The Spanish regulator CNMV has issued a warning against crypto derivatives broker Margex (https://margex.com). On its website, Margex claims that the so-called MP Shield system would protect clients from price manipulation on the crypto market. How this is supposed to work is not explained. The offshore broker offers leverage of up to 100:1, which is significantly higher than the maximum leverage of 2:1 allowed by ESMA. Margex is very active on Twitter, YouTube, and Facebook and deploys an aggressive affiliate and referral system to chase new clients.
Key data
| Trading name | Margex |
| Domain | https://margex.com |
| Legal entity | Margex Trading Solutions Ltd |
| Jurisdiction | Seychelles |
| Payment processor | Fintechvision Limited d/b/a Changelly |
| Warnings | CNMV |
The narrative
Deposits to Margex can only be made in Bitcoins. However, the purchase of Bitcoins via credit card is offered. This purchase is made through the Hong Kong crypto exchange Changelly (https://changelly.com). The purchased Bitcoins are transferred to the wallet on Margex. In this way, however, Margex clients have no possibility for a chargeback. Officially, the deposits with a credit card are labeled and coded as purchases of Bitcoins on Changelly.
The Affiliate and Referral System of Margex pays for the referral of new clients 40% commission from the trading fees brought by the new client.
You should generally be very careful with cryptocurrencies. This is a high-risk segment. In this respect, you should not increase the risk again by trading with a non-regulated broker like Margex. Especially you should not work with a non-regulated broker with high leverage. You will almost certainly lose your money.
Share information
If you have any information about Margex and its operators, please share it with us through our whistleblower system Whistle42.
