Posted on by John Porter

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.
Posted on by John Porter

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.

Posted on by John Porter

Forex Trading: Why Trade with Australian ASIC Brokers

ASIC Regulator Introduction

📚 Formed:July 1, 1998
🏦 Jurisdiction:Australia, New South Wales
🏢 Headquarters:Sydney
🛡️ Is ASIC Broker Offshore or Top-tier Jurisdiction?Top-tier
🔒 Is Top-tier Jurisdiction safe to trade?Yes

What is ASIC?

The Australian Securities and Investments Commission (ASIC) is an integrated regulator in Australia established in 1998 and is one of the Top-tier Regulatory authorities with strict procedures and excellent oversight. As a non-governmental organization, ASIC's responsibilities include regulating and overseeing leveraged foreign exchange transactions, financial service markets, and the protection of retail clients.

It ensures fair, strong, and efficient financial trading opportunities provided by independent organizations. ASIC carries out daily supervision of the retail foreign exchange market, with a focus on combating misconduct within the financial markets while fostering trust, improving performance, and upholding integrity. (Read our article about Australian Brokers)

  • ASIC is responsible for regulating companies and businesses operating in Australia. It administers the Corporations Act 2001, which sets out regulations and requirements for corporate governance, financial reporting, disclosure, and compliance. ASIC also registers companies, manages company records, and investigates breaches of corporate laws.
  • ASIC has the power to investigate and take legal action against individuals and entities that breach financial laws. It can impose penalties, and sanctions, and enforce civil and criminal proceedings. ASIC works closely with other regulatory agencies, such as the Australian Prudential Regulation Authority (APRA) and the Australian Competition and Consumer Commission (ACCC), to ensure regulatory cooperation and effectiveness.
What is ASIC?

Australia ASIC Regulation of Forex Trading Brokers

The whole concept of the ASIC is concerned with trader protection, smooth market operation, and regulation of unconscionable conduct that affects all financial products or services to ensure traders are dealing with safe providers. Important to note regulation worldwide is indeed different so offshore firms might claim to be regulated too, yet their procedures are rather poor compared to top-tier regulators like ASIC.

As a market and trader credit regulator, ASIC supervises and licenses companies that participate in Forex and CFD trading by the Australian license AFSL (Australian Financial Services License). In order to become an ASIC-licensed forex broker, the firm should prove and confirm the uncompromised professionalism that covers various aspects and urges brokers to be an orderly and transparent organization.

  • In case the broker managed to obtain an ASIC license, the trader can be ensured the financial broker acts transparently, by the operation through an ASIC’s guideline. The ASIC regulation of brokers' trading services and operations is monitored on a daily basis, as the broker submits reports about every transaction or service provided, which ensures the integrity between the market offerings and unparalleled protection.

Why trade with an ASIC-regulated broker?

So along with the abovementioned strict rules ASIC applies towards the Brokers or companies, and besides the monitoring of brokers’ procedures, ASIC effectively assesses how the financial service firm complies with its legal obligation, as well as investigated law breaches. That may cause ASIC to take further actions like infringement notices, issues of fines, official claims, a ban on credit activities, or even company dismissal.

  • An example of ASIC's active role and launches towards unscrupulous brokers shows the cancellation of a license of Melbourne-based forex and CFD broker, as the broker failed to comply with a number of requirements. (Please check the News by the link).
  • Moreover, it is not the only issue that the fines or cases were imposed on the company itself, the managing director is banned too. Since the director was involved in the contravention of a financial services law or is not adequately competent, the ASIC regulator respectively takes necessary actions.
ASIC cancels license

ASIC Application Process

The ASIC application process is accurate to the detail and accepts applications only from physical Australian entities with a sharp business plan, precise detail about the trading operating model, and details of liquidity providers. As well includes interviewing of responsible manager with appropriate skill and experience, while in fact, the broker’s manager can be dismissed due to the lack of necessary proficiency or any issues that appeared in the history. The broker should also establish a high operation fund of at least $1 million, implement client safety measures with the strictest fund management, and fully segregate clients' funds at all times with top-tier banks.

ASIC Application Process

ASIC Complaint Procedure

To lodge a complaint with ASIC, Australia's regulatory body, follow these steps: First, attempt to resolve the issue with the financial service provider directly. If unsuccessful or if serious misconduct is involved, submit your complaint online through ASIC's website, contact their Infoline, or mail a letter to their designated address. Provide a clear description of the issue and include supporting documents. Maintain communication with ASIC, respond to any inquiries, and await the outcome of their investigation, which may involve mediation or enforcement actions.

Note that ASIC's role is regulatory, and seeking legal advice may be necessary for legal matters or compensation.

See How to complain to ASIC moneysmart.gov.au/how-to-complain

Overall, ASIC has established a sharp procedure for every situation the financial brokerage firm or retail trader might go through, which also includes the clients’ compensation by the Australian Restructuring Insolvency & Turnaround Association if the broker falls under insolvency.

ASIC Education

Apart from the main role of the forex broker regulation and supervision, ASIC promotes confidence in all market players through public education and open sources that allow investors to obtain accurate information.

For that reason, ASIC operates the financial advice and strategy website www.moneysmart.gov.au which provide guidance on investment issues. The service includes advisory on financial knowledge and management, various trading or investment opportunities, exchange risks, fundamental consultation, how to skip scams, and more.

In addition, the ASIC authority constantly improves legislation as studies the behavior of the market, and monitors the decision marking of consumers along with recognition of new trends. For the protection of trader’s rights, ASIC refers to preventing market manipulation, fraud, or unfair service delivery, so the trader can submit a complaint against the ASIC-registered company, complaint ASIC, or even can get compensation through appropriate channels.

ASIC education

List of ASIC-Regulated Forex Brokers

Any trader can search for information about ASICs forex broker license directly through an official site, or to check the regulated broker website, as most websites show on the footer or regulation page its Australian Business Number (ABN) and Australian Financial Services License (AFSL).

Also, you can check on ASIC Brokers Reviews, as currently the Australian regulated brokers' list at our website includes 40 ASIC Regulated Brokers, and growing.

ASIC connect website

Conclusion on ASIC regulation

Australia became one of the financial hubs that attract vast Forex brokers to set up their overseas operations and apply for the AFSL license, since ASIC is a top-tier authority also provides great protection to the trader too. In fact, ASIC Brokers are now among the most demanded and reputable (such as XM broker), while the advanced regulatory guidelines ensure the business of trading regulation adheres to strictest follow of rules.

Insurance of fair, orderly and transparency is a goal that was achieved by the ASIC authority which monitors not only the trading environment provided, the clients’ funds management, but also carefully check on the broker’s responsible management while some of the directors might be banned to run forex brokers. Therefore the potential traders and investors can choose among the ASIC Regulated brokers with a clear statement the firm acts according to the strictest supervision tools, as ASIC took all necessary step to ensure the best possible provision of the trading and financial investment services.

Spotware’s cTrader Platform Integrates Single Sign-On Feature with Skale CRM

Posted on by Adam Smith
cTrader platform

On Wednesday, trading technology solutions provider Spotware announced the integration of a Single Sign-On (SSO) feature in collaboration with Skale, a CRM and client portal specialist. This advanced functionality is aimed at enhancing the user experience with cTrader platform and improving broker retention rates.

Since their initial collaboration in 2020, Spotware and Skale have worked tirelessly to upgrade their integrated platforms, cTrader platform and Skale CRM. The newly introduced SSO feature facilitates a seamless user journey by enabling traders to register, perform KYC (Know Your Customer) verifications, and manage their funds without the need to switch between different platforms. This innovation is anticipated to elevate conversion and retention rates for brokers.

  • Speaking on the development, Spotware CEO, Ilia Iarovitcyn said, “We couldn't be happier about the upgraded integration of cTrader platform and Skale CRM with SSO from the box. For new broker clients, SSO will make the registration process far easier and swifter, while existing clients will benefit from improving their daily processes of authorization, deposit, and withdrawal."

Spotware’s cTrader platform is a renowned open trading platform, hosting over 4 million users globally, and offering expansive services for forex and CFDs across desktop, web, and mobile applications. Conversely, Skale, a prominent CRM software provider in the FX industry, offers solutions tailored to high-volume, multi-brand brokers, including advanced KYC procedures and an array of marketing tools.

  • David Nussbaum, the Founder & CEO of Skale, commented, “Our combined platform, cTrader x Skale, provides brokers with a complete solution for clients, whether trading on desktops, laptops, or mobiles. Converting mobile traffic is key for broker growth and we believe that the Skale client portal embedded in cTrader's native mobile trading app will open up significant opportunities for brokers looking to scale their business."

Available across cTrader Web, Desktop, and Mobile applications including Android and iOS, the SSO feature means traders can handle accounts and execute transactions directly from the app. This obviates the necessity for multiple logins and streamlines deposit and withdrawal processes, thereby enhancing user engagement and satisfaction.

The partnership of Spotware and Skale has continually evolved to meet the demands of the dynamic FX market. Recently, Skale partnered with CMC Markets Connect to leverage its CRM in providing clients with tools to enhance operational efficiency. Spotware has been no less dynamic, having introduced copy trading to its desktop platform, cTrader platform, and updating the mobile version with a ‘shared account’ feature, previously available on web and desktop versions.

Under the leadership of new CEO Ilia Iarovitcyn, who assumed the role in July after a six-year tenure in various capacities at the company, Spotware seeks to maintain its trajectory of innovation and growth in the coming years.

As the FX market landscape becomes increasingly competitive, the integration of SSO by Spotware and Skale stands as a testament to both companies’ commitment to leveraging technology in facilitating seamless trading experiences for users globally. The initiative underscores a broader industry trend toward streamlined, user-friendly solutions that prioritize client satisfaction and retention.

FCA on Delivering financial services digitally in its perimeter report

Posted on by bar

FCA Regulator

The FCA (Financial Conduct Authority) recently published its first annual Perimeter Report, in which it comments on the limits of its responsibilities towards the UK citizens. The perimeter is basically the legal boundary determining what the FCA regulates (and therefore also what it does not regulate).

In the report, the FCA says it might push internet service providers (ISPs) to take down misleading or unfair financial promotions, in order to improve consumer protection. The regulator also stated it might ban certain cryptoassets falling outside its regulatory perimeter.

"Digital channels enable firms to create, market and sell financial services products very quickly. This means that the speed at which harm can be caused by a misleading or unfair financial promotion has greatly increased. Internet or social media adverts reach millions of people in an instant, challenging our ability to detect and act against misleading adverts. Historically, we asked traditional media to voluntarily remove adverts we believed to be fraudulent. This is harder to achieve with internet service providers. We address this with warnings on our own website, but this is clearly not as effective as taking down promotions."

It is the main reason why the FCA will seek greater regulatory control over ISPs and push them to remove fraudulent content & social media ads. The British regulator also said that it is developing and deploying automated tools for detecting online products or practices that pose potential risks to consumers.

The report also spoke about retail products, especially when it comes to binary options, which are sold by foreign brokers. The agency keeps a close eye on the companies that do this, as well as dangers which may come from such behavior. Further, they regularly update their warning list in regards to such firms and their products.

CySEC alerts investors of Boom Xchange broker

Posted on by bar

CySEC logo
Сyprus financial regulator (CySec) has issued a warning against Boom Xchange, a clone company that uses the regulation details of the licensed entity Leadcapital Markets Ltd. The regulator says that "in the above mentioned website (boomxchange.com), the name, license number and content from the website of the Cyprus Investment Firm Leadcapital Markets Ltd is used illegally and without it’s authorization."
The Cyprus Securities and Exchange Commission, known as CySEC (www.cysec.gov.cy), is the financial regulatory agency of Cyprus. As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law. A significant number of overseas retail forex brokers have obtained registration from CySEC.

Boom Xchange logo
The broker Boom Xchange offers the wide range of trading assets including forex, cryptocurrencies, stocks, commodities and many other. The firm claims to be owned and operated by Leadcapital Markets Ltd., the company regulated by CySEC, providing the license number and the address/contact phone number of the owner-company. It turned out that Boom Xchange has used the name and regulation details of the properly regulated investment company when the broker itself is not authorized by CySEC or any other regulatory institutions. Clone firms use some or all of the details of a genuine entity, aiming to convince investors they are indeed the authorized company or that they work with them.
CySEC warns about the suspicious brokers and urges investors to consult its website prior to investing with any forex broker that claims to be regulated in Cyprus. We also highly recommend to only deal with regulated forex brokers, authorized by reputable regulatory institutions like CySEC, FCA, or ASIC.
You can read our review on this broker here.

CySEC warns against unregulated forex broker Smartoptionfx

Posted on by bar

Regulator CySEC

The Cyprus Securities and Exchange Commission (‘CySEC’) issued an announcement-warning with regard to Smartoptionfx – a forex brokerage brand that is not authorized to provide investment services and/or perform investment activities in the country.

The Cyprus Securities and Exchange Commission, known as CySEC (www.cysec.gov.cy), is the financial regulatory agency of Cyprus. As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law. A significant number of overseas retail forex brokers have obtained registration from CySEC.

Smartoptionfx logo

According to the broker's website, Smartoptionfx is one of the leading Forex and binary options brokers in the industry. Smartoptionfx is operated by B.O. TradeFinancials Ltd a company located in the Republic of Cyprus and licensed by the Cyprus Securities and Exchange Commission. However, we have found that the regulator has actually warned against this entity: 

"In the above mentioned website (smartoptionfx.com), there is a reference on the name and license number of the former Cyprus Investment Firm B.O. Tradefinancials Ltd (license number 216/13). CySEC wishes to draw your attention that, on 25.6.2018, it has decided to wholly withdraw the Cyprus Investment Firm authorisation with number CIF 216/13 of the company B.O.  Tradefinancials Ltd."

Also, we have noticed the contact phone numbers provided on the website have US and South African country codes, which is quite confusing as the broker is not regulated in those countries. Obviously, we wouldn’t recommend traders to deal with this broker and think about more reliable options. 

When engaging with brokers that do not operate on the grounds of a valid license, issued from a trustworthy authority, traders are putting their investments at higher risk. It is better to avoid dealing with offshore brokerages and choose properly regulated and reliable brokers. A good example of such are the ones supervised by the FCA or ASIC. You can read the full review on this broker here.

Spain’s CNMV blacklists Trader Platinum and NoviFx brokers

Posted on by bar

CNMV logo

Spain’s financial markets and services regulator CNMV has issued a warning against two forex brokers Trader Platinum and NoviFx. According to the public warning notice, these entities are not authorized to provide investment services or investment advice and auxiliary services, including foreign currency transactions in Spain.

The National Securities Market Commission (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of Economy, Industry, and Competitiveness. The regulator maintains a register with investment companies that are authorized to operate in Spain.

Trader Platinum claims to be the most trusted and reliable forex broker, however, it doesn't provide any proof of its reliability. The broker hides all the contact information. It also doesn't provide any regulatory information, only that it is fully compliant with EU Regulation (EU), but is not regulated in the EU. In addition, Trader Platinum is registered under the laws of the Marshall Island, which makes it an offshore company that may even be involved in scam. 

NoviFx logo

As to the forex broker NoviFx, it is owned and operated by MAGIC CONSULTING LTD, registered in Bulgaria. Although, it is not regulated by the local regulator and it still claims to be fully compliant with EU Regulation (EU), deluding potential traders. 

We always advise traders to avoid dealing with unregulated forex brokers, such as Trader Platinum and NoviFx. You can also share your experience with these brokers by commenting on this post.

ASIC Flags Unauthorized Forex Firm Brighter Trade

Posted on by bar

ASIC logo

The Australian Securities and Investments Commission (ASIC) has updated its blacklist to include Brighter Trade, which is also known as Igoten OU. The financial regulator was alerted to the firm after it made unsolicited calls or sent emails about investing, financial advice, credit or loans.
The Australian Securities and Investments Commission (ASIC) is an independent Australian government body that acts as Australia's corporate regulator. ASIC's role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors.

Brighter Trade logo
The broker Brighter Trade operates through the website www.brightertrade.com and offers a choice of various financial assets such as currencies, stocks, indices, commodities. The website is owned and operated by the Brightertrade™ corporate group. The group includes LOGAMET LTD, a St. Vincent & Grenadines company, owner of the website and INGOTEN OU, an Estonian company, who operates the clearing and settlement for the group.
The Australian regulator has warned that the broker does not hold a current Australian Financial Services (AFS) license or an Australian Credit license from ASIC to provide financial services in Australia, highlighting that the company could be involved in a scam.
The broker doesn't seem to be regulated by any authority and the offshore location of one of the co-companies doesn't make it look more reliable. In addition, the broker has got a lot of negative reviews, where people complain about issues with withdrawing their funds and cold-calling.
To sum up, it is better to stay away from Brighter Trade, a broker that has a warning and also a quite big number of the negative review from the traders who was scammed by this firm. We recommend selecting among brokers licensed by the respective authorities in the UK, or Australia for example. For instance, a broker registered with the UK’s FCA can’t simply take investor’s money and disappear. They follow multiple reporting procedures and have to keep client funds segregated from the company’s.
You can read our review on this broker here.