MainTrade Review – Why Should you Avoid this Broker?

MainTrade Review

It is a fact that there are lucrative opportunities at your disposal when you decide to engage in online trading, but there are risks involved as well. Sometimes you can make a massive fortune in a very short period of time, but other times, you may also incur hefty losses when you make mistakes.

But, these mistakes are not only related to your trading prowess; there are other factors involved as well, such as the brokerage you choose to trade online. Not every platform is a good option, as this MainTrade review will disclose.

You should remember that it is not just about choosing a broker and opening an account with them. Yes, it is what you have to do, but it cannot be any broker you find.

Anyone who believes that is making a mistake because there are scammers who are quite active in the space and their favorite technique is to fabricate brokerages to get people to deposit their money.

Since there is a great deal of money flowing into the financial markets, it is not surprising that scammers have decided to take this route. It is your responsibility to be prepared to investigate a brokerage before you decide to trust them.

If there is even a small hint of something shady, or fishy, you should immediately look for a different option. You should take note that these fraudsters will make all kinds of promises to grab your attention and convince you into trusting them, so you need to be thorough in your study of a brokerage.

At first glance, you will find MainTrade to be quite convincing and attractive, given that it presents you with a host of forex pairs, stocks, commodities, indices and crypto to trade.

It also has high leverage to offer and MainTrade has also emphasized on security, along with multiple payment methods. This appears to be just the right choice for anyone, but you need to avoid this broker altogether. Why? It becomes evident when you look into its details and find a lot of issues. Read on to know what they are:

Lack of licensing

The best place to start looking into a brokerage is with their license. In fact, a license can often be the top feature that distinguishes between scam and legitimate companies, so it is the one thing that should never be ignored.

A genuine brokerage would make the effort of obtaining a license in the country it operates in because this can help it establish credibility and earn the trust of its clients. It shows the company’s dedication because a license is not easy to secure; there is a criteria to be met that can often be stringent.

This is particularly true in the case of the United Kingdom, where MainTrade claims to be based. If you check out the details on its website, you will find that the brokerage boasts an address in the UK, which is a well-regulated jurisdiction.

Brokers operating in the country have to obtain a license from the Financial Conduct Authority (FCA), which is one of the top regulatory bodies in the world. Their criteria is quite tough, due to which a license from them is considered quite valuable.

But, when you check the online register of the FCA, you will not find the name of MainTrade in its list. This means that it is not licensed in the UK, so it cannot be based there. It is clearly hiding where it is located and trusting such a company would be a big mistake.

Vague bonus policy

The lack of a license is a pretty big reason to avoid any broker, but you can find more in the case of MainTrade when you continue looking at its offerings. It appears that trading bonuses are also offered on its platform, which is also a prominent reason to skip it.

Why? It further confirms that MainTrade is not based in the UK because the FCA has prohibited bonuses, which means the broker is going against the regulatory framework.

Furthermore, you should remember that these bonuses were prohibited because of the conditions they came with that were considered unfair and even exploitative. When you check out the bonus policy that MainTrade has outlined, you will find proof of this.

It claims that bonuses will come with additional conditions, but the brokerage fails to highlight what these conditions might be. Typically, they are usually those that demand certain trading volumes be achieved, which are impossible for the most part and aimed at blocking withdrawals.

No professional trading software

If you were expecting a professional and innovative trading software at MainTrade, you are in for a big disappointment because you will not find any such thing.

You need this software for executing your trades and accessing top tools for making good decisions. The MT4 and the MT5 are usually the platforms that most reputable brokers will offer.

Yet, the only trading software that MainTrade has provided is a rudimentary and oversimplified web trading platform that has only the basic tools and nothing special. In fact, many traders might consider it lacking in a lot of ways.

High leverage

Another solid reason for you to avoid opening an account with MainTrade is because it offers leverage as high as 1:500.

As the FCA has imposed a limit on the leverage that can be offered to retail traders of 1:30, this gives you further proof that MainTrade is not based in the UK at all because it is breaking the rules. This makes it untrustworthy and shows that it is unconcerned about its clients.

No refunds

The fact that there are three payment methods supported at MainTrade and all of them are crypto assets will not boost your confidence either. Why? This is because crypto deposits do not qualify for a chargeback and are also anonymous, so once you have paid the broker, there will be no refunds.

Closing Thoughts

These are excellent reasons for you to avoid MainTrade when you are looking for a brokerage to start your online trading career.