Reason to avoid: Offshore license
Listed Date: October 8, 2018
Top 3 Regulated Forex Brokers
Beware RoyalCFDs is a Non-Regulated broker. It is NOT SAFE to trade.
- Company name: Digital Worldwide OU/Digital Enterprise Ltd
- Registration/license: Marshall Islands/Estonia
- Registration/license requirement: USD 2,000
ROYALCFDS is a Forex and CFDs broker. The company is the trade name operated by DIGITAL WORLDWIDE OU, registered in Tallin city, Estonia. They also mention Digital Enterprise Ltd., another company-owner that is based in the Marshall Islands. There may be confusion between the registered firm and regulated one. A broker can be registered in a particular country, but if it’s not regulated/overseen by countries responsible finance authority then it doesn’t have any legal rights to provide its services to the residents of that country.
In the case with RoyalCFDs, the company is not regulated in any of the countries and it has even been blacklisted by the UK’s Financial Conduct Authority. The warning states:
“We believe this firm has been providing financial services or products in the UK without our authorization.”
All the traders are advised to avoid unregulated/offshore brokers as there is a huge risk of losing money with such firms. Instead, choose those that are regulated with reliable regulator agencies. For instance, if an FCA regulated broker goes bankrupt, its clients are covered by the Financial Services Compensation Scheme (FSCS). The traders are entitled to receive up £50,000 in total. Check the list of the FCA-regulated brokers here.