CySec has introduced new rules for Forex brokers offering cryptocurrency CFDs

Сyprus financial regulator (CySec) has introduced a new set of the rules governing brokerage companies should follow when offering on virtual currencies, specifically cryptocurrency CFD trading to clients. The Cyprus Securities and Exchange Commission, known as CySEC (, is the financial regulatory agency of Cyprus. As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law. A significant number of overseas retail forex brokers have obtained registration from CySEC. The main point of bringing in the changes in the regulation is that the cryptocurrencies themselves are not considered financial instruments as defined by European rule-setter ESMA, so the derivatives of the cryptocurrencies including crypto CFDs are financial instruments. All Forex brokers who provide crypto trading should do that only through CFD form and not in actual cryptos. If FX broker is offering crypro CFDs trading from Cyprus, it must be authorised and must comply with the applicable national legislation, directly applicable European Union regulations, the Guidelines or Recommendations issued by the European Supervisory Authorities (ESMA and the European Banking Authority)adopted by CySec and needs to follow the presented set of rules for crypto trading. The CySec and its members consider that the risks connected with the crypto CFD trading are high. So Cyprus Investment Firms (CIFs) should consequently approach the provision of such services with caution, in the knowledge that close attention will be paid to all of their legal obligations.

Forex Trading: Why Trade with Cyprus Securities and Exchange Commission CySEC Brokers

Formed: 2001

Jurisdiction: Republic of Cyprus

Headquarters: Nicosia, Cyprus


The CySEC is responsible for the supervision of the following entities:

  • Cyprus Investment Firms (CIFs)
  • Cyprus branches of Investment Firms (Ifs) of other EU member-states
  • Tied Agents of CIFs
  • Undertakings for Collective Investment in Transferable Securities (UCITS)
  • UCITS (Undertakings for Collective Investment in Transferable Securities)  Management Companies
  • UCITS Agents
  • Cyprus branches of UCITS Management Companies of other EU member-states
  • Administrative Services Companies – Trustee and Fiduciary Service Providers
  • Variable Capital Investment Companies
  • Alternative Investment Fund Managers (AIFMs)
  • Regulated Markets
  • Central Counterparty Clearing House (CCPs) of over-the-counter (OTC) derivatives
  • Trade depositories of over-the-counter (OTC) derivatives

Introduction to CySEC:

Cyprus Securities and Exchange Commission or CySEC was launched in 2001 as an interdependent public corporate body to regulate leveraged foreign exchange transactions and investment services market in the Republic of Cyprus. As of 2004 Cyprus participate in the European Union, therefore CySEC became a respected part of European MiFID regulation.

Besides the fact that Cyprus has an ideal location, it is also a tax haven with its lower tax rates, as well significant background in the financial business. In addition, the MiFID harmonization law allows Cyprus registered investment firms and brokerages to access all European markets.

In particular, establishing of the Cyprus securities market as one of the safest and attractive investment destinations a significant number of Forex Brokers, as well as vast of Binary Options firms obtained CySEC license and establish their operational offices in Cyprus.

Actually, Cyprus is a known hub of Binary Brokers, as many firms found their benefits by the CySEC authorization since most other European jurisdictions and regulators strictly prohibit binary trading. However, the significant move happened by 2012 once the board made an announcement regarding binary options classification and categorize them as a financial instrument. All binary options providers were obliged to restructure offering and clearly state to every customer the highest risk in binary trading as well to operate in a fair way towards the traders. Yet, Cyprus still remains as first and one of the leading trading centers that proclaimed binary options as an investment instrument and gives access to the Eurozone.

Considering the essential growth of the industry, CySEC role becoming even more valuable, as authority ensures investor protection and healthy development of the trading offer through its effective supervision of the securities market.

Why trade with a CySEC regulated broker?

Given the fact that Forex market is an OTC market, which has no specific regulations or jurisdiction, it is necessary to understand who is a trustful broker and who is not, to protect investors, as well to control the market in order to function smoothly. And that is a purpose why responsible Regulators were established by various jurisdictions.

In turn, the responsibilities of CySEC include issuance of licenses to brokers operating in the foreign exchange and stock markets, their subsequent control and audit to ensure compliance with the laws, detection of violations with further imposes of penalties, disciplinary actions or case processing through the state bodies.

The grant of license and before any forex company becomes an official CIF (Cyprus Investment Firm) a broker should comply with the set of standards that diverts to the company history and its business model of operation. The CySEC will examine the application while the broker should have a physical office in Cyprus, operate at least for 3 years, to have the specified type of activities and financial service, as well properly enable customer protective tools through a fund segregation, join to schemes and more. The broker should also establish a high operation fund subject and depending on the content of an application, thus the STP applicant capital requirement is at least €200,000, while the Market Maker brokerage model has to confirm its capital adequacy ratio of at least €1 million.

Once the broker is official CySEC Regulated Broker the firm then can operate in the stock, forex and CFD markets and what is important mandatory follows all the guidelines set by MiFID (the Markets in Financial Instrument Directive). Besides that, the CySEC continues to work closely with every regulated broker and inspects operation on a daily basis.

In recent years, CySEC became a very active authority in terms of inspection of Forex Brokers and suspicious activities, as there were issues and cases in operational history with some of Cyprus regulated brokers. The latest announces were issued for non-compliance with the applicable laws, e.g. include suspend and withdrawal of AnyOption broker and Fenix Capital Markets Trading licenses, or impose for fine of total €130.000 the InstaForex and ForexMart. Therefore, CySEC has been changing its position so now acting more sharp towards the brokers which service does not meet reporting requirements and breach obligatory policy. The imposing of sanctions for violations include announcements of the CIF license withdraws, slapping fines and more frequent check-ups to make sure compliance with new measures.

In the scenario and unlikely event that a CySEC regulated Broker goes insolvent, the clients are covered by the Investor Compensation Fund for IF Clients (“ICF”). The purpose of the ICF is to secure the claims of covered clients against the ICF members through the payment of compensation if the necessary preconditions are fulfilled with the maximum amount of compensation up to €20,000 per client.

Apart from the main role to regulate and supervise forex brokers, CySEC accurately reviews and amends the new products offering, such as current trends around Cryptocurrencies, Binary Trading, etc. The Cyprus authority when necessary updates investment advice, undertaking training to prevent frauds and financial abuse, including checking issues of money laundering and other threats, as well as educate publicity by regular courses and publications.

Even though the Cyprus Securities and Exchange Commission does not have restitution powers and therefore does not investigate individual complaints.  If you have a complaint, it is best to first ask the CIF involved to put things right, while CIF’s are required to respond in writing within five days. The traders also recommended to check the issue with the office of the Financial Ombudsman, if not satisfied with the firm’s response, they rejected your complaint or you do not have the answer. The Financial Ombudsman is an independent service for settling disputes between CIF’s and their clients.

How to submit a complaint:

The Financial Ombudsman website:

What is also precisely, the complaints received from clients about unscrupulous brokers or fraud companies will be resolved by the Commissions as soon as possible. At the same time, the CySEC publishes its official listing of warnings, list of non approved domains that help to prevent scams, while the information about unprincipled brokers is open and transferred to other financial regulators.

List of Regulated Forex Brokers

In order to help traders to verify information about CySEC forex broker license, the official website publishes a list of regulated entities. The CySEC broker’s website also displays on the footer or regulation page its CySEC license number, which consists of 5 digits in the format 111/11. Here you can see TriumphFX CySEC authorized broker

As well, you can always check on CySEC Broker Reviews with updates and news from the broker. Currently, Cyprus regulated brokers’ list at our website includes 50 CySEC Regulated Brokers and growing. While in total there are more than 200 investment firms regulated by the Cyprus Securities and Exchange Commission. 


Of course, CySEC has many potentials to become at the level of a reputable authority like UK’s FCA and implement more strict requirement to set up financial investment or trading company. Yet, Cyprus itself continues its growth and remains a popular Forex Broker destination. In fact, there are much more regulated forex broker in Cyprus rather than any other European or even world jurisdictions.

Since the majority of Europe’s Forex brokers regulated by the CySEC, the imposed authority along with the MiFID guidelines and European control establish a strong impact on the industry and of course traders’ protection. The transparent and fair manner of operation acts towards traders as the contractual obligations fulfilled by the regular reporting, along with the constant eye on broker’s operation, as the financial company may impose a risk to have sanctions and penalties, which are actually not that rare among CySEC brokers.

Forex Trading: Why Trade with UK FCA Regulated Brokers

FCA Regulator

Formed: 1 April 2013
Jurisdiction: United Kingdom
Headquarters: 25 North Colonnade London

FCA Regulated activities

  • corporate governance
  • financial services
  • securities and derivatives (category including Forex & CFD trading)
  • insurance
  • consumer protection
  • financial literacy

Introduction to FCA

The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom that operates independently from the UK Government, is a conduct regulator for over 58,000 financial service firms, markets in the UK, as well the Prudential Regulation Authorization.

The FCA took responsibility for financial stability by bringing together a new regulatory structure and enhance its predecessor the Financial Services Authority (FSA) responsibilities, the agency that regulated financial service between 2001 and 2013. The authority received significant power to cover responsibility for regulation of the financial sector and firms, including CFD and Forex brokers, providing services to traders and investors. The objective of FCA is a maintenance of the financial market integrity in the United Kingdom and secure an appropriate degree of trader’s protection.

FCA, as an independent public authority, regulate the conduct by both retail and wholesale financial services firms with a purpose defined by the Financial Service and Market Act 2000 (FSMA). FCA aims to make financial markets work well so that traders and investors get a fair deal, through its enhanced market integrity and promote competition.

FCA website

In this FCA review to get things more clear we cover the following highlights:

Why trade with an FCA regulated broker?

In fact, any firm in the UK whether a business, asset manager, broker or financial investment firm the activity is mandated to be registered and regulated by the FCA. First of all, the FCA set a range of registration requirements before the broker is allowed to operate in the market, which includes raising of fees with a high initial capital to apply for the FCA license and carry out its regulated activities further. The license type based on factors such as a scale of activities and divided to STP license (check on STP Forex Brokers), which imposes EUR 125,000 initial capital and EUR 730,000 for Market Making license. In addition, upon application, the company will be checked for its adequacy to operate in the market, with a review of business plans, its budgets, resources, applied systems, and controls.  The directors and key staff will be interviewed and obliged to have the necessary qualifications with an effective background, so the requirements are met and the director experienced enough to run the brokerage.

In addition, the broker should maintain a physical office in the UK and organized to comply with the FCA rules and mandates at all times. FCA Brokers operate their business based on the FCA handbook guidelines to ensure clients are being treated fairly, the information provided accurately and most important, transparently.

The protective measures that are important to the trader, in particular, issues brokers in demand to segregate the client’s funds from the broker’s operational fund. That means broker stores their operation fund at separated from the client bank account, thus cannot use clients money for any purpose or even touch it. Furthermore, FCA brokers provide negative balance protection to their traders, so clients cannot lose more than its initial deposited capital. Lastly, the maximum of protection level achieved by solve of an unlikely event when a broker goes bankrupt or fall under insolvency issues, the client and his funds are protected, by the Financial Services Compensation Scheme (FSCS) so the client receives funds back with an upper limit of GBP 50,000 per client.

FSCS compensation

The regular supervision tasks of FCA ensures follow of strictest demands, while every authorized entity report, confirm and maintain on a daily and monthly basis, respectively, otherwise, the authority will get involved and will check the performance in detail. In the event broker didn’t follow FCA handbook guidelines, it may cause further investigation of a case, with imposing of fines, while powers have already been seen loads of their announcements, heavy fines or even dismisses of the broker’s license. See below an example of some of the largest financial penalty in the history of £284,432,000 for forex failings. In addition, the FCA is able to ban financial product, firm or the particular asset manager, as well have the power to instruct firms to immediate action, modification or its revoke if necessary.

FCA fines Barclays

With all the strict regulatory guidelines, if a trader or investor still believes they are encountering unfair trading experience with the broker, they can file a complaint against the broker with the relative department. Firstly, the regulated brokers in place must have a procedure to resolve disputes and respond within a set time, however, you can always go further and submit a complaint to the Financial Ombudsman Service, known as claim handlers. In addition, read our step by step guideline how to a complaint an FCA regulated forex or CFD broker.

Submit the complaint about UK broker:

UK Financial Ombudsman Service

The benefits of trading with the FCA regulated Forex Brokers are at a glance, as the authority ensures strongly the broker’s responds, monitoring products, and other issues along with the compensation when necessary. Overall, the FCA made it in a scrupulous way by the sharp check on the firm, that the brokerage is computable to the successful prospective of operation, further market development and of course fair treatment of the traders. Therefore, FCA gained its highest consumers’ rankings, as the traders getting appropriate trading needs among market offering, unparalleled advice and knowledgeable behavior towards any occurred questions.

Moreover, the education and permanent support at FCA allows to find out about customer rights and financial advice, offers to complain, report a scam or unauthorized firm. And provides a guideline on how to avoid scams, with the comprehensive Avoid listing up-to-date.

FCA consumer organizations service:

FCA Consumer Support

List of FCA Regulated Forex Brokers

The trader should carefully search for information about FCA forex broker license directly through an official site, which will appear on the Financial Services Register.

Moreover, the regulated broker website at most cases shows its FCA register number, yet confirm its statement at official source as well, due to numerous clone and fraud firms that use register number to pretend official.

FCA Brokers register

In addition, always check FCA Brokers Reviews, in the instance the full list of the UK regulated brokers’ list at our website currently includes over 80 FCA Regulated Brokers, and growing, while the total number of licensed ASIC Regulated Forex Brokers exceeds 340.

Conclusion on FCA regulation

The UK as one of the most respected and known financial centers that deliver strong economic figures throughout history, as well as stable political positions and influence on international markets, keeps the excellent level of a regulatory system.

In fact, FCA is one of the most respected trading industry authorities that establish the highest protective tools and keeps market integrity through its strong influence and monitor of the situation. The FCA enhanced their responsibilities to the financial and traders sectors by transparent ways the agency determines policies and carries its supervision functions. Also, as the main message of FCA is to only cooperate with authorized firms, the authority supports vast of data on how to make the best practice and avoid frauds. Read more about how Forex Trading Scam work at our article by the link.

Overall, some of the most reputable brokerages and regulated firms indeed regulated by FCA, while the status of FCA regulated Forex Broker the trader or investor can trade assured of a fair and effective deal and an accurate follow of obligations towards the clients’ protection with the legit regime itself.

UK’s Financial Conduct Authority warns against Tait Investment Group

The UK financial regulator Financial Conduct Authority (FCA) has issued its warning against an unregulated trading company that tries to reach out British investors. This warning concerns a Forex trading company Tait Investment Group ( Tait Investment Group logo The company Tait Investment Group is not authorized by the FCA and also it carries on regulated activities that require authorization. The broker firm offers trading Forex, stocks and CFDs. The company claims to be located in London, United Kingdom and regulated by Financial Conduct Authority. They also state that Tait Investment Group is a member of the London Stock Exchange and an approved HM Revenue & Customs ISA (Individual Savings Accounts) Manager. In its warning the FCA mentioned that Tait Investment Group is not actually operating from the address provided on the website. Also the FCA registration number on the website does not belong to the firm. It’s obvious that the firm acts without the authorisation and most probably runs investment scam. Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorized by the FCA. The regulator advises investors to check company names of Forex brokers in the Financial Services Register, kept by the FCA. Investors should also keep in mind that their funds are not covered under the Financial Services Compensation Scheme (FSCS) if the company they are dealing with is not authorized by FCA. You can read our review on this broker here.

UK’s FCA has issued a warning against forex broker 8inFX

According to the latest warning of the UK’s Financial Conduct Authority (FCA), the Forex and CFD broker 8inFX was blacklisted as it is not licensed or authorized by the regulator, although was targeting the UK customers. 8inFX logo 8inFX offers trading in many currency pairs, as well as various CFDs – on indices, commodities, stocks and cryptocurrencies. The brokerage is owned by 2dots Limited, and the website provides the address of the head office which is in Vanuatu. Vanuatu is one of the popular offshore destinations where the brokers get their forex licenses. It is quite risky to trade with these firms. Usually the companies that operate in the offshore areas (such as Republic of Vanuatu) are not licensed nor regulated and considered to be frauds. Most probably, 8inFX operates without a valid forex broker license as nothing is mentioned about license, nor regulation on the website. Also there is no phone number provided and the customers should request the calls on the website. Moreover, not only FCA warns about this broker, but also the Italian CONSOB has issued a warning against 8inFX. The first thing the potential investor should do when he is choosing a trading company is to determine if it is a legitimate broker or a scam broker. It is very easy to do. You just need to check if the broker is licensed by CySec in Cyprus, or it is under the regulation of the MIFId in the European Union (EU), or it is registered with the UK’s FCA  or Australian ASIC. You can read our review on this broker here.

Spain’s regulator CNMV warns against InvestingPRO

Spain’s financial markets and services regulator CNMV has issued a warning against InvestingPRO. According to the public warning notice, InvestingPRO, operated by Milton Group LTD/Kyoto Limited LTD, is not authorized to provide investment services or investment advice and auxiliary services, including foreign currency transactions in Spain.

The National Securities Market Commission (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of Economy, Industry, and Competitiveness. The regulator maintains a register with investment companies that are authorized to operate in Spain.

InvestingPRO logo
InvestingPRO is a broker that operates through the website and offers Forex and CFD solutions to institutional and private investors. There are two companies behind the brand. Milton Group LTD, registered in the Marshall Islands, which means it is an offshore entity and there is a high risk for the customers when dealing with this firm. The second company is Kyoto Limited LTD., registered in Sofia, Bulgaria.
The website also mentions two contact numbers in Italy and Poland, and probably the company has been targeting residents of these countries. Although, the company is not licensed in any of those countries, and there is no regulatory body that monitors its activity to ensure it sticks to best practices.

In order to operate legally, investment firms need a license by the local relevant authorities or the authorities of any other EU member state. We strongly advise traders to select among brokerages authorized by reputable regulators, such as EU ones (FCA, CySEC) or Australia’s ASIC.

You can read our review on this broker here.

Italy’s CONSOB warns against forex broker Capital Swiss FX

Italy’s financial markets and services provider regulator CONSOB (Commissione Nazionale per le Società e la Borsa) has updated its list of forex brokers who are not licensed to operate in Italy with one new addition – Capital Swiss FX. This broker has been offering investment services and activities to the Italian public without being authorized in the country.

Commissione Nazionale per le Società e la Borsa (CONSOB; Italian Companies and Exchange Commission) is the government authority of Italy responsible for regulating the Italian securities market. This includes the regulation of the Italian stock exchange, the Borsa Italiana.

Capital Swiss FX logo

Capital Swiss FX is a broker that offers assets choice from four different classes including Currency Pairs, Commodities, Indices or Treasuries. There are two companies behind the brand’s name, Swiss Cap Ltd,  registered offshore, on St. Vincent and the Grenadines, and Swiss Capital Group Ltd., that claims to be located in London, UK. However, the second company is not authorized by the FCA in the UK. As to the Swiss Cap Ltd., offshore registration usually doesn’t guarantee the safety of funds and clients’ protection, especially in the St. Vincent and the Grenadines, where local authority doesn’t issue forex licenses. In addition, Capital Swiss FX and Swiss Capital Ltd. have also been blacklisted by the Swiss Financial Market Supervisory Authority (FINMA).

There are many negative reviews about the broker can be found online. People share their bad experience, pointing out cold calling and almost forcing clients to invest. They state that Capital Swiss FX refuses to withdraw their investments, offering to invest more.

Considering all the above, we would not recommend you investing with Capital Swiss FX. Instead, we advise our readers to avoid dealing with unregulated entities and choose among the reliable and regulated ones. There is a number of properly licensed firms, like the ones regulated by the FCA, ASIC or CySEC.

You can read our review on this broker here.

CySEC warns against unregulated forex broker Worldwide CapitalFX

Regulator CySEC

The Cyprus Securities and Exchange Commission (‘CySEC’) issued an announcement-warning with regard to Worldwide CapitalFX – a forex brokerage brand that is not authorized to provide investment services and/or perform investment activities in the country.
The Cyprus Securities and Exchange Commission, known as CySEC, is the financial regulatory agency of Cyprus. As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law. A significant number of overseas retail forex brokers have obtained registration from CySEC.

Worldwide CapitalFX logo
Worldwide CapitalFX offers a wide range of trading assets including binary options, cryptocurrencies, Forex and Contracts for Difference. According to the website, the broker is owned and operated by Algobit Ltd. and claims to be located and regulated in the USA. However, the company is not overseen by any authority in the USA or any other country and, moreover, Algobit Ltd. is registered in Seychelles. The offshore zones such as the Marshall Islands, Vanuatu or Seychelles cannot be considered as safest for the clients’ funds and the authorities there do not guarantee the protection of accounts.
There are at least two major red flags when it comes to investing with Worldwide CapitalFX, offshore registration, and false regulation info. Obviously, we wouldn’t recommend traders to deal with this broker and think about more reliable options.
When engaging with brokers that do not operate on the grounds of a valid license, issued from a trustworthy authority, traders are putting their investments at higher risk. It is better to avoid dealing with offshore brokerages and choose properly regulated and reliable brokers. A good example of such are the ones supervised by the FCA or ASIC. You can read the full review on this broker here.

Forex Trading: Why Avoid Brokers from St Vincent & The Grenadines

SVG FSA Regulator

Introduction to SVG FSA

📚 Formed:November 12, 2012
🏦 Jurisdiction: St. Vincent and the Grenadines
🏢 Headquarters:Kingstown
🛡️ Is SVG Broker Offshore or Top-tier Jurisdiction?Offshore
🔒 Is Offshore Broker safe to trade?No
⛔️ Type of License for Brokers to AvoidOffshore License/ No License

What is SVG FSA? 

St. Vincent & the Grenadines or SVG through increasing demand for the financial sector and offshore zones itself created the Financial Services Authority FSA with a responsibility to regulate non-bank, certain entities in the financial sector and control the international financial services industry.

  • SVG FSA was established November 2012, with a mission as the authority mentions on its official website – to develop, regulate and supervise St. Vincent and the Grenadines as a secure and competitive financial center in the international and the financial sector in accordance to best practices.
  • However, Forex Trading or Brokerage activity, which is the main topic in financial investment world also rapidly growing in its demand, does not have a solution of regulation of Forex, CFD and Binary Options in SVG.
  • The regulation or even licensing of the Forex business is not a part of the SVG FSA activity, as stated by the official warning.
  • “There are financial institutions out there that falsely claim they are registered or licensed in our jurisdiction. Their purpose for doing this is more than likely for illicit reasons and potential customers should be very cautious about conducting business with them. 
    FSA, St Vincent and the Grenadines. (Learn more about SVG FSA Function Role)
SVG FSA website

Is SVG Broker Scam or Safe? 

St Vincent and the Grenadines of SVG is an island in the Caribbean, which became quite a known location for its tax haven offering out of the international companies. St Vincent is indeed an attractive solution among financial companies and those businesses that for one reason or another choose to operate through an offshore company.

  • Since the jurisdiction itself offers easy-to-achieve setup demands through very quick, simplified process, while the firm does not necessarily need to operate an office in SVG, allow to maintain low initial capitals, no strict establishment rules or requirements, yet allows running a global business.
  • Furthermore, there is no sharp regulation or overseeing of the company operation implemented and Forex Business itself is not regulated, see snapshot from FSA SVG website below. 
  • Therefore, Forex business established in SVG is not well regulated in St Vincent, the SVG broker can run its activity, provide trading environments and accept Forex payments through credit cards, but is not overseen well in comparison to the top tier authorities, for this reason is not safe entough to trade or recommended to sign in. See our list of offshore and Unregulated Broker to Avoid, or Read more about Why Trade with FCA UK Brokers
SVG FSA Forex Alert

Why not trade with an SVG FSA Registered broker?

Considering the fact that SVG FSA enables low set up requirements with No business planning, No management interview or check of the company background. While the registered company operates with No Handbook, No Regulatory Reporting, No Impose of Fines in case of its malicious service and there is No any protection implied alike Fund Segregation, Negative Balance Protection or Compensation in case of insolvency. We can not conclude SVG Broker as safe to trade and better advise to avoid them. 

  • Therefore, apart from beautiful seaside beaches, the SVG with its offshore environment became a known hub of financial firms, while the legal environment can be quite loose towards the Forex business and brokerage itself. For better understanding check out the UK FCA Authority and its sharp regulation, overseeing of the brokerages and heavy fines in case of the company fail to obligations, see snapshot of UK FSCS protection applied too, while SVG Brokers apply none. 
FCA regulator

SVG Registration Requirements

Obviously, the investment and trading service is a popular trend, however in order not to fall under the scams and frauds, which are in fact growing daily, you should carefully choose a company before any funding is done. Forex and derivatives trading as a decentralized market can be a highly risky opportunity if the company delivers trading service without strict overseeing from the industry authority.

  • For that reason, we always advise choosing among the most reputable and of course heavily regulated brokers and to protect yourself from potential scammers. For instance, as an example learn and compare eToro offering and heavy regulation.
  • To get more knowledge, you can also read our article Forex Trading Scams and know how to protect yourself, with a deeper understanding of how frauds work.
  • In addition, most often an offshore broker alike SVG Brokers are associated with other companies while the offering varies slightly from the majority of frauds, yet the result is equally disappointing. The major concern about lack of regulatory oversight places SVG companies much under the recommended safety line, in essence, you only get the honest word of the company.

Complaints and scams to SVG FSA

We have received many user reviews, while the majority of them are obviously negative. What are the Complaints about? Mainly – Rejects client withdrawal, meaning a client who puts money cannot get profits or funds back. See popular Broker – Olymp Trade and read comments from real traders below.

  • In case you have negative scenario or behavior from the Broker in SVG, SVG FSA will not be able to assist through customer protection, to advise or take action further, the trader stands completely alone at that point. Therefore, there is no way to complain or receive any support from the authority. See snapshot from SVG FSA about risks involved. 
SVG complaints and support

Fake Trading Brokers

In addition, there are many fake brokers stating their address, regulation or registration at SVG, while pretending to be a legit firm but in fact are not.

  • SVG authority recognized the risky potential and just warn traders that in case of trading with an unlicensed and unregulated company the trader using the services at his own risk. As an unlicensed or offshore broker most often not subject to any supervision of practice or regulatory laws the company may easily mislead or false any information or the service providing itself.

The only way the SVG FSA tries its attempt to protect clients is to place an advise and list entities at the alert area as of the false license claims in the SVG jurisdiction, yet the protection “actions” are ending just by that. SVG FSA – Investor Alerts 

SVG FSA Investor Alert

List of St Vincent and the Grenadines Forex Brokers

Currently, we have reviewed many Forex Brokers from St. Vincent and the Grenadines, while none of them were included into the list of trusted or brokers with a recommendation of safe trading. The only companies that may be trusted are those brokerages that hold additional licenses from reputable authorities and at the same time run business in SVG for international access, check GO Markets Broker.

  • We suggest check on the broker carefully before any sign in is done, revise the broker’s regulation status, its authorization claims, news and reputation by reading reviews and checking on the legit documentation.
  • As well, you can find and verify company you concerned about at our regularly updated list of Brokers to avoid or submit your inquiry. Then if you found a broker at the list you better stay away from any cooperation or trading with them at all cost, as listing consists of mainly non-regulated and offshore firms which are not recommended or safe. 

Conclusion on SVG regulation

The final thoughts conclude that traders and investors should ensure a clear understanding of the procedures and risks involved while the company or another offering the forex trading opportunity and not properly licensed, or in other words is offshore Broker like SVG Brokers are. 

  • As of the recent growth of international trend of Forex, trading investors are urged to exercise caution before any sign in or acceptance of the offering. Any broker declares its regulation by FSA SVG, in substance, made a false claim. As it became clear now, why the SVG incorporated firms disclose information on the risks, in particular, the possibilities of loss, therefore we recommend avoiding offering from the brokers mentioning their SVG FCA regulated status.

In order to become a trustable company in providing financial and trading service, the Broker should be sharply regulated and retain a sufficient level of reputation through its operational history. Definitely, it is not a gaining point towards trust to the brokerage that is an offshore-based company and was established with a low registration requirement while none of the protective principles followed.

The security of funds always stands first, therefore, you better consider brokerages from other jurisdictions that maintain a sustainable level of financial and investment services and forex trading in particular through a protective set of rules. For this, we advise finding a broker with licenses from top-tier authorities, such as FCA, ASIC, or CySEC. Sign in only with trustworthy brokers, such as FP MarketsHFM, or recommended brokers by the link.