Category: Regulation

The Cyprus Securities and Exchange Commission, known as CySEC (www.cysec.gov.cy), 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. You can read our detailed article about CySEC here. 

The Cyprus Securities and Exchange Commission (‘CySEC’) issued warnings with regard to Capitaltechfx and Richmondsfinance. According to the official statement, these websites do not belong to an entity which has been granted an authorization for the provision of investment services and/or the performance of investment activities

The biggest concern with these two companies is identical websites with all the same content. There is a difference between the locations (offices), but probably it is because the companies have been targeting different countries. 

Both brokers claim to be offering Forex and CFDs trading. Capitaltechfx has branches in the United Kingdom, Cyprus and Singapore. Richmondsfinance has branches in Australia and Cyprus. There is no regulatory information provided on either website. Also, we couldn't find any proof of their authorization in the registers of the British FCA, CySEC and Australian ASIC. 

We would recommend avoiding both Capitaltechfx and Richmondsfinance as it is very risky to trade with unregulated brokers. 

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 CySEC. 

You can also share your trading experience with Capitaltechfx and Richmondsfinance by commenting on this post.

The UK’s Financial Conduct Authority has updated its warning list with Bex Options - a company that is not authorised by the regulator and is targeting people in the UK. Based upon information the FCA holds, Bex Options is carrying on regulated activities which require authorisation.
The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom.

Bex Options offers trading in forex, various CFDs, and binary options and operates through the website www.bexoptions.com. The broker is owned by Bex Options Trade and claims to be based in London, UK. Also, according to the website, Bex Options is registered with the UK government with company registration number: 09563470. However, this registration number belongs to another FCA-regulated company Bex Trading Limited. It means that Bex Options has used the financial registration number of FCA-licensed Bex Trading Limited. Nonetheless, the broker is not associated with the regulated company.
It is a popular tactic fraud companies use in an attempt to convince people that they work for a genuine, licensed business. Clearly that Bex Options cannot be trusted and should be avoided as a broker which tries to mislead investors that it is a brand of an FCA-authorized company using the registered number of a licensed firm.
It is recommended to trade with authorized and regulated brokers. There are many trading companies that offer relatively good trading deals and conditions. These companies are regulated by such financial regulators like the ASIC, CySEC, and FCA.
You can read our review on this broker here.

Among the latest issued warnings of the UK’s Financial Conduct Authority (FCA) is the one against an unregulated financial services provider – company AMP Trading that appears to target UK residents.
The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom.

AMP Trading is a forex and cryptocurrencies broker that operates through the website www.amptradinggroup.com. The firm is owned and operated by AMP Trading Limited (according to the website, AMP Trading Limited is an appointed representative of AMP Prime Ltd Authorised and Regulated By Financial Service Commission (FSC) and Registered in England & Wales). FSC regulation means that the company is simply registered in one of the offshore zones - Vanuatu as the registration number VFSC012B stands for Vanuatu Financial Services Commission.
Next to broker's London address there is a Cyprus address, which probably points out one more office location. Despite the London and Cyprus locations, AMP Trading is not regulated in any of these or other countries.
It is recommended to trade with authorized and regulated brokers. There are many trading companies that offer relatively good trading deals and conditions. These companies are regulated by such financial regulators like the ASIC, CySEC, and FCA.
You can read our review on this broker here.

Austria’s financial markets and services providers regulator FMA warned that the Forex and CFD broker Libra Markets is not licensed to offer its services in Austria. Therefore the acceptance of funds from other parties on a commercial basis for management purposes or as deposits is not allowed.

The Austrian Financial Market Authority (FMA) is an independent, autonomous and integrated authority for the Austrian financial market. The Austrian FMA is responsible for: contributing to the stability of Austria as a financial market; reinforcing confidence in the ability of the Austrian financial market to function; protecting investors, creditors and consumers.

Libra Markets is a Forex and CFDs brokerage. According to the website, the broker is owned by Yield Enterprise Currency Software OÜ, Tallinn, Estonia and operated from Riga, Latvia. The government of Estonia allows forex trading within the country for those brokers authorized by the local regulator Financial Supervision Authority. However, we didn’t find any mention of Libra Markets or Yield Enterprise Currency Software OÜ in regulator’s register.

To add up, we have found numerous negative reviews from Libra Markets customers on the net. People state that they cannot get their money back and the company refuses to provide any kind of help.

When choosing a new Forex broker, it is very important to verify that they are in fact licensed for investors from your country of residence. Trading with a licensed broker ensures you will not have issues withdrawing your investment. The most trustworthy brokers are those registered with such regulators as FCA in the United Kingdom and ASIC in Australia. You can read our review on this broker here.

The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial regulation, have issued warnings against FernFx and OlympusMarkets brokers. The regulator states the companies are not registered as New Zealand Financial Service Providers or licensed to provide derivatives products to New Zealand retail investors.

The Financial Markets Authority (FMA) plays a critical role in regulating capital markets and financial services in New Zealand. It is the New Zealand government agency responsible for enforcing securities, financial reporting, and company law as they apply to financial services and securities markets.

Fern is a forex broker, operated by FERN GROUP NZ LIMITED and claims to be a registered Financial Service Provider in New Zealand. However, it is actually not authorized there and has been using the name of the FMA regulated broker, not associated with Fern. Clone firms use some or all of the details of a genuine entity, aiming to convince investors they are indeed the authorized company or that they work with them.

Another blacklisted broker, OlympusMarkets is simply an offshore company, registered in Vanuatu. Which means it is an offshore entity and there is a high risk for the customers when dealing with this firm.  

We always advise traders to avoid dealing with unregulated offshore-based forex brokers like Fern and OlympusMarkets, as most of them are involved in investment scams. There are a number of properly licensed brokers to choose from, like the ones regulated by the Financial Conduct Authority or the Australian Securities and Investment Commission. You can read our review on Fern and OlympusMarkets here.

Spain’s financial markets and services regulator CNMV has issued a warning against two forex brokers Wise Banc and JustForex. According to the public warning notice, these entities are 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.

JustForex is a forex broker owned by JF Global Limited. The company is registered offshore in St. Vincent and the Grenadine. Those brokers registered offshore are not considered as reliable ones, because they are basically are not overseen by any authority. 

We’d want to remind that the FSA of the St. Vincent and the Grenadines has announced that it does not issue any licenses for forex trading or brokerage nor does it regulate, monitor, supervise or license international companies, which engage in such activities.

As to the Wise Banc, the broker claims to be located in Bulgaria, however, it is not regulated by local regulator Financial Supervision Commission. Also, the owner-company Orion Service EOOD has been blacklisted by several regulators. It is better to stay away from Wise Banc.

Generally, we always advise traders to avoid dealing with unregulated forex brokers, as they may be involved in investment scams. There are a number of properly licensed brokers to choose from, like the ones regulated by the FCA or the Australian Securities and Investment Commission. You can read our reviews on Wise Banc and JustForex here.

The Ontario Securities Commission (OSC) warned the public against another company – Affliated Trade Group. The regulator states that the company Affiliated Trade Group and its representatives are not registered in Ontario to solicit investments or provide advice on investing in, buying, or selling securities.
The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance.

Affiliated Trade Group is a Forex broker that operates through the website www.affiliatedtradegroup.com. The company doesn't disclose information about the terms and conditions, company-owner or its regulation, which already looks quite suspicious. The broker also claims to have the main office in Zurich, Switzerland and regional offices in Tokyo, Japan, and Calgary, Canada. In order to be able to legally provide financial services in a particular country, a broker needs to be licensed and regulated by local authorities. Affiliated Trade Group doesn't hold any license and is not regulated in any of the mentioned on the website countries.
According to the regulator's notice, the broker is disseminating a fake document suggesting it has received exemptive relief from applicable securities law in Ontario. However, Affiliated Trade Group has never filed an application for exemptive relief or been granted any discretionary relief under securities legislation in Ontario.
The Alberta Securities Commission also recently published an Investor Alert on December 14, 2018, about the Affiliated Trade Group. The regulator names several “red flags” common to illegal investment schemes present in Affiliated Trade Group’s promotions and sales techniques, including lack of registration, suspicious contact information, and high-pressure sales techniques.
If you are considering an investment opportunity through a company that is not registered, be sure to understand whether the company is complying with applicable securities laws. We encourage all investors to check the registration status of any company offering financial services.
You can read our review on this broker here.

In the recent regulatory statement, the UK's Financial Conduct Authority has reported against the forex broker Get Financial and warned that this company has been offering financial services to the UK clients without being authorized in the country. Get Financial company is incorporated on the Island, but isn’t affiliated with the local regulator. Get Financial is a Forex and CFD broker, which offers its services from the website getfinancial.com. This trading platform has all Major Currency pairs as well as minor crosses.There is a large selection of other assets are available for trading, including Commodities, Futures, Indices, Stocks and Crypto currency. The broker firm is owned by Get Financial Markets Ltd., registered in St. Vincent and the Grenadines. There is another company mentioned on the website - ASTRORO INVESTMENTS LIMITED, located on Cyprus. Although, the Cyprus location has nothing to do with the Cyprus regulation. The companies registered with the offshore regulators have a bad reputation, as in comparison to the serious agencies such as FCA in UK or ASIC in Australia, it is easier and cheaper to get the offshore license. It is one of the reasons, why it is better not to deal with the Get Financial firm. Another reason to stay away from this broker, is the loads of negative reviews from unsatisfied and angry clients. People lose their money, usually with the trades they haven't even opened. Their emails are not answered and it's impossible to reach the support team over the phone.  It is recommended to deal only with the highly regulated companies and the Financial Conduct Authority (FCA) is one of the most respectable agencies. You can read our review on this broker here.

The Financial Conduct Authority (FCA), the UK financial regulator, has issued a warning about EU-Capital, an online entity claiming to provide forex trading. The broker has been providing its financial services to UK customers without being authorized in the country.

EU-Capital (which operates from the eu-capital.co website) is a Forex and CFD broker. EU-Capital offers a relatively wide variety of forex pairs, as well as CFDs on commodities, indices, a few specific stocks and even cryptocurrencies. The platform is owned by a Marshall Islands-based holding company called Gelko Partners LTD. Their registered office address is at Trust company complex, Ajeltake Road, Ajeltake Islands, Majuro, MH96960 Marshall Islands. The Marshall Islands is an offshore destination where usually brokerage services are not regulated. The biggest concern is that there is no information about the legal entity behind EU-Capital. All legitimate firms provide an actual company with a place of registration and which is registered with a trusted financial regulator. Doing business with offshore brokers is extremely risky and it is highly recommended to avoid such companies and to select among brokers licensed by the respective authorities in the UK, or Australia for example. For instance, a broker registered with the UK's FCA can’t simply take investor's money and disappear. They follow multiple reporting procedures and have to keep client funds segregated from the company’s. They are also involved in the Financial Services Compensation Scheme (FSCS). It is a fund that works as an insurance company for the brokerage firms and their investments. You can read our review on this broker here.