category: Unregulated Brokers

Is Tallinex Scam or Legit Broker?

It is NOT SAFE to trade with Tallinex. Tallinex Limited is registered and located in St. Vincent and the Grenadines while originating in Estonia. 

• Being an offshore zone St. Vincent & the Grenadines does not define strict obligations to its financial registered firms, which may be a risky investment in case the firm is only based there. 

What is Tallinex?

Tallinex is a registered trademark or service mark of Tallinex Limited registered and located in St. Vincent and the Grenadines while originating in Estonia. The broker mentions that all Tallinex trades are transmitted swiftly and reliably to the world's largest banks through a PrimeXM FX bridge to Integral's FX Grid system, which is optimized for Forex trading. That the clients can benefit from better ECN/STP technology and confidently trade the Forex markets through the Tallinex platform. However, the SVG governmental structure does not perform the strictest standards in regard to financial service firms. 

• In addition to that, recently the company was fined by the US reputable authority CFTC and received warning from the EU regulators. The authorities found that Tallinex operated as an unregistered foreign exchange dealer by soliciting orders for leveraged forex transactions from retail U.S. and EU customers, and offered to be the counterparty to such contracts with its customers. The Order also found that Tallinex defrauded these customers by knowingly or recklessly misrepresenting or omitting material facts.

“Tallinex Ltd. Ordered to Pay nearly $10.3 Million in Restitution to Defrauded Customers and Defendants Ordered to Pay Civil Monetary Penalties Totaling More than $760,000”

CFTC, USA. July, 2018.

Tallinex Review Conclusion

In conclusion, according to the finding we recommend avoiding trading with Tallinex and keeping the safe trek of investment options with well-regulated and authorized companies that are constantly checked. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and HFM.

Tallinex Update

Based on our research, the Tallinex 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 UB4Trade Scam or Legit Broker?

UB4Trade is not a safe broker. It does not hold any license which means that the broker's activities are not overseen by any authority. Generally, offshore or unregulated brokers are engaged in fraud offerings, which may put the trader's investments at risk.

• In forex trading, it is essential to sign in with a reliable broker with tight regulations. Many unregulated brokers try to attract traders by favorable conditions and offerings, but often this is just a trap. 

What is UB4Trade?

UB4Trade is a Forex and CFDs broker, owned and operated by Finatex Ltd. The company claims to be located in London, UK, although it is not authorized to provide financial services in the UK. It seems that the broker has been targeting European residents, as the languages supported on the website are English and German, also the provided contact numbers are British and Swiss.

• UB4Trade doesn't seem to be regulated by any of the regulators, moreover, Danish Financial Supervisory Authority has issued a warning against this firm in March 2018:
  "Finanstilsynet has been informed that UB4TRADE provides financial services in Denmark. However, UB4TRADE is not under the supervision of the Danish Financial Supervisory Authority and is thus not authorized to pursue activities covered by the Danish Financial Business Act in Denmark."

UB4Trade Review Conclusion

To sum up, UB4Trade is an unregulated broker that cannot be trusted. As one of the most important things when choosing a broker is whether it is licensed or overseen by any of the financial authorities. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets, HotForex, and Infinox (Check Infinox broker review).

UB4Trade Update

We found the UB4Trade website inactive and unavailable to reach. This means the broker no longer operates. However, it is best to avoid and stay alert if any proposals come. 

Is Finodax Scam or Legit Broker?

It is not safe to trade with Finodax. The broker does not hold any type of license, and engaging with it might be risky. Signing in with the broker means putting your investments at risk.

• We never recommend trading with offshore or unregulated brokers as they might have attractive offerings, but the overall trading experience might prove to be negative. 

What is Finodax?

Finodax is a brokerage and investment firm specializing in online trading and investment, in Forex and CFDs trading specifically. The company claims to have offices in the UK, Spain, Norway, Japan, Australia, South Africa, and Mexico.

• In order to provide its financial services, the broker needs to be regulated in those countries, although Finodax is not overseen by any of the regulators. The website supports English and Spanish languages, which could mean that the broker targets Spanish residents. As additional proof, there is a warning against Finodax, issued in May 2018 by Spain's regulator CNMV (The National Securities Market Commission):
  "Finodax is not authorized 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."

Finodax Review Conclusion

Investing with a properly regulated broker is crucial for the safety of any investment. There are few well-respected institutions that enforce strict regulatory standards upon all brokers in their jurisdiction, such as FCA in the UK, ASIC in Australia, or CySEC in Cyprus. Check out a list of brokers authorized by FCA. We advise signing in with reliable brokers such as BlackBull Markets, XM, and BDSwiss. 

Finodax Update

We found the Finodax website inactive and unavailable to reach. This means the broker no longer operates. However, it is best to avoid and stay alert if any proposals come. 

Is TradeToro Scam or Legit Broker?

No, it is not safe to trade with TradeToro. TradeToro is owned by Ivory Group Limited, which is an offshore company registered in Dominica.

• Dominica 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 Global Clearing Group, Tradersway, and more.

What is TradeToro?

It is not clear enough how exactly TradeToro delivers its service and if comply with any of the regulations. In fact, it is obvious that not, therefore the broker’s offering is not overseen by any entity and may be considered an illegal service, as the EU requires the strictest licensing.

• Overall, it means TradeToro offers unreasonable risk to their investors or traders as simply there are no client’s security rules implemented. Besides, there are vast negative reviews from the traders engaged with TradeToro, as well as states that the broker is a scam. The traders faced some interruption in their trading processes, “advisory” how to place orders next and that’s apart from the issues that the money most probably never returned back to their owners.
• In addition, the Austrian Financial Market Authority (FMA) has issued a warning against TradeToro:

"TradeToro is not entitled to carry out banking transactions in Austria that require a license. Therefore the acceptance of funds from other parties on a commercial basis for management purposes or as deposits is not allowed."

• We have heard brokers from Dominica deny traders withdrawing funds. We have feedbacks from traders that they cannot withdraw money. You read the feedback here.

TradeToro Review Conclusion

We advise all investors and traders to avoid TradeToro and other brokers from Dominica. Traders should trade with well-regulated brokers (Top 10 Forex Brokers in the World) such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and TMGM.

TradeToro Update

We found the TradeToro website inactive and unavailable to reach. This means the broker no longer operates. However, it is best to avoid and stay alert if any proposals come. 

Is GMFX24 Scam or Legit Broker?

GMFX24 is not a safe broker as it does not hold any serious license. It is registered in St. Vincent and the Grenadines and does not provide proper safety terms and conditions. 

• Saint Vincent and the Grenadines (SVG) is a popular offshore jurisdiction for forex brokers due to its low set-up requirements and minimal regulation. However, the lack of regulatory oversight and lax requirements can also lead to potential risks for traders who choose to sign up with brokers registered with the SVG Financial Services Authority.

What is GMFX24?

GMFX24 is a Forex and CFDs broker, owned and operated by Goldman 24 Limited, a company registered in St. Vincent and the Grenadines. According to the website the head office is located in St. Vincent and the Grenadines. They don't provide the contact phone numbers, although mention the main hotline's time availability.

• Also, the terms and conditions state that the company is under Cyprus' jurisdiction, which is supposed to mean GMF24 is regulated by Cyprus regulator CySEC. We have checked the register on the regulator's website and there are no records about the broker's license. It seems that GMFX24 is just one more offshore-based unregulated forex broker that tries to get investors' trust with fake information about its regulation.

GMFX24 Review Conclusion

We advise avoiding GMFX24 as it has no regulation and no legal right to provide financial services. Instead, we recommend checking the list of the CySec-regulated brokers, as this regulator is well-known and trustworthy. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and BlackBull Markets.

GMFX24 Update

We found the GMFX24 website inactive and unavailable to reach. This means the broker no longer operates. However, it is best to avoid and stay alert if any proposals come. 

Is Boom Xchange Scam or Legit Broker?

Boom Xchange is a 100% fraud company. The broker does not hold any proper license from a well-known reliable financial regulator. It is NOT SAFE to trade with Boom Xchange.

• We never advise trading with an unregulated broker, since the financial investment service they deliver is not trustable. The reason is simple, the broker may promise the most ever competitive trading conditions or the trading environment, yet the trader has no guarantee from the official entities that oversee the Forex industry. Thus the engagement in trading with such a company means the trader will believe only in the broker’s words, and of course, it is a high risk.

What is Boom Xchange?

Boom Xchange is a Forex, CFDs, and cryptocurrency broker. The company states that it is owned and operated by Leadcapital Markets Ltd., a CySEC-regulated company. The website provides full information about the license from the Cyprus regulator, including address, contact phone number, etc. They also mention the other regional offices of the company in the USA and UK. Everything could look quite legit, as Leadcapital Markets Ltd. is a trustworthy company regulated by CySEC. The trick is this company has nothing to do with Boom Xchange, it doesn't own the broker and there is no information about these two companies to be connected.

• Moreover, CySEC has recently issued a warning against Boom Xchange, stating that the broker is using the details of the regulated entity to scam people:
  "The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to inform investors that the website boomxchange.com (Boom Xchange), does not belong to an entity which has been granted authorization for the provision of investment services and/or the performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017. In the above-mentioned website, the name, license number, and content from the website of the Cyprus Investment Firm Leadcapital Markets Ltd is used illegally and without its authorization."

Boom Xchange Review Conclusion

It is a very popular tactic among fraud companies to use the details of the regulated firms in order to earn clients' trust. We highly recommend avoiding such brokers and choosing from those regulated by reliable authorities such as CySEC in Cyprus or FCA in the UK. Traders should trade with well-regulated brokers (Top 10 Forex Brokers in the World) such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and TMGM.

Boom Xchange Update

We found the Boom Xchange website inactive and unavailable to reach. This means the broker no longer operates. However, it is best to avoid and stay alert if any proposals come. 

Is CapitalXP Scam or Legit Broker?

CapitalXP is not a safe broker as it does not hold any serious license. The broker is registered in St. Vincent and the Grenadines and does not provide proper safety terms and conditions. SVG is a popular offshore jurisdiction for forex brokers due to its low set-up requirements and minimal regulation. However, the lack of regulatory oversight and lax requirements can also lead to potential risks for traders who choose to sign up with brokers registered with the SVG Financial Services Authority.

What is CapitalXP?

• CapitalXP is a Forex and CFDs broker, owned and operated by Quattro Holding Group LTD, registered in St. Vincent and the Grenadines. It is a popular destination for forex brokers because the registration procedure is simple and low-cost and they face limited regulatory supervision if any. It is important to remember that the company's registration has nothing to do with the regulation and may be confusing for those who have just started searching for brokers to invest with.
• The website provides two contact phone numbers (Russia and the United Kingdom), however, neither the broker, nor the company behind it is regulated in these or any other countries by the official financial regulators. Also, the website supports English and Russian languages, which only confirms the fact that CapitalXP has been targeting people from these countries without any legal right to do that.

CapitalXP Review Conclusion

Well-respected financial authorities like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC) are effectively enforcing strict financial and ethical rules on all overseen brokers. That's why we recommend choosing among the brokers regulated by the mentioned authorities. Traders should trade with well-regulated brokers (Top 10 Forex Brokers in the World) such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and TMGM.

CapitalXP Update

We found the CapitalXP website inactive and unavailable to reach. This means the broker no longer operates. However, it is best to avoid and stay alert if any proposals come. 

Is Roiteks Scam or Legit Broker?

It is NOT SAFE to trade with Roiteks. It is located in the Marshall Islands and is not overseen by the industry authority, therefore maintains operation at its own standards. 

• Marshall Islands are known hub for various scams and fraud companies, as the incorporation requirements are very low, while the only “standard” is a small initial start capital. Of course, it doesn’t mean that all companies are frauds, but a firm with a trustful trading environment should be authorized by any other reputable world agency. 

What is Roiteks?

Roiteks is a trading name used by Green Oak Limited with its registration in Bulgaria. However, the company is a subsidiary of Vantu Capital LTD, which is already registered in the Marshall Islands. Apart from the fact that the Marshall Islands is a known offshore hub for financial companies, the firm in Bulgaria is not registered as well.

• The international authorities that oversee the authorized entities check on regularly the market offerings while carrying out warning activity to provide enhanced resources to the potential investors before the choice is done. Therefore, the regulatory searches on Roitecks obtained the attention of the international regulatory bodies, as the firm is non-authorized and targets particular residents to trade with them. The alert was placed in Norway while various EU authority sources follow an alert, and should be considered seriously by the investors.

  “The Danish Financial Supervisory Authority is aware that Green Oak Limited (Roiteks) is not authorized to operate investment trusts in Norway, and the executive branch, therefore, has no necessary approval under Norwegian law.”

  The Financial Supervisory Authority of Norway, September 2018

Roiteks Review Conclusion

In conclusion, we do not recommend trading with the Raitecks, since the offering does not seem reliable and should be avoided. It is advisable to trade with Regulated Forex Brokers that are obliged to act in accordance with the set of regulations. Traders should sign in with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and XM.

Roiteks Update

Based on our research, the Roiteks 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 365 FX Scam or Legit Broker?

No, it is not safe to trade with 365 FX. 365 FX is owned by Fintech Software Inc. which is an offshore company registered in the Marshall Islands.

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

What is 365FX? 

365 FX is a brand name owned and operated by Fintech Software Inc., which is managed and owned by a team of professionals, specializing in forex trading, financial options, online marketing, commodities, stocks, derivatives, etc., as claimed on the website.

The broker states its address in London, however, is not registered officially to be able to deliver its financial services. In addition, the ruts of the company show the entity is located in the Marshall Islands, which is a known offshore zone.

• Nevertheless, the brokerage operates trading without licensing while targeting clients from various entities, therefore the company was warned by the authorities to stop its business offering. The statement below was issued by the Irelands Central Bank, while further, the regulatory bodies from the EU spread the information through their sources, too.

• “The Central Bank of Ireland published the name of an unauthorized investment firm, 365-FX/365BinaryOption/Oproserv Limited/Fintech Software Inc., that states its addresses in the United Kingdom and the Marshall Islands. It is a criminal offense for an unauthorized firm to provide financial services in Ireland that would require authorization under the relevant legislation, which the Central Bank is the responsible body for enforcing.”

  Central Bank of Ireland. October 2018.

365 FX Review Conclusion

We advise all investors and traders to avoid 365 FX 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 FP Markets and BlackBull Markets.

365 FX Update

Based on our findings, 365 FX is inactive and unavailable to reach. This means the broker has muted its trading offering and does not propose account openings, however, we recommend avoiding and staying alert in case any proposals come in.