category: Unregulated Brokers

Is CF Merchants Scam or Legit Broker?

No, it is not safe to trade with CF Merchants. The company is owned and operated by CF Merchants Limited, which is an offshore company registered in St. Vincent and the Grenadine.

• St. Vincent and the Grenadines is notorious for its practically absent requirements and regulations. Due to the setup cost being low, it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as CapitalXP, TraderUR, and more. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines.

What is CF Merchants?

CF Merchants provides exchanging services for more than 50 currency pairs as well as indices, CFDs, gold, silver, oil and other commodities. According to the website, the organization was established in March 2011 and Company is incorporated in St. Vincent & the Grenadines as an International Trading company with the registration number 24535 IBC 2018.

• However, the Financial Services Authority (FSA) of St. Vincent and the Grenadines has announced that it does not issue any licenses for forex trading or brokerage nor does it regulate, monitor, supervise or license international companies, which engage in such activities. It means that CF Merchants or any other Forex broker that claims to be registered in Saint Vincent and the Grenadines is not allowed to provide its financial services to the public.

Overall CF Merchants Ranking 

We found multiple regulation and safety issues with CF Merchants, thus we do not rank positively CF Merchants, based on our Expert Opinion with over 10 Years of experience in Forex Trading.

• CF Merchants Overall Ranking is 2 out of 10 based on our testing and compared to 500 other brokers, see Our Ranking below compared to other popular and industry Leading Brokers.

CF Merchants Alternative Brokers

We revealed that CF Merchants has a lot of issues, especially in respect of its safety and customer care. Thus, here are much better Alternatives to CF Merchants with tight regulations and favorable trading conditions. We select Good Brokers and reliable options for your comparison below: 

• Dukascopy – Excellent for Shares, Futures Trading
• AvaTrade – Good Instrument and CopyTrading
• InteractiveBrokers – Good for US Trading and Trading of Real Stocks

Deposit & Withdrawal

At CF Merchants, making deposits and withdrawals is simple and quick. The broker offers multiple funding options, including Bank wire transfers, Visa and Mastercard payment cards, plus Skrill, Perfect Money, Neteller, tether, etc. 

• For all deposits/withdrawals through bank wire, there is a limit on the minimum transfer amount without charges. For withdrawals of less than $100, $20 per transaction will be charged as a processing fee.
• Any third-party payments (deposits/withdrawals) are not accepted.
• All withdrawals will be processed the same as the client-adopted payment system. Bank wire to bank wire, Skrill to Skrill, Neteller to Neteller, Perfect Money to Perfect Money, and credit card to credit card.

CF Merchants Review Conclusion

We advise all investors and traders to avoid CF Merchants and other brokers from St. Vincent and the Grenadines. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as IG Markets and BlackBull Markets.

• Overall ranking and experience for CF Merchants is Negative

Is OneTradex Scam or Legit Broker?

No, it is not safe to trade with OneTradex. OneTradex is owned by Onetradex Ltd. which is an offshore company registered in the Cayman Islands.

• OneTradex is a company that claims direct market access to stocks, bonds, options, futures, funds, CFDs, ETFs, and precious metals that are available from a single offshore investment account. OneTradex is based in the Cayman Islands and offers tax-neutral trading accounts for offshore residents and expatriate investors, including the non-resident U.S.

What is OneTradex?

The broker states their fully-licensed operation offering through online discount trading, while the license is received by the Cayman Islands authority “OneTRADEx is licensed to conduct securities investment business by the Cayman Islands Monetary Authority”.

• However, in fact, the Cayman Islands as an offshore zone does not regulate Forex or trading business but just issues an established certificate with a very small requirement and that’s all. That means the OneTradex is a typical broker with an offshore license that unfortunately does not operate according to the strictest standards, is not overseen constantly in terms of the operation, and therefore is a broker we do not recommend trading with.
• The safety of funds is the main concern of any trader or investor, while the necessary protection can be provided only by fully legitimate and licensed companies, as they are watched at every level. In addition, the regulated entities fall under the scheme in case of the company insolvency or payment issues, thus the trader can trade rest assured. 

OneTradex Review Conclusion

We advise all investors and traders to avoid OneTradex and other offshore brokers. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as XM.com, Alpari, and FXTM (Check our review on FXTM).

OneTradex Update

Our research revealed that the OneTradex website is inactive. This means the broker has muted its trading offering and does not operate. However, we recommend avoiding and staying alert in case of any proposals. 

Is Evolution Brokers Scam or Legit Broker?

No, it is not safe to trade with Evolution Brokers. Evolution Brokers is owned by Maximus Global Marketing LTD, which is an offshore company licensed in St. Vincent and the Grenadines.

• St. Vincent and the Grenadines is notorious for its practically absent requirements and regulations. Due to the setup cost being low, it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as Capital TradeFX, JustForex, and more. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines.

What is Evolution Brokers?

Evolution Brokers is a Forex and CFD trading provider that claims the lowest spreads (See the List of Low Spread Brokers) in an industry that maximizes the profit through its established ECN/ STP execution and secure accounts.

• Moreover, the Evolution Broker states its negative balance protection and implementation of the highest level risk management tools, while all client funds are kept in segregated fund accounts.
• The main concern is the states that seemed to be very professional and actually necessary for a reputable broker, are not confirmed by any of the authorities. As the Evolution Brokers are located in an offshore zone, in St. Vincent and the Grenadine, and didn’t bother to obtain a license that will ensure customer protection, all the above said is not guaranteed.
• The mission of industry authorities is to regulate numerous financial investment firms, and report every move and statement they claim along to the protection of the client’s interest in every step.
• In regards to Evolution Brokers, the offerings are quite standard, while the firm is not among the recommended brokers that may involve clients in potential fraudulent investments. In addition, there are numerous complaints revealed by the traders engaged with Evolution Brokers, as well as a warning notification from FINACOM.

“The warning list is to inform the public of companies, including Evolution Brokers, that we do not recommend to trade with, following numerous reports and complaints filed by customers regarding non-member firms concerning fraud or wrongdoing.”

FINACOM. June 2018.

Evolution Brokers Review Conclusion

We advise all investors and traders to avoid Evolution Brokers and other brokers from St. Vincent and the Grenadines. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as AvaTrade and FP Markets.

Evolution Brokers Update

Our research revealed that the Evolution Brokers website is inactive. This means the broker has muted its trading offering and does not operate. However, we recommend avoiding and staying alert in case of any proposals. 

Is 4xFX Scam or Legit Broker?

No, it is not safe to trade with 4xFX. 4xFX is a Forex and CFD broker owned and operated by GRF EUROPE OÜ, an Estonia-based company that claims it is registered with a Register of Economic Activities.

• However, it does not mean the broker is regulated and authorized to deliver its service, as the register is just a register without any follow of the company sustainability and delivery of the financial service itself. Despite this, actually, every EU-based company should hold a license that proves the company’s sustainability before its service is offered in the market and to potential clients.

What is 4xFX?

Even though the company mentions its trusted and secure financial service provided through meeting high regulatory and financial standards, the company, in fact, is not regulated or overseen by any reputable authority. Therefore, 4XFX is another non-regulated trading provider among the thousands of other companies we do not advise trading with.

• The broker has also been banned by several regulators:

  "The business listed below (4XFX) has made unsolicited calls or sent emails about investing, financial advice, credit or loans and does not hold a current Australian Financial Services (AFS) license or an Australian Credit license from ASIC." ASIC, 10 January 2019

• "Finantsinspektsioon (the Estonian Financial Supervisory Authority) would like to inform clients and investors that GRF Europe OÜ does not hold an activity license for the provision of investment services in Estonia and therefore GRF Europe OÜ is not authorized to provide investment services in Estonia." Estonian FSA, 14 January 2019

4XFX Review Conclusion 

We advise all investors and traders to avoid 4xFX and other unregulated brokers. Trusting your investments to unregulated Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as IG Markets and XM.com.

4XFX Update

Our research revealed that the 4xFX website is inactive. This means the broker has muted its trading offering and does not operate. However, we recommend avoiding and staying alert in case of any proposals. 

Is YFX Capital Scam or Legit Broker?

No, it is not safe to trade with YFX Capital. YFX Capital is owned by T.W capital LTD, registered offshore, in the Marshall Islands.

• The Marshall Islands is notorious for its practically absent requirements and regulations. Due to the setup cost being low, it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as Globalix, Capital88, and more.

What is YFX Capital?

YFX Capital is a Forex broker offers its clients a variety of trading options and products, including CFDs. The broker doesn't disclose any information about its regulation, as well as its location. There are two contact phone numbers mentioned in the "Contact Us" section, those numbers are Spanish and British. However, the broker is definitely not authorized to provide financial services in those countries.

• Moreover, YFX Capital has been blacklisted by Spain's regulator CNMV in July 2017:

"YFX CAPITAL/www.yfxcapital.com is not authorized to provide the investment services detailed in Article 140 of the Securities Markets Law, which include investment advice, or to provide the auxiliary services detailed in letters a), b), d), f) and g) of Article 141 of the said Law in relation to the financial instruments detailed in Article 2 of the said Law, including, for those purposes, foreign currency transactions."

YFX Capital Review Conclusion

We advise all investors and traders to avoid YFX Capital and other brokers from the Marshall Islands. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FXTM and XM.com.

YFX Capital Update

Our research revealed that the YFX Capital website is inactive. This means the broker has muted its trading offering and does not operate. However, we recommend avoiding and staying alert in case of any proposals. 

Is PrimeFX Scam or Legit Broker?

No, it is not safe to trade with a Forex broker PrimeFX. It claims to be owned and operated by PFXBank and doesn't seem to be regulated.

The broker doesn’t disclose any information about its location as well as regulation. The contact phone numbers are British and the terms and conditions state that the company is under British jurisdiction, however, PrimeFX is not licensed by the UK’s Financial Conduct Authority.

What is PrimeFX?

PrimeFX is a broker that offers to trade in Forex, Indices, Commodities & Share CFDs.

However, the broker is not properly regulated, and signing with it might mean risking your investments. Based on our research we have found the following:

• The broker's website states that PFXbank operates globally except within the European Economic Area and at the same time the website supports German and Spanish languages which means it has been targeting European clients.
• There is a warning from Spain's regulator CNMV against PrimeFX issued in May 2017:

"DGX SYSTEMS LTD (PRIME FX BANK / PFXBANK) www.pfxbank.com/www.pfx-bank.com is not authorised to provide the investment services detailed in Article 140 of the Securities Markets Law, which include investment advice, or to provide the auxiliary services detailed in letters a), b), d), f) and g) of Article 141 of the said Law in relation to the financial instruments detailed in Article 2 of the said Law, including, to those purposes, foreign currency transactions."

PrimeFX Review Conclusion

We advise all investors and traders to avoid PrimeFX and other unregulated brokers. The lack of information about the broker’s regulations, trading conditions, and contact details should be the biggest red flag for those who plan to invest with the entity. Usually, such companies run investment scams. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FXTM, and AvaTrade.

PrimeFX Update

Based on our findings, PrimeFX website is inactive. This means the broker has muted its trading offering and does not operate, however, we recommend avoiding and staying alert in case there are any proposals. 

Is AG Capitals Scam or Legit Broker?

No, AG Capitals is not a safe broker to trade with. AG Capitals is a brand name operated by AG Capital Ltd is registered in the Republic of the Marshall Islands. Many brokerages operate without regulation in offshore jurisdictions such as St. Vincent and the Grenadines, the Marshall Islands, and Seychelles. 

What is AG Capitals?

AG Capitals is a Forex, CFDs, and options broker. However, the broker is not trustworthy as it does not hold a serious license.

• One of the major reasons that these brokers choose to forego regulation is to cut their operational costs.
• Another reason is that those brokers are basically not regulated by any authority. That's why we recommend avoiding trading with offshore-registered brokers. In addition, AG Capitals claims to be regulated by FCA, however, we didn't find any records of this broker in the regulator's register. Moreover, UK's FCA has recently banned the broker:

"AG Capitals (link is external) is not authorized by us and is targeting people in the UK to invest in binary options (see regulated binary options brokers) and other investment products. Based upon information we hold, we believe it is carrying on regulated activities which require authorization."

• Instead, world-known top-tier authorities oversee brokers and provide full safety measures. For instance, if an FCA-regulated broker goes bankrupt, its clients are covered by the Financial Services Compensation Scheme (FSCS). The traders are entitled to receive up £50,000 in total. Check the list of FCA-regulated brokers.

AG CapitalsReview Conclusion

All traders are advised to avoid unregulated/offshore brokers as there is a huge risk of losing money with such firms. Based on our findings, AG Capitals is not a reliable broker. The lack of information about the broker’s regulations, trading conditions, and contact details should be the biggest red flag for those who plan to invest with the entity. Usually, such companies run investment scams. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as Alpari and XM.

AG Capitals Update

Recently the AG Capitals website remains inactive, meaning the broker has muted its trading offering and does not propose account openings. However, we still advise the traders to be alert and careful, in case they receive trading proposals. 

Is Aleforex Scam or Legit Broker?

It is not safe to trade with Aleforex. The broker is suspected of being a scam. The broker mentions its FCA license, yet when we investigated further, we do not come up with any evidence as proof. So,  it leaves us with an assumption that Aleforex only pretends to be a regulated broker. 

• This means that Aleforex is not regulated by any world authority and investing with it will put your funds at risk. 

What is Aleforex?

Aleforex is a Forex broker. The company doesn't provide any information about its location or the entity behind this brand name as well as contact details. The website states that Aleforex is regulated by the Financial Conduct Authority in the UK.

• However, we didn't find any records about this broker in the FCA's register. Also, they provide the list of the affiliate brokerages: Valutrade, MEXGroup, XTB. All three brokers are regulated and have a good reputation, although they don't have any connections with Aleforex. All these facts should be enough to understand that the broker is not reliable, not regulated and better be avoided.
• In addition, Spain's regulator CNMV has issued a warning against Aleforex:
  "Aleforex/forextrading.cat is not authorised to provide the investment services detailed in Article 140 of the Securities Markets Law, which includes investment advice, or to provide the auxiliary services detailed in letters a), b), d), f) and g) of Article 141 of the said Law in relation to the financial instruments detailed in Article 2 of the said Law, including, for those purposes, foreign currency transactions."

Aleforex Review Conclusion

As a general rule dealing with unregulated brokers is risky and we recommend that clients choose properly licensed and supervised brokers. It is safe to trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as HFM and TMGM.

Aleforex Update

Our research revealed that the Aleforex website is inactive. This means the broker has muted its trading offering and does not operate. However, we recommend avoiding and staying alert in case of any proposals. 

Is CarterFS Scam or Legit Broker?

No, it is not safe to trade with CarterFS. The company is owned and operated by Elit Property Vision LTD. Despite its location, the broker doesn’t provide any information about the regulation/license and we can also confirm that neither CarterFS nor Elit Property Vision LTD are regulated in Bulgaria by the Financial Supervision Commission.

• Previously, CarterFS was owned by Solutions CM which had a bad reputation because it was banned multiple times as an owner of such brokers as Britonprice and Easy Line Pro.

What is CarterFS?

CarterFS is a platform that offers various investment and trading options in stocks, commodities, indices, and currencies for personal use.

• However, CartersFS is not an exception when it comes to warnings. Spain's CNMV has issued a warning against the broker in February 2017:

"CARTER FINANCIAL SERVICES is not authorised to provide the investment services, which includes investment advice, or to provide the auxiliary services relation to the financial instruments, including, to those purposes, foreign currency transactions."

• Also, the broker has recently been banned by Austrian FMA:

"Carter Financial Services is not entitled to carry out banking transactions in Austria that require a licence. The provider is therefore neither permitted to trade on a commercial basis on its own account or on behalf of others."

• And there is also a warning from the Italian CONSOB:

"The National Commission for Companies and the Stock Exchange has ordered the following companies to cease the infringement of art. 18 of the Consolidated Law on Finance, consisting of the provision of unauthorised investment services and activities to the Italian public"

CarterFS Review Conclusion

We advise all investors and traders to avoid CartersFS and other unregulated brokers. The lack of information about the broker’s regulation, trading conditions and contact details should be the biggest red flag for those who plan to invest with the entity. Usually, such companies run investment scams. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as eToro and XM.

CarterFS Update

Our research revealed that the CartersFS website is inactive. This means the broker has muted its trading offering and does not operate. However, we recommend avoiding and staying alert in case of any proposals.