Read our Monetalux review to see if this broker is a scam or legit. Just to clear doubts, this is a monetalux.com review.
Monetalux Review
If you have heard about some of the horrible experiences that people have had with online brokers, it is natural that you would be skeptical of every company you come across. No one wants to see their money go down the drain not because they made bad trading decisions, but because they did not have a good broker to provide them the necessary tools and services. Therefore, when you are making this decision, you have to be immensely careful and opt for a worthy broker. But, what makes them unworthy? You can go through this Monetalux review to find out.
It is understandable that no company will tell you it is an untrustworthy one. In fact, it will do its level best to convince you otherwise. You will be promised the best and top-notch services by almost every platform you come across and this is bound to leave anyone flummoxed. How do you pick one from the thousands of companies out there promising you professional services? It is extremely tempting in this situation to choose a broker at random because they are making some tall claims. But, doing so can also lead to disaster, as there are lots of scams out there.
What do you do then? As aforementioned, there are some signs that show that the broker you are considering is unworthy. Rather than believing all the promises and claims that a company is making, you should make some effort to ensure they are worthy of your trust. Otherwise, you could end up regretting your decision and lose your money, which is not something anyone wants. One of the many brokers that you will come across in the market is called Monetalux and starts with offering you a powerful platform and top execution.
People are drawn in because of its offerings, but you have to make sure it is a worthy option and not just another one of the scams operating in the market. Unfortunately, a closer look shows that this is exactly what Monetalux is. What makes it unworthy? You can check out some of the problems below:
It is an anonymous broker
Signing up with any online broker means you have to trust them with your money and a great deal of your personal data as well. This is a huge responsibility, so it is understood that you want to get to know the company you will be dealing with. Not only do you want their corporate background, but you also need to check their licensing and regulatory status because this assures you about the quality of their services and their authenticity. The fact that Monetalux is neither licensed nor regulated and its website is anonymous should tell you that it is not a broker worthy of your trust.
You can check the entire presentation on the Monetalux website and you will find no mention of the company behind the broker and they have not made any mention of location either. Likewise, you do not find any contact information on their website and this only worsens the case. The only clue that you will come across is in their Terms and Conditions where the laws of the United Kingdom are mentioned.
If Monetalux was indeed based in the UK, then it would need to have a license from the Financial Conduct Authority (FCA), which is the regulatory body for the region. A check of its register will show that the broker is not licensed. Furthermore, since it goes against the rules of the FCA when it comes to offering its services, it is not possible for the broker to be based in the UK. This means that you are dealing with an untrustworthy and unknown broker.
It offers trading bonuses
As mentioned above, Monetalux cannot be based in the UK and licensed by the FCA because it is breaking their rules. One of these is linked to trading bonuses, as these are banned in the United Kingdom and a number of other jurisdictions. There was a time when these bonuses were considered very lucrative, but it became apparent that they were designed to exploit traders because they came with conditions.
This prompted regulatory authorities to ban them, which includes the FCA. Yet, Monetalux is still offering trading bonuses and their aim is to exploit people and to draw them to their platform. This becomes apparent when you check out the bonus policy of the broker, which states that traders have to meet certain turnover requirements for withdrawing their funds, after their account has been credited with a bonus. The problem is that the company has deliberately kept the requirements so high that they become almost impossible to achieve.
Moreover, they also have the non-deposited funds clause, which is quite notorious amongst scam brokers. It states that traders cannot withdraw profits made from funds that they haven’t deposited i.e. from the bonus. The issue is that once you get a bonus, you cannot separate it from your own deposits and the same applies to profits. Hence, Monetalux has a reason to deny all your withdrawal requests until you meet their turnover requirements, which cannot be done, thereby depriving you of their money.
It does not have a good platform
The trading platform offered by a brokerage is one of its most important features because it is used for trade execution and offers tools and features that can help in decision-making. The problem with Monetalux is that it offers you a very basic and oversimplified trading platform, which has become common amongst scam operators. Unlike the MT4 and the MT5, which have become renowned in the markets, the platform is web-based and does not have much to offer.
Final Thoughts
Along with these issues, you will find that Monetalux also demands a minimum deposit of $10,000, which is excessive and does not mention any payment methods, so you don’t know if a chargeback is possible or not. Their spreads are also very high and all of these problems make Monetalux an unworthy broker for every trader.
