category: Unregulated Brokers

Is GDM FX Scam or Legit Broker?

It is not safe to trade with GDM FX, 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 GDM FX?

Global Derivative Capital Markets NZ Limited is a global broker providing online currency trading services, which operates under the brand name GDM FX. The broker claims its international trading services and tailored solutions while supporting numerous languages that include English, Arabic, Chinese, Spanish, Russian, Turkish, Indonesian, and more. Our research revealed, that the company is located in NZ but does not offer its services within New Zealand, as simply there is no license to do so from the local authority.

• Therefore, the broker chooses the path to target clients from various jurisdictions that do not have the strictest authorities that oversee the industry so the company can find its enemies with no consequences. As a result, you will find an impressive number of negative reviews just all around the internet forex sources, and forums from clients from all world. Mostly, the traders faced issues to withdraw funds while the only replies from the GDM FX were excuses or absolute ignorance. In conclusion, stay far away from GDM FX and their proposals as the company simply does not feel an obligation to withdraw requests.

GDM FX Review Conclusion

Unfortunately, this kind of fraud practice is a quite popular case, while suspicious companies target quite naïve clients, taking their money and going for good. Exactly for that reason, we always advise trading only with regulated brokers, as the licensed brokers are always overseen by authorities and in case there is an unlikely event or non-compliance to the international protection rules the company will be at least fined or even dismissed. Thus, the trader can invest with a secure state of mind along with other benefits that are offered by the regulated brokers only. We advise trading with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and Eightcap.

GDM FX Update

Based on our findings, the GDM FX 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 Market Investment Scam or Legit Broker?

It is not safe to invest in Market Investment as it is an offshore entity. Market Investment is owned by Market Investment Associates Ltd, 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 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 Market Investment?

Market Investment Associates Ltd that offers its forex brokerage services through the brand name Market Investment claims its ECN Forex solution to trade Forex instruments and CFDs for individual and corporate clients. The company states its office in the UK, yet is not registered as it should be for a firm located in the UK by the local authority FCA.

• Instead, the broker mentions about how safe and trustworthy it is, while operating within the legal regulatory requirements worldwide through its registration with Financial Service Authority (FSA) in Saint Vincent and the Grenadines with registration number 22770.
• However, the SVG FSA regulation is far away from the international standards, since it is the most liberal authority, which is considered to be an offshore-licenser that does not comply and follow strictest compliance to run the Forex business or brokerages.

Market Investment Review Conclusion

Generally, we do not advise to engage and trade with offshore brokers, since there are many questions appearing on how exactly the broker delivers its service.  Taking into consideration the fact, that the Market Investment broker located in the UK but didn’t follow the criteria to be licensed by FCA it is not advisable to sign in with the broker.

Therefore, we do not advise trading with Market Investment and recommend to choose between well-regulated brokers such as BDSwiss and XM.

Market Investment Update

Based on our findings, the Market Investment 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 Up4x Scam or Legit Broker?

Up4x 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 Up4x. 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 overseeing the Forex industry. Thus, engaging 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 Up4x?

Up4x is a brokerage that offers trading Forex, CFDs including various indices and commodities. There are two brands behind this company. The first one mentioned on the website under "regulation" heading: “UP4X” (www.”Up4X”.com) is a registered brand name of ”Up4X” Ltd., a company authorized and regulated Worldwide. They don't specify what licenses the company has and in what countries it is regulated, which already seems suspicious.

• The second owner-company can be found in the terms and conditions: Easy FX Solutions Ltd., based and registered with the Vanuatu Financial Services Commission. The broker is either not licensed at all or has an offshore license which is also a reason to avoid this firm.
• Moreover, Italy's regulator CONSOB has issued a warning against Up4x/Up4x Lts. in May 2017:
  "The National Commission for Companies and the Stock Exchange reports that now Up4X ltd is not authorized to perform investment services and activities in Italy in accordance with any manner and, therefore, either through the website www.up4x.com"

Up4x Review Conclusion

We strongly advise opening a trading account only with the brokers that are regulated by the respected world authorities that comply with the required set of rules and a good reputation through the delivered timeframe of operations. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and TMGM.

Up4x Update

Based on our findings, the Up4x 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 Master4x Scam or Legit Broker?

It is not safe to trade with Master4x, 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 Master4x?

Master4x is a Forex and CFDs broker, owned and operated by Strategic Future Investment LTD. The company claims to have a head office in Dubai. This is basically all the information about the brokerage available on the website. They don't disclose any contact details as well as trading conditions.

• There is no information about the company's regulation or registration. Terms and conditions say something about the Cyprus jurisdiction, although the firm is not licensed by the Cyprus regulator CySEC or any other authority.
• Also, there are lots of negative reviews on the net about Master4x's cold calling. The managers call and tell the potential client's that the company is reliable because it is FCA regulated, which we already know is not true. Seems like this broker uses fake regulation to get people's trust.

Master4x Review Conclusion

We recommend traders to avoid unregulated brokers and choose among those regulated by well-known reputable agencies, such as the Financial Conduct Authority in the UK or Cyprus Securities and Exchange Commission. These regulators guarantee the safety of clients' funds and even can compensate in case the broker goes bankrupt. Check the CySEC-regulated brokers here and sign in with reliable brokers such as XM, BlackBull Markets, and HFM.

Master4x Update

Based on our findings, the Master4x 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 ECN Capital Scam or Legit Broker?

ECN Capital 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 ECN Capital?

ECN Capital is a company incorporated in Moslok Ltd registered in Larnaca, Cyprus. The broker claims it offers services to trade on a range of currency pairs, stocks, and commodities through a technological execution.

• However, being based in Cyprus the company should be registered with the CySEC in order to deliver its financial service offering to the public.  Yet, the ECN Capital does not hold any license and targets their clients in those jurisdictions that are mainly popular by the fraud companies to concentrate in.

• In addition to numerous negative user reviews that internet sources are full of, the company also was detected in its relation to Trade-24 broker. In the official agreement, there is a mentioning of the account name with the Trade-24, while the broker is also listed as a Broker to Avoid due to their fraud operations.

• Moreover, the international authorities issued alerts to investors against trading with ECN Capital for offering services without regulatory authorization. This includes warnings from the FMA New Zealand, Estonian FSA, French AMF and Belize IFSC.

  “Finantsinspektsioon (the Estonian Financial Supervision Authority) would like to inform investors that according to Finantsinspektsioon´s knowledge Moslok Ltd, ECN Capital has turned to Estonian population and offered them investment services. Moslok Ltd does not hold an activity license for the provision of investment services in Estonia and therefore is not authorized to provide investment services in Estonia.”

  Estonia FSA, 2017

ECN Capital Review Conclusion

We strongly advise opening a trading account only with the brokers that are regulated by the respected world authorities that comply with the required set of rules and a good reputation through the delivered timeframe of operations. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and TMGM.

ECN Capital Update 

Based on our findings, the ECN 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 Caesar Trade Scam or Legit Broker?

Caesar Trade 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 Caesar Trade. 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 Caesar Trade?

Caesar Trade is an international brokerage firm that operates through its office in Seychelles and provides trading on Forex, CFDs, and Binary Options (See also Regulated Binary Options Brokers). However, previously the company was based in New Zealand as well had held a license from the local authority FSP. In 2016 the company changed its registration and jurisdiction to Seychelles, which is an offshore zone with a not imposed regulation of the financial firms.

• Moreover, the broker’s presented information is quite confusing as there are different names appearing in a trading terminal, addresses, and names in a legal document of the company itself. Throughout a quick search, you would find numerous complaints from the traders that faced serious issues and in the end concludes a company operating as a scam. The issue was mainly with the withdrawals, while the broker found reasons why it can not be done. Considering the above said it seems that the broker moved to another country and mixes the information in order to avoid compliance and regulations for the purpose of its own benefit.

Caesar Trade Review Conclusion

Unfortunately, these are the typical steps that fraud companies do, they are not authorized by any reputable authority like FCA (UK) or FINMA (Switzerland), the main aim is to target the clients convince them to make deposits, and then find tons of excuses why the money are gone. Therefore, we strongly advise avoiding Caesar Trade offering and choosing only with the Regulated Forex Brokers, as at the least there is a legal entity, which constantly oversees the operation broker provides.

Caesar Trade Update

Based on our research, the Caesar Trade 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 TradeX1 Scam or Legit Broker?

TradeX1 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 TradeX1?

TradeX1 is a brand name used by the company Blonde Bear Ou registered in Tallinn, Estonia. The broker claims its state-of-art technological solutions in online trading with an advanced offering on a range of instruments as well as IT & Finance, Administration services. The firm is located in Estonia, which is part of the EU and actually should be registered with industry authority in order to provide its legal services. Since it is not the case of the TradeX1, there is no confirmation that the service truly deserves its claimed status.

• Moreover, the company was promoting its service within Italy and other European jurisdictions including the UK without a legal permission from the local authority so, therefore the TradeX1 was blacklisted brand as it believes to be a trading scam. Recently, FCA UK and CONSOB Italy posted their warnings to the investors against trading with TradeX1.

“The TradeX1 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.”

FCA UK, June 2018

TradeX1  Review Conclusion

Based on our research results, we advise avoiding trading with TradeX1. Instead, we recommend investing only with regulated brokers that are located among reputable jurisdictions and offer respective overseen investment services. Therefore, we advise trading with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as BDSwiss and XM.

TradeX1  Update

Based on our findings, the TradeX1 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 HBC Broker Scam or Legit Broker?

It is not safe to trade with HBC Broker, because it is an unregulated broker. In fact, 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 HBC Broker?

HBC Broker is a brokerage firm that offers forex and CFDs on commodities, indices, and stocks. The website of the company states that it is owned and operated by several companies (Trading Point Holdings Ltd, Trading Point of Financial Instruments Ltd, Trading Point NZ Ltd) and regulated by FCA in the United Kingdom, ASIC in Australia, and CySEC in Cyprus. This information is identical to the one provided by XM broker, a reputable and well-regulated entity.

• There are no records of the HBC Broker's licenses with any of the mentioned regulators, which means that the company is just a fraud that tries to use the credentials of the regulated broker.
• Also, after checking the terms and conditions on the website, it turned out the HBC Broker is actually a brand name of MPG INVEST Limited, located in Armenia, but registered in Vanuatu - a popular offshore destination for unregulated forex brokers. It's now obvious that the company uses a well-known scheme for unregulated offshore brokers.
• And last but not least, the UK's Financial Conduct Authority has issued a warning against HBC Broker:

"MPG Partners (trading as HBC Broker) 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."

HBC Broker Review Conclusion

We don't recommend trading with HBC Broker or any other unregulated financial entity as they are not bound by any financial or ethical rules. It is better to choose among brokers that are regulated by reputable regulators such as FCA in the United Kingdom or CySEC in Cyprus. Check the CySEC-regulated brokers here.

HBC Broker Update

Based on our findings, the HBC Broker 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 PBN Capital Scam or Legit Broker?

It is not safe to trade with a Forex broker PBN Capital. There is a serious lack of regulation since the company is located in jurisdictions that do not imply the strictest policies for financial service firms. Yet, being operated from Bulgaria the broker should be registered with the local authority, and it is not the case for PBN Capital.

What is PBN Capital?

PBN Capital is a trading name used by the company registered in the Marshall Islands – Capital Tech Ltd and operated by Pbox Ltd located in Sofia, Bulgaria. PBN Capital claims its offering of secured currency exchange systems on Forex and CFDs trading with a wide range of instruments, low fixed spread (Find the Best Forex Broker Low Spreads for you), and no hidden commissions.

• Therefore, it is clear that the company is not overseen by any authority and operates with no license. Of course, it is not a guild, but the registration provides an advanced level of funds safety, while in case of an unlikely event, the client will be covered.

• Moreover, offshore companies are highly vulnerable and, unfortunately, often are fraud entities that’s why it is always recommended to trade and invest only with Regulated brokers from such authorities as FCA (UK) or ASIC (Australia). The authority requires the strictest compliance to the rules and obligations towards clients and the operation provided.

• In addition to that, the company's reputation is also under question since the traders' reviews are far beyond the positive ones. The broker showed its aggressive tactics to attract clients from various jurisdictions including Europe, the Russian region, Asia, and others, while clients reported numerous issues in operation and obvious scams. Also, the industry authority CONSOB, Italy issued a warning to international traders against PBN Capital and advising to avoid trading with the entity.

  “Latest warning against Capital Tech Ltd has ordered the following company to cease the infringement of art. 18”

  CONSOB, June 2018

PBN Capital Review Conclusion

We advise all investors and traders to avoid PBN Capital 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 TMGM.

PBN Capital Update

Our research showed that the PBN Capital 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.