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 Listed Date KayaFX No license Tuesday March 19th, 2019 KayaFX Review PTBanc Offshore license Sunday March 17th, 2019 PTBanc Review Millennium FX Offshore license Wednesday March 13th, 2019 Millennium FX Review Kapitalfx No license Wednesday March 13th, 2019 Kapitalfx Review PRIMEXQ No license Sunday March 10th, 2019 PRIMEXQ Review Obsbit Offshore license Friday March 8th, 2019 Obsbit Review SwiftCFD Offshore license Thursday March 7th, 2019 SwiftCFD Review BlueMax Capital Offshore license Monday March 4th, 2019 BlueMax Capital Review ItradeFXoption No license Friday March 1st, 2019 ItradeFXoption Review 70Trades Offshore license Thursday February 28th, 2019 70Trades Review