category: Unregulated Brokers

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.

Is TorOption Scam or Legit Broker?

TorOption 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 TorOption?

TorOption is a trading name used by the company with its registered address in Scotland named Smart Choice Zone LP. The broker claims its professional approach and management of trading experience in CFDs, Commodities, Indices and Commodities along with the advanced security features. However, the company operates with no license or supervision from the respected industry authorities, therefore the claims on security and trustability are not proven.

• Since the broker offers also trading of binary options (Find Binary Options Regulated Brokers ) or instruments with a maturity of less than one hour that is a highly risky investment, which is in fact not permitted to distribute in many jurisdictions with the purpose to protect clients.
• Furthermore, there are several European industry authorities, which included TorOption in its warning or blacklists, as the company targets clients in respected jurisdictions without its allowance to do so. The warnings include Belgium FSMA, Spanish CNMV, and Italian CONSOB while advising not to engage with the company offering by any means.

“The Financial Services and Markets Authority (FSMA) warns the public against the activities of TorOption, a company that offers binary options without complying with Belgian financial legislation. The FSMA thus strongly advises against responding to any offer of financial service made by TorOption and against transferring money to any account number it might mention.”

FSMA, August 2017

“CNMV issues warning to the public on unregistered firm TorOption”

CNMV, May 2017

TorOption Review Conclusion

Overall, we do not advise trading with TorOption because of its lack of safety. Also, there are numerous complaints and negative responses from the clients who traded with TorOption. For that reason, it is recommended to choose among the Regulated brokers that are constantly overseen in terms of their secure trading environment. We advise trading with well-regulated brokers such as BDSwiss and XM.

TorOption Update

Our research showed that the TorOption 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 CFXPoint Scam or Legit Broker?

CFXPoint has been suspected as a scam broker. This broker is blacklisted by a well-known regulatory authority and should be avoided. CFXPoint is owned by Marketier Holdings Limited 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 MegaTradeFX, Finbitex, and more.

What is CFXPoint?

CFXPoint is a brand and trading name used by KLDC Technological Systems Ltd, a company incorporated and located in the Marshall Islands. The CFXPoint claims to be a DMA (Direct Market Access) and no dealing desk broker that provides an offering to trade 65 currency pairs and 33 CFD products through the most competitive spreads (Read about zero spread accounts) and advanced client support from the company. 

• The overall offering of the broker shows a competitive proposal designed for both institutional and retail clients, however, the company is located in a jurisdiction, which does not regulate Forex and investment firms. The CFXPoint is a “self-regulation” entity that creates standards of operation by itself and is not overseen by any other authority. Therefore, it is a high risk to trade, as the capital may be at risk due to the fact that no protection rules are implied, even though the company states so. We always advise trading only with Regulated Brokers, as the trading itself requires an attentive choice of the trustful company.
• Nevertheless, apart from the non-regulated operation of the broker, the industry authorities with the purpose to warn and educate the investors about the frauds and potentially highest risk involvements, regularly check on the financial service companies that target clients and apparently are not authorized to do so. Therefore, CFXPoint appeared and has been outlined by the Italian authority CONSOB, June 2018

“The National Commission for Companies and the Stock Exchange, in accordance with article 7-octies, letter b) of the Consolidated Law on Finance, has ordered the following company to cease infringement consisting of the offer and performance of investment services and activities to the public, put in place by Cfx Point Ltd, through its website.”

CFXPoint Review Conclusion

We strongly advise opening a trading account only with brokers that are regulated by respected world authorities that comply with the required set of rules and have 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.

CFXPoint Update

Our research showed that the CFXPoint 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 InvestingPRO Scam or Legit Broker?

InvestingPRO has been suspected as a scam broker. This broker is blacklisted by a well-known regulatory authority and should be avoided. InvestingPRO is owned by Milton Group 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 (See the Best forex brokers list). Therefore, it became an offshore zone for shady forex brokers such as MegaTradeFX, Finbitex, Tradersway, and more.

What is InvestingPRO?

InvestingPRO is a broker that provides Forex and CFD (Read about Forex and CFD broker HYCM) solutions to institutional and private investors. The website is owned and operated by a group of companies. The group includes Milton Group LTD, registered in the Marshall Islands, and Kyoto Limited LTD., registered in Sofia, Bulgaria. Although the company claims to be registered in Bulgaria, it is not regulated by Bulgaria's Financial Supervision Commission.

• The broker provides a copy of the license with the Financial Commission which is also an offshore entity and is considered to be a fraud and has a lot of negative reviews.
• One more thing to pay attention to is the contact phone numbers with Italy's and Poland's country codes which only shows that the broker has been targeting EU countries without any authorization. Moreover, Spain's National Securities Market Commission (CNMV) has issued a warning against InvestingPRO: 

" www.investingpro.com 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..."

InvestingPRO Review Conclusion

It is recommended to trade with brokers regulated by UK’s FCA or Australia’s ASIC instead (Find the list of ASIC-regulated forex brokers by link). Check the list of FCA-regulated brokers. We strongly advise signing in with reliable brokers such as FP Markets and BlackBull Markets.

InvestingPRO Updates

InvestingPRO website remains inactive and unavailable to reach. This means the broker has muted its trading offering and does not propose account openings.

Is RoyalCFDs Scam or Legit Broker?

ROYALCFDS 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 ROYALCFDS.

• 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 ROYALCFDS?

ROYALCFDS is a Forex and CFDs broker. The company is the trade name operated by DIGITAL WORLDWIDE OU, registered in Tallinn city, Estonia. They also mention Digital Enterprise Ltd., another company owner that is based in the Marshall Islands. There may be confusion between the registered firm and the regulated one. A broker can be registered in a particular country, but if it's not regulated/overseen by countries responsible finance authority then it doesn't have any legal rights to provide its services to the residents of that country.

• In the case of RoyalCFDs, the company is not regulated in any of the countries and it has even been blacklisted by the UK's Financial Conduct Authority. The warning states:

"We believe this firm has been providing financial services or products in the UK without our authorization."

ROYALCFDS Review Conclusion

All traders are advised to avoid unregulated/offshore brokers as there is a huge risk of losing money with such firms. Instead, choose those that are regulated by reliable regulatory agencies. For instance, if an FCA-regulated broker goes bankrupt, its clients are covered by the Financial Services Compensation Scheme (FSCS). The traders are entitled to receive up £50,000 in total. Check the list of FCA-regulated brokers here. We advise trading with well-regulated brokers such as BDSwiss and XM.

ROYALCFDS Update

Our research showed that the ROYALCFDS 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.