Archives: Brokers

Is FSMSmart Scam or Legit Broker?

No, it is not safe to trade with FSMSmart. FSMSmart is owned by FSM Smart Limited. The contact address of FSM Smart Limited is in Switzerland, according to the website. Although, the company is actually registered on the Marshall Islands, the popular offshore destination for forex brokers.

• The Marshall Islands is notorious for its practically absent requirements and regulations. Due to the low setup cost, it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as MegaTradeFX, ProFxPremium, and more.

What is FSMSmart?

FSMSmart claims to be in the market for over 50 years, providing unmatched and reliable services. However, the broker is located in Switzerland but is not regulated by the local authorities. This in itself is a huge red flag, as the services the company offers are not trustworthy and are not overlooked by regulations. 

• Moreover, FSMSmart has been blacklisted by Swiss FINMA and New Zealand's FMA, which stated that FSM is making false and misleading claims that they are a registered financial service provider in New Zealand when they are not and also FSM is making unsolicited calls to New Zealand residents and offering to trade in financial products, such activities are prohibited in New Zealand.
  3 August 2018, FMA
• Besides, we have heard brokers registered in the Marshall Islands deny traders withdrawing funds. We have feedbacks from traders that they cannot withdraw money. You can read the feedback here.

Overall FSMSmart Ranking 

Based on our findings about the safety of FSMSmart, we do not rank positively FSMSmart, based on our Expert Opinion with over 10 Years of experience in Forex Trading.

• FSMSmart Overall Ranking is 3 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.

FSMSmart Alternative Brokers

Due to our revelations of issues with the safety of FSMSmart, here are much better Alternatives to FSMSmart with good regulations and excellent conditions. We select Good Brokers and trustworthy options for your comparison below: 

• eToro – Good for CopyTrading and Cryptocurrency Trading
• Dukascopy – Excellent for Shares, Futures Trading
• BlackBull Markets – Good for High Leverage Trading

Deposit & Withdrawal

FSMSmart offers multiple deposit methods so that clients can choose the most convenient option for them: Credit/Debit cards, bank wire transfers, or e-wallets.

• There are no additional transactional fees unless the providers charge their own fees. 

FSMSmart Review Conclusion

We advise all investors and traders to avoid FSMSmart 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 BDSwiss and BlackBull Markets.

• Overall ranking and experience for FSMSmart is Negative

Is GMFX24 Scam or Legit Broker?

GMFX24 is not a safe broker as it does not hold any serious license. It is registered in St. Vincent and the Grenadines and does not provide proper safety terms and conditions. 

• 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.

What is GMFX24?

GMFX24 is a Forex and CFDs broker, owned and operated by Goldman 24 Limited, a company registered in St. Vincent and the Grenadines. According to the website the head office is located in St. Vincent and the Grenadines. They don't provide the contact phone numbers, although mention the main hotline's time availability.

• Also, the terms and conditions state that the company is under Cyprus' jurisdiction, which is supposed to mean GMF24 is regulated by Cyprus regulator CySEC. We have checked the register on the regulator's website and there are no records about the broker's license. It seems that GMFX24 is just one more offshore-based unregulated forex broker that tries to get investors' trust with fake information about its regulation.

GMFX24 Review Conclusion

We advise avoiding GMFX24 as it has no regulation and no legal right to provide financial services. Instead, we recommend checking the list of the CySec-regulated brokers, as this regulator is well-known and trustworthy. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and BlackBull Markets.

GMFX24 Update

We found the GMFX24 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 YesTrading Scam or Legit Broker?

Diamond Global Ltd has been suspected as a scam broker. It operates under the brand name YesTrading brokerage firm that provides online currencies and CFDs trading services. The company is registered in the Marshall Islands, an offshore zone, and does not hold any authorization or license to perform financial services. 

What is YesTrading?

YesTrading is a forex and CFD broker. The brand is owned and operated by Diamond Global Ltd., registered in the Marshall Islands.

Besides the fact that the company is registered offshore, they don't have any addresses. The only contact details are the Norwegian and Irish phone numbers, which means that YesTrading is targeting European residents, although it is not registered to provide financial services in Europe or any other country.

• We recommend trading only with brokers regulated by serious financial authorities. For obtaining an STP FCA license, the required capital for the broker to have is EUR 125,000. Also in order to get this type of license, the broker needs to have a physical office in the UK.

YesTrading Review Conclusion

We strongly advise opening a trading account only with brokers that are regulated by respected world authorities and 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 HotForex, and BlackBull Markets.

YesTrading Update

We found that the YesTrading website is inactive and unavailable to reach. This means the broker no longer operates. However, it is best to avoid and stay alert in case any proposals show up.

Is Baihua Global Scam or Legit Broker?

It is not safe to trade with Baihua Global, 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 Baihua Global?

Baihua Global is a Forex broker that claims to be located in New Zealand (address from the website - Level 5, 13-27 Manners Street, Te Aro, Wellington, 6011, New Zealand) and registered by New Zealand Financial Market Conduct Authority (FMA). Although the firm was banned by the FMA in New Zealand.

• Baihua Global is misleadingly using the registration details of Booster Funds Management Limited (FSP555786), a licensed fund manager, with whom it has no connection.
• It is not a registered financial service provider in New Zealand. It is better to avoid trading with unregulated brokers, especially when they use the details of the regulated companies to deceive potential customers.
• Some of such entities run investment scams, and clients of such brokers don’t have any protection.

Baihua Global 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 BDSwiss and BlackBull Markets.

Baihua Global Update

We found that the Baihua Global website is inactive and unavailable to reach. This means the broker no longer operates. However, it is best to avoid and stay alert in case any proposals show up.

Is Roiteks Scam or Legit Broker?

It is NOT SAFE to trade with Roiteks. It is located in the Marshall Islands and is not overseen by the industry authority, therefore maintains operation at its own standards. 

• Marshall Islands are known hub for various scams and fraud companies, as the incorporation requirements are very low, while the only “standard” is a small initial start capital. Of course, it doesn’t mean that all companies are frauds, but a firm with a trustful trading environment should be authorized by any other reputable world agency. 

What is Roiteks?

Roiteks is a trading name used by Green Oak Limited with its registration in Bulgaria. However, the company is a subsidiary of Vantu Capital LTD, which is already registered in the Marshall Islands. Apart from the fact that the Marshall Islands is a known offshore hub for financial companies, the firm in Bulgaria is not registered as well.

• The international authorities that oversee the authorized entities check on regularly the market offerings while carrying out warning activity to provide enhanced resources to the potential investors before the choice is done. Therefore, the regulatory searches on Roitecks obtained the attention of the international regulatory bodies, as the firm is non-authorized and targets particular residents to trade with them. The alert was placed in Norway while various EU authority sources follow an alert, and should be considered seriously by the investors.

  “The Danish Financial Supervisory Authority is aware that Green Oak Limited (Roiteks) is not authorized to operate investment trusts in Norway, and the executive branch, therefore, has no necessary approval under Norwegian law.”

  The Financial Supervisory Authority of Norway, September 2018

Roiteks Review Conclusion

In conclusion, we do not recommend trading with the Raitecks, since the offering does not seem reliable and should be avoided. It is advisable to trade with Regulated Forex Brokers that are obliged to act in accordance with the set of regulations. Traders should sign in with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and XM.

Roiteks Update

Based on our research, the Roiteks 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 FX NextGen Scam or Legit Broker?

It is not safe to trade with FX NextGen as it is an offshore broker. According to the broker's website, FX NextGen Ltd is registered in the Republic of Georgia with Company ID 404574769 and carries a business license from Hualing Free Industrial Zone with License Number 0110/290. However, as the main Forex license issuer in Georgia is the National Bank of Georgia, we haven’t found any information about this broker on the regulator’s website. Also, a license from the Hualing Free Industrial Zone doesn’t mean anything since it is not the regulatory authority in the country.

What is FX NextGen?

FX NextGen is a Forex and CFDs broker. Its business model is geared towards offering the most competitive spreads (Find out brokers with the lowest spreads here) and market conditions for traders. The company claims to be licensed in Georgia and founded by industry veterans who bring a combined experience of more than 50 years. FX NextGen offers 77 currency pairs, 12 precious metals, 10 indices, 4 energy instruments, 39 cryptocurrencies, 37 US shares, and 30 EU shares. According to the website, their trading servers are located in London and offer traders fast access for execution with minimal slippage. This broker specializes as a multi-asset FX fund and our STP model of execution means that traders get the very best conditions that the market has to offer (Check STP Trading Account).

• Besides Georgian regulation and location, FX NextGen is incorporated in Vanuatu, but there is no information on its regulation there. We would like to remind the traders that Vanuatu is one of the popular offshore destinations for Forex brokers. All the investments with such brokers may be put at risk since there is literally zero protection provided by the Vanuatu authorities. We have a detailed article explaining the risk of trading with brokers from Vanuatu. 
• On top of all that, there is one more license FX NextGen holds, the Belize license. It is also an offshore zone same as Vanuatu. You can read more about Forex Trading: Why Avoid IFSC Brokers from Belize in our article. 

Moreover, Austria’s FMA has recently issued a warning against FX NextGen stating that:

“FX NextGen Ltd is not entitled to carry out banking transactions in Austria that require a license. The provider is therefore not permitted to trade on a commercial basis.”

Overall FX NextGen Ranking 

Based on the findings of our research there are multiple issues in respect of FX NextGen regulation and reliability, we do not rank positively FX NextGen, based on our Expert Opinion with over 10 Years of experience in Forex Trading.

• FX NextGen 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.

FX NextGen Alternative Brokers

Considering the FX NextGen safety issues we found during our research, we suggest much better Alternatives to FX NextGen with good regulations and excellent conditions. We select Good Brokers and trustworthy options for your comparison below: 

• Trade.com – Wide Range of Trading Instruments
• Capital Index – Good Trading Conditions
• ThinkMarkets – Competitive Spreads

FX NextGen in India

FX NextGen allows Indian traders to open accounts and trade. However, FX NextGen has no mention of complying with any Indian regulators on its website. It is also worth mentioning that Forex trading is actually prohibited in India. The broker is not regulated by any regulatory body in India, that’s why money safety may be the issue here.

FX NextGen in the USA

FX NextGen is not legal in the USA and is not available for American traders. As per U.S. law, brokers regulated by CFTC are the only brokers allowed for USA traders. So, except for FX NextGen, you are only permitted to trade with U.S-regulated platforms. 

Fx NextGen does not offer its services to residents of certain jurisdictions such as Austria, Iran, Cuba, Sudan, Syria, Japan, and North Korea.

Deposits and Withdrawals

The minimum deposit requirement is 100$ (Also read about Fortrade broker minimum deposit here). Deposits can be made via online payment or bank transfer. In order to make a deposit, log into the broker’s Client portal and select the ‘Deposit’ area. Within the processes, you can choose your deposit source e.g. bank transfers, or bitcoins. Also, traders should note that bitcoin payments are immediate while bank transfers can take up to 2-5 working days to be processed depending on the method used.

Withdrawals are usually processed within 1 working day. 

Apps

Fx NextGen offers its traders MT4 and MT5 platforms (Find out the Best MT5 Platform). The mobile trading platform interface allows you to stay in control of your trading no matter where you are. All you need is connectivity from your mobile phone and get access to real-time market news and monitor and manage your positions.

Demo Account 

Fx NextGen gives an opportunity to open a demo account. Demo trading is a simulation of real trading on Forex, which is made for practicing and training. The demo account does not require investments, it is free. It allows you to gain experience in online trading, and practical skills in working with MetaTrader and test your strategy without any risks.

Fx NextGen 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 AvaTrade and XM.com.

• Overall ranking and experience for Fx NextGen is Negative

Fx NextGen Update

We discovered that the Fx NextGen website is unavailable. It is unclear whether the broker changed its name, or is gone altogether. Since money safety goes first, we recommend avoiding any proposals from Fx NextGen and staying alert in case of any proposals. 

Is OnlyTrades Scam or Legit Broker?

According to our research, OnlyTrades is a total scam. The broker is not regulated and has no legal right to provide financial services to the public. Moreover, OnlyTrades Group has been suspected of fraud, when pretending to be another company with a better reputation.

What is OnlyTrades?

OnlyTrades is a Forex and CFD broker. It is owned and operated by Marantino Capital Ltd, based in Malta. The contact phone number provided on the website is British, which means the company is targeting UK residents without being authorized in the country. The company is not regulated in the UK by the Financial Conduct Authority, which is obligatory for companies that provide financial services.

• Also, the Malta Financial Services Authority (MFSA) has recently issued a warning against Marantino Capital Ltd and OnlyTrades.
• It is recommended to check if the broker is regulated before starting any business with it. Unlike FCA-licensed brokers, unregulated ones are not obliged to keep their clients’ money in segregated accounts.
• FCA provides a Financial Services Compensation Scheme with an upper limit of GBP 50,000 of compensation. You can check the list of FCA-regulated brokers here.

Overall OnlyTrades Ranking 

Based on our findings about the safety and reliability of OnlyTrades, we do not rank positively OnlyTrades, based on our Expert Opinion with over 10 Years of experience in Forex Trading.

• OnlyTrades Overall Ranking is 3 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.

OnlyTrades Alternative Brokers

Due to our revelations of issues with the safety of OnlyTrades, here are much better Alternatives to OnlyTrades with good regulations and excellent conditions. We select Good Brokers and trustworthy options for your comparison below: 

• AvaTrade – Good Instruments and CopyTrading
• Pepperstone – Low Spreads and Competitive Trading Conditions
• XM – Wide Range of Trading Opportunities

Deposit & Withdrawal

With OnlyTrades there are several funding methods, including credit and debit cards, bank transfers, and e-wallets, such as Qiwi, WebMoney, and Yandex.

OnlyTrades 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. OnlyTrades is not a regulated broker, besides, it seems that the broker's website is now offering varying services, which might be an indication that the broker is not operating or has changed its scope of activities. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as BDSwiss and BlackBull Markets.

• Overall ranking and experience for OnlyTrades is Negative

Is Profiforex Scam or Legit Broker?

It is not safe to trade with Profiforex, because it is an unregulated broker. In addition, the company has been suspected to be a fraud. While we checked the company we found that 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 Profiforex?

Profiforex is an offshore-incorporated broker that is based in Seychelles. As a result, there is no mandatory to be authorized in order to deliver financial services, therefore Profiforex broker is not registered by any Forex industry authority.

Yet, the broker claims on its website about client protection along with transparency through the segregation of the accounts, STP technology, and regulated liquidity providers. However, since there is no respected authority that oversees if the above-stated truly takes place within the company operations or not, the claim cannot be trusted.

• Profiforex offers a range of attractive bonus programs, like a 500% deposit bonus, as well as good value for spreads (Check brokers that offer the lowest forex spreads) and multiple support to the beginners along with the trading signals (also can check the list of Brokers for Beginners).
• The doubts about the company are also confirmed by the numerous complaints and the traders' reviews that show a negative experience with the money withdrawals and other trading issues like changing the profitable traders and database numbers.

Overall Profitforex Ranking 

Our research revealed multiple issues in regard to Profiforex regulation and reliability, thus we do not rank positively Profiforex, based on our Expert Opinion with over 10 Years of experience in Forex Trading.

• Profiforex Overall Ranking is 3 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.

Profitforex Alternative Brokers

Due to safety issues, we revealed with Profiforex, here we have come up with much better Alternatives to Profiforex with tight regulations and favorable trading conditions. We select Good Brokers and trustworthy options for your comparison below: 

• Dukascopy – Excellent for Shares, Futures Trading
• FXTM – Good Instrument and CopyTrading
• InteractiveBrokers – Good for US Trading and Trading of Real Stocks

Deposit & Withdrawal

Profitforex offers many different payment methods including all major credit cards (including Visa and Mastercard), and e-wallets including Neteller, Yandex.Money and Perfect Money. 

To deposit or withdraw funds traders need to log in to their personal area. 

Profitforex Review Conclusion

Generally, we do not advise incorporating or engaging with an offshore company due to the high risk of money solvency, of course, the company may be trusted but the risk is way higher compared to the regulated brokers.

Therefore, it is a much better idea to choose a broker that holds a reputable license from ASIC or FINMA, thus the operation of the broker will be aligned according to the strictest rules in order to perform the best possible investment opportunity for the client.

• Overall ranking and experience for Profitforex is Negative

Is 4xbrands Scam or Legit Broker?

4xbrands is not a safe broker as it does not hold any serious license. It is registered in St. Vincent and the Grenadines and does not provide proper safety terms and conditions. 

• Saint Vincent and the Grenadines (SVG) is a popular offshore jurisdiction for forex brokers due to its low set-up requirements and minimal regulation. Yet, 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 4xbrands?

4xbrands is a Forex and CFDs broker. The company is owned and operated by 4Xbrands Ltd., registered in St. Vincent and the Grenadines, a popular offshore zone for forex firms. The broker doesn't provide much information about its trading conditions as well as about the location and contact details.

The only way of contacting the company is via "call request". The terms and conditions on the website mention Cyprus as the jurisdiction responsible for the brokerage, although the company doesn't seem to be regulated by any of the authorities.

• In addition, Italy's regulator CONSOB issued a warning against 4xbrands in February 2018:
  "The National Commission for Companies and the Stock Exchange has ordered, in accordance with art. 7-octies, letter b) of the TUF, the company 4Xbrands Ltd (www.4xbrands.com), to cease the infringement of art. 18 of Italian Legislative Decree no. 58/98 put in place through their respective website, consisting of the provision of investment services and activities to the Italian public, including through the internet network (resolutions n. 20288, 20289 and 20290 of February 7, 2018)."

4xbrands Review Conclusion

Trading with offshore brokers is extremely risky. Many of these brokers are scam companies trying to attract investments. We always recommend avoiding offshore brokers as 4xbrands and investing only with brokers that are regulated by reputable authorities alike UK’s FCA, Australian ASIC, or other similar regulators, that provide compensation and are strictly supervised. We advise signing in with reliable brokers such as BlackBull Markets, XM, and BDSwiss. 

4xbrands Update

We found the 4xbrands 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.