category: Unregulated Brokers

Is XECrypto Bank Scam or Legit Broker?

It is not safe to trade with XECrypto Bank. The broker is suspected of being a scam. On its website, it offers unclear information about its location and regulation, clearly trying to conceal the fact of being not regulated. 

What is XECrypto Bank?

On its website, the broker states that traders enjoy the safety and security of a regulated environment, through the implementation of consolidated and harmonized sets of compliance controls and a team with over 25 years of Fintech and Brokerage experience. That’s how the XECrypto Bank firm describes itself, yet let's check if the states are true.

First of all, there is no clear information about anything, or even if the company is legit in general, since the address is mentioned in Bulgaria, Sofia yet it says that the office is in London, while headquarters are in Monaco with a second branch in London. Seriously we couldn’t understand anything, these states are not just confusing but presenting absolute unprofessionalism.

• Obviously, the broker just uses different attractive terms while in fact might be just a standard scam, even without a normal address of the firm. And of course, the XECrypto Bank offering caught the attention of the authorities while the firm received warnings and was blacklisted.

“The Commissione Nazionale per le Società e la Borsa (CONSOB) has ordered the following companies to cease infringement of art. 18 of the Italian Legislative Decree No. 58/1998, consisting of the provision of unauthorized investment services and activities to the Italian public”  

MFSA, Malta. November 2018.

“The CMVM is warning the public against the activities of XECrypto Bank followed by the alert received from the CONSOB (Italy) and other authorities, as the mentioned company proposing investment services without being authorized to do so”

CMVM, Portugal. November 2018.

XECrypto Bank Review Conclusion

We advise you to avoid signing with XECrypto Bank, or any other unregulated or offshore broker, and not to put your investments at risk. Instead, we advise choosing only among regulated brokers that hold licenses from world-known authorities. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FBS and BlackBull Markets. 

XECrypto Bank Update

We have found that the XECrypto Bank 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 Pearson Investments Scam or Legit Broker?

It is not safe to trade with Pearson Investments. The broker does not hold any license and is suspected to be a scam.

• According to the provided information, Pearson Investments is located in China. However,  the local law obligates financial investment firms in Hong Kong to be authorized by the financial regulator the Securities and Futures Commission (SFC). Pearson Investments does not hold a license from the authority, thus being engaged in unauthorized activities. 

What is Pearson Investments?

Pearson Investments is a brokerage company with a claimed office in China and Hong Kong with a boutique-style reputation established in 1978 while offering a range of financial services. Moreover, beneath the broker's website, it is stated that Pearson Investments is a limited liability company incorporated under Hong Kong law and is fully independent.

• However, according to local law, every financial investment firm in Hong Kong should be authorized by the financial regulator the Securities and Futures Commission (SFC), yet Pearson Investments is not. Actually, SFC updated Alert List features the name of Pearson Investment businesses as unlicensed in Hong Kong with an address there, but it is not located there.

“The Alert List includes Pearson Investments entity, which has come to the attention of the SFC because they are unlicensed in Hong Kong and are believed to be, or targeting Hong Kong investors or claim to have an association with Hong Kong.”

SFC, Hong Kong. April 2017.

• In addition, the Australian authority ASIC issued a warning as well, as the broker was detected offering their service to the residents.

“The business Pearson Investments 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, Australia. September 2017.

Pearson Investments Review Conclusion

Overall, we never advise trading with an unregulated brokerage regardless of its offerings. Traders should only invest with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FBS and BlackBull Markets.

Pearson Investments Update

Based on our findings, the Pearson Investments website is inactive. This means the broker has muted its trading offering and does not operate. Anyway, we recommend avoiding and staying alert in case of any proposals. 

Is Dubai FXM Scam or Legit Broker?

No, it is not safe to trade with Dubai FXM. Dubai FXM is owned by Dubai FXM Limited, an offshore company registered in Vanuatu.

Vanuatu is notorious for its practically absent requirements and regulations. The setup cost is low and it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as LiteFinTech, Emporio Trading, and more. We have a detailed article explaining the risk of trading with brokers from Vanuatu.

What is Dubai FXM?

Dubai FXM was launched in 2012.  The broker offers a wide range of products, including CFDs in crypto and forex. Dubai FXM states its authorized status and compliance with the international financial standards of service by the authorization from The Financial Commission. In fact, this organization is self-regulated and does not strictly regulate or oversee the companies. From our source, it costs €24,000 per year to become a member. However, there is no handbook or guidelines for brokers to run their businesses. Therefore, there is zero protection for traders.

• In addition, the latest list of Italian watchdog CONSOB included Dubai FXM on their warning list, since the firm is not licensed and permitted to offer their services within Italy or the EU.

  “The National Commission for Companies and the Stock Exchange has implemented a precautionary suspension, on the following company Dubai Fxm Ltd. As the company is not authorized to provide investment services and activities in Italy by any means”

  CONSOB, Italy. November 2018.

Dubai FXM Review Conclusion

We advise all investors and traders to avoid Dubai FXM and other brokers from Vanuatu. We strongly advise opening a trading account only with brokers that are regulated by respected world authorities and comply with the required set of rules,  such as UK brokers or Brokers in Australia and reliable brokers such as FP Markets and BlackBull Markets, as financial safety in forex trading is essential.

Dubai FXM Update

We found that Dubai FXM is no longer active. The broker’s website is unavailable to reach. Besides, there is no evidence of whether the broker operates or not. We recommend avoiding any offshore-based brokers due to their instability and lack of serious regulations.  

Is AsicTrader Scam or Legit Broker?

AsicTrader has been suspected as a scam broker. According to the broker's website, it is located in Scotland. However, it does not have any license from the local regulator, which means that the broker is not regulated and authorized to offer its services. 

What is AsicTrader?

AsicTrader is a broker that offers Forex, CFD, and cryptocurrency trading. The company is owned and operated by Hellax Corp LP and claims to be based in Edinburgh, Scotland.

• In order to have a legal right for offering financial services in the UK, the brokers would need to have a license from UK's regulator Financial Conduct Authority. However, AsicTrader is not regulated by the FCA or any other regulator. Moreover, the FCA has issued a warning against this broker:
  "Asic Trader / Hellax Corp is not authorised by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorisation."

AsicTrader Review Conclusion

We recommend to avoid trading with unlicensed brokers and choose among the regulated ones. The most reliable regulators are the UK’s FCA, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC). These regulators require a certain amount of capital from the brokers to guarantee the compensation of funds and a certain level of safety of clients’ money, such as BDSwiss and FBS.

AsicTrader Update

Based on our research, the AsicTader 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 TouchTrades Scam or Legit Broker?

It is not safe to trade with TouchTrades. The broker is suspected to be a scam. It does not hold any license from a top-tier authority. Although the broker mentions its London address on its website, it is not regulated by the UK financial authority - FCA. All financial companies located in the UK should hold the FCA license to be able to provide their services. 

What is TouchTrades?

TouchTrades is an innovative financial services company offering a full suite of easy-to-use online brokerage, investing, and related banking solutions, delivered at a competitive price, as the broker mentioned on the website. The company states its location in London, however, does not hold an FCA license, which in fact is mandatory for the financial investment firm in the UK. The potential investor, after the registration on the website and the opening of an account, has the opportunity to trade in stocks, commodities, and indexes and on the currency market (FOREX) through the MT4 platform.

• Generally, we never advise trusting an unregulated company, as simply the broker that is reliable and truly perform trusted operation will take care of the client's protection and will get a necessary license to operate. As this is not the case with TouchTrades the trader will never know if he will see his funds ever again or not. In addition, the authorities received complaints from the traders about TouchTrades offerings, therefore, the firm received an official alert and was blacklisted.

“The TouchTrades Limited company, with an alleged registered office in London, according to the information available, people operating in the name of "TouchTrades" have contacted investors in certain jurisdictions by telephone in order to persuade them to open an account and trade on this website. The operation in question can be classed as the professional provision of investment services involving financial instruments that requires authorization, therefore TouchTrades have to cease the infringement”

CONSOB, Italy. April 2018.

TouchTrades Review Conclusion

There are many Forex Brokers offering very competitive trading conditions while enabling trading through a legal operation of the service, and of course, we advise choosing among them. This includes FCA Regulated Brokers, ASIC Brokers, or similar. Traders should invest with trustworthy brokers, such as FBS and BlackBull Markets.

TouchTrades Update

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

Is CF Group Scam or Legit Broker?

CF Group is not a safe broker. As to the CF GROUP LIMITED, it is actually regulated by the FMA in New Zealand, although the regulated entity has nothing to do with CF Group broker. Seems like CF Group is using the regulatory information of the authorized companies to get clients' trust. 

What is CF Group?

CF Group is a Forex and CFD broker that according to the website is headquartered in London. It owns two subsidiaries: CF GLOBAL UK LIMITED in the UK and CF GROUP LIMITED in New Zealand. Also, the firm claims that CF GLOBAL UK LIMITED is regulated by UK's Financial Conduct Authority and CF GROUP LIMITED is regulated by New Zealand's Financial Markets Authority. The truth is CF GLOBAL UK LIMITED used to be regulated by the FCA, but the regulator's register informs that
"CF GLOBAL UK LIMITED is an appointed representative (AR) that is no longer an agent of an authorized firm. Do not start to do 'REGULATED' business with an AR that is no longer registered."

• Moreover, Financial Markets Authority has issued a warning against CF Group:

"We recommend exercising caution before dealing with CF Group, and the app it has published on the Google Play Store. This app claims to be associated with a New Zealand-registered financial service provider. This app is not associated with the New Zealand registered financial service provider CF Group Limited."

CF Group Review Conclusion

We strongly advise traders to avoid unregulated brokers such as CF Group, especially when there are warnings against them. It is always safer to deal with companies licensed by reputable financial watchdogs such as UK’s FCA or Australia’s ASIC. Here you may check our list of brokers licensed by the FCA. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and eToro.

CF Group Update

Recently the CF Group 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 Markets Xchange Scam or Legit Broker?

It is not safe to trade with Markets Xchange. This is an offshore broker and does not hold any serious license from a top-tier authority. 

• The broker is registered in the Marshall Islands which is an offshore zone, however, the broker pretends it is located and licensed in Ireland, which already gives a firm ground for doubts. 

What is Markets Xchange?

Markets Xchange is a Forex and CFDs broker. The website states that the Company Marshall Islands provides online trading services via its brand “Markets Xchange” and its European billing agent and marketsxchange.com website and the domain registrar. It is clear from the owner company's name that the broker is registered in the Marshall Islands, however, it claims to be located and authorized in Ireland (they don't provide the address, but provide multiple British and Irish contact phone numbers). Markets Xchange is not regulated by Ireland's regulator The Central Bank of Ireland or any other authority.

• Moreover, The Central Bank of Ireland has issued a warning against the broker:
  "Markets Xchange/Company Marshall Islands is not authorized by the Central Bank as an investment firm, or to provide investment advice. Markets Xchange/Company Marshall Islands has cloned the Central Bank authorization number of a legitimately authorized entity (of a different name) that has no connection whatsoever to this unauthorized firm."

Markets Xchange Review Conclusion

As we usually warn, offshore-regulated companies are not the best options to trade with, because of the high risk of losing invested funds. They don't guarantee and/or provide any protection for their customers. The UK's FCA, on the contrary, provides the Financial Services Compensation Scheme (FSCS), which guarantees account protection in case the broker goes bankrupt. Check the list of FCA-regulated brokers here. Traders should trade with well-regulated brokers such as FBS and BlackBull Markets.

Markets Xchange Update

Based on our findings, the Markets Xchange website is inactive. This means the broker has muted its trading offering and does not operate. Anyway, we recommend avoiding and staying alert in case of any proposals. 

Is NBR Trading Scam or Legit Broker?

NBR Trading is not a safe broker to trade with. The broker does not hold any serious license and it might be a scam. Being based in Japan the broker should hold a license from the country's top financial authority - JFSA. However, this is not the case with NBR Trading.

What is NBR Trading?

NBR Trading is a multi-tier private equity firm involved in global derivatives and risk management providing in-depth analysis and trading of financial markets globally. This info is claimed on the company website, while the firm mentions their exceptional expertise, run of business since 2013, and addresses in Japan.

• However, our main concern about NBR Trading is the regulatory status, which is not confirmed by any mention on the website. That means that the company delivers its service without a proper license and authorization. Being based in Japan the broker should hold a license from JFSA (Japan Financial Service Agency) (Learn about JFSA regulated Avatrade Platform), and therefore if the company didn’t apply for the license there are questions appearing.
• In addition to that, the industry authorities monitor the market offering in order to prevent their responsible residents from fraud and risky investments. As NBR Trading is not licensed to offer its service to world traders, the company received a warning from the Australian and other regulators.

“ASIC advises the company NBR Trading Co Ltd could be involved in a scam. Do not deal with this business as it is unlicensed in Australia. The business listed 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, Australia. October 2018

NBR Trading Review Conclusion

Together with the Forex authorities we always recommend investing and trading only with regulated entities. As scams and frauds are growing daily every trader should protect his funds from non-compliant companies. For that reason, it is better to choose among ASIC-regulated brokers or similar. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FBS and BlackBull Markets.

NBR Trading Update

Based on our findings, the NBR Trading website is inactive. This means the broker has muted its trading offering and does not operate. Anyway, we recommend avoiding and staying alert in case of any proposals. 

RoyalCripto is an online trading provider that offers a diversified portfolio of trading instruments and promises high return profitability along with the provided safest environment and unparalleled trading services. The states seem to be very effective and competitive, but of course, in order to trust the broker, you have to check on the facts. The first what has revealed about RoyalCripto that the firm mentions on the website bottom name of The Royal Bank of Scotland plc, which is located in Scotland and registered by the FCA (UK) to provide its financial services.

However, RoyalCripto got no any connection to the mentioned company and seems just using their information, while there is no any other concern about why The Royal Bank of Scotland plc name mentioned on the RoyalCripto website. Moreover, we found that previously the company was using another company while mentioning their authorized business model, and still not clear where the company is registered or if registered in generall. That fact even caught the attention of the Italian authority CONSOB, while RoyalCripto received a warning and were flagged to offer their services.

“Having noted that, at the bottom of the website pages it is stated that the website is managed by Royal Forex Ltd, a company regulated and authorized by the CYSEC, this statement also includes the company's license number and the start date of its activities. HAVING ESTABLISHED the aforementioned Royal Forex Ltd, duly authorized by the CYSEC, has no involvement with the www.royalcripto.com website nor with the company that manages it”

CONSOB, Italy. April 2018.

Conclusion

Overall, the RoyalCripto website is found not to be attributable to any of the parties authorized to professionally provide investment services to the public in addition to their fake of information. It all means that the broker performs not clear, transparent or even solely trustful business and that's actually what happened with non-authorized firms. Therefore, we strongly advise to avoid RoyalCripto at every means and to choose among reliable regulated brokers to trade.