MB Chains is an unregulated broker posing as an award-winning crypto broker. Traders on the platform can also allegedly access other instruments, including indices, metals, energies, shares, commodities, and stocks. Despite its claim, the broker has done a shoddy job convincing us it is legit.

Brokers claiming to be something they are not is not new. This has almost become a trend as shady brokers target naïve investors to dupe them. You should always be on your guard to avoid falling victim to their antics.

To identify a licensed crypto broker, you must go the extra mile when vetting brokers. To set the pace, we will share the areas you should be keen on. Moreover, we will discuss in detail the reference framework/standards serving as a yardstick in the online investment space. Read the review.

Mbchains.com Review

The entity behind this broker is unmentioned. According to the whois, this broker registered its domain on 1 November 2022. At barely 70 days, the broker claims to have over 130000 clients. We can’t take that bait, as the claim is a flat lie. Going by its website, it appears the broker was targeting German users as we had to translate to English.

The broker purports to have a competitive edge, including tight spreads, guaranteed executions, unlimited access, and fast and easy transactions. Also, the broker hypes its trading platform as capable of providing a professional trading platform. Look, we know what a web trader offers, but it pales in comparison to other advanced platforms. This broker is a phony.

MB Chains provides TeamViewer and AnyDesk, two equally risky programs that permit wireless access to any PC in the network if the owner/user allows access. Being a scammer, it would be dangerous if this broker accessed your PC. 

With most brokers, you first register an account and then fund to trade. However, this broker demands deposits even for a demo account. This is utterly absurd and further reinforces our misgivings about the broker. Demo accounts are trial versions and, therefore, free. So why do they want money?

Deposit & Withdrawal Policy

The broker’s stated payment methods include bank transfers, debit cards, and credit cards. Credit cards are the preferred deposit method as they are not anonymous and allow filing for a chargeback. Bank transfers through open, do not qualify for transaction reversal. The worst deposit method is via cryptos. These are entirely anonymous and irreversible, making it hard to take legal action as you cannot institute charges against an unidentified person/entity.

Accounts dormant for over six months attract a 10 percent monthly deduction fee. The minimum withdrawal amount is 250 USD/GBP/EUR for wire transfers and 100 USD/GBP/EUR for credit cards and e-Wallets. If an account has not executed a minimum of 200 turnovers, a levy of 10 percent of the withdrawn amount will apply. The withdrawal fee is 50 EUR/USD/GBP for wire transfers and 25 50 EUR/USD/GBP for e-wallets. Credit cards attract a withdrawal fee of 25 USD/GBP/EUR and a processing fee of 10.00 USD/7.00 EUR/5.00 GBP. 

MB Chains Investment Plan

MB Chains advertises five investment accounts. The bronze account holders access personal account management services, trading alerts, and basic market education sessions. Next, the silver account has bronze benefits and additional practical guided lessons.

Likewise, gold investors access the silver perks alongside trade house managed account service. All the previous benefits apply to premium investors alongside VIP trading signals and risk management strategies. Lastly, platinum investors enjoy the benefits of a premium account on top of zero withdrawal fees.  

The minimum deposit for the broker’s accounts is unspecified. However, the acceptable range for a micro account is usually 200-250 USD. Nevertheless, we should emphasize that you open a micro account if you are a novice trader or have lesser funds to trade. Only seasoned investors with sizable funds ought to start a regular account. Remember that unregulated brokers are not in the equation when considering the minimum amount. We contend that no amount is little if you can’t trust a broker. 

MB Chains Regulation Status

The forex market is deemed “unregulated,” and in many ways, it is. Regulation is typically reactive, so authorities will only take action only after you lose savings.

Regulatory agencies are in place to protect the public against fraud, manipulation, and abusive trade practices. Check which regulatory bodies the potential forex broker is registered with before choosing them. Among the registered firms, look for those with clean regulatory records and solid financials.

In the United States, a broker should register as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) and an NFA member. So if a broker claims to be in the US, then it goes without saying it should be in CFTC’s register.

MB Chains claims to be in the UK. We checked with the FCA, but the broker’s credentials are missing. We also checked with Germany’s BaFin but came short as well. This is an unregulated offshore broker. Such brokers make you vulnerable to risks, including funds insecurity, no provision for legal action, and no guaranteed compensation.

Trading Platform

It is essential to pay close attention to how integrated the trading platforms are because they differ. Any worthwhile broker provides real-time quotes to enable swift entry and exit from the market. Nowadays, most brokers include charting and technical analysis software in their trading platforms.

Avoid choosing a company that re-quotes you after clicking on a quotation or permits pricing “slippage.” Always confirm that your broker guarantees automated implementation of your orders immediately. This is crucial to consider while picking a Forex broker.

MB Chains advertises some desktop software that users may download and a web trader. The links to the software were missing, so we cannot ascertain the accuracy of claims of the availability of the platform. Even if the platform were available, such a platform would short-change investors due to its bland features.

To ensure you get the optimal trading experience, opt for brokers with MT4 or MT5 trading software. The platforms have state-of-the-art technology, allowing limitless possibilities. Besides automated trading and pending orders, the platform enables risk minimization strategies like trailing stops and stop orders.

Trading Conditions of MB Chains

These include features, parameters, and requirements that establish a broker’s acceptability. They entail available currency pairs, transaction fees, minimum trade sizes, margin requirements, rollover fees, trading hours, and interest rates for margin accounts.

Awarding incentives and promotions is a practice many financial watchdogs outlaw. This is because such incentives have predatory clauses meant to prevent withdrawals attached to them. As if to attest to these concerns, the broker’s bonus withdrawals policy thus goes; investors must meet a trading turnover of 25 times the sum of deposits and bonuses.

The ratio of the capital employed in a transaction to the security deposit required is known as leverage. MB Chains offers leverage of 1:150. This is a dead giveaway that the broker cannot operate in the UK. Brokers in the UK have to comply with FCA’s 1:30 leverage capping, and the same goes for brokers in the European Union and Australia. Similarly, brokers in the US and Canada abide by the 1:50 leverage limit. This capping buffers investors from extreme losses that can occur in market downturns.

The spread represents the price differential between the ask and the bid. The fewer pips the broker requires per trade, the bigger the profit the trader makes. The industry standard spread is 1.5 pips. Unfortunately, but not surprisingly, information regarding spreads is unavailable. Given the weight of spreads on profits, you shouldn’t invest with a broker if it has withheld such details.

Customer Reviews

On MB Chains, we noticed testimonials in a positive light of the broker. However, these testimonials are only about trading and depositing and do not discuss withdrawals. 

Guess what we found on one site, Valid Reviews? According to users, the broker constantly asks you to deposit more money, but any withdrawal requests go unheeded. Also, there were complaints that the broker’s advisors deliberately misled and caused loss trades. You cannot afford to ignore such implicating reviews! Is it a coincidence that three different users experienced a similar withdrawal challenge? Probably not.

Our Take

The long and short of it all, MB Chains is an unscrupulous broker operating illegally. The broker operates from unknown offshore jurisdiction, further encouraging it to be fraudulent. The lack of regulation also exposes your investment to uncertainty, insecurity, and loss.

While we do not want to give scammers much credit, we still acknowledge they are a menace. Watch out for them as you look for licensed crypto brokers. Licensure is not only a gesture of compliance but also of goodwill and shared investment goals.

 

 

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