Brokers to Avoid

The Forex Market currently is the largest offering worldwide with hundreds of opportunities and high potential gains, while investors from around the globe seeking the most convenient platforms with access to trade. Among the market proposals, there is a huge number of brokerage firms while some of the companies are regulated, means hold a license or authorized by the industry regulator and some companies are not regulated by any or are just licensed by offshore.

The whole concept of regulation is the client’s protection, which ensures the safe trading environment and investment itself. The regulated brokers have to comply with various rules and criteria set by the recognized international authority with the purpose to provide secure trading and remain licensed. In addition, authorities protecting clients by the compensation schemes that recover the client’s investment in case of the company insolvency. And of course, the regulatory body overseeing constantly how exactly the broker delivers its operation to the clients thus can detect if the things going wrong and take necessary action.

Thereof, there are a few reasons why the Brokerage House may decide not to be regulated:

  • Either the company saving operational cost since the licensing requires strict capital maintenance, follow of best practices, protective measures and so, which can be very costly.
  • Alternatively, the company might be a deceptive Broker with allegedly professional services seeking the frauds.
  • Most often the new brokers choosing to provide their service under the offshore licenses that brings partition regulation and saves total provisional cost yet does not bring the necessary protective guarantees.

Security of funds is always first in forex trading. Therefore, we always recommend and it is better to choose a Regulated Forex Broker, thus open an account with proper security of investments and follow of protective guidelines. The following list of brokers are Unregulated Brokers Reviews or the Brokers to Avoid companies, which we do not recommend trading with, due to their unlicensed operations.

Broker Reason

www.kronosinvest.com

Kronosinvest
No license Kronosinvest Review

www.binomo.com

Binomo
Offshore license Binomo Review

www.circleforex.com

Circleforex
No license Circleforex Review

www.firstbtcfx.com

First BTC FX
No license First BTC FX Review

www.essencefx.com

EssenceFX
Offshore license EssenceFX Review

www.evisionfx.com

EvisionFX
No license EvisionFX Review

www.rickglobal.com

RickGlobal
Offshore license RickGlobal Review

www.rcmfx.com

RCM FX
Offshore license RCM FX Review

www.247smartfx.com

247SmartFx
No license 247SmartFx Review

www.traderia.com

Traderia
Offshore license Traderia Review