There are hundreds of Online Forex Brokers, and each of them has got different business style and rules.

It is really important to choose a better broker, otherwise all your time and money will be just wasted.

MXTrade, Forex & CFD Online Brokerage Company registered in Belize, has confirmed that the Broker does not allow Profitable or Professional Traders to trade with the Broker.

Along with this rule, MXTrade also does not allow following methods:

  • Scalping
  • News Time Trading
  • Arbitrage
  • EAs(EXpert Advisers)
  • API

All profits will be taken away by MXTrade if you have traded such methods or you are a Profitable or Professional Trader.

Why they take away profits from traders?

It is simply that MXTrade is an OTC(Over the Counter) Broker which hedge its clients’ orders.

This is also known as “cover trade”, and number of Brokers do this trading against its traders.

As the Broker hedges clients’ orders, there will be conflict of interest between traders and the Broker.

So if traders lose their funds, MXTrade earns more profits.

As it is known that more than 80% of Forex Investors lose their invested funds, MXTrade should be making profits with a probability of more than 80%.

But there is one big demerit in that business model, which is that if a trader makes a profit, MXTrade simply makes a loss.

This is why MXTrade does not allow profitable traders nor profitable trading tools on its MT4 and take away profits with some reasons.

Is MXTrade a SCAM Broker?

Unfortunately MXTrade is not regulated by any recognized Financial Authorities but only a registered company of IFSC in Belize, there is technically no one to judge their business.

Number of Financial Regulatory Authorities from different countries have warned investors about MXTrade, but no one has taken legal actions against the brokerage firm.

As MXTrade basically does not let its traders to earn profits, the Broker is not recommended for Investors who are looking to make profits by investing.

Although the broker offers 50 dollars No Deposit Bonus and it is free to receive, so it might be one kind of opportunity to practice Forex trading with the real money.