Is ProFxPremium a scam or a legit broker?

It is not safe to trade with ProFxPremium, because it is an unregulated broker. In addition, the company has been suspected to be a fraud. While we checked the company there is no authorization or registration of the address, therefore the company seems to be highly suspicious while might operate its services from an absolutely different location.

ProFxPremium is an offshore Forex and CFDs broker. The company is owned and operated by Black Parrot Limited, based in the Marshall Island.

About ProFxPremium
🗺️ Registered inMarshall Island
🗺️ Type of LicenseOffshore License
🛡️ Is ProFxPremium safe to tradeNo
🗺️ Recommended LicensesFCA in UK 🇬🇧 & ASIC in Australia 🇦🇺
🖥 Alternative BrokerGO Markets - licensed by ASIC in Australia

According to the terms and conditions, IT & Finance administration services are done by Blonde Bear OU, based in Tallinn, Estonia. However, none of the mentioned companies is regulated by financial authorities. Moreover, Black Parrot Ltd has been banned by numerous regulators throughout Europe (Norway, Poland, Netherlands, Denmark, and Italy). We have also reviewed some brokers (Trade111, TradeX1, TradeDAX, TradesPrime) that should be avoided and those are owned/operated by either Black Parrot Ltd, or Estonian Blonde Bear OU.

In fact, Marshall Islands is an offshore zone attracting various firms that for the reason or another escape from the serious regulation or compliance to international service providing. However, in the case of financial investment or trading firms, the company should be a very respected entity, as the statistics show that the majority of non-authorized firms never recovered the sums of investors’ investments. Therefore, we always advise avoiding offshore or companies with no license as there are too many frauds around.

This time it is a warning from Spain’s regulator CNMV:
“BLACK PARROT LTD www.profxpremium.com is not authorised to provide the investment services detailed in Article 140 of the Securities Markets Law, which includes investment advice, or to provide the auxiliary services detailed in letters a), b), d), f) and g) of Article 141 of the said Law in relation to the financial instruments detailed in Article 2 of the said Law, including, for those purposes, foreign currency transactions.”


Obviously, ProFxPremium seems to be just one of those scam companies and there is enough information to prove that (See forex trading scams). We advise traders to choose from UK, Australian or other well-regulated brokers, where their funds will be protected. For example, the license from the UK’s Financial Conduct Authority requires EUR 125,000 of capital for the STP license (See STP Forex Brokers) aside from client deposits. 

Conclusion

We strongly advise all investors and traders to avoid ProFxPremium and other brokers from the Marshall Islands. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as FP Markets and eToro.

You can also share your trading experience with ProFxPremium by commenting on this review.


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