List of Forex Brokers (Scam) Based on Regulator Statement
Forex trading world seemed to be haunted by cases of forex brokers fraudsters (scam) who ran funds of traders and investors without clear accountability. The numbers are enormous throughout the world, although regulatory agencies of each country have taken steps to monitor and hamper their development.
Most victims are beginner traders who do not understand how to choose a good broker, although experienced traders can also be trapped in forex cases similar fraudsters.
There are several reasons why many people can get stuck. First, the lack of knowledge and interest in choosing a broker with bona fide regulation due to the complexity of registration requirements. Secondly, the lure of greater profits that “he said” can be given by forex broker fraudsters. Third, crosscheck capabilities and cross-country data updates are minimal among Indonesian citizens, so vulnerable to being cheated by brokers domiciled abroad.
Lack of information about forex broker fraud brokers also often cause many people choose a broker who actually has been declared a fraud (scam) by the regulator in his place domiciled. There are 3 criteria to compile a list of forex swindler brokers, among others:
The related company has operated as a regulated forex broker for at least a year.
There was a case of failing withdraw at all for no apparent and proven reason.
The regulator in the country where the broker is domiciled or registered beforehand has declared that the company that overshadows the broker is not regulated, its license is revoked, and or has committed a gross violation.
Anywhere a forex broker fraud that matches the above criteria? Check out the following list:
Broker 4XP, aka Forex Place
This fraudulent forex broker is worth mentioning as “walled face”. While still operational, he claimed to be regulated on the British Virgin Island where he was domiciled since his establishment in 2009, and has been part of Russia’s self-regulatory body FMRRC. Not enough that alone, 4XP boasted about taking care of licensing at FCA UK and ASIC Australia.
In 2013, his deception was uncovered. FMRRC declared its license revoked, while the FSC BVI regulator stated that 4XP was never regulated there. Finally, the 4XP broker closed in early 2014 and now the www [dot] 4xp [dot] com page is no longer online.
The SkyFX broker was founded in 2011. The shelter company, Trademarker Ltd, has previously bagged CySEC Cyprus regulations. However, it did not take long before the problem after issue surfaced.
First-class affairs are relationships with affected IBs and affiliates because URLs and codes from SkyFX are repeatedly changed and often can not be used appropriately. As a result, many IBs and affiliates cut off relationships. Shortly thereafter, in April 2016, CySEC announced the withdrawal of a business license, as its owner, Aviv Talmor, was involved with illegal acts and banned in his home country, Israel. Inevitably, SkyFX was forced to fold and offline the site.
Masterforex, or MFX Broker
The MFX Broker scam case may be one of the largest in Indonesia. This broker was originally established in 2006 under the name Masterforex and armed with a license from IFSC Belize, but then rebranding to MFX Broker without renewing its license. Before and after rebranding, MFX Brokers are highly favored by Indonesian traders until IB is scattered in every big city.
However, after the rebranding, a number of corporate maneuvers appear suspicious. Starting from the IFSC Belize licensing case which is continuously claimed “is still in process”, until the launch of MFX Capital program promising fixed return in tens to hundreds of percent per year starting early 2015. A year later, IBs and traders are no longer paid, IFSC Belize said the permit had been completely revoked, then it was a scam that shocked the universe. Victims of forex broker brokers are not only from Indonesia, but from around the world. When this article is written, the mfxbroker [dot] com site no longer operates as a forex brokerage page.
The Forex Metal Broker has been in operation since 2007. The company is registered in Panama and was regulated under IFSC Belize. For some time, this broker had become one of the traders choice, but starting around mid-2014, various complaints failed to withdraw. The license at IFSC Belize also can no longer be confirmed. Then the ForexPeaceArmy forum also states that the allegation of a scam over Forex Metal has been confirmed.
In mid 2016, the site Forex-Metal [dot] com is offline. However, recently found a site with URL www [dot] forexmetal [dot] co [dot] in and similar logos (just different colors) that operate using Forex Metal label and quotes address in Malta.
IronFX name was booming around the year 2013-2014 thanks to promotional activities are bombastic and not half-hearted, including bringing traders into space and give luxury holiday gifts in Dubai. To support operational legality, IronFX obtains licenses from CySEC Cyprus, FCA UK, and ASIC Australia.
At the beginning of 2015, many complaints from traders in various countries began to arise regarding the difficulty of attracting funds, especially over the CySEC-coded IronFX entity. Even in August 2015, IronFX admitted to having withheld several clients’ withdrawal process, under the pretext of being investigated for misuse of promotional bonuses. In fact, many of the clients who have failed to withdraw funds, did not involve themselves with any promotional activities.
CySEC Cyprus investigates these cases for alleged mismanagement of promotional and bonus programs. After that, CySEC imposed a fine on IronFX as proven guilty, but without revoking its license. At the same time, rumors circulated that the fine only served a kind of settlement (“peace money”) just so that his permission is not revoked, while the fate of client funds remains unknown juntrungannya. The CySEC leadership even indicated the inability to force IronFX to compensate its clients, thus deciding to curb the broker’s promotional program in general.
Shortly thereafter, IronFX attempted to “wash” its entities in Britain and Australia that did not engage in this scandal by changing the names of its subsidiaries domiciled there. IronFX UK and IronFX AU changed brands to FXGiants. Currently, both IronFX and FXGiants sites are still actively providing forex and CFD trading services. A number of new traders who become their clients reportedly did not experience significant constraints, but the case with the old failing failure, is still not resolved.
To tell you the truth, we are wondering whether to include the IronFX name here. However, given the amount of losses trader in the past that has not been paid, then we decided to include it.
Such is the list of some forex swindler brokers based on their respective regulator statements. Is this just a scam case? certainly not. In addition, there are many other forex fraud scams, such as Money Game under the guise of forex brokers, cloning brokerage sites that claim to be official entities, phishing emails disguised as broker notifications, or unregulated sites that steal trader funds. Stay alert! Remember that evil happens not only because of the intent of the perpetrator, but also because there is a chance.