The Austrian Financial Market Authority (FMA) warns the public against the activities of two forex brokers MegatradeFX and CodexFX. These companies have been offering investments without complying with Austrian financial legislation. According to the official statements, MegatradeFX and CodexFX are not entitled to carry out banking transactions in Austria that require a licence.

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.

Are these brokers legit?

MegaTradeFX claims to be a leading provider of online foreign exchange trading, CFD trading and other financial services. MegaTradeFX is owned by Macro Projects Ltd. According to the website, the broker is registered in St. Vincent and the Grenadines and is based on the Marshall Islands. The brokers registered in these offshore zones are not overseen by any authority and are not subject to any regulatory regime. Moreover, MegaTradeFX has been blacklisted by other regulators, such as FCA and CNMV. You can read our full MegaTradeFX review here. 

As to the CodexFX,  leading provider of Online Foreign Exchange (Forex) trading, spread betting and other related services is owned and operated by Codexfx Ltd., registered in the Marshall Islands. Obviously, just as many other offshore unregulated brokers, CodexFX should not be trusted. 

Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as AvaTrade and FXTM.

You can share your trading experience with MegatradeFX and CodexFX by commenting on this post.