Things you must need to know before you invest your money to MXTrade.
Online Forex & CFD Broker “MXTrade” has confirmed that the broker does not allow Profitable Traders nor Professional Traders to trade and the Broker may cancel all profits if a Trader to be categorized as such a trader.
Because of its business model of MXTrade and according to reports from other investors,
You are most likely not able to withdraw your profits from MXTrade.
What is prohibited by MXTrade?
MXTrade prohibits many profitable trading methods such as:
- Scalping
- EAs(Algorithm Trading)
- API
- Arbitrage
- News time Trading
Along with the “Professional Traders”, the broker doesn’t allow above trading methods, and MXTrade will cancel profits made on these unauthorized ways.
Basically MXTrade does not want to let its traders to withdraw profits.
Why Profits are taken away by MXTrade?
It is most likely that the Broker adopt OTC(Over the Counter) model or in another word, “Market Maker Model” as its Forex business.
This means that the broker hedges its clients’ traders and there is a conflict of interest between MXTrade and Traders.
Thus if its clients lose their funds, the broker makes money and vise versa.
Or it could be the poor quality of risk management team who can not manage risks on clients’ trading and broker’s trading, and they are in need of taking profits away of its clients.
There are number of Investors reported troubles with MXTrade.
If you are looking to start trading with MXTrade, please be aware of these trading restrictions and you are recommended to discuss its conditions with the support team of MXTrade directly