Unauthorised and scam brokers are more common than you might think, and they are often very convincing. Traders can get taken in because the platforms are often very professional and may brazenly state that they are licensed and authorised, even though they aren’t.
Scam brokers are those who are deliberately trying to defraud traders, whereas unauthorised brokers may not be. It is however, always advisable to avoid brokers who are not authorised by reputable governing bodies, such as the Financial Conduct Authority (FCA). They may be based offshore and offer little or no protection for clients and their funds. If an unauthorised broker disappears while owing you money, there is usually little you can do about it. Check out our list of some of the latest unauthorised and scam brokers.
Unauthorised and Scam Forex Brokers for March 2023
NEOINVESTMENTX
This firm claims to be based in Australia but is offering financial services in the UK. However, the FCA claims it is not authorised to operate in the UK. The firm is using the domain www.neoinvestmentx.com.
FX Revenues
This firm is targeting investors in the UK but is not registered to trade in the UK and is not regulated by the FCA. The firm claims to be based in St Vincent and The Grenadines, so may be an offshore, unauthorised brokerage. However, such brokerages should generally be avoided, especially by less experienced traders.
Royal Kings International
There are a number of red flags with this broker, including its contact information which seems to consist of a mobile number and a generic free email address. It is not authorised by the FCA, and seems to be targeting users on social media such as TikTok and Instagram, with the username @royalkingsint.
CFDConsulting Capital UK Ltd / CFD Trades (Clone of FCA Authorised Firm)
Clone firms can be very convincing as they copy other legitimate broker sites to convince traders to invest with them, changing just a few details such as the website address and contact details. In this case, the cloned site is using a few different domains such as www.cfdconsulting.co and www.cfdtrades.co, whereas the legitimate site uses http://www.tradecapitaluk.com.
Destination Global Corp Ltd
The FCA has confirmed that this firm is not authorised or licensed to provide services in the UK, but it is targeting UK traders. It is using the web domain https://destinationglobalcorpltd.co.uk and the email address [email protected]
MT5-PRO (Clone of FCA Authorised Firm)
This is another clone of a legitimate firm, but the FCA has stated that the regulated firm has no association with the clone firm, which is using the domain name www.mt5-pro.com. The legitimate firm operates from http://www.trading.com/uk/ according to the FCA.
AXI Corp Limited (Clone of FCA authorised firm)
AXI Corp Limited appears to be imitating the FCA-regulated AXI Financial Services (UK) Limited, which is a legitimate firm. The clone firm is giving its contact details out as the email addresses [email protected] and [email protected]
Empower Financial Services, Inc / Financial Solutions CP (Clone of FCA authorised firm)
Yet another clone of an authorised firm, this scam site is using various email addresses ending in financialsolutioncp.com. The FCA-authorised firm that the fraudsters are claiming to work for is CPS Financial Solutions Ltd, which has confirmed it has no association with the clone firm.
Brookway Loans Ltd
The FCA has confirmed that this site is targeting people in the UK but is not authorised or regulated by them. The domain being used the somewhat suspicious looking https://www.brookwayltd.co.uk/index-2.html.
BLENDFX TRADE
This firm is targeting UK investors but has no UK license and no authorisation to operate within the country. It is operating from the domain www.blendfxtrade.com using the email address [email protected]
If you have dealt with, or invested with, any of the above firms you can check out their details on the FCA website. Remember that not all unauthorised firms are deliberate fraudsters, but many are. If you suspect a firm is a scam, you can search the FCA list of known unauthorised firms to see if it is on there and report your suspicions to the FCA. If the firm claims to be regulated by a different regulator, such as CySEC (who regulate brokers throughout the EU) you can search their site too.
How to Avoid Scam Forex Brokers
There are plenty of reputable brokers to choose from, but sometimes the fraudulent ones appear to be legitimate and professional, so how can you spot a scam broker?
Start by checking that the broker really is regulated by a trusted authority. Do not take their word for it. Any broker can claim to be registered with a governing body and even make up a registration number. Go directly to the website of the regulator that the broker claims to be licensed by and check that they are listed there, with all the correct contact details and the exact same domain name. You can also check industry reviews from trustworthy sources, and customer reviews and testimonials (although be aware that these can be easily faked online).
Be wary if a broker approaches you on random social media platforms or in online investing forums, especially those aimed at beginners. It is a red flag if someone is pressuring you to invest quickly, or to invest more than you can afford. Scam brokers also often ask you for more money under the guise of fees or admin costs when you want to withdraw money, and offer incentives to sign up with them. They may also make unrealistic promises, including large or guaranteed returns. Legitimate brokers will warn you that trading carries inherent risk and that investments can go down as well as up.
Safe Forex Brokers
We’ve reviewed a range of forex brokers so you don’t have to. We suggest you only use forex brokers from our regularly updated list of safe, regulated brokers.
– Flexible leverage up to 500:1 – Ultra – fast execution from 0.1s – 40% New Member Bonus – FCA, ASIC, CySEC Regulated. – Regulated broker – Regulatory compliance is under the auspices of the FCA in the UK, the SFC in Hong Kong, the DFSA in Dubai, and by way of the MiFID for the European Union. – FCA, NFA, CFTC, IIRO, FSA, CIMA, MAS, SFC Regulated. – 50 Euros minimum deposit
Broker
Features Min Deposit EURUSD Spread
Your capital is at risk
US Clients: No Regulated : Yes
– Multi award-winning New Zealand broker
– Institutional-grade spreads from 0.1 pips$200 From 0.1
73 % of retail CFD accounts lose money
US Clients: No Regulated : Yes
– Low spreads from 0.0 pups
– All trading strategies allowed
– No restrictions on profitability
– Top trading conditions$100 from 0.0 pips
Your capital is at risk
US Clients: No Regulated : Yes
– MIFID, ASIC, FSA & FSCA regulated
– Free Online Trading Coach$100 Fixed
79 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
US Clients: No Regulated : Yes
– Multi Asset Trading Platform.
– No Time Frame For Demo Accounts.
– the provider offers CFD trading only100GBP/AUD/EUR/USD variable
Your capital is at risk
US Clients: No Regulated : Yes
$50 from 0
Your capital is at risk
US Clients: No Regulated : Yes
$200 From 0.1 pips
Your capital is at risk
US Clients: No Regulated : Yes
$500 From 0.6 pips
Between 74-89 % of retail investor accounts lose money when trading CFDs
US Clients: No Regulated : Yes
$200 NDD 0.09 / Standard 0.69
Your capital is at risk
US Clients: No Regulated : Yes
$25 From 0.4 pips
67% of CFD traders lose
US Clients: Yes (eToro USA) Regulated : Yes
$200 from 1
Your capital is at risk
US Clients: Regulated : Yes
$100
Your capital is at risk
US Clients: No Regulated : Yes
Pros:
Cons:
Market-leading regulatory framework
Minimum balance requirements
Trader focused site design
Not available in some countries
Track record of over 20 years
Reliable and cost-effective trading platform
Extensive range of markets on offer
1000 EUR Bank: 1.1 EU traders: 1
Your capital is at risk
US Clients: No Regulated : Yes
No minimum deposit From 0.0 pips
Your capital is at risk
US Clients: No Regulated : Yes
$450 From 0.0 pips
77% of retail CFD accounts lose money
US Clients: Yes Regulated : Yes
None from 1.2
Your capital is at risk
US Clients: No Regulated : Yes
– Only $50 min. deposit
– Wide range of Trading Instruments
– MT4, MT5 and Web Trader Platforms
– 24/5 technical support
– Use ECN technologies$50 From 1 pips
Your capital is at risk
US Clients: No Regulated : Yes
– Up to $5,000 Welcome Bonus (T&C apply) Applicable only for HYCM Limited$20 1.8 pips
Your capital is at risk
US Clients: No Regulated : Yes
Starting from $10 on Standard and $200 on Professional accounts As low as 0 on Raw Spread and Zero accounts
75% of clients lose money. Capital at risk
US Clients: No Regulated : Yes
– Award winning platform.
– Beginner Friendly.
– Well established, safe and trusted.£100 Varied
71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
US Clients: No Regulated : Yes
– State of the art platform
– 24/7 support in more than 17 languages
– Free demo account20 Euros Varies
Your capital is at risk
US Clients: No Regulated : Yes
Your capital is at risk
US Clients: No Regulated : Yes
$100 From 0.0 pips
Your capital is at risk
US Clients: No Regulated : Yes
$200 From 0.0 Pips
Your capital is at risk
US Clients: No Regulated : Yes
10€ / $ / £ (depends on account type and region) 1.2 pips
You are now better equipped to spot a scam broker, or an unauthorised one. Just be aware that fraudsters can be clever and will often appear very plausible. Always double-check brokers by searching for them on the site of the regulator they say they are licensed by, and make sure all their details match up.
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Safest Forex Brokers 2023
Broker | Info | Best In | Customer Satisfaction Score | ||
---|---|---|---|---|---|
#1 |
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Globally regulated broker |
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BEST CUSTOMER SUPPORT
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#2 |
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Global Forex Broker |
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BEST SPREADS
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#3 |
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Global Forex & CFD Broker |
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Best Trading Conditions
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#4 |
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Global CFD & FX Broker |
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ALL-INCLUSIVE TRADING PLATFORM
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#5 |
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Global CFD Provider |
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Best Trading App
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Forex Fraud Certified Brokers
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