Archives: Brokers

Is Tallinex Scam or Legit Broker?

It is NOT SAFE to trade with Tallinex. Tallinex Limited is registered and located in St. Vincent and the Grenadines while originating in Estonia. 

• Being an offshore zone St. Vincent & the Grenadines does not define strict obligations to its financial registered firms, which may be a risky investment in case the firm is only based there. 

What is Tallinex?

Tallinex is a registered trademark or service mark of Tallinex Limited registered and located in St. Vincent and the Grenadines while originating in Estonia. The broker mentions that all Tallinex trades are transmitted swiftly and reliably to the world's largest banks through a PrimeXM FX bridge to Integral's FX Grid system, which is optimized for Forex trading. That the clients can benefit from better ECN/STP technology and confidently trade the Forex markets through the Tallinex platform. However, the SVG governmental structure does not perform the strictest standards in regard to financial service firms. 

• In addition to that, recently the company was fined by the US reputable authority CFTC and received warning from the EU regulators. The authorities found that Tallinex operated as an unregistered foreign exchange dealer by soliciting orders for leveraged forex transactions from retail U.S. and EU customers, and offered to be the counterparty to such contracts with its customers. The Order also found that Tallinex defrauded these customers by knowingly or recklessly misrepresenting or omitting material facts.

“Tallinex Ltd. Ordered to Pay nearly $10.3 Million in Restitution to Defrauded Customers and Defendants Ordered to Pay Civil Monetary Penalties Totaling More than $760,000”

CFTC, USA. July, 2018.

Tallinex Review Conclusion

In conclusion, according to the finding we recommend avoiding trading with Tallinex and keeping the safe trek of investment options with well-regulated and authorized companies that are constantly checked. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and HFM.

Tallinex Update

Based on our research, the Tallinex 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 Finodax Scam or Legit Broker?

It is not safe to trade with Finodax. The broker does not hold any type of license, and engaging with it might be risky. Signing in with the broker means putting your investments at risk.

• We never recommend trading with offshore or unregulated brokers as they might have attractive offerings, but the overall trading experience might prove to be negative. 

What is Finodax?

Finodax is a brokerage and investment firm specializing in online trading and investment, in Forex and CFDs trading specifically. The company claims to have offices in the UK, Spain, Norway, Japan, Australia, South Africa, and Mexico.

• In order to provide its financial services, the broker needs to be regulated in those countries, although Finodax is not overseen by any of the regulators. The website supports English and Spanish languages, which could mean that the broker targets Spanish residents. As additional proof, there is a warning against Finodax, issued in May 2018 by Spain's regulator CNMV (The National Securities Market Commission):
  "Finodax 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 detailed in letters a), b), d), f) and g) of Article 141 of the said Law in relation to the financial instruments detailed in Article 2 of the said Law, including, for those purposes, foreign currency transactions."

Finodax Review Conclusion

Investing with a properly regulated broker is crucial for the safety of any investment. There are few well-respected institutions that enforce strict regulatory standards upon all brokers in their jurisdiction, such as FCA in the UK, ASIC in Australia, or CySEC in Cyprus. Check out a list of brokers authorized by FCA. We advise signing in with reliable brokers such as BlackBull Markets, XM, and BDSwiss. 

Finodax Update

We found the Finodax 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 Boom Xchange Scam or Legit Broker?

Boom Xchange is a 100% fraud company. The broker does not hold any proper license from a well-known reliable financial regulator. It is NOT SAFE to trade with Boom Xchange.

• We never advise trading with an unregulated 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 Boom Xchange?

Boom Xchange is a Forex, CFDs, and cryptocurrency broker. The company states that it is owned and operated by Leadcapital Markets Ltd., a CySEC-regulated company. The website provides full information about the license from the Cyprus regulator, including address, contact phone number, etc. They also mention the other regional offices of the company in the USA and UK. Everything could look quite legit, as Leadcapital Markets Ltd. is a trustworthy company regulated by CySEC. The trick is this company has nothing to do with Boom Xchange, it doesn't own the broker and there is no information about these two companies to be connected.

• Moreover, CySEC has recently issued a warning against Boom Xchange, stating that the broker is using the details of the regulated entity to scam people:
  "The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to inform investors that the website boomxchange.com (Boom Xchange), does not belong to an entity which has been granted authorization for the provision of investment services and/or the performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017. In the above-mentioned website, the name, license number, and content from the website of the Cyprus Investment Firm Leadcapital Markets Ltd is used illegally and without its authorization."

Boom Xchange Review Conclusion

It is a very popular tactic among fraud companies to use the details of the regulated firms in order to earn clients' trust. We highly recommend avoiding such brokers and choosing from those regulated by reliable authorities such as CySEC in Cyprus or FCA in the UK. 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.

Boom Xchange Update

We found the Boom Xchange 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 Investrader Scam or Legit Broker?

Investrader is not a safe broker. The broker is located in Cyprus, yet it is not regulated by the local regulatory body – CySEC, which means that the broker is not reliable and signing with it might be very dangerous. 

What is Investrader?

Investrader offers a range of binary options types with 180 tradable assets sure to suit any type of trader, from the popular 60-second expiries and for more aggressive traders looking for a rapid return all the way up to end-of-the-day expiries through advanced trading tools. The broker mentions its location and address in Nicosia, Limassol, as well as owning company Hottrade Investments Limited.

• However, in our earlier reviews, we did face that this company speculates about the information it presents on the official website and has a relation to other trading brands, as well shows absolutely fake data. While discovering Invest Trader, one of the pages mentioned registration of the broker and its legislation: “As one of the few CySEC licensed and regulated online binary options trading sites (Find Binary Options Brokers List here), Investrader fully ensures the privacy and security of your data as well as maximum transparency in your trading experience.”
• Of course, we checked the data and found out that there is no such registration existing. Furthermore, the CySEC included the InvestTrade domain as an unregistered and non-legitimate one (check by the link). So all the questions we had found their answers while concluding that there is no trust in InvestTrader broker. Therefore our readers and traders should avoid InvestTrader and be alerted in case they see any mention of Hottrade Investment Limited.

Investrader Review Conclusion

Trading itself is a risky business that requires knowledge and a trustful broker. It is better to trade with a regulated broker that is registered either with CySEC, FCA, or ASIC and of course, in order to avoid misleading and typical scams you should check carefully the registers first on the official website of a particular authority. Traders should trade with well-regulated brokers such as FP Markets and BlackBull Markets.

Investrader Update

We found the Investrader 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 CapitalXP Scam or Legit Broker?

CapitalXP is not a safe broker as it does not hold any serious license. The broker is registered in St. Vincent and the Grenadines and does not provide proper safety terms and conditions. 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.

What is CapitalXP?

• CapitalXP is a Forex and CFDs broker, owned and operated by Quattro Holding Group LTD, registered in St. Vincent and the Grenadines. It is a popular destination for forex brokers because the registration procedure is simple and low-cost and they face limited regulatory supervision if any. It is important to remember that the company's registration has nothing to do with the regulation and may be confusing for those who have just started searching for brokers to invest with.
• The website provides two contact phone numbers (Russia and the United Kingdom), however, neither the broker, nor the company behind it is regulated in these or any other countries by the official financial regulators. Also, the website supports English and Russian languages, which only confirms the fact that CapitalXP has been targeting people from these countries without any legal right to do that.

CapitalXP Review 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 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.

CapitalXP Update

We found the CapitalXP 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 TradeToro Scam or Legit Broker?

No, it is not safe to trade with TradeToro. TradeToro is owned by Ivory Group Limited, which is an offshore company registered in Dominica.

• Dominica 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 Global Clearing Group, Tradersway, and more.

What is TradeToro?

It is not clear enough how exactly TradeToro delivers its service and if comply with any of the regulations. In fact, it is obvious that not, therefore the broker’s offering is not overseen by any entity and may be considered an illegal service, as the EU requires the strictest licensing.

• Overall, it means TradeToro offers unreasonable risk to their investors or traders as simply there are no client’s security rules implemented. Besides, there are vast negative reviews from the traders engaged with TradeToro, as well as states that the broker is a scam. The traders faced some interruption in their trading processes, “advisory” how to place orders next and that’s apart from the issues that the money most probably never returned back to their owners.
• In addition, the Austrian Financial Market Authority (FMA) has issued a warning against TradeToro:

"TradeToro is not entitled to carry out banking transactions in Austria that require a license. Therefore the acceptance of funds from other parties on a commercial basis for management purposes or as deposits is not allowed."

• We have heard brokers from Dominica deny traders withdrawing funds. We have feedbacks from traders that they cannot withdraw money. You read the feedback here.

TradeToro Review Conclusion

We advise all investors and traders to avoid TradeToro and other brokers from Dominica. 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.

TradeToro Update

We found the TradeToro 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 MarketPlus Scam or Legit Broker?

MarketPlus is not a safe broker to invest in.  The main concern is that the company does not hold any license to deliver its trading service either to local or world traders, and is not authorized by any EU regulator. Despite the fact, that any EU financial service company should obtain its legal license that protects clients and maintain the strictest standards, MarketPlus skipped that step.

What is MarketPlus?

MarketPlus is a Forex and CFD broker and trading provider, which operates by Affinity Group Ltd based in Bulgaria.

Typically, unregulated companies use strong marketing programs to onboard new clients, while misleading about their legal side of the operation and attracting high potential incomes. However, retail investors should look carefully at the website and the broker’s offering, as well as check out the firm reputation at least by reading reviews.

• Besides, the industry authorities make serious steps to issue warnings against unregulated companies and protect clients.
• Even though Marketplus didn’t receive an official warning from the world industry it might be coming soon. Also, there are already some negative reviews and claims from the traders that faced serious fraud of the customer rights, while the trades were manipulated and withdrawals were canceled.

MarketPlus Review Conclusion

In conclusion, we would recommend avoiding Marketplus and investing in a more trustworthy company with tight regulation, since the trading itself is a risky investment and it is very important to choose a reliable company. There are many well-regulated companies across Europe, which comply with the necessary customer protection rules and operate financial investments with the applicable safety.  Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as HYCM and AvaTrade.

MarketPlus Update

We found the MarketPlus 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 LVMexchange Scam or Legit Broker?

No, it is not safe to trade with LVMexchange. This is an offshore broker registered in St. Vincent and the Grenadines. This means that the broker does not hold any serious license and it might operate its business, not in the manner beneficial for the clients. 

• 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. Read more about the authority. 

What is LVMexchange?

LVMexchange is a broker that offers to trade on forex and CFDs. The company is owned and operated by LVM Ltd. According to the website, LVM Ltd, is incorporated under registered number 24616 IBC 2018 by the Registrar of International Business Companies, registered by the Financial Services Authority of Saint Vincent and the Grenadines. Also, if you look at the terms and conditions of the company, you will find out about the fact that LVMEXCHANGE is the trading name of LVMARKETS. Seems like previously the website had a different name and the broker was incorporated in Vanuatu. Some unregulated brokers change their names in order to erase the negative reputation and continue doing their illegal business. 

• Despite the fact that the broker's address is in St. Vincent and the Grenadines, it provides a Swiss phone number as a contact number. This should be one more red flag for those who are going to invest with LVMexchange.

LVMexchange Review Conclusion

Investing with a properly regulated broker is crucial for the safety of any investment. We recommend avoiding offshore brokers with suspicious offerings. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and TMGM.

Is FX Merchants Scam or Legit Broker?

No, it is not safe to trade with FX Merchants. The broker states to be regulated and safe, however despite the fact that it is based in England, it is not regulated by the Financial Conduct Authority (FCA).  In reality, the broker does not hold any license, which is the biggest red flag. Signing with unregulated brokers means putting your investments at risk.

What is FX Merchants?

FX Merchants is a forex and cryptocurrency broker, owned and operated by FX MERCHANTS LTD. that claims to be based and registered in the United Kingdom. They also provide contact phone numbers with the London address. The terms and conditions state the company is under the jurisdiction of the UK, but it is actually not regulated in the country.

• Moreover, the company has recently been blacklisted by the UK's FCA:
  "FX Merchants firm is not authorized by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorization."
• It is quite dangerous to trade with unregulated brokers, especially in the case of FX Merchants when it has no license and also were banned by one of the most respectable regulators.

FX Merchants Review Conclusion

We always encourage traders to deal only with regulated brokers, as those operating without a proper forex broker license such as FX Merchants are most often frauds. Besides, when investing with a licensed broker, traders' funds are protected. For example, the UK regulator FCA provides a Financial Services Compensation Scheme. Check the list of FCA-licensed brokers. Traders should choose only trustworthy and regulated brokers, such as FP Markets and BlackBull Markets.

FX Merchants Update

We found the FX Merchants 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.