The Spanish regulator CNMV issued a warning against crypto derivatives broker Margex. The unauthorized offshore broker offers leverage of up to 100:1, which is significantly higher than the maximum leverage of 30:1 allowed by ESMA. Margex is active on Twitter, YouTube, and Facebook and deploys an aggressive affiliate and referral system to chase new clients. According to the latest statistics, the broker receives most of its traffic from clients in the U.S.
Key Data
| Trading name | Margex |
| Domain | https://margex.com |
| Social media | Facebook, Twitter |
| Legal entity | Margex Trading Solutions Ltd |
| Jurisdiction | Seychelles |
| Payment processor | Fintechvision Limited d/b/a Changelly CHN Group Limited d/b/a ChangeNow |
| Warnings | CNMV |
The Narrative
According to September Similarweb statistics, Margex recorded around 900,000 visitors to its website in Q3 2022, with an average dwell time of almost 7 minutes. So we can reasonably conclude that most of these visitors are trading on the platform. In September 2022, most of the visitors, almost 38%, came from the U.S., which is almost 20% more than the previous month. Margex also saw explosive growth in Spain, with nearly +370%.
Deposits to Margex can only be made in Bitcoins. However, the integrated purchase of Bitcoins via credit card is offered via the Hong Kong crypto exchange Changelly (https://changelly.com) and the Seychelles-based ChangeNow (https://changenow.io). The purchased Bitcoins are transferred to the wallet on Margex. In this way, however, Margex clients have no possibility of a chargeback. Officially, the deposits with a credit card are labeled and coded as purchases of Bitcoins.
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.
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If you have any information about Margex and its operators, please share it with us through our whistleblower system, Whistle42.
