Archives: Brokers

Is UMOFX Scam or Legit Broker?

UMOFX 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. This results in a very high-risk trading opportunity, despite its alluring proposal.

What is UMOFX?

UMOFX is a Forex and CFD broker, based in Auckland, New Zealand. The firm is owned and operated by UMOFX CO. LIMITED.

• They mention the Company Registration Number on the website, which is supposed to mean that the company is authorized in New Zealand, but it actually has no license to offer its financial services to New Zealand residents.
• Investing funds with unregulated brokers comes with a significant risk, because such entities, most often than not, are involved in scams.

UMOFX Review Conclusion

We recommend you trade with serious and reliable regulators, such as FCA in the UK and FMA in New Zealand. For example, the license from UK’s Financial Conduct Authority requires EUR 125,000 of capital (aside from client deposits) for the STP license. The regulator also protects customers when authorized financial services firms fail. Here you may check our list of brokers licensed by the FCA.

UMOFX Update

We found the UMOFX website 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 ADN Markets Scam or Legit Broker?

No, it is not safe to trade with ADN Markets. ADN Markets is owned by ADN Markets Ltd. which is an offshore company registered in St. Vincent and the Grenadines.

• However, the fact is that St. Vincent and the Grenadines is an offshore zone, which does register the financial investment firm, but provides very poor if none requirements to the company operation. That means, the broker is not regulated, not overseen and does not comply with strict international rules that provide protective measures to the traders. Therefore, it became an offshore zone for shady forex brokers such as CVC Markets, AAG Markets and more. 

What is ADN Markets?

According to the website, ADN Markets is a member of the International Financial Commission (FinaCom), as they mention the registration number. Even though FinaCom is a well-respected organization, it is a self-regulatory organization that cannot guarantee the safety of the trading environment and does not regulate the daily operations of the company, therefore can't provide necessary protection to the client.

• From our source, it costs €24,000 per year to become a member. However, there is no handbook or guidelines for brokers to run their businesses. Therefore, there is zero protection for traders. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines.
• ADN Markets offers forex, indices, commodities, stocks, and also cryptocurrency trading. The website provides two contact numbers with the country codes of the UK and Spain, which means the broker has been targeting the residents of those countries. However, ADN Markets is not regulated by local authorities in either the UK or Spain, or actually any other country.
• Moreover, the broker has been blacklisted by Spain's CNMV.
• 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. As Forex Birds got no license to operate within the EU and other regulated jurisdictions, the broker was blacklisted and alerted by the EU authority.

ADN Markets Review Conclusion

We advise all investors and traders to avoid ADN Markets and other brokers from St. Vincent and the Grenadines. Offshore brokers are not always reliable and investing with them might put the traders' investments at risk. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and BDSwiss.

ADN Markets Update

Our research revealed that the ADN Markets 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 CapitalFXclub Scam or Legit Broker?

No, it is not safe to trade with CapitalFXclub. CapitalFXclub is owned by Pro Capital which claims to be located in the United Kingdom. However, all the financial companies located in the UK should hold an FCA license, which is not the case with CapitalFXclub. According to the website, PRO CAPITAL provides premium-quality commodities and Forex trading services, which have fulfilled the commodities trading needs of clients since the creation of the company in 2013. 

What is CapitalFXclub?

CapitalFXclub offers a wide variety of commodities and Forex products to its customers. The broker doesn't provide any information about its regulation and it seems that it is not overseen by any authority. In addition, Italy's regulator CONSOB has issued a warning against CapitalFXclub:
"The National Commission for Companies and the Stock Exchange has ordered the discontinuation of the infringement of art. 18 of the Consolidated Law on Finance, consisting of the provision of unauthorized investment services and activities to the Italian public, implemented via capitalfxclub.com"

• In addition, despite its London location, the contact phone number is Italian, which is a sign that the company has been targeting Italian residents.

CapitalFXclub Review Conclusion

In conclusion, we advise avoiding trading with CapitalFXclub even though their offering might seem competitive and attractive. Safety of funds always goes first, therefore we recommend choosing among regulated brokers. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as eToro and BlackBull Markets.

CapitalFXclub Update

Our research revealed that the CapitalFXclub 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 K2 Wall Street Scam or Legit Broker?

K2 Wall Street 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 K2 Wall Street?

The broker is owned and operated by the K2 WALL STREET CO LIMITED and claims to have offices in London, UK, and New York, USA. According to the website, K2 WALL STREET CO LIMITED is an investment company whose activities are regulated and authorized by the UK jurisdiction SIC 66110 (Administration of financial markets) by the number of the certificate 11426191 (Companies House) is located in London, Great Britain.

• However, the Administration of financial markets is not the regulator that approves licenses for Forex brokers in the UK, it is the task of the Financial Conduct Authority. It turned out that K2 WALL STREET CO LIMITED is not licensed by the FCA, nor by any other authority.
• Moreover, this same regulator, Financial Conduct Authority, has recently issued a warning against K2 Wall Street:
  "This firm (K2 Wall Street) 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."
  In addition, the company provides false information on the website regarding its numerous awards (like Best Broker 2016, Forex Broker Firm of the Year 2017, etc), which are fake.

K2 Wall Street Review Conclusion

Considering the above, we highly recommend avoiding K2 Wall Street and selecting a decent and licensed broker instead. Signing in with an unregulated or offshore broker is risky and the biggest red flag in Forest trading. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as eToro and BlackBull Markets.

K2 Wall Street Update

Our research revealed that the K2 Wall Street 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 SwiftCFD Scam or Legit Broker?

No, it is not safe to trade with SwiftCFD. SwiftCFD is owned by Digital Enterprise Ltd., 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 being low, it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as YFX Capital, Pinprotrade, and more.

What is SwiftCFD?

According to the website, SwiftCFD is an innovative consumer trading company offering clients an easy and intuitive way to trade all the major financial markets including Forex, Commodities, Indices, or Stocks. There is another company behind the brand's name, Digital Worldwide OU, registered in Estonia. However, the company is not authorized by Estonia's Financial Supervision Authority.

• The other brand of the Digital Worldwide OU, RoyalCFDs, that we have previously reviewed, along with the company been banned by the UK's Financial Conduct Authority in October 2018.

• Both brands' websites (RoyalCFDs and SwiftCFD) interfaces look quite the same, no wonder, the regulator has also blacklisted SwiftCFD:

  "This firm (Swift CFD, a trading style of Digital Worldwide OU) 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."

   

SwiftCFD Review Conclusion

We strongly advise all investors and traders to avoid SwiftCFD or any other brand of the Digital Worldwide OU. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as BlackBull Markets and BDSwiss.

SwiftCFD Update

Our research revealed that the SwiftCFD 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 Obsbit Scam or Legit Broker?

No, it is not safe to trade with Obsbit. Obsbit is owned by Setonix Holding Ltd., 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 being low, it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as MegaTradeFX, Finbitex, and more.

What is Obsbit?

Obsbit offers its clients a variety of products and trading options, including Forex, Commodities, Stocks, Indices, and Crypto. The broker claims to be registered in the Marshall Islands, however, the terms and conditions state the company is under the jurisdiction of Vanuatu. Anyway, most of the brokers operating in such offshore zones are not regulated and are not to be trusted in general.

• In addition, the company provides contact numbers with the phone codes of the UK, Germany, and Spain, when it is not actually regulated in any of them. It also means that Obsbit has been mainly targeting European residents. Moreover, Spain's regulator CNMV has issued a warning against this broker:

"SETONIX HOLDING LTD is not authorized to provide the investment services detailed in Article 140 of the Securities Markets Law, which include 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."

Obsbit Review Conclusion

We strongly advise all investors and traders to avoid Obsbit and other brokers from the Marshall Islands. Offshore or unregulated brokers are not reliable for investments. In forex trading, money safety is the key, and lack of regulations is the greatest red flag. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as City Index and eToro.

Obsbit Update

Our research revealed that the Obsbit 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 PRIMEXQ Scam or Legit Broker?

No, it is not safe to trade with PRIMEXQ. The broker doesn’t provide any information about the company behind the brand’s name as well as any regulatory information and contact details. They superficially mention on the website that the company is licensed, however, they don't provide any registration numbers or any names of the regulatory authorities.

What is PRIMEXQ?

PRIMEXQ offers its customers an opportunity to trade in Shares, Indices, Forex, Commodities, and Cryptocurrencies with CFDs. According to the website, the broker's location address is Kärntner Ring 11- 13/2/7/3, Wien, Austria.

• We have conducted research and it turned out that the provided address belongs to the Citibank International Plc Austria Branch, which definitely has nothing to do with PRIMEXQ. Moreover, the brokerage is not authorized to provide financial services in Austria or probably any other country.

PRIMEXQ Review Conclusion

We advise all investors and traders to avoid PRIMEXQ 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 BDSwiss.

PRIMEXQ Update

Our research revealed that the PRIMEXQ 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.