Archives: Brokers

Is BigOption Scam or Legit Broker?

BigOption is not a legit broker as it does not hold any serious license. As a general rule, we recommend avoiding offshore and non-regulated entities as traders who invest in non-regulated firms often cannot recover funds invested or gains received. Thus, we strongly advise against responding to any suspicious offering in regard to trading of financial investments and choosing only among the regulated entities.

• In fact, the Marshall Islands is an offshore zone attracting various firms that for one reason or another escape from serious regulation or compliance to international service providing. However, in the case of financial investment or trading firms, the company should be a very respected entity, as the statistics show that the majority of non-authorized firms never recovered the sums of investors' investments. Therefore, we always advise avoiding offshore or companies with no license as there are too many frauds around.

What is BigOption?

Wirestech Limited is a company that claims to be based in the Marshall Islands and run the trading brand BigOption which offers binary options trading (Check Regulated Binary Options Trading), as well as other derivatives investment opportunity.

• In the case of Wirestech Limited (BigOption), the broker also has appeared in the supervisory authorities of Ontario and British Columbia back in 2016 with the subject of a warning to the investors. While the European authorities warned potential clients and residents about the company offering too, meaning the firm was blacklisted almost by every regulatory entity.

Ontario Securities Commission Warning

“The Financial Services and Markets Authority (FSMA) warns the public against the activities of Wirestech Limited, trading under the name BigOption, a company that offers highly risky investment instruments in Belgium without complying with Belgian financial legislation.”

FMSA, Belgium. March 2017.

BigOption Review Conclusion

We recommend traders sign in with only trustworthy brokers with tight regulations. Therefore, we also advise choosing among the firms with authorization status that have been received from the major regulators from around the world. Check our reviews on regulated brokers like LegacyFX, Eightcap, or FXCC.

BigOption Update

Based on our research, the BigOption 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 VolumeFX Scam or Legit Broker? 

VolumeFX 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 as 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 VolumeFX?

VolumeFX is an offshore broker that offers to trade in Forex, Crypto, CFDs, Stocks, Commodities, and Indices. The company is owned and operated by VolumeFX Ltd., based in St. Vincent & the Grenadines. There is no information about broker's regulation, which could be the biggest concern, as unregulated entities have no legal rights to provide financial services.

• Also, St. Vincent & the Grenadines location doesn't mean the broker is regulated there as we have already mentioned that St. Vincent & the Grenadines Financial Services Authority has announced that it does not issue any licenses for forex trading or brokerage nor does it regulate, monitor, supervise or license international companies, which engage in such activities.
• Considering all the mentioned facts, we don’t recommend investing in VolumeFX. There are a lot of other well-regulated brokers to do business with. Regulated brokers are obliged to follow stringent rules, including reporting, keeping all clients' funds in segregated accounts, providing traders with a negative balance protection, and maintaining a certain minimum of operational capital.

VolumeFX Review Conclusion

We don't recommend investing with VolumeFX. Investing with a properly regulated broker is essential for the safety of any investment. Here are some reliable regulators: UK’s FCA, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). Also, it is advisable to make your own research before signing with a broker and pick a tightly regulated broker such as FXTM and XM. 

VolumeFX Update

Based on our research, the VolumeFX 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 The55thFx Scam or Legit Broker?

No, it is not safe to trade with The55thFx. The broker doesn't disclose much information about the company behind the brand's name, only that it is owned and operated by The55thFx Limited and located in California, USA. According to the website, The55thFx Limited is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 278/07.

• However, there is no record of this company or license number in the regulator's register. It seems like the broker's regulation details are false, which puts clients' investments at high risk. It is not only because the broker lacks regulation, but also because false regulation claims usually mean the broker is a fraud.

What is The55thFx?

The55thFx is a broker that offers to trade in Forex, binary options, and cryptocurrency.

• Anyway, the broker does not provide any reliable information on its regulations. Based on the provided information, The55thFx Limited is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 278/07, yet this information seems to be fake. 
• In addition, ESMA has prohibited binary options (Check out Binary Options Regulated Brokers) trading throughout Europe and the EEA, so those brokers who still offer binary trading can be considered pure scams.

The55thFx Review Conclusion

We advise all investors and traders to avoid The55thFx 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 Alpari and XM.com.

The55thFx Update

Based on our research, the The55thFx 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 KapitalSwiss Scam or Legit Broker?

KapitalSwiss 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 KapitalSwiss?

KapitalSwiss is a social trading and Investing company that offers Forex and CFDs trading. The broker is owned and operated by Orion International Limited. The company claims to be based in Germany, however, they don't provide any regulatory information, so probably the company is not overseen by any authority. Also, we have checked some details about the company behind the brand name, Orion International Limited, and it turned out the company has been blacklisted by the UK's Financial Conduct Authority.

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

• The terms and conditions on the website state that KapitalSwiss is under the jurisdiction of Cyprus, but we didn't find any proof of it in the regulator's register. Therefore, no regulatory body is acting as a watchdog overseeing that they comply with best practices in the financial market.
• Broker's website supports English, Italian, and German languages which means the company has been targeting residents of the mentioned countries without being authorized there.

KapitalSwiss Review Conclusion

In order to prevent being scammed by such companies as KapitalSwiss, it is better to deal only with reliable and well-regulated entities. For example, those who want to choose an EU-regulated broker should check the lists of the companies regulated by the FCA, FINMA, or Cyprus. These agencies have a set of requirements for financial services providers and see to their compliance. They aim to protect clients' interests and funds. Check the list of the CySEC-regulated brokers here. To succeed in trading, it is always recommended to choose a reputable firm with good standing and favorable conditions, such as FXTM or XM.

KapitalSwiss Update

Based on our research, the KapitalSwiss 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. 

• Company name: 

BY Trading Limited.

• Registration Address/ License:

Wien, Austria. No License, No Regulation. 

BY Trading is a brokerage firm established in Wien, Austria while claims conduct of trading services on over 15 market destinations. The company offers includes clearing services to institutional and professional traders with specialization in commodities, stocks, options, futures, forex, bonds, CFDs and funds.

There is also mentioning about BY Trading experience and professional providing of practice for 20 years. However, the main question is why the company promises allegedly professional trading service while located within reputable EU jurisdiction and is a non-authorized firm. Still, remains unclear if the state about 20 year of operation is true or false, yet what is definitely the fact that the company which does not hold an FMA, Austria license and is Austrian financial service firm means the entity operates illegally.

In addition to that, of course, the BY Trading firm caught an attention of the respected FMA authority, while the warning to investors was issued and followed by other authorities within EU to spread the state around. (Please check the information hereby)

The regulators' purpose to protect the population from a fraud investment and risky business conclude those particular companies that are not entitled to carry out certain financial transactions or services. That causes for an action and informing the general public is deemed necessary and reasonable with regard to possible disadvantages of the company concerned.

Conclusion

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

Is Phy Capital Investments Scam or Legit Broker?

It is not safe to trade with Phy Capital Investments. The company claims to be owned and operated by Direct Trading Technologies Limited. According to the website, the broker is based and regulated in New Zealand.

• However, the broker doesn't provide its registration number, instead, it only tells about the purposes and advantages of being a New Zealand Financial Services Provider. It doesn't seem like the broker is actually regulated. In addition, we have found a company Direct Trading Technologies Limited that is licensed and regulated by the UK's FCA and New Zealand's FMA, however, this company is not associated with Phy Capital Investments Limited.

What is Phy Capital Investments?

Phy Capital Investments Limited is a broker that offers Forex, CFDs, indices, and metals trading.

The broker does not seem to be regulated. Phy Capital Investments Limited has been using the address details of the regulated Direct Trading Technologies Limited, which only proves that the broker is a clone of a legit company. It is a popular tactic among scam companies that use the regulation/address/names of the licensed companies in order to get people's trust and make them invest.

• Moreover, Phy Capital Investments has recently been blacklisted by the Securities & Futures Commission of Hong Kong:
  "The company’s address belongs to a secretarial company. Note: Unlicensed entities often use names similar to legitimate companies to confuse investors."

• The pages and official sources of the international regulators’ list alert are shared with the authority directly or by other countries’ supervisory bodies or transmitted centrally. Those tools and the general purpose of the regulatory bodies operate in order to enable stability of the market offerings, protect clients from potential and numerous frauds, enable reliability rules to financial service entities, and more.

Phy Capital Investments Review Conclusion

To sum up, all the mentioned facts show that Phy Capital Investments Limited cannot be trusted and might be one more fraud company. Instead, we advise all investors and traders to avoid Phy Capital Investments Limited 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 Alpari and XM.

Phy Capital Investments Update

Based on our research, the Phy Capital Investments Limited 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 Morgan Newfield Scam or Legit Broker?

It is not safe to trade with Morgan Newfield. The broker does not provide any information about its regulation. However, being located in Belgium, brokerage firms should be licensed by the local financial authorities. 

• Being unregulated is an immediate red flag, as brokers that do not hold any license are not overseen by any legal entity, which means they can operate their business however they wish. 

What is Morgan Newfield?

Morgan Newfield is a full-service commodity brokerage and wealth investment management company. The company claims to provide high-quality investment services to individuals and institutions that demand more from their broker. The broker mentions their address in Taiwan, as well as additional offices in the major financial center that might allegedly include a Belgium office too.

• However, it was revealed that the broker delivers and offers their financial investment services without preliminary and mandatory authorization from the respected authorities. Since Forex and Online Trading Market itself is a decentralized area, reputable jurisdictions around the world established regulatory bodies that will oversee the market offering, with the purpose to protect clients and their funds.
• Therefore, as the current company is authorized by none, the Belgium regulator FSMA issued a warning against Morgan Newfield, as detected the company activity in Belgium, thus included the firm to their alert list. Moreover, the information about broker’s illegal nature and caution on dealing with them spread further and the EU regulation bodies followed Morgan Newfield blacklisting.

“The Financial Services and Markets Authority (FSMA) warns the public against the activities of Morgan Newfield, a company that offers investment services.”

FSMA, Belgium. July 2018.

“The AFM warns consumers not to accept offers from Morgan Newfield. This company is probably a boiler room.”

AFM, Netherlands. April 2018.

Morgan Newfield Review Conclusion

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

Morgan Newfield Update

Our research revealed that the Morgan Newfield 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 St Clair Capital Group Scam or Legit Broker?

It is not safe to trade with St Clair Capital Group. The broker is suspected to be a scam. Being located in Japan the financial investment firm should be authorized by the local regulator JFSA (Japan Financial Service Agency) in order to be a legal entity. As this is not the case for St Clair Capital Group we recommend avoiding its offering, as simply there is no supervision under the company that can confirm numerous attractive states of the offering.  

What is St Clair Capital Group?

St Clair Capital Group is a trading name of the firm that claims its address in Japan and is concerned about its trustable trading environment through a world-class leader in portfolio management, stockbroking, and wealth.

• However, being located in Japan, the broker does not hold a license from the local authority. Besides, why would a serious company put their clients at the highest risk and not include protective tools in their proposal with the first step, which is obtaining an official license?
• In addition, the St Clair Capital Group broker’s offering and targets of the residents was detected also beyond its original location, by the European authorities that are constantly checking on the available offerings and secure clients from potential frauds. Therefore, the St Clair Capital Group was listed in an alert list by the Netherlands and followed by numerous regulators around.

“The AFM warns consumers not to accept offers from St Clair Capital Group. This company is probably a boiler room.”

AFM, Netherlands. April 2018.

Overall St Clair Capital Group Ranking 

Because of the regulation and safety issues we revealed during our research of St Clair Capital Group, we do not rank positively St Clair Capital Group, based on our Expert Opinion with over 10 Years of experience in Forex Trading.

• St Clair Capital Group Overall Ranking is 2 out of 10 based on our testing and compared to 500 other brokers, see Our Ranking below compared to other popular and industry Leading Brokers.

St Clair Capital Group Alternative Brokers

We revealed that St Clair Capital Group has a lot of issues, mainly in respect of its safety and registration. Thus, here are much better Alternatives to St Clair Capital Group with tight regulations and great trading conditions. We select Good Brokers and reliable options for your comparison below: 

• HFM – Good for Currency trading
• FP Markets – Good for CopyTrading
• XM – Good for Beginners

Deposit & Withdrawal

There is not much information about deposits and withdrawals on the broker's website. Instead, there are a lot of reviews from traders that have invested with St Clair Capital Group.

• The majority of investors claim that it is impossible to withdraw funds from the broker. In fact, the broker is a complete scam, and it is interested only in getting to the client's funds. 

St Clair Capital Group Review Conclusion

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

• Overall ranking and experience for St Clair Capital Group is Negative

Is RichmondFG Scam or Legit Broker?

It is not safe to trade with RichmondFG. The broker is suspected to be a scam. The company is owned and operated by Elit Property Vision LTD with a registered address in Sofia, Bulgaria. However, the broker is not authorized or regulated by the Financial Supervision Commission in Bulgaria or any other regulator.

• Choosing an unregulated broker is very dangerous, as unregulated brokers do not provide any ground for safe and secure trades. The investments and funds with unregulated brokers are in jeopardy. 

What is RichmondFG?

No, it is not safe to trade with RichmondFG. RichmondFG is a broker that offers forex currency pairs, stocks, commodities, CFDs, and indices. 

Forex and CFD brokers are required to have a license from the local financial authorities in order to offer and provide financial services. RichmondFG doesn’t carry such a license, so it cannot be considered a reliable broker to invest with.

• Moreover, RichmondFG has recently been blacklisted by Italy's regulator CONSOB:

  "The National Commission for Companies and the Stock Exchange has ordered the following company to cease the infringement, consisting of the provision of unauthorized investment services and activities to the Italian public."

• Also, previously the broker has been banned by German BaFIN, however, back in 2018, there was a different company behind the brand's name, Terraquest Media Ltd.

RichmondFG Review Conclusion

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

RichmondFG Update

Our research revealed that the RichmondFG 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.