If you trade forex, you must ensure that the brokers you choose are honest and reputable. Even if most forex brokers are trustworthy, some are real fraudsters. So before you start trading, it is essential o know how to spot and stay away from less reputable brokers.
Therefore, preventing broker fraud should be a major concern for forex traders. See our list of fraud forex brokers to stay away from. All of these brokers are unreliable for several reasons.
Top 5 Fraud Forex Brokers In Europe
The brokerage company BY Trading, which was founded in Wien, Austria, states that it offers trading services to more than 15 different countries. To institutional and professional traders, the firm provides trading services with a focus on commodities, stocks, options, futures, currency, bonds, and CFDs.
However, By Trading is not regulated; therefore, trading with it is NOT SAFE. Since the broker is not controlled by a reputable agency, trading with this broker involves taking a financial risk.
While the warning to investors was given and followed by other authorities within the EU to propagate the information, the BY Trading company grabbed the attention of the recognized FMA authority.
GFCInvestment is a forex and CFD broker that offers a range of currencies, as well as CFDs on equities, indices, commodities, and cryptocurrencies. It is one of those offshore registered brokers that appear to be providing its services without a license or regulation. Therefore, trading with GFCInvestment is not secure.
DARTALON LTD., an offshore organization registered with St. Vincent and Grenadine registration, is the owner of GFCInvestment. The rules and regulations of St. Vincent and the Grenadines are under scanner for being essentially offshore regulators.
Ocean Markets claim to be a growing broker in the international trading industry. They brag about giving clients the greatest trading and investing conditions as well as the most recent news on political and economic developments. Customers of Ocean Markets have access to CFD, Forex, commodities, indices, and other assets.
In reality, Ocean Markets is a scam broker, as we didn’t find any information on the broker’s license or rules.
It is stated on the Ocean Markets website that Valep Ltd., Marshal Islands, is the company that owns and runs the business. However, the contact number is British, which raises doubts.
Europe Forex Invest
Europe Forex Invest helps institutional and ordinary investors reach their financial goals by offering forex and other instruments. The broker asserts that it provides good trading platforms with access to affordable pricing, dependable infrastructure for buying and selling, quick execution, and excellent customer service.
However, because Europe Forex Invest is an offshore firm, trading with them is unsafe. Terratech Ltd, a Marshell Island-based company. owns and runs the platform – Europe Forex Invest. In actuality, the Marshall Islands is an offshore zone that draws several businesses looking to avoid strict regulation or conformity with international service standards for one reason or another.
Royal GTX was established in 2010 and positions itself as a global leader in online trading, delivering all available possibilities in the financial markets to traders. The broker offers unrestricted, cost-free access to the MT4 platform. They provide every market in FX, indices, commodities, shares, and cryptocurrencies, and they specialize in leveraged Forex trading.
In terms of regulations, because Royal GTX is unregulated, trading with them is not safe. The broker does not give any regulatory information, the name of the firm that runs it, or any contact information. As required by law, regulated businesses make all of their information accessible to their customers. It is clear that Royal GTX lacks any rules or oversight.
As we are concluding this article, the only piece of advice to share here is that all traders and investors should steer clear of these illegitimate brokers. The most cautionary sign for people who intend to invest with the broker should be the lack of information regarding its regulations, trading terms, and contact information. These businesses frequently engage in investment fraud. Investors should trade with reputable brokers like Capitalix or ABInvesting, as well as brokers who operate under strict regulations, such as those in the UK or Australia.