A Nightmare for any Trader
Midtou Financials is the forex trading arm of Midtou Global Financial Group, which is based out of Indonesia.
Indonesia is a known name for its long and lengthy procedures while dealing with brokers. While Indonesia is suffering a lot of problems due to the non-effective and untimely measures of the government to attract investments, it is an ideal dwelling place for the notorious forex trading frauds.
Midtou Financials is an entity of PT Midtou Aryacom Futures. The PT Midtou Aryacom Futures is operating under the supervision of Indonesia’s Commodity Futures Trading Regulatory. It is better abbreviated as BAPPEBTI.
BAPPEBTI is an Indonesian regulating agency. It is also known as Badan Pengawas Perdagangan Berjangka Komoditi. It is the agency that single-handedly handles various financial institutions.
One agency against banking, financial and insurance institutions itself calls for a check on its ethical working and response time. Once you are dealing with a regulated broker company, you have to check the regulating authority details as well. The reputation of the governing body is a serious indication of the safety and security of your funds with the broker.
Further, Midtou Financials is a member of the Indonesian Futures Company association and Jakarta Futures Exchange (JFX) as well.
Hence we are left with a long list of the company associations but difficult to speculate like what is the actual governing body. It thus becomes very difficult for the investors to search and lodge complaints arising out of any dealings with the company. Midtou Financials is an offshore broker company which is not so strongly recommended for trading purposes.
Midtou Financials Services
The company is into three types of services.
The forex trading with Midtou is not as such as it looks to be. The fixed spreads are found to be different from the data which is provided on the website.
CFD trading is a risky business and when you are dealing with an offshore broker, your risk doubles. While the company promises to provide 100 times leverage on the invested capital of the investor, it is really difficult to believe the claims. Midtou Financials Review considers it as a too good to be true claim.
Also the company does not have any details on the CFDs trading. While it has restricted all of its CFDs section into a theory, it is really difficult to understand the pros and cons of dealing with the trading involving CFDs. Thus amateurs are advised to use the same after having a consultation with investment experts only.
The third category of the products is precious metals. Midtou Financials do not charge any commission on precious metals but the product range itself is very low. While precious metals are available for trading, it is a volatile business. Trading interruptions and identity theft are other problems faced by investors.
A limited product range with very less information about the risks involved makes Midtou Financials product range not so investor-friendly. The addition of cryptocurrencies and CFDs on stocks could give some more variation to the product range. Hence the company needs to enlarge the product range to attract more investors.
The company provides a direct option of opening a live account.
While the company claims to be providing flexible trading accounts for institutional traders and private retail traders, no further information is provided in this regard. A disclaimer with a regular set of instructions pops up every time you are trying to search anything about the limits or the pips.
It thus offers a single type of account only. The minimum investment limit for the account is $500. It is an assumed entity as no information is made available by the company over its official website. The maximum leverage is in the ratio of 1:500. Any experienced investor is already aware of the risks involved in a high leverage ratio of the broker. While leverage is a technical term, it is a strategy used by investors which involves the use of borrowed money. Thus higher is the leverage ratio, more is the risk for your funds.
The investor thus has no option to choose from a list of available accounts provided by the company. It is strongly recommended to compare the competitor standard accounts before opting for the single account option of Midtou Financials.
A well-known trading platform MetaTrader 4 is used by the company for trading transactions. You get the option to download MT4 for your desktop, IOS based systems or android based mobiles. MT4 is a reliable and secure name in the trading platforms market.
Surprisingly, no other trading platform is working for Midtou services. While MT4 is basic and very helpful for a professional investor as well as for a newbie, the mere single platform compatibility raises may eyebrows. It is clearly against the company’s claim of providing multiple options to its investors to be it a trading platform or a trading account.
The company accepts accepts US dollars only as mentioned on the website.
Withdrawing your funds has no different story.
For each process of depositing or withdrawing the funds, customer has to fill the form. It is highly unprofessional to share limited information about the most important tasks of brokerage. While the company accepts funds only in US dollars, it claims to get your withdrawals cleared for immediate payment. In a real-time scenario, it takes 4-5 working days for the funds to get cleared.
No information about other means of payment is found on the company website.
The company has provided its headquarters details and sales office details very clearly on the website. However, there is no clarity for the customer support of the customer helpdesk. You can shoot a mail to the customer support team and that is the only option. There is an option for inquiry details which is a sales-based approach but no mention of live support or 24*7 customer support. It is not advised to do business with a company which does not even have a strong customer support team. Forex itself is a volatile, risk making business. Companies must understand the nature of support required in this field. Competitors can be taken as an example here to understand the role of support teams.
Social Media/Online presence
First of all, the company website provides very limited information. You have to search for other sources to get proper details. It is developed by Themehunk but it looks like no one has taken the pain to update it regularly.
There are no direct links to company accounts on social media. Rather redirecting links of accounts, contact us and the website itself is provided in the place of social media.
While writing this Midtou Financials Review, I couldn’t reach a genuine twitter account of the company. Their facebook account was updated in the year 2017 only.
Needless to say, the company has not taken any steps to enhance its online reputation and hence has scored a very low remark over a low to high ranking on social media.
An offshore company along with raised questions at every task of trading is nothing more than a nightmare to investors.
Firstly, Midtou Financials do not provide any good options in trading accounts. A single account is available with no customization options.
Secondly, the company has set a leverage ratio to very high as compared to other competitors. It invites a great risk in dealing with the same.
Thirdly, the pips offered don’t match the commitment. While it is mentioned as 2 pips on EUR/USD, they are fixed at 3 pips by MT4 platform. The spreads are thus fixed much higher. Fixed spreads and that too at this rate is highly risk invoking.
Fourthly, the minimum investment required to open the only available live account is $500 which is very high. Thus, making it a clear no for new investors.
Midtou Financials is very bad in maintaining their online presence, providing flexibility in products and customer support. Also the leverage and spreads are too high for any investor to work with them. So, in conclusion to my Midtou Financials review, they are a pathetic broker and aren’t worth your money.This review (Midtou Financials) was originally published at Gripeo. To read the full review, go to – www.gripeo.com/midtou-financials-review/