Maddex Capital Review: Untrustworthy Company

You could be fooled into thinking Maddex Capital is the best place to trade FX and CFDs because of their state-of-the-art interface and seemingly favorable market circumstances. But in truth, it’s just an unidentified website without a proper forex license and replete with every red flag one might imagine. So, if you’re considering using Maddex Capital to trade FX, stocks, indices, commodities, precious metals, and cryptocurrencies, read this review first.

The fact that there are scam brokers does not, however, mean that there are no legitimate and honest forex brokers in the market. Because of the constant development of financial technology, getting into the market is becoming less complicated. The variety of ways to make a living in the financial sector has thus expanded. The Forex market (foreign exchange) is one of the areas that have seen significant growth.

Values of several currencies rise and fall in proportion to one another. Foreign exchange (FX) trading is based on the premise that participants can profit from the market’s inherent volatility. Currency pairings, such as JPY/GBP (Japanese Yen against the British Pound) and EUR/USD (Euro against the United States Dollar), are used in forex trading. This is different from the way stocks and other securities are traded.

The investment looks simple enough as all one has to do is click buy or sell. People, therefore, sometimes get into trading with a gambling mentality. In the long run, this proves to be very costly. To succeed in trading, you need capital and intensive training to master the art.

About Maddexcapital.com

On the company website, the first impression you get is that you can trade the forex market either through the phone or computer. This, however, does not mean the company has provided these platforms, although they have images suggesting they have.

They market themselves as the best in the business. By trading with them, you will supposedly get the best experience. The firm offers more than 200 assets, and therefore as a trader, you have virtually limitless opportunities.

They claim their devoted senior managers are here to ensure you maximize your potential in the Forex market. You may use their platform and view up-to-the-minute market quotes from any mobile device, thanks to our user-friendly layout. The broker claims you can trade indices, stocks, currency pairs, and cryptocurrencies. They have offices in Australia and the UK.

Founders and Team

Every reputable company has a history. This is where you find information about who founded the company and when. The date is essential because it tells you how long the company has been operating. If it has been in the industry for a long, then it means it has met all the necessary legal requirements. Also, it has a proven track record.

The company employees are also essential. Every company should be proud of the people running it. Keeping this information secret means there is something fishy going on. Maddex Capital has not provided any information about who runs it or who established it. There are some images on the website, but there is no way to verify if these are company employees.

From whois.com we established that they created their website on 2022-08-23, and it will expire on 2023-08-23. This is a red flag. The fact that the company wants to exit the market after only one year means its operation is brief. Only scams wish to leave the market soon before their tricks are uncovered.

Maddex Capital Contact Details

Forex trading is a risky endeavor. As a trader, your broker should be available whenever you need them. They also need to update you on your account’s progress. In case you are running out of funds, they should notify you. This is critical as it keeps you from blowing your account.

The broker has provided a phone number and email. However, they have omitted the physical address. This is a red flag. As a trader, you should be able to access the brokerage firm in case of any inquiries. Giving a phone number is not enough. Furthermore, it is possible they do not respond to emails because they are scammers.

They have vaguely mentioned that they have headquarters in the UK and Australia. However, they have not given specific details. The broker does not have any social media platforms where traders can reach them to get more information. You have to rely on what they say on the website, which is unfortunately not enough.    

Maddex Capital Regulation Status

When people are looking for a broker, they consider a number of factors. However, one factor that they often overlook is regulation. Trading with a broker is extremely risky if they don’t have a license. Such firms have no legal mandate to compensate you in case something goes wrong. Before choosing a broker, it is imperative to ensure a regulatory body licenses them.

Maddex Capital is not regulated. One of the things we noted about them is that they have not mentioned this issue on their website. A regulated broker shows all its regulatory bodies to prove that it is indeed legally mandated to offer brokerage services.

When looking at the Terms and Conditions of the company, we noted that they made a reference to Saint Vincent and The Grenadines. This is a red flag. One of the things to note about this region is that they do not regulate financial service companies. Many scam brokers have their companies in these offshore jurisdictions to avoid regulation.

The broker also gives the impression that they have offices in the UK and Australia. If this were the case, they would have to be under the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA).

The company has, however, not mentioned any of these regulatory bodies. A legit company highlights all the legal requirements it has fulfilled. The company may not have the necessary capital to obtain a license, and hence they took a shortcut.

The company has not provided its financial reports, customer withdrawals, and the number of active clients. This data is essential because it shows the company’s transparency.  

Customer Testimonials

We did not find any customer reviews about the company. If indeed the broker is what they claim to be, many people would praise them. As it is, however, no clients have reviewed the broker either positively or negatively.

Maddex Capital Trading Conditions

Before choosing a broker, you should check the spread, swap, commission, and leverage. They have not indicated these conditions. When you open an account, therefore, you are unaware of what to expect. When we opened one, we realized that they have a leverage of 1:10. The spread is too high, and the leverage is too low. Even the FCA requires a leverage of about 1:30 maximum.

Deposit and Withdrawal

To deposit, you can use MasterCard, Maestro, or Wire Transfer. Also, one is requested to contact the account administrator before depositing. This is one of the scammer’s tricks of stealing your money. Also, you cannot withdraw less than $50.  

Final Verdict

Maddex Capital is a sham broker. Trading with them is not worth the risk. There are numerous legit forex brokers with a proven track record whom you can work with instead. In trading, any broker that offers conditions that are too good to be true should not be trusted.

Always ensure that the broker you are dealing with is transparent. They should not offer you a ridiculous welcome bonus or make it hard to withdraw money. If it is easier to deposit than to withdraw, avoid that broker.            

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