We have found that the website is actually operated by a Bulgarian company when we have read the terms of mediation.We remind readers that Bulgaria a member-state of the European Union and online Forex trading is duly integrated within its regulatory framework which is modeled after the ESMA guidelines.
However, we did not find any mention of the Bulgarian authorities’ license – we can conclude that MegaCoinFX is not subject to any regulatory supervision. We have encountered several “crypto” brokerages operating out of Bulgaria without a license and we have reason to suspect the same company is behind them all.
Another warning sign that the broker is not at all legitimate and trustworthy is the fact that there isn’t much information on the website of the brokerage. In fact – the lack of regulation and pertinent information incline us to suspect that potential clients of the brokerage may be exposed to substantial risk.
Deposit / withdrawal methods and fees
Furthermore, no information can be found regarding the available payment methods for clients, which is quite worrying as such information is essential in Forex trading.
It seems that the brokerage seeks to make money through an amalgam of fees. Perhaps that is the reason for the extremely high minimum deposit of $2500. We can read that there is a management fee of 3.25 percent every six months which is quite uncommon in Forex trading. Furthermore, there is a quarterly trading commission of 3.5 percent of the trading volume for the quarter and a staggering 25 percent withdrawal fee for “early withdrawals”. On top of all this there is also a non-trading service fee of 17.5 percent for all withdrawals without trading.