category: Unregulated Brokers

Is XtraderFX Scam or Legit Broker?

No, it is not safe to trade with XtraderFX.The company is owned and operated by GPay LTD, based in England. Also, all the card payments and billing services are processed by GPay LTD. The address and the contact phone number show that the company has an office in England, although the company is not regulated in the UK.

• The Financial Conduct Authority is responsible for the regulation of the brokers that offer their services in the country. There is no record of XtraderFX or GPay LTD in the FCA Register (Read about FCA Regulated Fortrade Broker). Usually, it is a sign to keep the funds away from the broker as trading with unregulated brokers is very risky. Moreover, the FCA issued a warning against XtraderFX in July 2018:

  “Xtraderfx (a trading style of Gpay Limited) is not authorized by us and is targeting people in the UK. Based upon the information we hold, we believe it is carrying on regulated activities which require authorization.”

What is XtraderFX?

The company commercially conducts investment advice and proprietary trading. However, XTraderFx does not have the permission of BaFin or any other top-tier regulator. It is therefore illegal. The company GPay Ltd. also appeared under the name Cryptopoint.

• Also, the broker was recently banned by the German BaFin:

"The company calls German customers under German and British phone number and offers them cryptocurrencies, currencies, commodities, indices and equities. As a result, t"

Check the BaFin regulated Legacy FX's Review.

XtraderFX Review Conclusion

We advise all investors and traders to avoid XtraderFX 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 FP Markets and Pepperstone.

XtraderFX Update

Based on our research, the XtraderFX 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 IGOFX Scam or Legit Broker?

IGOFX is a 100% fraud company. The broker is registered offshore (See other scam forex brokers) and does not hold any proper license from a well-known reliable financial regulator. It is NOT SAFE to trade IGOFX.

We never advise trading with an offshore 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 IGOFX?

IGOFX is a broker, offering online trading in Forex and CFDs. The company is owned and operated by IGO Global Limited, registered in Vanuatu by Vanuatu Financial Services Commission (VFSC).

• Vanuatu is an offshore zone popular among forex brokers because of the variety of tax benefits, although most of the brokers registered there are not actually regulated or licensed by any authority.
• The terms and conditions "governing law" part states that IGOFX is overseen by the jurisdiction in England, but the broker is not regulated in the UK. Moreover, the Monetary Authority of Singapore (MAS) has issued a warning alert against IGOFX in March 2017:
  "based on information received by MAS, IGO Global Limited; IGOFX may have been wrongly perceived as being licensed or authorized by MAS."
• Also, the Bank Negara Malaysia (BNM - Central Bank of Malaysia) added the broker to its alert list in July 2017:
  "IGOFX is neither authorized nor approved under the relevant laws and regulations administered by BNM."

IGOFX Review Conclusion

To sum up, dealing with unregulated offshore companies such as IGOFX is very risky as they don't guarantee the safety of customers' funds. We recommend dealing with the entities authorized by the serious and reliable authorities, where regulation is strict. For example, you can choose regulated brokers from the FCA in the UK or ASIC in Australia.

IGOFX Update

Based on our research, the IGOFX 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 Vix500 Scam or Legit Broker?

Vix500 is not a secure Forex broker since it does not hold a license from any worldwide serious Forex authority. Meaning the broker is suspected of being a fraud company since it was not checked for its compliance before establishment, was never monitored in terms of its safety, and simply may operate the business in any way it wishes. This results in a very high-risk trading opportunity, despite its alluring proposal.

What is Vix500?

Vix500 is an online trading broker that offers several account types to invest, depending on the size of a trader, and availability to trade through market-leading platform MetaTrader4 Forex, Indices, Stocks, Commodities, and other assets. The broker claims its security and trustful trading through the quotes received from the leading liquidity providers and guarantees of transactions.

• However, Vix500 is a part of the Blonde Bear OU group of companies and various trading brands that, however, were detected and warned times by reputable agencies that oversee Forex business and investment services firms, as well as maintained an extremely negative reputation.
• The operational office of the group is located in Estonia, Tallinn while the broker is not registered or overseen by any authority. Being located in the country part of the EU, the financial investment firm is mandatory to obtain a license in order to deliver its protected and legitimate trading service. Besides, the Vix500 brand is registered in Vanuatu, an offshore zone, which means the company tries to show its legal ruts in another jurisdiction, that yet does not set customer protection requirements.
• As a result, the company showed its scam and fraud behavior towards clients and Forex trading itself, which is quite common among non-regulated brokers.
• For that reason, the traders should take it seriously while choosing a broker and not to involve in any action with the Blonde Bear OU group of companies and their offerings. The blacklisting, fraud reputation, and generally non-regulated trading environment are the issue, which should be carefully checked before any decision is made. For that reason, we always recommend investment only with the Regulated companies that comply with the necessary protection rules set by the world authorities alike FCA (UK), CySEC (Cyprus), and others.

Vix500 Review Conclusion

We recommend all investors and traders avoid Vix500 and other unregulated brokers. It's a common practice that 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 FP Markets and HFM.

Vix500 Update

Based on our research, the Vix500 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 DracoFX Scam or Legit Broker?

DracoFX is a 100% fraud company. The broker is registered offshore and does not hold any proper license from a well-known reliable financial regulator. It is NOT SAFE to trade DracoFX. We never advise trading with an offshore 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 DracoFX?

DracoFX states its operation as a dealing room facility for trading various financial products including foreign exchange, CFDs, and commodity spot trading through innovative technology and vast market liquidity. Draco Business Solutions is operating under the name DracoFX while registered in Saint Vincent and the Grenadines.

• 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.
• The broker is a relatively young company, while delivering its trading opportunities and mainly targets clients across the Asia region, claims numerous awards from reputable agencies in terms of their technology and service. Moreover, the broker mentions its safety of funds and delivery of highly reliable trading conditions.  
• In addition, there are many unfavorable comments and reviews towards DracoFX from the company traders, regarding withdrawals of funds and suspicious misleads while trading. Overall, it all seems like DracoFX is another company that delivers “not very well maintained” trading conditions and opportunities.

DracoFX Review Conclusion

We strongly recommend choosing among the reputable and regulated brokers that comply with necessary maintenance requirements and deliver customer protection service through their license. 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 FP Markets and HFM.

DracoFX Update

Based on our research, the DracoFX 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 Efexa1000 Scam or Legit Broker?

It is not safe to trade with Efexa1000, because it is an unregulated broker. In addition, the company has been suspected to be a fraud. While we checked the company there is no authorization or registration of the address, therefore the company seems to be highly suspicious and might operate its services from an absolutely different location.

What is Efexa1000?

Efexa1000 is a Forex brokerage owned and operated by EFEXA 1000 Ltd., with headquarters in Saint Vincent and the Grenadines. The company claims to have an IT department and back office located in London, the UK, although Efexa 1000 is not regulated to provide its services in the UK. In fact, the company is not regulated in any other country.

• There is also a discrepancy in the regulation info as the website states that EFEXA1000 Ltd. is a part of group Instant Trading EU Ltd. regulated and licensed by CYSEC under 266/15 Company, but it is actually a false statement as the EFEXA 1000 Ltd. got blacklisted by CySec because of providing this kind of information:
  "The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to inform investors about the following regarding "Efexa1000 Ltd" (the "Company"): 1. The Company, through the website efexa1000.com, claims to be part of the Instant Trading EU Ltd (the "CIF") group, which is licensed (License No. 266/15) and regulated by CySEC, while it has no relationship with the CIF. 2. The Company does not hold a license from CySEC for the provision of investment services and/or investment activities, as provided for in Article 5 of Law 87 (I) / 2017."

Efexa1000 Review Conclusion

We advise all investors and traders to avoid Efexa1000 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 FP Markets and HFM.

Efexa1000 Update

Based on our research, the Efexa1000 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 AlphaCapital Scam or Legit Broker?

AlphaCapital has been suspected as a scam broker. This broker is blacklisted by a well-known regulatory authority and should be avoided. AlphaCapital is owned by Alpha Capital Securities Ltd which is an offshore company registered in the Marshall Islands. The Marshall Islands 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 MegaTradeFX, Finbitex, and more.

What is AlphaCapital?

AlphaCapital claims its leading global brokerage positions while providing smart, secure trading solutions for investors at every level (Explore Top Forex Brokers' List). In addition, setting the bar higher with cutting edge, through tool-rich trading platforms, low latency, and superior liquidity provided by the leading institutions to trade Forex and Equity markets. AlphaCapital offers a wide range of trading options, including currency pairs, such as the EUR/USD; commodities, like oil or gold, and indices like the Dow Jones and the Nasdaq. 

• The broker is a trading name of the Alpha Capital Securities Ltd located in Tallin, Estonia while is regulated or authorized by none of the reputable organizations alike FCA (UK), BaFIN (Germany) (Also read about BaFin Regulated LegacyFX) or even the local regulator in Estonia. Moreover, the payment provider of the AlphaCapital is mentioned a Nostro Technology OÜ, based in Tallinn (Estonia), however, 'Nostro Technology OÜ is a subsidiary of FGM Technology Ltd', with offices in the Marshall Islands. However, the fact is that the Marshall Islands is an offshore zone, which does register the financial investment firm, but provides very poor if no requirements for the company's operation.

• While all establishments of the business and trading delivery seem to be highly suspicious, the reputable authority CONSOB and others issued a warning to the public due to their concerns about AlphaCapital too. 

• In addition to the official statement, the negative reviews from the traders confirm a suspicious questioning of the broker. Since the clients faced “sudden disappear” of replies or any concerns while the funds were requested to be withdrawn. Overall, we do not recommend trading with AlphaCapital and advice to choose among reputable firms to trust.

AlphaCapital in India

AlphaCapital allows Indian traders to open accounts and trade. However, AlphaCapital has no mention of complying with any Indian regulators on its website. It is also worth mentioning that Forex trading in India is actually prohibited. The broker is not regulated by any regulatory body in India, that’s why money safety may be the issue here.

AlphaCapital in the USA

The United States is one of the countries that is not accepted by AlphaCapital. As per the U.S law, brokers regulated by CFTC are the only brokers allowed for USA traders. So, except for AlphaCapital, you are only permitted to trade with the U.S regulated platforms.

Deposits and Withdrawals

Each account type (Also find another broker MEX Exchange's account types here) has its own minimum deposit requirements. However, the broker does not disclose the amounts that need to be deposited. 

Alpha Capital accepts a wide range of deposit methods, including bank transfers, and a variety of credit cards.

Alpha Capital provides payment options based on the deposit methods through which the account was funded. In the case of payment services such as Western Union or CashU, for which accounts do not exist, Alpha Capital will transfer your withdrawal amount directly to your bank account.

Apps

AlphaCapital's user-friendly mobile platform is compatible with both Android and Apple devices. The platform offers hundreds of available assets, live streaming quotes, and complete account management capability, enabling you to choose from multiple order types, and view your trading history and account status at a click Trade from any location, at any time, benefiting from a rich basket of tools and features, including professional interactive charts, advanced technical indicators and a selection of effective risk-management tools. 

Demo Account

AlphaCapital offers its traders a demo account that allows them to hone their trading skills on a free demo account. Traders can gain experience and familiarize themselves with all the valuable tools and features offered on the ALPHA CAPITAL platform, before opening a live account and investing for real in the global financial markets. Read about FBS Broker which also offers a Demo account here.

AlphaCapital Review Conclusion

In fact, we never advise trading with a non-licensed 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. 

We strongly advise opening a trading account only with brokers that are regulated by respected world authorities such as UK brokers, Forex Brokers Australia or ASIC-regulated brokers in Australia, and reliable brokers such as FP Markets and TMGM.

AlphaCapital Update

Based on our findings, the AlphaCapital 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 Mib700 Scam or Legit Broker?

Mib700 broker is a Non-Regulated Broker. It is NOT SAFE to trade with this company. We have checked the company and there is no authorization or registration of the address, therefore the company seems to be highly suspicious and might operate its services from an absolutely different location.

What is Mib700?

Mib700 is an Online trading and financial service provider that claims its professionalism, remarkable support team, and a range of instruments to trade on the newest technologies that include market-leading platforms. The broker states its expertise in providing financial services with a goal to keep long-term success with advanced client protection and safety measures.

• However, all abovestated is just sweet words that, unfortunately, have nothing to do with how exactly things are going with the broker. In fact, the Mib700 brand is just another name of the numerous branches and trade names used by the firm Blonde Bear OU, located in Estonia and that proved its fraud and scam operations to many worldwide traders and the history of its warnings. All companies that the group uses were blacklisted by various jurisdictions or authorities,  scam reviews appear all over the internet. Yet, the company still delivers its tricky business under various names.
• The company obviously does not hold any license, while being located in EU countries should obtain authorization for its service delivery. Meanwhile, the firm didn’t receive any and is just continuously searching for new clients, that are facing afterward a failure to withdraw any funds or get their profits.

Mib700 Review Conclusion

It is definitely not safe to trade with Mib700 and with all its affiliated groups of brands. Exactly for that reason, we always advise staying far away from unlicensed companies and checking carefully the company history, reputation, and applicable authorization before any investment is made. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and HFM.

Mib700 Update

Based on our research, the Mib700 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 Bormancorp Scam or Legit Broker?

No, it is not safe to trade with Bormancorp. Bormancorp is owned by Board LTD. 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 being low, it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as Obsbit, Capital Hall, and more.

What is BormanCorp?

BormanCorp provides access to a trader with a wide range of Forex and CFD instruments. However, on the official website, the information is confusing since there is a mention of the company address in Budapest, Hungary. However, we couldn't find any proof of the company's regulation, and the owning disclaimer by the EU company rather confirms the broker’s suspicious performance.

• In addition to that, there are some strange conditions that are required by the BormanCorp broker including not-typical withdrawal or maintenance fees, as well as an imposed fee for verification of an account. While all in all seem to be a very tricky business.

Also, the company has been banned by Austria's regulator Financial Market Authority (FMA) in October 2018:

"Board LTD (“Bormancorp.com”) is not entitled to carry out banking transactions in Austria that require a license. The provider is, therefore, neither permitted to trade on a commercial basis on its own account or on behalf of others."

BormanCorp Review Conclusion

We advise all investors and traders to avoid Bormancorp 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 TMGM.

Bormancorp Update

Based on our findings, the Bormancorp 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 HispaMarkets Scam or Legit Broker?

We advise our readers, not to use HispaMarkets as it is an offshore entity. HispaMarkets is owned by Hispa Mkts LTD, which is an offshore company registered in St. Vincent and 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 Brokerz, TraderUR, and more. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines.

What is HispaMarkets?

HispaMarkets is a Forex and CFD broker owned and operated by Hispa Mkts LTD affiliated to 1000 Extra LTD. Hispa Mkts LTD and 1000 Extra LTD are offshore companies registered in Saint Vincent and the Grenadines.

• There is one more company mentioned on the website - 1000 Extra OU, a provider of clearing services provided for HispaMarkets. It is already quite suspicious that there are at least three firms behind the HispaMarkets brand, and none of these entities are regulated or licensed.
• In addition, the main office is located in Argentina. There is also a small picture of the VSFC (Vanuatu Financial Services Commission) sign on the top of the website, although HispaMarkets has nothing to do with this authority.
• The website supports several languages (English, Spanish, Italian, Portuguese, French, Arabic, and Chinese), but the default language is Spanish and also the broker's name speaks for itself. That's why we suppose the company has been targeting Spanish-speaking countries. To sum up, a broker with too many affiliate companies and confusing registration details definitely cannot be trusted.

HispaMarkets Review Conclusion

It is important to remember that investing in offshore brokers such as HispaMarkets is extremely risky and a large percentage of offshore companies are in fact indulging in fraudulent practices. We advise selecting among FCA-regulated brokerages, ASIC-regulated or Swiss FINMA-regulated brokers as FP Markets and TMGM.

HispaMarkets Update

We found the HispaMarkets 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.