Modmount Review: Modmountltd.com is Shady
Modmount is a regulated offshore broker. Investors on this platform can access trade instruments, such as commodities, forex, cryptos, shares, and indices. Although licensed, we cannot recommend it to investors. This is because the broker is licensed by a lax regulatory agency, which lowers its credibility. Again, the broker has absurd trading conditions, parameters, and fees that speak volumes about where its interests lie.
When selecting brokers, you have to ask what’s in it for you. To get answers to this, you must scrutinize a broker. For the sake of this broker, we must clarify that regulation is not synonymous with viability; a broker being regulated does not necessarily make them suitable, only preferable. Exercising diligence ensures you do not take the bait that many dubious brokers dangle at investors- only to strike with unrealistic conditions that frustrate withdrawal attempts.
This review covers the requirements that an authorized forex broker should meet. Likewise, we have shared some fundamental tips you may consider when vetting brokers. Follow through.
Modmount Services Ltd owns this broker. The broker registered its domain with the whois on 16 February 2022, indicating that it is relatively new in the market. It is advisable to stick with brokers with extensive operational history and a solid reputation, which puts this broker out of the equation.
The broker goes to great lengths to convince you of its suitability, with promises of advantageous trading conditions and ultimate trading experience. Novice traders can allegedly access expert-led analysis and educational materials for familiarity.
As for seasoned traders, the broker promises reliable trading signals and professional trading tools to diversify their trading portfolio. Other resources comprise a live market summary and an economic calendar.
There is so much to consider when choosing brokers that we may neglect some minor details. You may not consider customer service until you require assistance with the account registration procedure or after you’ve started a trading account. If help is accessible, swift, and kind, you won’t have to stress about getting your concerns resolved promptly later on.
However, you may find yourself in a difficult situation and learn that your broker has pathetic customer service when you need it the most. Imagine needing help with account login, password resetting, overdue withdrawals, or any other technical issue. What would happen if you can’t get instant assistance? This is why you should be keen on a broker’s customer support.
Modmount has provided an email address and telephone contact for users’ inquiries. This shows that you may access help any time of the day. However, there is a downside, contacting a broker with underhand dealings is working yourself into their trap. They will pester and manipulate you to invest, and you may, unfortunately, give in. It is safer to avoid this broker.
Modmount Deposit & Withdrawal Policy
Modmount allows deposits via wire transfer, debit/credit cards, and APMs. Due to account registration challenges, we could not confirm this. All the same, it would be a plus if the broker actually accepted credit cards. Credit cards, unlike crypto payments, are convenient and transparent. You can reverse transactions and identify funds’ recipients.
If you want to withdraw more than what you deposited (profits), you will receive the difference via wire transfer. The minimum withdrawable amount is 100 EUR/USD for wire transfers and 10 EUR/USD for a credit card. The withdrawal fee for debit/credit cards and e-wallets is 3.5 percent, while wire transfers attract 30 EUR/USD.
The broker also charges a maintenance fee of EUR/USD 10. Also, accounts dormant for up to 2 months attract a fee of 80 EUR/USD, 120 EUR/USD for those dormant for up to six months, and 200 EUR/USD beyond six months. Most respectable brokers would wait much longer before levying such fees and would almost never charge above $10-$20. In contrast, this broker is willing to extort you at any available chance.
Modmount has four investment accounts that are tailored to meet clients’ needs. Investors with the classic account access free trading education but cannot trade signals via SMS. Next, the silver account holders access trading education, swap discounts, and can trade signals via SMS. The third, the gold account, has trading resources, swap discounts, and a monthly account overview. For VIP account holders, the benefits include swap discounts and a weekly account overview.
Although the minimum deposit for specific accounts is unspecified, the funding threshold is 250 Eur/USD. Although fair, we still can’t endorse investing with this broker. You would be risking a substantial amount for nothing.
The Seychelles Financial Services Authority (FSA) governs Modmount. Usually, this would be a laudable move, except that it doesn’t make us any more impressed.
Why so? First, the FSA is an offshore watchdog that is far from stringent. For instance, obtaining a Seychelles license only requires a broker
to demonstrate it has a minimum capital of $50,000 but can later utilize this money for other purposes. Conversely, harsher regimes mandate that minimum capital be utilized as insurance, not for other purposes.
Secondly, each Seychelles-licensed corporation must have two shareholders and two directors. Still, the same individual can serve as both a shareholder and a director, a strategy prone to conflicting interests and biases.
Finally, because client funds are not stored in separate accounts, they can easily become cluttered with the broker’s funds. Reputable agencies like the FCA mandate funds segregation.
This ensures brokers have restricted access to your deposits and cannot reinvest them if they want to.
As you may have observed, Seychelles regulation, though present, neither serves your investment interests nor makes the broker any safer. As a precautionary measure, opt for brokers under strict oversight agencies like ASIC (Australia), CySEC(EU), BaFin(Germany), IIROC(Canada), and
CFTC(US). These financial watchdogs protect you from insolent fraud attempts and funds loss. You can receive partial compensation for losses if such a broker goes under. Moreover, there is a leeway for legal action and mediation in a dispute.
The broker has attached all the requisite legal documents, which is commendable. However, this does not make the broker any more legitimate. Therefore, read through all the documents’ fine print to ascertain that there are no outrageous clauses.
Modmount provides a leverage of up to 1:400. This is dangerous, and we would not recommend trading with such. Indeed, many traders have incurred massive losses while trading with more leverage than they could handle, prompting forex regulators to impose restrictions on leverage.
Forex oversight agencies in the UK and EU cap leverage at 1:30 while Canada and the US cap theirs at 1:50. As a result, we urge you to exercise caution and only trade with such high levels if you are a seasoned trader with sufficient cash.
The broker has a spread of 2.5 pips, above the industry’s 1.5 pips standard. This spread is too broad and unrealistic, as the broker might make money at your expense. Go for decent brokers with tighter spreads to make the most out of trading.
Modmount Trading Platform
MT4 and MT5 are undoubtedly the most widely used platforms in the market, both in terms of customer count and trading volume. It’s easy to figure out why the MetaTrader software has such a positive reputation. On top of a user-friendly interface, MT4 and MT5 provide many features, such as Expert Advisors tracking markets and trades automatically, enabling investors to develop their indicators and trading bots.
This is possible through the MQL5/MQL4 coding language, customizable signals, VPSs, and the room to test strategies in a trial account or through back-testing. Registering an account with a broker providing one or both platforms would be wise.
Modmount promises access to web-based trading and MT4 platforms, but we did not have the opportunity to use them. The broker’s website snapped and displayed a “404 – Page Not Found” notice when we attempted to open an account. Without an account, we cannot confirm the existence of a functional trading platform.
You shouldn’t settle for anything less than ideal in the forex market. So, despite Modmount being an authorized forex broker, we will refrain from recommending it. This is because the licensing agency overseeing is lenient, providing a loophole for fraud. Again, most of the broker’s trading conditions leave much to be desired.
Always look for decent brokers who are regulated and whose trading conditions mean well for your investment. While at it, ascertain that the trade parameters, trading software, and general terms of engagement favor you. Such steps will ensure there is no oversight which could cost you later.
Don’t let the mistake of investing in an unauthorized platform like Modmount ruin your financial future. We can help you take the necessary steps to recover your funds and move forward. Our team is available 24/7 to answer any questions you may have and to provide the support you need.