ModMount LTD – Dubious Despite Being Registered By The FSA

Is ModMount legitimate or a scam? I get asked this question oftentimes by readers. Consequently, I decided to investigate it and write an honest ModMount review. Before answering this frequently asked question, here’s a screenshot image showing ModMount account registration and log-in:

For starters, ModMount (modmountltd.com) is a Forex and CFD trading brokerage company operating in Seychelles, owned by an organization called ‘Modmount Services Limited.’

Notably, the parent entity is also associated with two other FX and CFD trading brokerage firms operating in Cyprus: Muteon Services Limited and Peaksight LTD.

Both of these Cyprus-based firms are supposedly registered, licensed, and regulated by the Cyprus Securities and Exchange Commission (CySEC).

The stories of these two brokerage firms, however, are topics for another day.

For now, let’s take a closer look at the summary of ModMount before revisiting the question above:

Now, returning to the question about the legitimacy of ModMount, I’d like to inform you readers that this system is not legitimate. It’s a scam similar to International Reserve, StocksToTrade, Ariol Investment Group, and others. 

Signs Pointing to ModMount’s Potentially Fraudulent Nature

The following part of this independent ModMount review delves into some red flags that point to ModMount potentially being a scam entity:

1. ModMount Suspiciously Doesn’t Operate In the EU and USA

ModMount has conspicuously displayed on the disclaimer section of its website that it, and I quote, “does not provide its services to residents of the European Union or to any other jurisdiction where such distribution would be contrary to local laws and regulations.”

In my view, FX and CFD brokers that exclude the European Union while claiming to provide their services globally, such as ModMount, are a red flag. Why am I saying so?

You see, on August 1, 2018, the European Commission came up with new rules and regulations governing forex and CFD brokers. Published in the official journal of the EU, these rules and regulations;

• Prohibited binary options trading temporarily.
• Restricted leverage limits to between 1:2 and 1:30, depending on the tradeable asset. 
• Implemented the margin closeout rule, which sets a threshold for the minimum margin required to keep a trading position open. 
• Compelled brokers to provide negative balance protection.
• Banned trading incentives for clients. 

Essentially, the EU adopted this decision to ensure fair practices and maintain market integrity, protecting both investors and Forex-CFD service providers. Consequently, this led to the exit of many scam fx and CFD brokers perhaps including ModMount.

One might wonder how these new rules and regulations push away fraudulent brokers. In summary, they made the market conditions unfavorable for these shady characters. 

One way this became possible is by the authorities implementing stringent marketing restrictions. Consequently, this move curtailed deceptive marketing tactics commonly employed by scam brokers such as displaying misleading advertisements just to trick investors. 

2. Numerous Complaints About ModMount 

To begin with, many traders have complained about ModMount online. For example, many of them have aired their dissatisfaction with this broker’s services on Trustpilot, Scamadviser, YouTube, and individual blogs.  

Notably, one thing they’ve mentioned prominently is that ModMount does not honor withdrawal requests. This is a characteristic often associated with scam entities. Notable examples include Finanzwelt, Onboard Capital, and SwiftTrading as exposed on Scamreader. 

It’s, however, important to take note that ModMount is registered and licensed by the Financial Services Authority of Seychelles. This creates confusion among traders.

On one hand, the company appears legitimate with registration by a constitutionally mandated body. On the other hand, the numerous reports of withdrawal issues raise questions about its legitimacy.

Is ModMount a legitimate FX-CFD broker, or does it fall into the category of scammers?”

To answer the million-dollar question, here’s what you need to know:

Registration with a financial regulatory authority like the Financial Services Authority (FSA) of Seychelles offers a level of legitimacy to a broker. However, it doesn’t guarantee that a broker is free from scam activities.

One thing you should keep in mind is that regulatory authorities can vary in their capabilities to provide oversight and enforcement. What’s more, some authorities may have less stringent registration requirements and I suspect the FSA of Seychelles is one such authority. 

I stand to be corrected if I am wrong, but this regulatory body governing FX and CFD brokers operating in Seychelles doesn’t seem to be as effective as it sounds. 

This might be due to a lot of reasons, including corruption, resource constraints, and lackluster laws. 

Oh, and as a by the way, did you know that Seychelles ranked position 20 in Transparency International’s 2023 list of corruption perceptions index? Also, did you know that Seychelles is one of the most attractive destinations for offshore businesses? That’s because the country offers lackluster laws and regulations making it relatively easy to register foreign companies. 

Seychelles’ high level of corruption and lackluster company incorporation laws make it easy for scam brokers to register their entities with the FSA of Seychelles, bribing their way into the system. 

By the way, the Financial Crime News blog suggests that Seychelles is one of the countries most affected by financial crimes. The financial crimes blog states that the country faces common and unique financial crime threats, which I think include a pandemic of scam forex and CFD brokers. 

In summary, even though ModMount is registered and licensed by the FSA of Seychelles, this FX and CFD broker doesn’t seem to be legitimate at all. That’s because they have exhibited some major characteristics associated with scam entities. For example, several complaints suggest that this supposed broker for Forex and CFDs does not process withdrawal requests or refund customers’ funds. 

The Final Part of My ModMount Review

To summarize this unbiased review of ModMount or modmountltd.com/, I’d like to state categorically that this entity is a scam. ModMount is a fraudulent entity that poses as a forex and CFD brokerage services provider. The entity has taken advantage of the lackluster laws and regulations, as well as corruption to register with the Financial Services Authority of Seychelles.

Avoid this broker at all costs because they have been reported to not process withdrawal requests or return people’s money. I hope this comprehensive ModMount review helped someone avoid these fraudsters. 

Pursue Your Funds!

Have you fallen victim to ModMount or modmountltd.com? Has the entity fraudulently refused to process your withdrawal request? If yes and you have evidence, go to this page to seek help. Or send an email to scamread@scamreader.info.