the company.
I also found out that it is using illegal and shady marketing methods to hide complaints from customers.
Before you put your money at risk by dealing with this crypto exchange, you should read this Margex review. It will help you understand why you shouldn’t sign up with them:
Margex Signup: Why You Should Avoid It
It has made it easy for people to sign up. All you have to do is go to their website and click on the “Start Trading” button.
Your email address and password will be asked for by the site. Then it will ask you to prove that you live in a country where people are allowed to use it.
After you’ve finished the confirmation, you’ll need to confirm your email by going to your email account and checking the same.
Then you would need to put some money in your Margex account, and the process would be done.
Even though it’s easy to sign up for Margex, I don’t think you should.
Why?
Because there are too many red flags on the stage. You shouldn’t sign up for sketchy sites because you could lose your money in an unfair way.
For example, Infinox Capital is a forex company that used shady business practices to steal GBP 4 million from its clients. The company lied about its accounts and stole money from its customers by using fake companies.
In the same way, PointPay is an example of a cryptocurrency company that is known for stealing from its customers.
Here are the warning signs for Margex:
Offshore Location
The first biggest red flag in it \ is its location. They are based in Seychelles, a place notorious for being home to plenty of forex and crypto scams.
Seychelles has poor financial regulation and that makes it dangerous. Poor financial regulation means you don’t have any protection in case something goes wrong.
With a regulated exchange or broker, you would have the facility to contact the regulatory authority and get some compensation. However, with a company like Margex, you don’t get this facility.
The position far away doesn’t make me feel confident.
In the crypto business right now, there are a lot of offshore scams going on. For example, LyoPay is a crypto MLM scam that claims to build a community on the blockchain. Many people have said that they lost their money because of that scam.
So, I don’t think you should trade with Margex.
Unregulated
Even though I talked about this problem in the last point, the fact that there are no rules is still a big red flag.
Since it is not controlled, you don’t get any services to protect you.
So, if the cryptocurrency exchange takes money out of your account by mistake, you wouldn’t be able to get it back. There are a lot of regulatory bodies in the business that help their customers with insurance and ombudsmen.
But Margex doesn’t have any of these things.
You have to take everything they say at face value.
Excessive Leverage
Another reason I think it’s a scam is that it gives its users too much power.
At Margex, you can trade with as much as 1:100 leverage.
By business terms, this is way too high.
The amount of leverage that registered brokers can offer is usually limited by regulators with good reputations. For example, brokers who are controlled by the FCA can only offer up to 1:30 leverage.
Why?
Because the chance of losing your whole deposit goes up as the leverage goes up.
Most investors shouldn’t use excessive debt because it is very risky. I wouldn’t use such leverage unless you have a lot of trading knowledge.
Untrustworthy brokers, on the other hand, often lure in new traders by offering high leverage and then trapping them in debt when they lose.
You should be careful with these kinds of talks. So, I don’t think you should do it.
Too Many Customer Complaints
When I was looking into this cryptocurrency exchange, I came across many Margex reviews that said their customer service and app were bad.
It seems that too many people have said that the site is misleading.
I also found that the broker is using illegal and dishonest marketing methods to hide bad reviews, which is another red flag.
Also, because Margex has its own partner program, it’s hard to believe most of the good things people say about it.
There’s no way to know if the review was written by a real customer or by someone who was paid to write a good review.
It’s important to remember that many shady businesses depend on paid affiliates to get more good reviews.
Customer Reviews of Margex:
There are a lot of it reviews that talk about the problems this company has.
Most comments about them point out how bad their Margex app is and say that you shouldn’t use it.
But some of them say that the way the crypto exchange charges fees isn’t clear. For example, Janice doesn’t like that she has to pay upfront.
She says that you would expect them to be down 7.5% at the start of trading, but they are actually down more like 20%.
Her friend had started a trade between bulls and bears. At the same time, both of them were down by 30%. She doesn’t suggest Margex because of this.
What are Margex Trading Fees? This is one of the most-asked questions about Margex.
The fees for dealing on Margex are very high. They charge fees for each order as well as fees for funds.
They charge a Maker Fee of 0.019% for every order you place and a Taker Fee of 0.060% when you match an already placed order to take cash out of the order book.
When you place an order in the market, the exchange will charge you a trade fee.
