A fair question? Well, the sheer volume of White label brokers in the market now is frightening, and even though MQ have put a temporary halt on MT4/5 white label licences after Apple pulled their products from the Apple store, there is still a dangerous amount of illegal brokers out there armed with white label licenses with their agents are prowling social media looking for victims. 

Undoubtedly MQ have created a very real industry of unregulated brokers, why? The finance investment world is highly regulated for a reason. The UK regulator the FCA are responsible for ensuring that financial operators have the prerequisite experience, qualifications and competence only when the FCA have satisfied this criteria can an approved person or company handle consumer funds. 

Ignoring Regulators.

 This is how regulators protect us, so why would MQ undo all of that work and create an industry of illegal brokers? 

Giving MQ the benefit of the doubt, it is unlikely that anyone at MQ had the foresight to deliberately create an illegal broker industry, suffice to say this black industry that has sprang up to first create, and then systematically rape the retail trader, this criminal activity is symptomatic of constant exploitation from the glaringly obvious flaws within the software license authorisation system that is clearly lax. Many of the brokers that have been given white label licences would never go onto apply for regulative licencing, they don’t need to, they have access to the markets thanks to the regulation ignoring protocols of MetaQuotes.

Profits Up

So why would MQ continue this practice? The answer is simple $3000 a month subscription fee. Calculate how many whitelabel brokers there are, and you get an astronomical figure, therefore is pays for this greedy corporation to milk the industry for as long as it can, ignore complaints, don’t acknowledge claims and they can print money for as long as they can get away with it and they have had a good run, ignorance has been a profitable bliss for MQ, as long as they buried their heads under the sand long enough so they don’t have to hear the utter devastation that they are wreaking on the world and to retail traders everything is all good for MQ..

Flaw

There is however one fatal flaw in this thinking. Most white label brokers are defrauding people and many have police reports raised against them. In our instance we have a number of brokers that have taken funds from people and ceased trading therefore these funds are classed as illicit in the eyes of the law in nearly all jurisdictions around the globe. Using court orders, our sister company HLT have been able to process court orders on the exchanges to request access to the cash out wallet account. Once received further court orders can be sought to process all transactional data. It is likely therefore that one of the many brokers that HLT are processing court orders for are using the funds they have stolen from unsuspecting traders to pay for their MQ subscription. We than have absolute proof that MQ are not only creating the black broker market but they are also profiting from funds that have been stolen from people. 

When this piece of evidence has been obtained, it will be a feeding frenzy in the media, it is likely a civil case will also be matched by the fury of various justice departments around the world. By our calculation using WikiFx data we think the around over 3000 whitelabel brokers with a score less than 2. It is highly likely that more than one of these brokers were paying MQs monthly subscription through their business accounts connected to the main account. We only need to find one and we can prove that this company is profiting from the proceeds of crime, paying their employees from the proceeds of crime, blood money which ever way you slice it. 

RISE will no longer discuss the legal progress of our ongoing legal strategies against MQ but it is highly probable that the evidence can be found in these illegal brokers accounts.

Answer

So, to answer the question are MQ profiting directly from illegal funds. To answer that question properly we firstly need to establish how the law interprets what can be constituted as "illegal funds." To answer this, we asked our solicitor to give us their opinion. 

Some states and cases require intentional knowledge and action in accumulating money illegally. However, other locations may not need this rule to proceed through the criminal process. The burden of proof is on to acquire the trail of money from the progenitor all the way through to the bank accounts and then correctly appropriated through transactional evidence. In this instance, where brokers have ceased trading with the entire accumulated funds, all funds that have entered into the account can be considered ill-gotten, therefore any further payments paid to 3rd parties from this account can be considered of receiving the proceeds of a criminal enterprise.

The short answer. YES. Definitively, MQ have and are still profiting from the proceeds of ill-gotten funds. Fair game then!