Reason to avoid: Offshore license
Listed Date: January 20, 2019
Top 3 Regulated Forex Brokers
Beware MegaTradeFX is a Non-Regulated broker. It is NOT SAFE to trade.
- Company name: Vital Resources LTD
- Registration/license: Marshall Island
- Registration/license requirement: USD 2,000
MegaTradeFX is an offshore Forex broker. According to the website, MegaTrade Fx is a leading provider of online foreign exchange trading, CFD trading and other financial services. However, we have a few valid concerns about it. The company is operated by Vital Resources LTD, Address Trust Company Complex, Marshall Islands. As the broker is registered offshore, we want to remind that investing with offshore brokers is quite risky as that may run a scam.
MegaTradeFX claims to be located in London, the UK, however, the company is not regulated in the country. Moreover, the UK’s Financial Conduct Auhority has recently issued a warning against the broker:
“MegatradeFX (a trading style of Guide Universal LP) is not authorised by us and is targeting people in the UK. Based upon the information we hold, we believe it is carrying on regulated activities which require authorisation.”
The first thing the potential investor should do when he is choosing a trading company is to determine if it is a legitimate broker or a scam broker. It is very easy to do. You just need to check if the broker is licensed by CySec in Cyprus, or it is under the regulation of the MIFId in the European Union (EU), or it is registered with the UK’s FCA or Australian ASIC.