EFXGlobal Review

Is EFXGlobal a scam or a legit broker?

EFXGlobal has been suspected as a scam broker. This broker is blacklisted by the well-known regulatory authority and should be avoided. StoxMarket is owned by Marketier Holdings Limited which is an offshore company registered in the Marshall Islands.

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

EFXGlobal is a Forex and CFDs broker, owned and operated by Xchange Group Ltd., incorporated in Republic of Marshall Islands. The website state that the company is based in London, UK. The broker is actually not regulated in the UK or any other country, so it doesn’t have any legal rights to offer its financial services to potential traders. Also, the website supports different languages (German, Italian, Spanish, French and Danish), which means the broker has been targeting European countries. 

Conclusion

We highly recommend to avoid trading with unregulated offshore brokers are they usually turn out to be frauds. Many brokers prefer offshore zones because of the low cost, tax-free and light regulation requirements if any. Even if the broker is not a fraud, the clients have no protection in case something goes wrong as none of these companies provide compensation schemes. That’s why it is safer to choose brokers regulated by reputable agencies, such as FCA in the UK or CySEC in Cyprus. They both provide Compensation Schemes for the traders. Check the list of the FCA-regulated brokers here.