category: Unregulated Brokers

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. 

Is RC Global Financial Scam or Legit Broker?

RC Global Financial 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 RC Global Financial?

RC Global Financial is a Forex broker, owned and operated by RC Global Financial Ltd. The company doesn't provide any information about its trading conditions as well as its official location and proper regulation. Although they state to have a license from the International Financial Services Commission of Belize, the broker is in the process of surrendering it due to some strategic reasons. So the question is what is worse to have an offshore license or to have no license at all.

• Obviously, we recommend avoiding both cases as they are very risky.
  The broker claims to have offices in the USA, the UK, and France with the main office in Hong Kong. In order to legally operate and offer its financial services in the mentioned countries, RC Global Financial would need to be regulated by the proper authorities.
• Besides the Belize license, this broker doesn't hold any other license and is not overseen by any reputable regulator. Belize is just one more offshore zone where the requirements for the forex brokers are loose and there is no control over the funds of the investors.

RC Global Financial Review Conclusion

We highly recommend avoiding offshore brokers and choosing among properly licensed entities that have protection from serious regulators such as UK's FCA or Australian ASIC. These authorities apply strict rules to licensed companies and keep the clients' funds in segregated bank accounts which can’t be accessed by the brokers. Check the list of FCA-regulated brokers and sign in only with trustworthy brokers such as AvaTrade and FP Markets.

RC Global Financial Update

Based on our findings, the RC Global Financial 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 4xpoint Scam or Legit Broker?

It is not safe to trade with 4xpoint, 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 4xpoint?

4xpoint claims its specialization in Forex brokerage with top-tier trading experience over hundreds of underlying assets to trade shares, currencies, commodities, indices, and CFDs. The business information about 4xpoint trading names shows a location in St. Vincent company with the name Allmedia Ltd.

• However, the research shows that the company has a connection to the Yukon Global Ltd, which was located in Seychelles, operated with no license and was known for its name forex-point.com. Currently, the broker’s website redirects to 4xpoint one, which also shows a contact email and the phone number that belonged to forex-point.

• All the above mentioned is a definitely confusing and can only mean that forex-point operates now through a new brand name 4xpoint, while located in the new jurisdiction, again offshore zone, and still targets worldwide clients. The rebranding and the “new page” was a quite predictable step, since the previous brand gained a negative reputation and traders claimed malicious operations as well the company received warnings from the industry authorities.

  “Considered that Yukon Global Ltd is not authorized to provide investment services to the Italian public, insofar as it is not registered on the register held by CONSOB. Hereby resolves to order the cessation of the infringement of Legislative Decree also performed via the company website, consisting in the provision of investment services and activities to the public.”

  CONSOB, April 2018

4xpoint Review Conclusion

In conclusion, this is an often practice from the non-regulated or offshore brokers that change names or jurisdiction, while still remain non-authorized, therefore attracting clients and mainly their funds, which will be never returned back. For this reason, we always advise trading only with the Regulated Brokers from reputable jurisdictions rather than falling into the frauds.

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.

4xpoint Update

Based on our findings, the 4xpoint 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 LittInvest Scam or Legit Broker?

LittInvest 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.

What is LittInvest?

LittInvest is a Forex and CFD broker, owned and operated by Orston Partners KFT registered in Budapest, Hungary. While being located and registered in Hungary, the broker would need to be licensed by the Hungarian Financial Supervisory Authority, although there are no such records in the regulator's registry.

• In addition, the terms and conditions state that the broker is under the British jurisdiction, but again it doesn't have a license from the UK's regulator FCA.
• Moreover, LittInvest has been blacklisted by the FCA in the UK in May 2018:
  "this firm 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."
• Also, the International Financial Services Commission of Belize has issued a warning against LittInvest in February 2018:
  "The entity listed below (LittInvest) is not licensed under the IFSC Act to provide, carry on, transact, or hold himself out as providing, carrying on, or transacting any of the international financial services as set out in the Schedule of the IFSC Act in or from within Belize."

LittInvest Review Conclusion

Considering the above said, this broker seems highly suspicious. There are many fraudulent firms out there and most of them are operating without a proper broker license. Investing in such companies is extremely risky and it is recommended to select among brokerages regulated by UK’s FCA, Australia’s ASIC or CySEC.

LittInvest Update

Based on our findings, the LittInvest 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.