HFM Awarded with Prestigious “Best Copy Trading Broker” Title at FMAS:24

HFM , one of the largest brokers regulated by South African authority and global reputable authorities recently has been awarded the ‘Best Copy Trading Broker Award’ at FMAS:24. This accolade recognized the Broker's revamped Copy Trading program provided with some of the best trading conditions.

Innovative Copy Trading HFM implements features that indeed break down geographical barriers allowing traders from anywhere in world to replicate strategies from successful traders, or from other side to share your own strategy to be copied worldwide which fosters a global trading community. Followers can profit when strategy providers generate profits, besides able to improve own trading skills. One of the great features is that users can follow multiple strategy providers, therefore, build a diversified portfolio with tools enable to monitor copied trades, maintaining full control over trading accounts with ability to stop following at any time.

An HFM spokesperson shared the company’s excitement about the recognition, stating:

We are delighted to receive the ‘Best Copy Trading Broker’ title at such a prestigious event. We are grateful for this acknowledgment and remain committed to delivering exceptional value to our clients. At HFM, we recognize the immense potential and growth opportunities that the African market presents. As part of our long-term strategy, expanding our presence in Africa aligns perfectly with our company's goals for 2024 and beyond.

Disclaimer: Trading CFDs and Forex involves risk. Past performance does not guarantee future results.

About HFM

HFM, previously known as HotForex, is a brand name of HF Markets Group an internationally recognized multi-asset broker serving over 3.5 million live accounts worldwide, with over 60 coveted industry awards. The company offers wide variety of account types, innovative products, platforms, tools, and educational materials besides outstanding customer service and quality trading conditions available for individual and institutional customers to trade Forex and CFDs online.

Read more about Copy Trading and our HFM Review by the link.

Forex Trading: Why Avoid FSC Brokers from Belize

Introduction to Belize FSC

📚 Formed:January 1, 1999
🏦 Jurisdiction: Belize
🏢 Headquarters:Belmopan
🖥 Website:www.belizefsc.org.bz
🛡️ Is SVG Broker Offshore or Top-tier Jurisdiction?Offshore
🔒 Is Offshore Broker safe to trade?No
⛔️ Type of License for Brokers to AvoidOffshore License

What is Belize FSC?

The financial services sector of Belize, in particular, international Forex and trading services companies, is a relative newcomer within the financial industry, yet recently expanded Belize economy to a world-recognized hub. The growing demand led to the establishment of Belize FSC, the regulatory body responsible for overseeing and regulating the financial services industry in Belize.

  • Belize as an English-speaking country in the heart of Central America obtained its independence in 1981 and since then approaches to diversify its portfolio through various opportunities to international investors and for instance included an attractive offering to firms operating financial services.
  • So what makes Belize an attaractive hub for Forex Broker is the possibility, which is based on the offshore concept allows investors to engage in a variety of activities, obtain official status, run brokerage accounts, operate trading services, commission arrangements, and other commercial transactions with lower requirements and lower costs too.
  • While developing and through its enlargement of potential, many online forex brokers used a Belizean IBC as a perfect opportunity to run international brokerage service and make authorized financial transactions. Therefore, through its growing demand Belize established independent local authority with the purpose to carry out financial regulation responsibilities including licensing of financial market participants and exchanges, and the supervision of their activities itself. The International Financial Service Commission or IFSC Belize started its operation in 1999 as a government agency to protect the reputation of Belize as an offshore financial center.
  • The FSC was initially known as the International Financial Services Commission (IFSC) but underwent a name change to the Financial Services Commission in line with the passage of the Securities Industry Act, 2021.
  • Even though, FSC being a self-regulatory body operates through a set of international rules and is in charge of licensing all international financial service providers through a set of requirements designed to ensure compliance. In addition, FSC is powered to impose administrative sanctions and disciplinary penalties for brokerage or investment firms that come under the relevant Belize financial acts, nevertheless, the conditions offered by FSC are far from this strict rules like top-tier authorities provide, therefore can not provide the same level of customer protection alike (Read more about the Core Functions of FSC)

Is FSC Broker Safe or Scam?

In fact, we can say Brokers that are only FSC Belize regulated are safe enough, there is high risk to fall into Scams. Belize serves as a tax haven with strong privacy laws, while these laws legally protect the confidentiality of organization information, preventing disclosure to governmental agencies or other influential countries worldwide. The stringent privacy regulations, coupled with a zero tax regime for foreign income, create an appealing business environment conducive to enhancing profitability and maximizing financial outcomes for companies operating in the region, therefore there are so many Forex Brokers based in Belize.

  • FSC promotes its role in identifying and addressing broker scams and unethical practices by companies making false claims. However, there are many concerns regarding the overall effectiveness of these efforts, since they are rather promoting than effective, and in fact many Scammers are operating through Belize
  • While the FSC have some limitations in its sharpness or regulation, it still offers certain advantages compared to brokers operating without zero regulation. To enhance trader protection, the FSC publishes public warnings, notices, press releases, and other relevant information on its online platform, so is good at list to check those alerts too.
  • The effectiveness of penalties imposed by the FSC in deterring fraudulent activities among FSC Forex brokers has been a subject of concern. The imposed penalties may not be sufficiently stringent to discourage such irregularities, leading to a perception that some brokers may escape significant consequences for their actions. See our list of offshore and Unregulated Broker to Avoid, or Read more about Why Trade with FCA UK Brokers which shows that protective measures taken by the UK regulations which are quite serious and sharp compared to very low provided by FSC.
Scams Targeting FSC Customers

Why not trade with an FSC-registered broker?

Due to the low setup requirements and limited transparency associated with Belize FSC, along with the perception that regulated companies may face less severe penalties for irregularities and lack features like fund segregation, negative balance protection, or compensation in case of insolvency, it is difficult to confidently assert the safety of FSC brokers. Although, there still can be found companies that offer high-quality trading services through their Belize entity

  • Belize is a gorgeous tourist destination, while also tax heaven with a zero tax structure that established its own regulation for financial investment and Forex firms licensing due to high demand and necessity of regulation. Ever since Belize became a known offshore zone and Forex hub, as a destination, attracted thousands of brokerages seeking an opportunity to be legitimate firms, yet to skip complicated and costly establish procedures.
  • Therefore, the development of a perfect business environment attracted numerous enthusiasts and made Belize an investor-friendly economy that enables business growth, however, those firms and individuals that are seeking an opportunity to enable easy fraud process were allured to Belize as well. Definitely, it’s a very profitable chance to open a brokerage firm in a destination that saves establishment costs and allows enjoying almost unlimited profits, yet from the perspective of the trader or a client it is necessary to choose Brokerage or Company that is reliable, and unfortunatelly Belize alone can not gurantee this demand
FCA-registered brokers notes

FSC Registration Requirements

So getting back to the point, why an offshore broker or investment firm is not a recommended option to any trader, let us look closely what are the requirements to become a licensed FSC company, also compared to top-tier Regulations like CFTC in US imposes:

  • Setting up a Forex brokerage in Belize is known for its relatively low costs, making it an attractive option for brokers with limited initial capital. The minimum capital requirements are typically lower than the industry standard, and the regulatory system is often characterized as less stringent. This leniency allows brokers to operate with greater freedom in many financial markets, so can lead to petential frauds too
  • First of all the firm should maintain its minimum operating capital depending on the service from $10,000 to $100,000, then pay an international financial service provider fee of $1,000 only! The annual license fee varies on various kinds of financial services that also include Forex, trading securities, derivatives, and financial instruments, while a fee is either $2,500, $5,000, or $25,000.
  • Yet, if compared to reputable regulatory supervision, these rates are extremely low, while the costs of setting up are considered to be one of the lowest worldwide. Meaning, the company is not able to operate or guarantee the safest trading environment with such a lack of capital, which even more, brings uncertainty to brokers' performance.
  • Moreover, there is no strict requirement for a company to segregate clients' funds from the company ones, a meaning broker can use a trader’s investment for their own purposes, like heavy advertising for example. The broker is not either shall establish a physical branch or office in a destination, while the directors and management would be only slightly checked in terms of their proficiency.
  • In regards to audit and control of how the Forex broker or company operates, the FSC does not implement comprehensive reporting demand, so the company can easily hide its true nature of performance.
  • Although FSC makes its best to regulate and restrict firms by imposing fines, most FSC brokers get out of unlikely situations quite easily, as fewer standards allow them to enjoy almost free operation in financial markets.

In comparison to trusted authorities in the EU, the US, or other jurisdictions, the regulated broker catered and demanded detailed commitment in regards to trader protection, while FSC companies still operate in an environment sufficiently to fraudulent activities.

Complaints and Trading Scams

While the main duties of the FSC about the provision of effective services and registration of international companies, and accepting complaints from foreign traders there are many limitations in place, and the complaint process is not so organized like FCA in UK via Ombudesmall Provides (See How to CompLain in FCA website). The trader should first contact his service provider and try to resolve an issue through the company, yet in case you are not satisfied with the handling result move further and contact the authority. The transfer of the complaint to FSC should include detailed data with information on the company complaining, as well as evidence documentation.

Submit a complaint by filling out the form on the website www.belizefsc.org.bz/complaints

Based on the findings, FSC may impose a statement to the company with a requirement for compensation. However, the FSC is not responsible for further compensation, therefore quite often the dishonest brokers disappeared or didn’t take stated action, as the authority can do nothing about it. This means, the trader will remain on his own to resolve the issue further and can only submit a case to the court for appeal.

FSC Complaints

List of Belize Forex Brokers:

About 50 Belize Forex Brokers were reviewed by us, in fact, most of them appeared in the list of Brokers to avoid as the implemented safety measures do not allow us to trust them. Thus we do not recommend trading with them and advise you to consider only those that hold additional licenses or are regulated by trusted jurisdictions. (Check Scope Markets)

  • As for the Belize Trading Brokers we do not advise trading with solely Belize Regulated Brokers, as risks are very high. We strongly recommend conducting thorough research before engaging with any broker. It is crucial to carefully assess the broker's regulatory status, review their authorization claims, stay updated on relevant news, and consider the reputation of the broker by reading reviews and verifying their legitimate documentation.
  • However, currently, there are international brokers that do hold multiple licenses, including FSC one, and are regulated by other respected jurisdictions, which allows them to deliver good environment for trading and offer services internationally. Therefore, is better to choose a broker and forex trading provider among existing testimonials and consider only those that are regulated. Check out our recent articles about FCA, or other serious authorities to see the difference between the implemented regulations. Sign in only with trustworthy brokers, such as FP MarketsHFM, or recommended brokers by the link.  

Besides, FSC provides by itself a list of licensed service providers are regularly update it through an official website and available for verification at all times. Check the list of licensed service providers on FSC website, see note from FSC below:

“Investors and other users are warned not to deal with any entity whose name does not appear on the list for the service or business in question. It should also be noted that under the laws of Belize, a separate license is required for each kind of service or activity.”

Conclusion on FSC Regulation

Forex trading witnessed thousands of scams and numerous malpractices that were taken by unethical brokers, while in fact the majority of them were indeed located in an offshore zone and known heavens with zero taxes. The most dishonest ones always seek the easiest way to establish an alleged legal firm, through a license that does not implement strict regulation or reporting.

  • The fraudulent activities are carried out in a most sophisticated way and it’s been hard to detect where the offering coming from. Therefore, traders should always be aware of these firms that corrupted the image of Forex trading and trust only well-regulated brokers incorporated and heavily regulated by known authorities like the UK’s FCA, Australian ASIC, and similar.
  • Considering the fact that FSC has not implemented the strictest standardization that may guarantee the trustable provision of Forex or trading service delivery, we do not recommend choosing among FSC companies. Although, a newly implemented increase of the capital requirement definitely assists in a further decrease of new suspicious brokerages establish and those firms that seeking an easy solution to skip regulation.

HFM Announces an Exclusive Trading Contest – Win a Paris Olympic Games 2024 Experience Package!

HFM the global multi-asset broker, has unveiled an enticing opportunity: a trading contest that gives a chance to win ultimate Paris Olympic Games 2024 Experience. Available for individuals across the African continent, HFM's promotion offers a chance to immerse oneself in the celebration of the upcoming Paris Olympics.

Participating in 42 trading days contest traders get an opportunity to secure an exclusive place at the Men's Marathon Finish Line with exclusing hospitality tickets. This coveted access ensures a front-row view of the athletes' triumphant moments as they cross the iconic finish line.

Participants in the 42-trading days marathon have the chance to secure a place at the Mens' Marathon Finish Line with exclusive hospitality tickets. This privileged access guarantees an up-close view of the athletes' triumphant moments as they cross the finish line in this iconic race.

The Grand prize package includes VIP tickets to the Olympic Games closing ceremony in the Bronze category C area, along with a generous 3-night hotel accommodation with flight tickets. This unique offering makes it easier than ever for the lucky winner to be a part of an unforgettable journey and experience.

Click here to participate in the trading contest and set yourself on the path to winning Olympic Games Experience!

About HFM

HFM, previously known as HotForex, is a brand name of HF Markets Group an internationally recognized multi-asset broker serving over 3.5 million live accounts worldwide, with over 60 coveted industry awards. The company offers wide variety of account types, innovative products, platforms, tools, and educational materials besides outstanding customer service and quality trading conditions available for individual and institutional customers to trade Forex and CFDs online.

Dukascopy Bank Raises Alarm Over Fraudulent Clone Website


Dukascopy Bank SA, a renowned Swiss-based financial entity, has acted promptly, issuing a stern public advisory concerning a deceptive clone website. The counterfeit website, identified by the domain https://www.dukascopys.top, has raised significant concerns within the banking institution dedicated to safeguarding the integrity of its operations and clientele.

Public Advisory on Unauthorized Dukascopy Clone

In a decisive move, the bank has alerted both the public and its clients, emphasizing that the fraudulent website is neither owned nor operated by Dukascopy Bank, Dukascopy Europe, Dukascopy Japan, or any affiliated entity within the Dukascopy Group. Individuals are strongly advised to exercise utmost caution, avoiding any interaction or the sharing of personal or sensitive information on the unauthorized platform.

Dukascopy Bank's rapid response underscores its unwavering commitment to protecting its clients while upholding the integrity and reputation of its services. The bank continues to actively thwart any unauthorized activities that compromise its name and stature in the financial sector.

The Imperative of Website Authenticity

This unsettling incident stands as a stark reminder of the ongoing risks posed by online fraudulent activities, particularly within the financial and banking industries where vital personal and financial data is often exchanged. Ensuring the authenticity of websites is pivotal in safeguarding sensitive information and conducting secure and legitimate financial transactions.

Analyzing Dukascopy’s Financial Performance

Despite this challenge, it’s essential to also spotlight Dukascopy’s recent financial performance. A notable decline has been observed, with profits plummeting by 80%, recording CHF 889,000 in H1 2023, a significant fall from CHF 3.9 million in the preceding year.

This downturn is mainly attributed to a substantial decrease in trading activity income, dropping by 33%. However, not all financial indicators were gloomy. Dukascopy saw remarkable growth in revenue from interest operations, witnessing a soaring 800% increase. In addition, a slight uptick in commission business and services income was observed, accompanied by a significant reduction in operational expenses.

Dukascopy Bank’s steadfast dedication to safeguarding its clients and maintaining operational integrity remains evident, even as it navigates through multifaceted challenges in the financial landscape.

Forex Trading: Why Trade with UK FCA Regulated Brokers

FCA Regulator

Introduction to FCA

📚 Formed:April 1, 2013
🏦 Jurisdiction:United Kingdom
🏢 Headquarters:London
🖥 Website:www.fca.org.uk
🛡️ Is FCA Broker Offshore or Top-tier Jurisdiction?Top-tier
🔒 Is Top-tier Jurisdiction safe to trade?Yes

What is UK FCA?

The Financial Conduct Authority (FCA) is one of the most world respected financial regulatory body based in the United Kingdom which is recognized as top-tier Financial Authority with strict guidelines and procedures applied. FCA operates independently from the UK Government and is a conduct regulator for over 50,000 financial service firms and markets in the UK, as well the Prudential Regulation Authorization. (Read our article about UK Brokers)

  • FCA, as an independent public authority in UK that regulates the conduct of 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. ( Read more about the role and functions of FCA)
  • The FCA took responsibility for financial stability by bringing together a new regulatory structure and enhancing its predecessor the Financial Services Authority (FSA) responsibilities, the agency that regulated financial services between 2001 and 2013.
  • The authority has 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 the maintenance of the financial market integrity in the United Kingdom and secure an appropriate degree of trader protection.
FCA - official website

FCA Brokers Requirements and Regulation

In fact, for any firm in the UK whether a business, asset manager, broker, or financial investment firm the activity is a must 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 fees with a high initial capital to apply for the FCA license and carry out its regulated activities further:

  • The license type is based on factors such as the scale of activities and is divided into STP license (check on STP Forex Brokers), which imposes EUR 125,000 initial capital and EUR 730,000 for Market Making license.
  • Upon application, the company will be checked for its adequacy to operate in the market, with a review of business plans, 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 is experienced enough to run the brokerage.
  • Moreover, the broker should maintain a physical office in the UK and be 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 is provided accurately, and most important, transparently.
FSCS compensation

Why trade with an FCA-regulated broker?

There are numerous measures and rules set by the FCA which recognize authority as one of the most safe and best Regulators for Forex Trading and Investment. Some of the regulatory measures that are important to the traders include various demands FCA Regulated companies have to follow that are designed to protect clients, which includes - segregation of the client’s funds from the broker’s operational fund. That means the broker stores their operation fund separately from the client's 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 their initial deposited capital. Lastly, the maximum protection level is achieved by solve of an unlikely event when a broker goes bankrupt or falls 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 85,000 per client.
  • The regular supervision tasks of FCA ensures follow of the 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 (Here you can find 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 penalties in the history of £284,432,000 for forex failings. In addition, the FCA is able to ban financial products, firms, or the particular asset manager, as well as have the power to instruct firms to immediate action, modification, or revoke their license if necessary.

FCA fines Barclays

Benefits of Trading with FCA Broker in UK

The benefits of trading with FCA-regulated Forex Brokers are evident at a glance, as the authority ensures strong oversight of brokers, monitors products and provides compensation when necessary. Overall, the FCA conducts thorough checks on brokerage firms, ensuring their compatibility with successful operations, market development, and fair treatment of traders. Consequently, the FCA has received high consumer rankings, as traders receive appropriate trading services, unparalleled advice, and knowledgeable support for any questions that arise.

Moreover, the education and ongoing support from the FCA enable traders to understand their rights as customers and receive financial advice. The FCA also offers resources for lodging complaints, reporting scams, or dealing with unauthorized firms. Additionally, they provide comprehensive guidelines on how to avoid scams, regularly updating their 'Avoid' listing.

FCA consumer organizations service: https://www.fca.org.uk/consumers

How to Submit a Complaint?

With all the strict regulatory guidelines, if a trader or investor believes they are encountering an unfair trading experience with the broker, they can file a complaint against the broker with the relevant FCA department. Besides, traders from UK that has been scammed or getting some proposals from other firms to invest can submit complaint about such firms too (see our list of Brokers to Avoid)

FCA Resources
  • 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.

Submit the complaint about the UK broker: https://help.financial-ombudsman.org.uk/help

FCA complaint form

List of FCA Regulated Forex Brokers

Traders should diligently search for information about the FCA forex broker license directly on the official site, which can be found on the Financial Services Register.

Moreover, regulated broker websites often display their FCA register number, which should be confirmed with the official source to ensure its authenticity. This precaution is necessary due to the presence of numerous clones and fraudulent firms that use registration numbers to deceive individuals and pose as official entities. ( Read our review article of HFM, an FCA-regulated broker)

Additionally, it is advisable to check FCA Brokers Reviews. Currently, our website provides a comprehensive list of over 80 FCA Regulated Brokers in the UK, which is continually expanding.

FCA Brokers register

Conclusion on FCA regulation

UK known as one of the most respected financial centers with a strong historical record of delivering stable economic figures and maintaining influential political positions, also provides an excellent level of regulatory system via the top-tier FCA Regulation.

In fact, the FCA is one of the most respected authorities in the trading industry. It establishes high protective measures and ensures market integrity through its strong influence and monitoring capabilities. The FCA has expanded its responsibilities to the financial and trading sectors by transparently determining policies and carrying out supervisory functions. Additionally, as the main focus of the FCA is to only collaborate with authorized firms, the authority provides extensive data on best practices and fraud prevention. You can learn more about how Forex Trading Scams work in our article linked here.

"Overall, some of the most reputable brokerages and regulated firms are indeed regulated by the FCA. Traders and investors can trade with confidence in the status of an FCA-regulated Forex Broker, ensuring fair and effective transactions and adherence to obligations for client protection under the legitimate regulatory framework.

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
🖥 Website:www.svgfsa.com
🛡️ 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 in 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 with best practices.
  • However, Forex Trading or Brokerage activity, which is the main topic in the financial investment world and also rapidly growing in its demand, does not have a solution for the 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)

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 a very quick, simplified process, while the firm does not necessarily need to operate an office in SVG, allows to maintain low initial capital, 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 a 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 enough 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 Alert 1 of 2021

Why not trade with an SVG FSA Registered broker?

Considering the fact that SVG FSA enables low setup 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 protection implied like Fund Segregation, Negative Balance Protection, or Compensation in case of insolvency. We can not conclude SVG Broker is 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 a 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 the 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. 
Complaints and scams to SVG FSA

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 

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.  

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

Introduction to CySEC

📚 Formed:2001
🏦 Jurisdiction:Republic of Cyprus
🏢 Headquarters:Nicosia, Cyprus
🖥 Website:www.cysec.gov.cy
🛡️ Is CySEC Broker Offshore or Top-tier Jurisdiction?Top-tier
🔒 Is Top-tier Jurisdiction safe to trade? Yes

What is CySEC?

Cyprus Securities and Exchange Commission (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 (Read our article about Cyprus Brokers). 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 the Cyprus securities market as one of the safest and most attractive investment destinations a significant number of Forex Brokers, as well as a vast of Binary Options firms obtained CySEC licenses and establish their operational offices in Cyprus.
  • Cyprus is a known hub of Binary Brokers, as many firms found their benefits from the CySEC authorization since most other European jurisdictions and regulators strictly prohibit binary trading. However, a significant move happened in 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 offerings and clearly state to every customer the highest risk in binary trading as well as to operate fairly towards the traders. Yet, Cyprus remains as first and one of the leading trading centres that proclaimed binary options as an investment instrument and give access to the Eurozone. (Beware of Binary Options Scams)
  • Considering the essential growth of the industry, CySEC's 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.
CySEC website

Why Trade with a CySEC-regulated Broker?

Given the fact that the 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 as to control the market to function smoothly. And that is the purpose why responsible Regulators were established by various jurisdictions.

  • In turn, the responsibilities of CySEC include the 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.
  • 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 the 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 imposing a fine of a total €130.000 the InstaForex and ForexMart. Therefore, CySEC has been changing its position so now acting more sharply towards the brokers whose service does not meet reporting requirements and breaches obligatory policy. The imposing of sanctions for violations includes announcements of the CIF license withdrawal, 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 of 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 offered, such as current trends around Cryptocurrencies, Binary Trading, etc. The Cyprus Authority when necessary updates investment advice, undertakes training to prevent fraud and financial abuse (Read more about Forex Trading Scams), including checking issues of money laundering and other threats, as well as educates publicity through regular courses and publications.
CySEC Warnings

CySEC Brokers Requirements and Regulation

To become a licensed broker regulated by CySEC (Cyprus Securities and Exchange Commission), certain requirements need to be met. These requirements are in place to ensure the integrity, transparency, and stability of the financial markets. Here are some key requirements for CySEC brokers:

  • 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's 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, have the specified type of activities and financial service, as well properly enable customer protective tools through fund segregation, join schemes and more.
  • The minimum initial capital requirement for CIFs depends on the services provided, ranging from €50,000 to €1,000,000. Additional capital requirements may apply based on the broker's activities and risk profile. 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.
  • The individuals who hold key positions within the broker's organization, such as directors, senior management, and shareholders with significant influence, must meet the "Fit and Proper" criteria. This means they should possess integrity, competence, and sound financial standing.
  • Brokers must have robust systems and controls in place to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements. They should establish appropriate policies and procedures to detect and prevent money laundering and terrorist financing activities.
  • Brokers must maintain accurate and up-to-date records of their activities, transactions, and financial statements. They should submit regular reports to CySEC and comply with their reporting obligations.
  • CySEC-regulated brokers have ongoing obligations, including regular reporting, risk management, compliance monitoring, and internal audit. They must also cooperate with CySEC during inspections and provide any requested information promptly.

Once the broker is an 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 operations daily.

CySEC Education

CySEC also provides education and training programs related to financial markets and regulatory compliance. CySEC offers various educational initiatives and resources to promote an understanding of financial markets and enhance the knowledge and skills of professionals operating within the regulated sectors. These initiatives may include:

  • Training seminars and workshops: CySEC organizes training events, seminars, and workshops on topics such as regulatory compliance, risk management, investment services, and market supervision. These events aim to educate professionals and enhance their understanding of the regulatory framework.
  • Online resources: CySEC provides educational materials, guidelines, and publications on its website, which are freely accessible to the public. These resources cover a wide range of topics, including investor protection, financial reporting, and legal obligations.
  • Certification programs: CySEC may establish certification programs that aim to recognize and validate the competence of individuals working in the financial industry. These programs can provide participants with a comprehensive understanding of regulatory requirements and best practices.

Here's the link to CySEC Financial Education Hub: https://www.cysec.gov.cy/en-GB/investor-protection/financial-education/

CySEC Education

Regulatory Complaint

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 CIFs are required to respond in writing within five days. The traders also recommended checking 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 and their clients.

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, a list of non-approved domains that help to prevent scams, while the information about unprincipled brokers is open and transferred to other financial regulators.

CySEC Regulatory Complaint

List of Regulated Forex Brokers

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

Here you can search for CySEC listed entities: https://www.cysec.gov.cy/en-GB/entities/investment-firms/cypriot/

As well, you can always check on CySEC Broker Reviews with updates and news from the broker. Currently, Cyprus regulated brokers' list on 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. 

Here's a snapshot of Admiral Markets CySEC license:

List of CySEC Regulated Forex Brokers

Conclusion to CySEC

Of course, CySEC has much potential to become at the level of a reputable authority like the UK’s FCA and implement the more strict requirements to set up financial investment or trading companies (Read Why Trade with UK FCA Regulated Brokers). Yet, Cyprus itself continues its growth and remains a popular Forex Broker destination. There are many more regulated forex brokers in Cyprus rather than in any other European or even world jurisdictions.

Since the majority of Europe’s Forex brokers are 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 the broker’s operation, as the financial company may impose a risk to have sanctions and penalties, which are not that rare among CySEC brokers.

Forex Trading: Why Avoid Brokers from Vanuatu

VFSC logo

Introduction to VFSC

📚 Formed:December 20, 1993
🏦 Jurisdiction:The Republic of Vanuatu
🏢 Headquarters:Port Vila
🖥 Website:www.vfsc.vu
🛡️ Is VFSC Broker Offshore or Top-tier Jurisdiction?Offshore
🔒 Is Offshore Broker safe to trade?No
⛔️ Type of License for Brokers to AvoidOffshore License

What is VFSC?

Vanuatu is a popular offshore zone for Forex Brokers and Financial firms run Vanuatu Financial Services Commission (VFSC) as a regulatory body to oversee investment and credit services, as well as other financial providers formally established in December 1993. See the snapshot of the VFSC mission below. Vanuatu itself gained its independent status in 1980 and is an archipelago of approximately 83 islands situated in the Southwestern Pacific Ocean. (Read more about VFSC on Wikipedia)

  • The Securities License in Vanuatu allows one to carry out international brokerage services with the ability to buy, sell and trade securities such as shares, bonds, options, etc, as well as manage a portfolio of investments for and on behalf of clients. 
  • VFSC supported by a Deputy Commissioner with four departments divides their functional responsibilities, including Corporate Services, Insolvency, Legal Enforcement, and Compliance and Registration. Each of the departments performs with the purpose of meeting obligations and ensuring the current administrative and support assignment with an aim to establish a recognized internationally reputable and commercially attractive Vanuatu’s Financial industry.
  • However, the main note is that Vanuatu is offshore jurisdiction like VFSC regulation is offshore too, therefore its standards are far beyond the top-tier regulations and can not be placed in the same line of safety, be sure to continue reading the next paragraphs
What is VFSC?

Why not trade with a VFSC-registered broker?

In fact, Vanuatu jurisdiction gained its popularity among the investors and business owners in the Forex industry looking to become a regulated broker, yet obtain its status through a simplified process and operate almost without supervision. Eventually, the small Pacific island of Vanuatu became very well-known and a paradise for financial industry owners, as Vanuatu proposed not only the opportunity to become an official financial service firm but to enjoy a variety of tax benefits and avoid legal challenges.

Therefore, many international companies looking for a solution and an offshore zone to enable their business ideas placed their interest in Vanuatu and incorporate their firms there. See some of our finds about Vanuatu Trading below and why it is considered not safe to deal with Vanuatu Brokers:

  • Increasingly popular regulation of Vanuatu shows its demand specifically among the Binary Options and other FX Brokers since the set of VFSC demands to establish a business is a very attractive opportunity, while more from the companies understand the necessity of regulation status. Brokers understand that regulations improve their reputation, trust increases dramatically among the traders, as well as other additional benefits are enjoyed, like international payment providing acceptance. (Read our article about Binary Options Scams)

Vanuatu Trading Registration

As a matter of fact, the main responsibility of the VFSC is a registration process only, which is merely implemented through low setup requirements. Consequently, an easy registration process with low costs, and very quick establishment invites various brokerages to be registered out there. Perhaps, Vanuatu is the easiest jurisdiction to open a brokerage, as the opening requires the company to submit a register online and prove initial establish capital which is $2,000 only to pay a fee, and within 2-3 months, the firm is crisp and registered.

  • VFSC regulator does not require strict proof of the company background, nor check on the implementation of the secure fund management or operation guidelines, does not require regular reporting, and further on never impose fines in case of fraud operation.
  • The authority is in charge of the official reporting of the company's legitimate issues only, which means the broker should submit a report once a year only, with no details of services provided. This opens doors to potential frauds and trading scams, alike compared to the industry-leading authorities’ legislation (like UK FCA or Australian ASIC), the VFSC report requirement is far beyond the necessary level that may protect from the company’s fraud operation and reveal the illegal acts. In fact, the report submits only the company returns and expenses and the general activity and has nothing to do with protective measures towards the clients.
  • Consequently, the cost of the brokerage becomes very low compared to industry-leading licensing or even to some other offshore financial centers, while the firm may set up operation even without the need to maintain a physical office. Obviously, it comes to the point that the investment and trading with VFSC brokers do not provide any guarantees of the company's sustainability, its serious measures, and what is extremely risky, does not implement any protection that protects from fall to scam or fraud.
  • Overall, the VFSC regulation and Vanuatu itself might be an attractive opportunity to open a business but it is not a likeable regulation for traders or investors. With the growing demand and popularity of trading and the Forex industry itself, before you entrust any broker your funds, strongly consider a sharp check on a broker and engage only with those that are regulated through recommended authorities alike FCA, FINMA, ASIC, or others. Remember also that not every company stated its regulation is indeed regulated one, as many brokerages mention its regulated nature but in fact, holding an offshore license only. We do not recommend trading with an offshore broker that holds no license, as such these offerings should be avoided by every means! (Read Why Trade with FCA UK Brokers)
Vanuatu Trading Registration

Complaints and scams

While the main duties of VFSC, as mentioned by the authority, concerning the provision of effective services for the supervision of the financial business to protect the public against financial loss out of dishonesty. Yet, the authority does not assist in case the trader was victimized or falls under scam by a Forex Broker incorporated in Vanuatu. In the scenario of funds lost, the trader remains alone and unprotected to recover funds from the VFSC Broker, while the chances of refunds are minimized.

However, In case you are not satisfied with the investment transaction, you can submit a complaint through a VFSC contact form https://www.vfsc.vu/fees-help-support/contact-us/

  • Even though, the VFSC authority tries to promote the development of the Vanuatu financial service industry by submitting from time to time warnings against those companies that mention their registration by VFSC, mislead or false information about service providing. However, this is the maximum the authority can do to protect clients.
  • Yet, most often the regulation is not able to assist and will refer to the point that the trader using the services at his own risk.
Complaints and scams

List of Vanuatu Forex Brokers

Currently, we have reviewed hundreds of Forex Brokers in Vanuatu, and in fact, none of them is included in the list of trusted or regulated brokers which we recommend trading with due to a lack of safety measures. (For example, see our Review of Doo Prime)

The protection of funds always stands first while trading, therefore, check on the broker carefully, and revise the broker’s regulation status, while is best to choose Broker with top-tier licenses and avoid solely offshore offerings, check on updates and other information, along with the reputation by reading reviews and checking on the legit documentation. And of course, choose only reputable companies that were established in known financial centers through implementing the strictest regulation of forex business and financial service itself.

  • List of Vanuatu licensed brokers along with additional information about Vanuatu Registered companies available to check through an official online source. But as we advise solely Vanuatu registration does not mean Broker is safe.
  • Verify company reputation through the list of Brokers to avoid, or contact us in case you can’t find a particular one and better not respond or keep a distance from any cooperation with Vanuatu brokers, offshore brokers, or non-regulated entities at all costs.

Conclusion on VFSC

Obviously, Forex Brokerage service, as becoming popular, must be issued with a respected regulation of Forex Broker License. It is not a matter of protection only, but international banks or payment providers do not accept applications from unlicensed companies. However, the licenses can be granted either by an offshore jurisdiction, which has no ability to implement the strictest qualification of the financial firms, or an onshore regulatory body through imposed sharp and high requirements or legislation towards brokerages. As such, offshore brokerages including Vanuatu Brokers may fall on various possibilities of the company operation, while in fact many of them are pure frauds.

  • Such investment service firms, including Vanuatu Broker and those registered by VFSC bypass legal constraints and do not comply with costly compliance of the jurisdictions that solicitude at first about customer-oriented offerings through protecting tools. 
  • So when it comes to the point of choosing the best firm to trade with, the trader or investor should protect himself and better to consider brokerages from reputable jurisdictions that maintain a sustainable level of protection. The financial investment and trading providing itself require the strictest overseeing by the industry authorities, otherwise, the risks may incur traders to lose capital or fall under scams. To assist and discover more about the differences or applicable management of the regulated brokers check out the listing by the link.

Forex Trading Scams

We are here to answer all typical questions traders might have, with an increasing flow of trading scams offering sophisticated solutions and target, actually, everyone with promises of miraculous gains, high returns, and chances to trade in Foreign Exchanges, CFDs, Binary Options or other derivatives to "get rich almost instantly" rises day by day.

  • As Scammers primarily target individuals in order to obtain their money or personal information. It's crucial for everyone to be vigilant and equipped with knowledge on how to safeguard themselves against scams and identify fraudulent offerings.

How does Forex Trading scam work?

A forex broker scam in simple words refers to fraudulent activities posing as legitimate forex brokers provided by dishonest individuals or entities. Scams typically deceive traders by misrepresenting their services, manipulating trades or prices, withholding funds, or engaging in other unethical practices to exploit unsuspecting clients for financial gain.

  • With an alert in your mind that scams do exist, any trader or investor should deal with any business offering or uninvited contacts very carefully. In fact, it is harder to detect scam if you're a beginner in trading world, since all Broker would mention they are "regulated, safe and trustable with excellent serivce provided". However, a detailed check of the information about the potential broker, especially its official legal data stand at the glance of any further steps, along with compliance to high service-providing standards and of course implementation of protective tools.
  • Many firms pretend to be a legal entity or username, or registration number from the regulated broker while pretending to be official but in fact, are just clone firms or Brokers that are offshore based which are not considered safe (Read Here Why to Avoid Brokers from Belize). Scammers also might claim to be an overseas firm and initially succeed to look like a real brokerage, as technology is getting smarter, however still be fraudulent Broker by nature.
  • In fact, Most of the information can be fakely claimed, while official license data is always open through the regulator's websites and accessible at any time, so examine it carefully. Besides Top-Tier regulation always update list of unlicensed and fraudulent companies, so good to do research too. See snapshot on How to Check Broker License from FCA UK Regulatory website below.
  • The reality is that only officially regulated brokers should accurately state any sentence and provide the exact service as every word mentions on the website, since the authority checking on it. In return, the rest of the “firms” can promise whatever looks and sounds like a very attractive investment opportunity with the highest potential gains, but in fact, no one guarantees its nature. Just because the information looks official and true, it does not mean it is.
  • Furthermore, there are many other tricks frauds use, alike as the scammed traders report most often the broker will allow a very small initial deposit as an exclusive offering, run an attractive, allegedly smooth trading experience and even process some withdrawals just to give a successful impression that there is nothing to worry about. But further many issues will appear from being silent to Blocking account. See comments from real traders for one offshore Broker Hugos Way
  • Besides, typical tactic after seeing first success trader may invest more money, in many cases Broker representative also pushes traders to increase deposit promising higher returns, while in fact no one can tell you how much to invest, you should define amount you wish to trade with only yourself! Yet, sooner or later returns are ending, the account might all of a sudden become blocked, or the trader will face manipulation on price feed during a trading session and the balance will be gone to zero claiming trader made his own mistake.
  • Another typical scam issue happens with withdrawal processing, the funds getting stacked in the account or the trader receives ignorance, with no response, or the company is accused of unreasonably withholding the money of its clients.

Unfortunately, these practices are very common among frauds and every trader should size the actuality of non-regulated firms that simply operate traders, their accounts, and funds in their own way, with no reporting or control from any authority, therefore those firms most likely scams.

How does Forex Trading scam work?

How to protect yourself?

Even though the authorities and legal institutions taking serious steps to protect clients through public education, guidelines about investment services, and constant monitoring of the market offering with an updated list of recommendations, as well as companies that should be avoided. There are thousands of new scams appearing every day and year, so of course, none of the authorities or watchdogs can keep an eye on all of them. Therefore, every trader should follow certain guidelines in order to recognize rather the trading offering worth attention or you should protect yourself and avoid any further contact with the company. This list of recommendations on How to Avoid Trading Scams includes:

  • Do not open or click on suspicious links, and keep your devices and computers secure.
  • Be very cautious while dealing with any representative, as the scammers may reach you out through any available source like email, social media, various chats, or websites while will try to get into your trust. A further scenario will go to an attractive offering in quick and high gains with no bother, which is indeed hard to resist, yet safety always first.
  • Keep your personal, identifiable, and money information secured, never share any sort of documentation with representatives personally. Do not agree to send money or give credit card details to someone, as well as beware of unusual payment processing methods and payment requests, which often include virtual currency like Bitcoin.
  • Do not respond to rush in account opening or call to act immediately due to some sort of “hot offer”. Scammers usually use high-pressure tactics to get you to fund the account soonest possible, but it is not a good idea to make a fast decision without prelaminar careful review and consideration of all risks involved.
  • Always verify the broker’s registers before dealing with any firm in official sources and do not choose only Offshore or Unregulated Brokers (for example, see the snapshot of Capital.com FCA license on the regulator's website) and check on their reputation, as well as read Forex Brokers reviews. Probably, if the firm is not authorized it is a high risk to be a scam. Also, you can always check Warning lists issued by the industry authorities and of course, you should run your own research see comments from real traders and consider strongly any issues, as well as review the List of Brokers to Avoid.

What to do if you got scammed?

In case you got already scammed you should report a scam to specified Regulatory authorities in your country and better to access a specialist for advice on your following steps, however there are many scammers claiming to returrn Forex Looses as well, so be cautious in this point too. The Regulators like UK’s FCA, Australian ASIC, Cyprus CySEC, and others provide an open and well-guided complaint procedure, therefore you should contact authorities immediately in case there are any concerns of being scammed, see snapshot on Complaint Form below.

You can Submit Trading complaint to the respective authorities by these links:

If you traded or invested with a non-regulated entity or offshore Broker, in fact there is no investment protection applied, and it is almost impossible to get any response since the Broker obliges almost to nothing, yet try to complain to your local authority. Besides, there is no established compensation, unlike the Regulated Forex Brokers provides.

In addition, you should keep an eye further, as those who became victims of scams are likely to be targeted again by other companies, as simply scammers sell out the information about potential investors further on.

 Submit Trading complaint

Conclusion on Forex Trading Scams

In conclusion, Scammers can trick you with a strong attempt to convince you of their genuine financial trading service, yet getting only to hand over money, so it is important to exersice caution. You should make sure that offering or investment advice from the company or representative is a legal and strictly overseen service.

We advise seriously considering only reputable financial advice or guidance before investing, as well as doing your own research. Always check on the firm attentively, read out the Forex Brokers Reviews, confirm registers, and do not rely only on the information provided by the potential company only through its webside. And of course, better choose your trading brokerage among Regulated Forex Brokers and avoid solely offshore-based firms from popular offshore destinations like Belize, Vanuatu, SVG, Mauritius etc firms.

If you think the company or another is likely to be a scam, do not deal with them any further and report the broker to the particular authority.