Reason to avoid: Offshore license
Listed Date: January 11, 2019
Top 3 Regulated Forex Brokers
- Company name: FXLEADER LTD
- Registration/license: Saint Vincent and the Grenadines
- Registration/license requirement: USD 2,000
FXLeader is a forex broker operated by Leadernet OU, based in Tallinn, Estonia. But the broker is not regulated by the Estonian Financial Supervisory Authority. The terms and conditions of the company mention the service provider company FXLEADER LTD., based in Saint Vincent and the Grenadines. It seems that the company actually operates from the offshore area. The offshore areas are quite beneficial for the brokers because of the low-cost licenses and minimum taxation. For the traders, offshore zones are dangerous because of the little focus on consumer protection. Moreover, UK’s FCA has issued a warning against FXLEADER, which is one more to avoid this broker.
That is why we advice dealing with the brokers regulated by the UK’s FCA or any other reputable regulator. For instance, The license from UK’s Financial Conduct Authority requires EUR 125,000 of capital (aside from client deposits) for the STP license. The regulator also protects customers when authorized financial services firms fail. Check the list of the FCA-regulated brokers here.