CYSEC HAS WARNED UNREGULATED FOREX BROKERS

The Cypriot government found a lot of unlicensed service providers. Their domains have been put on a blacklist because they let people trade online without being allowed to do so in the country.

CySEC also sounded the alarm when it found scams that used the trademarks of real FX brokers without their permission. One Capital Invest and Robotics Forex seem to be another example of a scam in which an unauthorized company uses the name of a legal company without permission to trick traders into thinking it is a real business.

The Cyprus Securities and Exchange Commission said that some of these illegal brokers were just new versions of companies that had already shut down, while others lied and said they were connected to other brokers who are currently regulated in Cyprus and have the CIF License. The following domains have been banned by the watchdog:

• www.rcebanque.com

• www.winnexconsulting.com

• www.roboticsforex.com

• www.goldenburgfunds.com

• www.onecapitalinvest.co

CySEC says very clearly that these businesses do not have a license to do brokerage business in Cyprus and are not part of a regulated group.

Also, it tells customers that the Investor Compensation Fund (ICF) won't help them if they lose money on an unlicensed site. This protects the claims of insured customers and pays them if a member can't meet their financial obligations.

Even though many companies say they are based in Cyprus, CySEC said it used to think they were based elsewhere and gave them fake addresses. If companies were really based in the country, CySEC would consider taking more action. It goes on to say that the operators of the platforms are often hard to find on their websites and that the places they say are their headquarters are often “letterbox” addresses in other countries.

Under existing legislation, CySEC has no authority to compel internet service providers to deny financial ads or limit access to their domains. It may only request that they remove false promotions after they have been identified. So, people who try to scam people or sell high-risk schemes can now post ads saying they are from or licensed in Cyprus.

Contents

01

How to avoid signing up with an unregulated broker

02

Here's how to use the WikiFX App to check if a certain broker is regulated or not.

How to avoid signing up with an unregulated broker

Forex trading deals with a huge amount of money to be able to get good returns, which is why a lot of Forex brokers are in the business. Investors can be drawn to deals without knowing whether or not the broker is regulated. Financial regulators strictly prohibit unregulated brokers to help investors avoid being scammed. WikiFX is one of the reliable forex tools you can use to check how a forex broker is regulated. It has over 40,000 brokers listed, both regulated and unregulated. It has also been working with 30 financial regulators from around the world to fix any problems with trading.

Here's how to use the WikiFX App to check if a certain broker is regulated or not.

First: Open the WikiFX App through your browser. Type www.wikifx.com or you may also download the app from the App Store or Google Play Store and install it on your phone to access the mobile app.

Second: In the search bar of the WikiFX App, you should be able to see the search bar at the upper part of the screen. Type the name of the broker, e.g., Winnex Consulting, and hit enter.

Third: Then, expect a lot of results to appear, including cloned websites.

Fourth: Select the right broker, as you may determine it by their official web address.

Fifth: After clicking on the right broker, you should see all the information you need, including complaints from its traders and reviews as well. You should be able to see their offices based on their addresses if it's true, and you should be able to see their licenses or regulatory bodies.

If you need support, you may reach out to WikiFX Support via the details below.

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